Act No. 746

Public Acts of 2002

Approved by the Governor*

December 30, 2002

Filed with the Secretary of State

December 30, 2002

EFFECTIVE DATE: December 30, 2002

Page 1 of 2

*Item Vetoes

Sec. 152.

(2) STATE AGENCY, COMMUNITY COLLEGE, AND UNIVERSITY
PLANNING PROJECTS

Alpena Community College ­ instructional addition/renovation
project, for program and planning to be paid for from college
revenues $ 100 (Page 4)

Bay de Noc Community College ­ Dickinson County facility,
for program and planning to be paid for from college revenues $ 100 (Page 4)

Delta College ­ allied health and nursing "F" wing renovations,
for program and planning to be paid for from college revenues $ 100 (Page 4)

Grand Rapids Community College ­ campus renovations,
for program and planning to be paid for from college revenues $ 100 (Page 4)

Jackson Community College ­ new downtown center renovation
project, for program and planning to be paid for from college
revenues $ 100 (Page 4)

Kalamazoo Valley Community College ­ center for new media,
for program and planning to be paid for from college revenues $ 100 (Page 4)

Kellogg Community College ­ Roll building renovations, for
program and planning to be paid for from college revenues $ 100 (Page 4)

Lansing Community College ­ master plan phase I ­ technology
facility, for program and planning to be paid for from college
revenues $ 100 (Page 4)

Muskegon Community College ­ library/technology center
project, for program and planning to be paid for from college
revenues $ 100 (Page 4)

North Central Michigan College ­ university and science center,
for program and planning to be paid for from college revenues $ 100 (Page 4)

Schoolcraft College ­ technical service facility, for program and
planning to be paid for from college revenues $ 100 (Page 4)

Southwestern Michigan College ­ M-Tech center expansion/
Wood building renovation, for program and planning to be paid
for from college revenues $ 100 (Page 4)

Washtenaw Community College ­ renovations and science
laboratory upgrade, for program and planning to be paid for from
college revenues $ 100 (Page 4)

West Shore Community College ­ media center building, for
program and planning to be paid for from college revenues $ 100 (Page 4)

Central Michigan University ­ education building, for program
and planning to be paid for from university revenues $ 100 (Page 5)

Eastern Michigan University ­ Pray-Harrold classroom building
modernization project, for program and planning to be paid for
from university revenues $ 100 (Page 5)

Grand Valley State University ­ library addition and remodeling,
for program and planning to be paid for from university revenues $ 100 (Page 5)

University of Michigan ­ school of public health, for program
and planning to be paid for from university revenues $ 100 (Page 5)

Ferris State University ­ optometry building, for program and
planning to be paid for from university revenues $ 100 (Page 5)

Western Michigan University ­ Sangren hall/education building,
for program and planning to be paid for from university revenues $ 100 (Page 5)

Page 2 of 2

Sec. 157.

(2) MICHIGAN STATE UNIVERSITY

Animal health diagnostic lab $ 700,000 (Page 9)

Agriculture experiment station $ 1,750,000 (Page 9)

Michigan State University extension $ 1,500,000 (Page 9)

Sec. 161.

(2) PAYMENTS IN LIEU OF TAXES

Purchased lands taxes $ 1,897,600 (Page 13)

Sec. 1307.

Entire Section. (Page 18)

Sec. 1314.

Entire Section. (Page 18)

Sec. 1450.

Entire Section. (Page 20)

STATE OF MICHIGAN

91ST LEGISLATURE

REGULAR SESSION OF 2002

Introduced by Rep. Shulman

ENROLLED HOUSE BILL No. 5705

AN ACT to make, supplement, and adjust appropriations for various state departments and agencies for the fiscal year ending September 30, 2002 and the fiscal year ending September 30, 2003; to provide for the expenditure of the appropriations; and to repeal acts and parts of acts.

The People of the State of Michigan enact:

PART 1

LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2001-2002

Sec. 101. There is appropriated for the various state departments and agencies to supplement appropriations for the fiscal year ending September 30, 2002, from the following funds:

APPROPRIATION SUMMARY:

GROSS APPROPRIATION $ 19,212,200

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 19,212,200

Federal revenues:

Total federal revenues 9,000,000

Special revenue funds:

Total local revenues (800,000)

Total private revenues 0

Total other state restricted revenues 19,481,400

State general fund/general purpose $ (8,469,200)

Sec. 102. CAPITAL OUTLAY

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 0

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 0

Total federal revenues $ 0

Total local revenues 0

Total private revenues 0

Total state restricted revenues 9,600,000

State general fund/general purpose $ (9,600,000)

(2) DEPARTMENT OF TRANSPORTATION

AERONAUTICS FUND: AIRPORT PROGRAMS

Airport safety and protection plan $ 0


GROSS APPROPRIATION $ 0

Appropriated from:

Special revenue funds:

Comprehensive transportation fund 9,600,000

State general fund/general purpose $ (9,600,000)

Sec. 103. COMMUNITY COLLEGES

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ (1,655,200)

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ (1,655,200)

Total federal revenues 0

Total local revenues 0

Total private revenues 0

Total state restricted revenues (1,655,200)

State general fund/general purpose $ 0

(2) FINANCIAL AID

Postsecondary access student scholarship program $ (1,655,200)


GROSS APPROPRIATION $ (1,655,200)

Appropriated from:

Special revenue funds:

Michigan merit award trust fund (1,655,200)

State general fund/general purpose $ 0

Sec. 104. DEPARTMENT OF COMMUNITY HEALTH

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 0

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 0

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues (800,000)

Total private revenues 0

Total other state restricted revenues 800,000

State general fund/general purpose $ 0

(2) MEDICAL SERVICES

Wayne County medical program $ 0

GROSS APPROPRIATION $ 0

Appropriated from:

Special revenue funds:

Total local revenues (800,000)

Total other state restricted revenues 800,000

State general fund/general purpose $ 0

Sec. 105. DEPARTMENT OF EDUCATION

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 1,130,800

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers $ 0

ADJUSTED GROSS APPROPRIATION $ 1,130,800

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 0

State general fund/general purpose $ 1,130,800

(2) GRANTS AND DISTRIBUTIONS

STATE PROGRAMS:

School breakfast programs $ 1,130,800


GROSS APPROPRIATION $ 1,130,800

Appropriated from:

State general fund/general purpose $ 1,130,800

Sec. 106. FAMILY INDEPENDENCE AGENCY

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 9,000,000

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 9,000,000

Federal revenues:

Total federal revenues 9,000,000

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 0

State general fund/general purpose $ 0

(2) PUBLIC ASSISTANCE

Homestead property tax credit for low-income families $ 9,000,000


GROSS APPROPRIATION $ 9,000,000

Appropriated from:

Federal revenues:

Total federal revenues 9,000,000

Special revenue funds:

State general fund/general purpose $ 0

Sec. 107. HIGHER EDUCATION

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 10,736,600

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 10,736,600

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 10,736,600

State general fund/general purpose $ 0

(2) GRANTS AND FINANCIAL AID

Tuition grants $ 1,655,200

Michigan merit award program 9,081,400


GROSS APPROPRIATION $ 10,736,600

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 10,736,600

State general fund/general purpose $ 0

PART 1A

LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2002-2003

Sec. 151. There is appropriated for the various state departments and agencies to supplement appropriations for the fiscal year ending September 30, 2003, from the following funds:

APPROPRIATION SUMMARY:

GROSS APPROPRIATION $ 117,767,235

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 117,767,235

Federal revenues:

Total federal revenues 52,335,100

Special revenue funds:

Total local revenues (6,100,000)

Total private revenues 0

Total other state restricted revenues 111,498,834

State general fund/general purpose $ (39,966,699)

Sec. 152. CAPITAL OUTLAY

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 47,605,400

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 47,605,400

Total federal revenues 22,350,000

Total local revenues 0

Total private revenues 0

Total state restricted revenues 25,253,400

State general fund/general purpose $ 2,000

(2) STATE AGENCY, COMMUNITY COLLEGE, AND UNIVERSITY PLANNING

PROJECTS

Alpena Community College - instructional addition/renovation project, for program and planning to be paid for from college revenues $ 100

Bay de Noc Community College - Dickinson County facility, for program and planning to be paid for from college revenues 100

Delta College - allied health and nursing "F" wing renovations, for program and planning to be paid for from college revenues 100

Grand Rapids Community College - campus renovations, for program and planning to be paid for from college revenues 100

Jackson Community College - new downtown center renovation project, for program and planning to be paid for from college revenues 100

Kalamazoo Valley Community College - center for new media, for program and planning to be paid for from college revenues 100

Kellogg Community College - Roll building renovations, for program and planning to be paid for from college revenues 100

Lansing Community College - master plan phase I - technology facility, for program and planning to be paid for from college revenues 100

Muskegon Community College - library/technology center project, for program and planning to be paid for from college revenues 100

North Central Michigan College - university and science center, for program and planning to be paid for from college revenues 100

Schoolcraft College - technical service facility, for program and planning to be paid for from college revenues 100

Southwestern Michigan College - M-Tech center expansion/Wood building renovation, for program and planning to be paid for from college revenues 100

Washtenaw Community College - renovations and science laboratory upgrade, for program and planning to be paid for from college revenues 100

West Shore Community College - media center building, for program and planning to be paid for from college revenues 100

Central Michigan University - education building, for program and planning to be paid for from university revenues $ 100

Eastern Michigan University - Pray-Harrold classroom building modernization project, for program and planning to be paid for from university revenues 100

Grand Valley State University - library addition and remodeling - for program and planning to be paid for from university revenues 100

University of Michigan - school of public health, for program and planning to be paid for from university revenues 100

Ferris State University - optometry building, for program and planning to be paid for from university revenues 100

Western Michigan University - Sangren hall/education building, for program
and planning to be paid for from university revenues 100


GROSS APPROPRIATION $ 2,000

Appropriated from:

State general fund/general purpose $ 2,000

(3) DEPARTMENT OF MILITARY AFFAIRS

Lump sum projects:

For department of military affairs remodeling and additions and special maintenance projects $ 4,100,000

Lansing readiness center, for design and construction (total authorized cost $19,000,000;

federal share $18,250,000; state armory construction fund share $750,000) 19,000,000


GROSS APPROPRIATION $ 23,100,000

Appropriated from:

Federal revenues:

DOD, department of the army, national guard bureau $ 22,350,000

Armory construction fund 750,000

State general fund/general purpose $ 0

(4) DEPARTMENT OF NATURAL RESOURCES

(a) STATE PARKS

State park infrastructure improvements $ 5,200,000


GROSS APPROPRIATION $ 5,200,000

Appropriated from:

Special revenue funds:

State park endowment fund 5,200,000

State general fund/general purpose $ 0

(b) WATERWAYS BOATING PROGRAM

Boating program, state boating access sites:

Monroe County, Monroe, Bolles boating access site improvements (total project cost $475,000,

state share $475,000) $ 475,000

Boating program, harbors and docks, state facilities:

Mackinac Island, marina expansion (total project cost $11,025,000, state share $11,025,000) (9,025,000)

Monroe County, Monroe, Bolles harbor, marina expansion and improvements (total project

cost $3,750,000, state share $3,750,000) 3,750,000

Boating program, harbors and docks, local facilities:

Muskegon County, Muskegon, marina rehabilitation and upgrades (total project cost

$2,000,000, state share $1,000,000) 1,000,000


GROSS APPROPRIATION $ (3,800,000)

Appropriated from:

Special revenue funds:

Michigan state waterways fund (3,800,000)

State general fund/general purpose $ 0

(5) MICHIGAN NATURAL RESOURCES TRUST FUND

Natural resources trust fund projects $ 23,103,400


Michigan natural resources trust fund acquisition projects (by priority):

1. Tip of the Keweenaw acquisition - phase II, Keweenaw County (#02-187)

2. Acquire Houghmaster property, Alpena County (grant-in-aid to Alpena Township) (#02-128)

3. Acquisition of deeryards, Menominee and Dickinson counties (#02-201)

4. Addition to Dolph nature area, Washtenaw County (grant-in-aid to city of Ann Arbor) (#02-113)

5. Berberian property acquisition, Oakland County (grant-in-aid to city of Southfield) (#02-148)

6. Dowagiac River access acquisition, Cass County (#02-178)

7. Boardman nature education reserve expansion, Grand Traverse County (grant-in-aid to
Garfield Township) (#02-220)

8. Oakland Township Lost Lake park acquisition, Oakland County (grant-in-aid to Oakland
Township) (#02-013)

9. Resort bluffs, Emmet County (grant-in-aid to Emmet County) (#02-026)

10. Kamehameha trust land acquisition - phase I, Chippewa, Luce, Schoolcraft, Alger, Marquette,
Baraga, Houghton, Ontonagon, and Gogebic counties (#02-219)

11. Denison tract acquisition - phase I, Allegan County (#02-218)

12. Acquisition on Mackinac Island, Mackinac County (grant-in-aid to Mackinac Island park
commission) (#02-204)

13. Riverside park acquisition, Osceola County (grant-in-aid to city of Evart) (#02-028)

14. Elk view acquisition, Otsego County (grant-in-aid to city of Gaylord) (#02-083)

15. Mecosta Township park acquisition, Mecosta County (grant-in-aid to Mecosta Township)
(#02-212)

16. Township park expansion, Saginaw County (grant-in-aid to Kochville Township) (#02-019)

17. Flat River trail acquisitions, Montcalm County (grant-in-aid to city of Greenville) (#02-133)

GROSS APPROPRIATION $ 23,103,400

Appropriated from:

Special revenue funds:

Michigan natural resources trust fund 23,103,400

State general fund/general purpose $ 0

Sec. 153. COMMUNITY COLLEGES

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 2,157,183

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 2,157,183

Total federal revenues 0

Total local revenues 0

Total private revenues 0

Total state restricted revenues 1,595,982

State general fund/general purpose $ 561,201

(2) GRANTS

Renaissance zone tax reimbursement funding $ 561,200

At-risk student success program 18,461


GROSS APPROPRIATION $ 579,661

Appropriated from:

Special revenue funds:

Michigan merit award trust fund $ 18,461

State general fund/general purpose $ 561,200

(3) OPERATIONS

Alpena Community College $ 26,560

Bay de Noc Community College 25,650

Delta College 74,069

Glen Oaks Community College 12,428

Gogebic Community College 21,826

Grand Rapids Community College 93,167

Henry Ford Community College 113,542

Jackson Community College 62,852

Kalamazoo Valley Community College 64,130

Kellogg Community College 50,385

Kirtland Community College 15,292

Lake Michigan College 27,117

Lansing Community College 161,115

Macomb Community College 171,905

Mid Michigan Community College $ 22,932

Monroe County Community College 22,311

Montcalm Community College 16,138

C. S. Mott Community College 81,457

Muskegon Community College 46,356

North Central Michigan College 15,701

Northwestern Michigan College 47,301

Oakland Community College 108,440

St. Clair County Community College 36,323

Schoolcraft College 63,644

Southwestern Michigan College 34,164

Washtenaw Community College 64,686

Wayne County Community College 86,119

West Shore Community College 11,912


GROSS APPROPRIATION $ 1,577,522

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 1,577,521

State general fund/general purpose $ 1

Sec. 154. DEPARTMENT OF COMMUNITY HEALTH

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 2,985,100

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 2,985,100

Federal revenues:

Total federal revenues 2,985,100

Special revenue funds:

Total local revenues (6,100,000)

Total private revenues 0

Total other state restricted revenues 30,100,000

State general fund/general purpose $ (24,000,000)

(2) COMMUNITY LIVING, CHILDREN, AND FAMILIES

Local MCH services $ 2,985,100


GROSS APPROPRIATION $ 2,985,100

Appropriated from:

Federal revenues:

Total federal revenues 2,985,100

Special revenue funds:

State general fund/general purpose $ 0

(3) MEDICAL SERVICES

State and local medical programs $ 0


GROSS APPROPRIATION $ 0

Appropriated from:

Special revenue funds:

Total local revenues (6,100,000)

Total other state restricted revenues 30,100,000

State general fund/general purpose $ (24,000,000)

Sec. 155. DEPARTMENT OF EDUCATION

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 1,500,000

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 1,500,000

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues $ 0

Total private revenues 0

Total other state restricted revenues 0

State general fund/general purpose $ 1,500,000

(2) GRANTS AND DISTRIBUTIONS

STATE PROGRAMS:

School breakfast programs $ 1,500,000


GROSS APPROPRIATION $ 1,500,000

Appropriated from:

State general fund/general purpose $ 1,500,000

Sec. 156. DEPARTMENT OF ENVIRONMENTAL QUALITY

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 1,900,000

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 1,900,000

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 1,900,000

State general fund/general purpose $ 0

(2) EXECUTIVE

Office of the Great Lakes $ 400,000


GROSS APPROPRIATION $ 400,000

Appropriated from:

Special revenue funds:

Great Lakes protection fund 400,000

State general fund/general purpose $ 0

(3) ENVIRONMENTAL ASSISTANCE DIVISION

Retired engineers technical assistance program $ 1,500,000


GROSS APPROPRIATION $ 1,500,000

Appropriated from:

Special revenue funds:

Retired engineers technical assistance fund 1,500,000

State general fund/general purpose $ 0

Sec. 156a. FAMILY INDEPENDENCE AGENCY

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 0

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 0

Federal revenues:

Total federal revenues 27,000,000

Special revenue funds:

Total private revenues 0

Total local revenues 0

Total other state restricted revenues 0

State general fund/general purpose $ (27,000,000)

(2) CHILD AND FAMILY SERVICES

Foster care payments $ 0

Wayne County foster care payments 0


GROSS APPROPRIATION $ 0

Appropriated from:

Federal revenues:

Total federal revenues $ 7,000,000

State general fund/general purpose $ (7,000,000)

(3) JUVENILE JUSTICE SERVICES

Child care fund $ 0


GROSS APPROPRIATION $ 0

Appropriated from:

Federal revenues:

Total federal revenues 20,000,000

State general fund/general purpose $ (20,000,000)

Sec. 157. HIGHER EDUCATION

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 13,010,952

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 13,010,952

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 9,060,952

State general fund/general purpose $ 3,950,000

(2) MICHIGAN STATE UNIVERSITY

Animal health diagnostic lab $ 700,000

Agriculture experiment station 1,750,000

Michigan State University extension 1,500,000


GROSS APPROPRIATION $ 3,950,000

Appropriated from:

State general fund/general purpose $ 3,950,000

(3) CENTRAL MICHIGAN UNIVERSITY

Operations $ 450,019


GROSS APPROPRIATION $ 450,019

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 450,019

State general fund/general purpose $ 0

(4) EASTERN MICHIGAN UNIVERSITY

Operations $ 438,186


GROSS APPROPRIATION $ 438,186

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 438,186

State general fund/general purpose $ 0

(5) FERRIS STATE UNIVERSITY

Operations $ 277,602


GROSS APPROPRIATION $ 277,602

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 277,602

State general fund/general purpose $ 0

(6) GRAND VALLEY STATE UNIVERSITY

Operations $ 300,477


GROSS APPROPRIATION $ 300,477

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 300,477

State general fund/general purpose $ 0

(7) LAKE SUPERIOR STATE UNIVERSITY

Operations $ 71,344


GROSS APPROPRIATION $ 71,344

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 71,344

State general fund/general purpose $ 0

(8) MICHIGAN STATE UNIVERSITY

Operations $ 1,629,912


GROSS APPROPRIATION $ 1,629,912

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 1,629,912

State general fund/general purpose $ 0

(9) MICHIGAN TECHNOLOGICAL UNIVERSITY

Operations $ 276,208


GROSS APPROPRIATION $ 276,208

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 276,208

State general fund/general purpose $ 0

(10) NORTHERN MICHIGAN UNIVERSITY

Operations $ 260,065


GROSS APPROPRIATION $ 260,065

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 260,065

State general fund/general purpose $ 0

(11) OAKLAND UNIVERSITY

Operations $ 261,924


GROSS APPROPRIATION $ 261,924

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 261,924

State general fund/general purpose $ 0

(12) SAGINAW VALLEY STATE UNIVERSITY

Operations $ 136,967


GROSS APPROPRIATION $ 136,967

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 136,967

State general fund/general purpose $ 0

(13) UNIVERSITY OF MICHIGAN - ANN ARBOR

Operations $ 1,817,814


GROSS APPROPRIATION $ 1,817,814

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 1,817,814

State general fund/general purpose $ 0

(14) UNIVERSITY OF MICHIGAN - DEARBORN

Operations $ 139,967


GROSS APPROPRIATION $ 139,967

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 139,967

State general fund/general purpose $ 0

(15) UNIVERSITY OF MICHIGAN - FLINT

Operations $ 120,341


GROSS APPROPRIATION $ 120,341

Appropriated from:

Special revenue funds:

Michigan merit award trust fund $ 120,341

State general fund/general purpose $ 0

(16) WAYNE STATE UNIVERSITY

Operations $ 1,268,224


GROSS APPROPRIATION $ 1,268,224

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 1,268,224

State general fund/general purpose $ 0

(17) WESTERN MICHIGAN UNIVERSITY

Operations $ 628,386


GROSS APPROPRIATION $ 628,386

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 628,386

State general fund/general purpose $ 0

(18) STATE AND REGIONAL PROGRAMS

Agricultural experiment station $ 184,244

Cooperative extension service 158,913

Japan center for Michigan universities 1,527

Higher education database modernization and conversion 1,250


GROSS APPROPRIATION $ 345,934

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 345,934

State general fund/general purpose $ 0

(19) MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS PROGRAM

Select student supportive services $ 10,867

Michigan college/university partnership program 3,260

Morris Hood, Jr. educator development program 826


GROSS APPROPRIATION $ 14,953

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 14,953

State general fund/general purpose $ 0

(20) GRANTS AND FINANCIAL AID

State competitive scholarships $ 165,273

Tuition grants 330,501

Michigan work-study program 40,079

Part-time independent student program 14,515

Grant for Michigan resident dental graduates 25,262

Grant for general degree graduates 30,921

Grant for allied health graduates 4,676

Michigan education opportunity grants 11,402


GROSS APPROPRIATION $ 622,629

Appropriated from:

Special revenue funds:

Michigan merit award trust fund 622,629

State general fund/general purpose $ 0

Sec. 158. DEPARTMENT OF HISTORY, ARTS, AND LIBRARIES

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 338,500

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 338,500

Federal revenues:

Total federal revenues $ 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 0

State general fund/general purpose $ 338,500

(2) LIBRARY OF MICHIGAN

Renaissance zone reimbursement $ 338,500


GROSS APPROPRIATION $ 338,500

Appropriated from:

State general fund/general purpose $ 338,500

Sec. 158a. JUDICIARY

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ (2,278,300)

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ (2,278,300)

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 0

State general fund/general purpose $ (2,278,300)

(2) EARLY RETIREMENT AND BUDGETARY SAVINGS

Budgetary savings $ (2,278,300)


GROSS APPROPRIATION $ (2,278,300)

Appropriated from:

State general fund/general purpose $ (2,278,300)

Sec. 158b. LEGISLATURE

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ (1,075,500)

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ (1,075,500)

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 0

State general fund/general purpose $ (1,075,500)

(2) LEGISLATURE

Budgetary savings $ (2,575,500)

House of representatives 1,500,000


GROSS APPROPRIATION $ (1,075,500)

Appropriated from:

State general fund/general purpose $ (1,075,500)

Sec. 159. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 186,000

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 186,000

Federal revenues:

Total federal revenues $ 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 0

State general fund/general purpose $ 186,000

(2) HEADQUARTERS AND ARMORIES

Civil air patrol $ 186,000


GROSS APPROPRIATION $ 186,000

Appropriated from:

State general fund/general purpose $ 186,000

Sec. 161. DEPARTMENT OF NATURAL RESOURCES

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 1,897,600

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 1,897,600

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 1,897,600

State general fund/general purpose $ 0

(2) PAYMENTS IN LIEU OF TAXES

Purchased lands taxes $ 1,897,600


GROSS APPROPRIATION $ 1,897,600

Appropriated from:

Special revenue funds:

Environmental protection fund 1,897,600

State general fund/general purpose $ 0

Sec. 162. DEPARTMENT OF TRANSPORTATION

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 1,690,900

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 1,690,900

Total federal revenues 0

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 1,690,900

State general fund/general purpose $ 0

(2) EXECUTIVE DIRECTION

Asset management council $ 1,690,900


GROSS APPROPRIATION $ 1,690,900

Appropriated from:

Special revenue funds:

Michigan transportation fund 1,690,900

State general fund/general purpose $ 0

Sec. 163. DEPARTMENT OF TREASURY

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 47,849,400

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 47,849,400

Federal revenues:

Total federal revenues $ 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 40,000,000

State general fund/general purpose $ 7,849,400

(2) DEBT SERVICE

Quality of life bond $ 40,000,000


GROSS APPROPRIATION $ 40,000,000

Appropriated from:

Special revenue funds:

Cleanup and redevelopment fund 30,000,000

Environmental response fund 10,000,000

State general fund/general purpose $ 0

(3) GRANTS

Senior citizen cooperative housing tax exemption program $ 1,849,400

Qualified agricultural loan payments 6,000,000


GROSS APPROPRIATION $ 7,849,400

Appropriated from:

Special revenue funds:

State general fund/general purpose $ 7,849,400

PART 2

PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2001-2002

GENERAL SECTIONS


Sec. 201. In accordance with the provisions of section 30 of article IX of the state constitution of 1963, total state spending under part 1 for the fiscal year ending September 30, 2002 is $11,012,200.00 and state appropriations paid to units of local government are $800,000.00.

COMMUNITY HEALTH

Wayne County medical program $ 800,000


Total $ 800,000

Sec. 202. The appropriations made and expenditures authorized under this part and the departments, commissions, boards, offices, and programs for which appropriations are made under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

CAPITAL OUTLAY


Sec. 251. (1) From federal-state-local project appropriations in fiscal year 2001-2002 for the purpose of assisting political entities and subdivisions of this state in the construction and improvement of publicly used airports and landing fields within this state, the department of transportation may permit the award of contracts on behalf of units of local government for the authorized locations not to exceed the indicated amounts, of which the state allocated portion shall not exceed the amount appropriated in fiscal year 2001-2002.

(2) Political entities and subdivisions shall provide not less than 5% of the cost of any project under this section. State money shall not be allocated until local money is allocated, and except as provided in subsection (4), state money for any 1 project shall not exceed 1/3 of the total appropriation from state funds for airport improvement programs.

(3) The Michigan aeronautics commission may take those steps necessary to match federal money available for airport construction and improvement within this state and to meet the matching requirements of the federal government. Whether acting alone or jointly with another political subdivision or public agency or with this state, a political subdivision or public agency of this state shall not submit to any agency of the federal government a project application for airport planning or development unless it is authorized in this act and the project application is approved by the governing body of each political subdivision or public agency making the application, and by the Michigan aeronautics commission.

(4) The department of transportation shall notify the state budget director if additional federal aeronautics funds are anticipated beyond those appropriated in fiscal year 2001-2002. In the event that additional federal funds are available, the state budget director shall recommend to the legislature an appropriation of state and local funds necessary to meet any federal matching requirements.

(5) From appropriations in fiscal year 2001-2002 for airport improvement programs, $20,000,000.00 of comprehensive transportation fund and state general fund appropriations shall be used as state resources for state-funded components of the comprehensive Northwest airlines midfield terminal project, and $1,000,000.00 of the state general fund shall be used for state-funded components of projects at Willow Run airport. The allocation of comprehensive transportation fund and state general fund money is subject to audit by the auditor general.

(6) From the appropriations for airport improvement programs, no funds shall be allocated for any runway extensions, taxiway extensions, or apron extensions at the Detroit-Willow Run airport. Further, it is the intent of the legislature that no state funds shall be expended to improve or repair the airport where the purpose of the improvement or repair is to expand the usage of the airport including, but not limited to, anything approximating a tradeport as that term was defined in former 1994 PA 325.

CONSUMER AND INDUSTRY SERVICES


Sec. 301. From the appropriations in section 107 of 2002 PA 530, the state budget director is authorized to reallocate the federal revenues and contingent fund, penalty and interest account negative appropriation to the following bureau of worker's and unemployment compensation line item appropriations consistent with contingent revenues actually available in those line items:

(a) Unemployment programs.

(b) Advocacy assistance program.

(c) Special audit and collections program.

(d) Training program for agency staff.

(e) Expanded fraud control program.

DEPARTMENT OF TRANSPORTATION


Sec. 501. The rail infrastructure loan program shall provide noninterest-bearing loans for rail infrastructure improvements. The department shall evaluate loan applications according to the relative merit of the project in conjunction with program goals. The transportation commission shall approve the loans. The loans shall fund not less than 90% of the rail portion of project costs, and the loan repayment period shall not exceed 10 years. Local governments, railroads, and current or potential users of freight railroad services are eligible applicants. At the end of the fiscal year 2001-2002, $3,200,000.00 from the rail infrastructure loan program reserved fund balance shall revert to the unreserved balance of the comprehensive transportation fund, and any remaining unexpended funds shall remain in the rail infrastructure loan program and shall be available to be allocated for the purposes of the program in the succeeding fiscal year. Money that is received by this state as repayment for rail infrastructure loans made pursuant to this program shall remain within the rail infrastructure loan program and shall be allocated for the purposes of the program. The state's total contribution to the rail infrastructure loan program shall not exceed $15,000,000.00.

Sec. 502. The department of transportation is authorized to receive billings from the department of state and the department of treasury for their documented costs in the collection of transportation related revenues, and to make payment from the Michigan transportation fund up to an amount not to exceed $40,000,000.00 from the department of state, and not to exceed $8,000,000.00 from the department of treasury, based on allowable expenditures and subject to verification by the department of transportation. The billings from the department of state shall be in addition to the interdepartmental grant appropriations from the Michigan transportation fund in 2001 PA 83.

PART 2A

PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2002-2003

GENERAL SECTIONS


Sec. 1201. In accordance with the provisions of section 30 of article IX of the state constitution of 1963, total state spending under part 1A for the fiscal year ending September 30, 2003 is $71,532,135.00 and state appropriations paid to units of local government are $20,989,083.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:

CAPITAL OUTLAY

Natural resources trust fund grant-in-aid acquisition projects $ 7,646,400

Acquire Houghmaster property, Alpena County (grant-in-aid to Alpena Township) (#02-128)

Addition to Dolph nature area, Washtenaw County (grant-in-aid to city of Ann Arbor)
(#02-113)

Berberian property acquisition, Oakland County (grant-in-aid to city of Southfield) (#02-148)

Boardman nature education reserve expansion, Grand Traverse County (grant-in-aid to
Garfield Township) (#02-220)

Oakland Township Lost Lake park acquisition, Oakland County (grant-in-aid to Oakland
Township) (#02-013)

Resort bluffs, Emmet County (grant-in-aid to Emmet County) (#02-026)

Riverside park acquisition, Osceola County (grant-in-aid to city of Evart) (#02-028)

Elk view acquisition, Otsego County (grant-in-aid to city of Gaylord) (#02-083)

Mecosta Township park acquisition, Mecosta County (grant-in-aid to Mecosta Township)
(#02-212)

Township park expansion, Saginaw County (grant-in-aid to Kochville Township) (#02-019)

Flat River trail acquisitions, Montcalm County (grant-in-aid to city of Greenville) (#02-133)

Boating programs, harbors and docks, local facilities: Muskegon County, Muskegon,
marina rehabilitation and upgrades 1,000,000


Subtotal $ 8,646,400

COMMUNITY COLLEGES

Community college operations $ 1,595,983

Renaissance zone tax reimbursement funding 561,200


Subtotal $ 2,157,183

COMMUNITY HEALTH

MIFamily plan $ 6,100,000


Subtotal $ 6,100,000

HISTORY, ARTS, AND LIBRARIES

Renaissance zone reimbursement $ 338,500


Subtotal $ 338,500

NATURAL RESOURCES

Purchased lands taxes $ 1,897,600


Subtotal $ 1,897,600

TREASURY

Senior citizen cooperative housing tax exemption program $ 1,849,400


Subtotal $ 1,849,400


TOTAL $ 20,989,083

Sec. 1202. The appropriations made and expenditures authorized under this part and the departments, commissions, boards, offices, and programs for which appropriations are made under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

CAPITAL OUTLAY


Sec. 1251. The construction authorization for Mackinac Island marina expansion appropriated in 2002 PA 518 is hereby canceled. Any remaining project balances shall revert to the fund from which originally appropriated.

Sec. 1252. The department of natural resources shall require local units of government to enter into agreements with the department for the purpose of administering the natural resources trust fund grants identified in part 1A. Among other provisions, the agreements shall require that grant recipients agree to dedicate to public outdoor recreation uses in perpetuity the land acquired or developed; to replace lands converted or lost to other than public outdoor recreation use; and for parcels acquired that are over 5 or more acres in size, to provide the state with a nonparticipating 1/6 minimum royalty interest in any acquired minerals that are retained by the grant recipient. The agreements shall also provide that the full payments of grants can be made only after proof of acquisition, or completion of the development project, is submitted by the grant recipient and all costs are verified by the department of natural resources.

Sec. 1253. Any unobligated balance in any natural resources trust fund appropriation made under part 1A shall not revert to the funds from which appropriated at the close of the fiscal year, but shall continue until the purpose for which it was appropriated is completed for a period not to exceed 3 fiscal years. The unexpended balance of any natural resources trust fund appropriation made in part 1A remaining after the purpose for which it was appropriated is completed shall revert to the Michigan natural resources trust fund and be made available for appropriation.

Sec. 1254. The appropriation for planning projects authorized in part 1A provides authorization to complete programming and schematic planning documents. These projects will not receive construction authorization unless there is sufficient bonding capacity available under the state building authority's statutory bond capacity limit.

Sec. 1255. The west Michigan center for manufacturing research project at Kellogg Community College, authorized for planning in 2000 PA 291 has been separated into 2 distinct components. Legislative action authorizing planning and construction for the first component, the career development/science building renovations, was approved in 2002 PA530. The second component, the Roll building renovation, is hereby authorized for planning.

COMMUNITY COLLEGES


Sec. 1275. The appropriations in part 1A for the at-risk student success program shall be allocated as follows:

Alpena Community College $ 428

Bay de Noc Community College 466

Delta College 546

Glen Oaks Community College 693

Gogebic Community College 391

Grand Rapids Community College 445

Henry Ford Community College 819

Jackson Community College 566

Kalamazoo Valley Community College 580

Kellogg Community College 784

Kirtland Community College 847

Lake Michigan College 934

Lansing Community College 814

Macomb Community College 462

Mid Michigan Community College 695

Monroe County Community College 498

Montcalm Community College 347

C. S. Mott Community College 556

Muskegon Community College 1,050

North Central Michigan College 784

Northwestern Michigan College 645

Oakland Community College 787

St. Clair County Community College 443

Schoolcraft College 762

Southwestern Michigan College 904

Washtenaw Community College 852

Wayne County Community College 712

West Shore Community College 653

DEPARTMENT OF COMMUNITY HEALTH


Sec. 1303. Implementation and contracting for managed care by the department of community health through HMOs are subject to the condition that enrollment of recipients of children's special health care services in HMOs shall be voluntary during fiscal year 2002-03.

Sec. 1307. From the funds appropriated from the federal maternal and child health block grant, $450,000.00 shall be allocated if additional block grant funds are available for the statewide fetal infant mortality review network.

Sec. 1309. Prior to contracting with an HMO for managed care services that did not have a contract with the department of community health before October 1, 2002, the department of community health shall receive assurances from the office of financial and insurance services that the HMO meets the net worth and financial solvency requirements contained in chapter 35 of the insurance code, 1956 PA 218, MCL 500.3501 to 500.3580.

Sec. 1310. The department of community health shall prohibit HMOs from requiring prior authorization of their contracted providers for any EPSDT screening and diagnosis service, for any MSS/ISS screening referral, or for up to 3 MSS/ISS service visits.

Sec. 1311. All nursing home rates, class I and class III, must have their respective fiscal year rate set 30 days prior to the beginning of their rate year. Rates may take into account the most recent cost report prepared and certified by the preparer, provider corporate owner or representative as being true and accurate, and filed timely, within 5 months of the fiscal year end in accordance with Medicaid policy. If the audited version of the last report is available, it shall be used. Any rate factors based on the filed cost report may be retroactively adjusted upon completion of the audit of that cost report.

Sec. 1312. The long-term care working group established in section 1657 of 1998 PA 336 shall continue to exist to review the allocation of the long-term care innovations grant funding and to monitor the implementation of the demonstration projects being funded. The department of community health shall not implement a long-term care plan until the expiration of 24 days during which at least 1 house of the legislature convenes after the long-term care working group has submitted the written long-term care plan to the senate majority leader, the speaker of the house, the senate and house appropriations subcommittees on community health, and the state budget director.

Sec. 1314. The department shall allocate up to $200,000.00 to the Michigan association of centers for independent living for the accessing community-based support project, if additional funds become available for this purpose.

Sec. 1315. Any proposed changes by the department to the MIChoice home and community-based services waiver program screening process shall be provided to the members of the house and senate appropriations subcommittees on community health at least 30 days prior to implementation of the proposed changes.

Sec. 1316. The department shall contract directly with the Salvation Army harbor light program and Salvation Army turning point of west Michigan to provide non-Medicaid substance abuse services at not less than the amount contracted for in fiscal year 2001-2002.

Sec. 1317. Recipients of children's special health care services shall be exempt from the prior authorization requirements for prescription drugs in the department of community health's pharmaceutical best practice initiative.

Sec. 1318. (1) The department shall use procedures and rebates amounts specified under section 1927 of title XIX, 42 U.S.C. 1396r-8, to secure quarterly rebates from pharmaceutical manufacturers for outpatient drugs dispensed to participants in the state medical program and EPIC.

(2) For products distributed by pharmaceutical manufacturers not providing quarterly rebates as listed in subsection (1), the department may require preauthorization.

Sec. 1319. (1) An applicant for Medicaid, whose qualifying condition is pregnancy, shall immediately be presumed to be eligible for Medicaid coverage unless the preponderance of evidence in her application indicates otherwise. The applicant who is qualified as described in this subsection shall be allowed to select or remain with the Medicaid participating obstetrician of her choice.

(2) An applicant qualified as described in subsection (1) shall be given a letter of authorization to receive Medicaid covered services related to her pregnancy. All qualifying applicants shall be entitled to receive all medically necessary obstetrical and prenatal care without preauthorization from a health plan. All claims submitted for payment for obstetrical and prenatal care shall be paid at the Medicaid fee-for-service rate in the event a contract does not exist between the Medicaid participation obstetrical or prenatal care provider and the managed care plan. The applicant shall receive a listing of Medicaid physicians and managed care plans in the immediate vicinity of the applicant's residence.

(3) In the event that an applicant, presumed to be eligible pursuant to subsection (1), is subsequently found to be ineligible, a Medicaid physician or managed care plan that has been providing pregnancy services to an applicant under this section is entitled to reimbursement for those services until the time that they are notified by the department that the applicant was found to be ineligible for Medicaid.

(4) If the preponderance of evidence in an application indicates that the applicant is not eligible for Medicaid, the department shall refer that applicant to the nearest public health clinic or similar entity as a potential source for receiving pregnancy-related services.

(5) This section shall apply to Medicaid managed care.

Sec. 1320. In establishing the total number of acute care beds for any hospital licensed in Michigan, the department shall include in that count all hospital beds that are used for ventilator care due to a contract between the department and a hospital for providing ventilator care services.

Sec. 1321. (1) A first class school district that:

(a) May be eligible to receive payments for administrative services related to Medicaid school-based health service pursuant to section 1692 of 2002 PA 519, and;

(b) Is required to have a portion of those payments placed in escrow, incidental to the settlement agreement in Michigan Department of Community Health v. Centers for Medicare and Medicaid Services, departmental appeals board, United States department of health and human services, docket no. A-01-01 and A-02-01, and;

(c) Meets the conditions of subsection (2); shall be eligible to receive a disbursement from those escrowed funds in an amount not to exceed $780,000.00.

(2) The department shall only make the disbursement specified in subsection (1) if the first class school district receiving the disbursement:

(a) Certifies that the disbursed funds shall only be used to reimburse vendors that provided Medicaid billing services on the first class school districts' behalf during the period 1998 to 2002, inclusive and;

(b) Agrees that the payments to the vendors described in subsection (2)(a) shall be made no later than December 31, 2002.

(3) The department shall inform the chairpersons of the senate and house appropriations committees as soon as these transactions occur.

Sec. 1322. (1) It is the intent of the legislature that HMOs shall have contracts with hospitals within a reasonable distance from their enrollees. If a hospital does not contract with the HMO, in its service area, that hospital shall enter into a hospital access agreement as specified in the MSA bulletin Hospital 01-19.

(2) A hospital access agreement specified in subsection (1) shall be considered an affiliated provider contract pursuant to the requirements contained in chapter 35 of the insurance code of 1956, 1956 PA 218, MCL 500.3501 to 500.3580.

Sec. 1323. (1) The department shall maintain the 2-tier reimbursement methodology for Medicaid emergency physicians professional services that was in effect on September 30, 2002, subject to the following conditions:

(a) Payments by case and in the aggregate shall not exceed 80 percent of Medicare payment rates.

(b) Total expenditures for these services shall not exceed the level of total payments made during fiscal year 2001-02, after adjusting for Medicare copayments and deductibles and for changes in utilization.

(2) To ensure that total expenditures stay within the spending constraints of subsection (1)(b), the department shall develop a utilization adjustor for the basic 2-tier payment methodology. The adjustor shall be based on a good faith estimate by the department as to what the expected utilization of emergency room services will be during fiscal year 2002-03, given changes in the number and category of Medicaid recipients. If expenditure and utilization data indicate that the amount and/or type of emergency physician professional services are exceeding the department's estimate, the utilization adjustor shall be applied to the 2-tier reimbursement methodology in such a manner as to reduce aggregate expenditures to the fiscal year 2001-02 adjusted expenditure target.

(3) If federal law, regulation, or judicial ruling finds that this 2-tier reimbursement methodology is not Health Insurance Portability and Accountability Act (HIPAA) compliant prior to the end of fiscal year 2002-03, the department shall immediately provide the chairpersons of the senate and house appropriations subcommittees on community health and their respective fiscal agencies, with the proposed modifications necessary to bring this methodology into compliance.

(4) The proposal specified in subsection (3) should be as consistent as possible with the intent of the methodology specified in this section and must be provided to the subcommittee chairpersons and respective fiscal agencies, no less than 30 days before the effective date of the proposal.

FAMILY INDEPENDENCE AGENCY


Sec. 1401. From the funds appropriated in part 1 of 2002 PA 529, no funds shall be expended for leased space at the Wayne-Highland Park Pitkin district office located at 245 Pitkin Street in the city of Highland Park and the Wayne-Warren/Conner district office located at 4733 Conner in the city of Detroit after March 30, 2003.

DEPARTMENT OF MANAGEMENT AND BUDGET


Sec. 1450. (1) From the funds appropriated in section 103(3) of 2000 PA 291 to the department of management and budget, building demolitions, $2,400,000.00 is reappropriated as a grant to the city of Detroit.

(2) The funds can only be expended on costs for demolishing tax-reverted properties within the city of Detroit.

(3) Not more than $5,000.00 may be expended on any 1 demolition project.

DEPARTMENT OF NATURAL RESOURCES


Sec. 1601. Before September 30, 2003, there shall be appropriated $560,000.00 from the snowmobile registration fund and $1,340,000.00 from the off-road vehicle trail improvement fund to the game and fish protection fund, in accordance with the draft advisory report dated October 11, 2002 from the United States department of interior. The $1,900,000.00 appropriated to the game and fish protection fund is not available for expenditure until appropriated by the legislature.

Sec. 1602. (1) For the fiscal year ending September 30, 2003, there shall be appropriated $7,800,000.00 from the Michigan state waterways fund to the state general fund/general purpose.

(2) The department of natural resources may transfer any unspent balances from the harbor development fund to the Michigan state waterways fund, which may be needed to meet the condition of subsection (1) for the fiscal year ending September 30, 2003.

(3) It is the intent of the legislature that in the future the general fund reimburse the state waterways fund.

DEPARTMENT OF STATE POLICE


Sec. 1651. It is the intent of the legislature that up to 10% of federal funds received by the state of Michigan forhomeland security equipment upgrade grants to local units be allocated for construction of an upgraded Detroit crimelab.

DEPARTMENT OF TREASURY


Sec. 1801. For the fiscal year ending September 30, 2003, there is appropriated from the Michigan merit award trust fund to the general fund the amount of $50,000,000.00.

REPEALERS


Sec. 1901. Section 1101 of 2001 PA 45 is repealed.

Sec. 1902. Section 705 of 2001 PA 59 is repealed.

Sec. 1903. Section 1627 of 2002 PA 519 is repealed.

Sec. 1904. Section 1607 of 2002 PA 519 is repealed.

This act is ordered to take immediate effect.

Clerk of the House of Representatives.

Secretary of the Senate.

Approved

Governor.