Act No. 161

Public Acts of 2003

Approved by the Governor

August 11, 2003

Filed with the Secretary of State

August 12, 2003

EFFECTIVE DATE: August 12, 2003

STATE OF MICHIGAN

92ND LEGISLATURE

REGULAR SESSION OF 2003

Introduced by Senator Johnson

ENROLLED SENATE BILL No. 270

AN ACT to make, supplement, and adjust appropriations for the departments of attorney general, civil rights, civil service, information technology, management and budget, state, and treasury, the executive office, and the legislative branch for the fiscal year ending September 30, 2004; to provide for the expenditure of these appropriations; to provide for the funding of certain work projects; to provide for the imposition of certain fees; to establish or continue certain funds, programs, and categories; to transfer certain funds; to prescribe certain requirements for bidding on state contracts; to provide for disposition of year-end balances; to prescribe the powers and duties of certain principal executive departments and state agencies, officials, and employees; and to provide for the disposition of fees and other income received by the various principal executive departments and state agencies.

The People of the State of Michigan enact:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for the departments of attorney general, civil rights, civil service, information technology, management and budget, state, and treasury, the executive office, the legislative branch, and certain other state purposes, for the fiscal year ending September 30, 2004, from the funds indicated in this part. The following is a summary of the appropriations in this part:

TOTAL GENERAL GOVERNMENT

APPROPRIATION SUMMARY:

Full-time equated unclassified positions 48.0

Full-time equated classified positions 6,825.9

GROSS APPROPRIATION $ 2,856,091,300

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 569,647,200

ADJUSTED GROSS APPROPRIATION $ 2,286,444,100

Federal revenues:

Total federal revenues 60,641,300

Special revenue funds:

Total local revenues 2,610,800

Total private revenues 550,100

Total other state restricted revenues 1,867,448,600

State general fund/general purpose $ 355,193,300

Sec. 102. DEPARTMENT OF ATTORNEY GENERAL

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions 6.0

Full-time equated classified positions 562.0

GROSS APPROPRIATION $ 61,462,400

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers $ 10,810,600

ADJUSTED GROSS APPROPRIATION $ 50,651,800

Federal revenues:

Total federal revenues 8,971,800

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 10,670,100

State general fund/general purpose $ 31,009,900

(2) ATTORNEY GENERAL OPERATIONS

Full-time equated unclassified positions 6.0

Full-time equated classified positions 562.0

Attorney general $ 124,900

Unclassified positions--5.0 FTE positions 476,300

Attorney general operations--522.0 FTE positions 56,075,400

Child support enforcement--25.0 FTE positions 2,132,400

Prosecuting attorneys coordinating council--15.0 FTE positions 1,503,800

PACC, training project 325,000


GROSS APPROPRIATION $ 60,637,800

Appropriated from:

Interdepartmental grant revenues:

IDG from FIA 2,663,600

IDG from MDCIS, financial and insurance services 122,800

IDG from MDCIS, health services 1,170,400

IDG from MDCIS, public utility assessments 1,678,700

IDG from MDMB, risk management revolving fund 1,183,000

IDG from MDOT, comprehensive transportation fund 131,500

IDG from MDOT, state aeronautics fund 125,400

IDG from MDOT, state trunkline fund 2,566,200

IDG from MDSP, Michigan justice training fund 325,000

IDG from Michigan gaming control board 844,000

Federal revenues:

DAG, state administrative match grant/food stamps 978,200

DED-OPSE, student loan, federal lender allowance 288,600

DOL-ETA, unemployment insurance 1,372,900

DOL-OSHA, occupational safety and health 251,600

EPA, multiple grants 242,600

Federal funds 2,136,600

HHS, medical assistance, medigrant 556,700

HHS-OS, state Medicaid fraud control units 3,144,600

Special revenue funds:

Antitrust enforcement collections 558,300

Auto repair facilities fees 195,000

Collections revenue 590,900

Corporate fees and security fees 127,600

Environmental response fund 657,800

Franchise fees 244,400

Game and fish protection fund 640,800

Liquor purchase revolving fund 857,800

Manufactured housing fees 190,200

Michigan state housing development authority fees 487,700

Oil and gas privilege fee revenue 145,000

Prisoner reimbursement 1,101,700

Prosecuting attorneys training fees $ 326,800

Retirement funds 621,100

Second injury fund 927,200

Self-insurers security fund 155,900

Silicosis and dust disease fund 464,300

State building authority revenue 82,000

State hospital authority 319,200

State lottery fund 207,300

State restricted 725,000

Tobacco settlement trust fund 351,800

Utility consumers fund 476,600

Waterways fund. 83,600

Worker's compensation administrative revolving fund 132,100

State general fund/general purpose $ 30,185,300

(3) INFORMATION TECHNOLOGY

Information technology services and projects $ 824,600


GROSS APPROPRIATION $ 824,600

Appropriated from:

Special revenue funds:

State general fund/general purpose $ 824,600

Sec. 103. DEPARTMENT OF CIVIL RIGHTS

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions 5.0

Full-time equated classified positions 137.0

GROSS APPROPRIATION $ 13,117,200

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers $ 0

ADJUSTED GROSS APPROPRIATION $ 13,117,200

Federal revenues:

Total federal revenues 934,000

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 0

State general fund/general purpose $ 12,183,200

(2) CIVIL RIGHTS OPERATIONS

Full-time equated unclassified positions 5.0

Full-time equated classified positions 137.0

Unclassified positions--5.0 FTE positions $ 254,100

Civil rights operations--137.0 FTE positions 12,059,100


GROSS APPROPRIATION $ 12,313,200

Appropriated from:

Federal revenues:

EEOC, state and local antidiscrimination agency contracts 600,000

HUD, grant 334,000

Special revenue funds:

State general fund/general purpose $ 11,379,200

(3) INFORMATION TECHNOLOGY

Information technology services and projects $ 804,000


GROSS APPROPRIATION $ 804,000

Appropriated from:

Special revenue funds:

State general fund/general purpose $ 804,000

Sec. 104. DEPARTMENT OF CIVIL SERVICE

(1) APPROPRIATION SUMMARY

Full-time equated classified positions 211.5

GROSS APPROPRIATION $ 31,853,900

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers $ 2,300,000

ADJUSTED GROSS APPROPRIATION $ 29,553,900

Federal revenues:

Total federal revenues 4,779,100

Special revenue funds:

Total local revenues 1,700,000

Total private revenues 150,000

Total other state restricted revenues 14,872,200

State general fund/general purpose $ 8,052,600

(2) CIVIL SERVICE OPERATIONS

Full-time equated classified positions 211.5

Agency services--74.0 FTE positions $ 5,549,900

Human resources/administrative support--85.0 FTE positions 15,141,900

Employee benefits--31.0 FTE positions 5,096,200

Audit and compliance--21.5 FTE positions 2,202,200

Training 1,000,000


GROSS APPROPRIATION $ 28,990,200

Appropriated from:

Interdepartmental grant revenues:

IDG, training charges 1,000,000

IDG, 1% special funds 1,300,000

Federal revenues:

Federal funds 1% 3,637,100

Special revenue funds:

Local funds 1% 1,700,000

Private funds 1% 150,000

Freedom of information fees 1,100

State restricted funds 1% 6,287,400

State sponsored group insurance 2,650,000

State sponsored group insurance, flexible spending accounts, and COBRA 5,096,200

State general fund/general purpose $ 7,168,400

(3) INFORMATION TECHNOLOGY

Information technology services and projects $ 2,863,700


GROSS APPROPRIATION $ 2,863,700

Appropriated from:

Federal revenues:

Federal funds 1% 1,142,000

Special revenue funds:

State restricted funds 1% 699,600

State sponsored group insurance, flexible spending accounts, and COBRA 137,900

State general fund/general purpose $ 884,200

Sec. 105. EXECUTIVE OFFICE

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions 10.0

Full-time equated classified positions 74.2

GROSS APPROPRIATION $ 4,859,500

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers $ 0

ADJUSTED GROSS APPROPRIATION $ 4,859,500

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 $ 4,859,500

(2) EXECUTIVE OFFICE OPERATIONS

Full-time equated unclassified positions 10.0

Full-time equated classified positions 74.2

Governor $ 177,000

Lieutenant governor 123,900

Executive office--74.2 FTE positions 3,708,800

Unclassified positions--8.0 FTE positions 849,800


GROSS APPROPRIATION $ 4,859,500

Appropriated from:

Special revenue funds:

State general fund/general purpose $ 4,859,500

Sec. 106. DEPARTMENT OF INFORMATION TECHNOLOGY

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions 6.0

Full-time equated classified positions 1,749.4

GROSS APPROPRIATION $ 360,239,300

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers $ 360,239,300

ADJUSTED GROSS APPROPRIATION $ 0

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 $ 0

(2) ADMINISTRATION

Full-time equated unclassified positions 6.0

Full-time equated classified positions 1,749.4

Unclassified positions--6.0 FTE positions $ 300,000

Enterprisewide services--77.0 FTE positions 27,119,500

Health and human services--724.8 FTE positions 197,127,900

Education services--89.7 FTE positions 9,785,700

Public protection--296.0 FTE positions 30,663,400

Resources services--171.1 FTE positions 16,327,300

Transportation services--107.0 FTE positions 26,116,900

General services--283.8 FTE positions 52,798,600


GROSS APPROPRIATION $ 360,239,300

Appropriated from:

Interdepartmental grant revenues:

IDG from department of agriculture 1,461,900

IDG from department of attorney general 824,600

IDG from department of career development 6,492,700

IDG from department of civil rights 804,000

IDG from department of civil service 2,863,700

IDG from department of community health 30,616,000

IDG from department of consumer and industry services 15,158,000

IDG from MDCIS, unemployment agency 10,321,700

IDG from department of corrections 12,321,200

IDG from department of education 2,514,100

IDG from department of environmental quality 6,567,500

IDG from family independence agency 144,348,800

IDG from Michigan gaming control board 762,600

IDG from department of history, arts, and libraries 1,036,600

IDG from bureau of state lottery 3,363,100

IDG from department of management and budget 25,897,600

IDG from department of military and veterans affairs 1,170,300

IDG from department of natural resources 8,866,700

IDG from department of state $ 24,071,600

IDG from department of state police 18,591,800

IDG from department of transportation 26,135,800

IDG from department of treasury 16,049,000

Special revenue funds:

State general fund/general purpose $ 0

Sec. 107. LEGISLATURE

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 119,880,400

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers $ 1,662,900

ADJUSTED GROSS APPROPRIATION $ 118,217,500

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 400,000

Total other state restricted revenues 2,495,100

State general fund/general purpose $ 115,322,400

(2) LEGISLATURE

Senate $ 27,452,700

Senate automated data processing 2,466,700

Senate fiscal agency 2,945,900

House of representatives 42,421,900

House automated data processing 1,890,600

House fiscal agency 2,774,500

Legislative auditor general 14,472,900


GROSS APPROPRIATION $ 94,425,200

Appropriated from:

Interdepartmental grant revenues:

IDG from MDCIS, liquor purchase revolving fund 51,600

IDG from MDCS 95,100

IDG from MDOT, comprehensive transportation fund 47,400

IDG from MDOT, Michigan transportation fund 181,100

IDG from MDOT, state aeronautics fund 16,600

IDG from MDOT, state trunkline fund 371,100

IDG, single audit act 900,000

Special revenue funds:

Construction lien fund 12,400

Contract audit administration fees 52,700

Correctional industries revolving fund 29,600

Game and fish protection fund 21,400

Marine safety fund 1,900

Michigan economic development corporation 47,500

Michigan education trust fund 34,000

Michigan state fair revolving fund 33,000

Michigan state housing development authority fees 44,100

Michigan strategic fund 40,000

Michigan veterans' trust fund 22,600

Motor transport revolving fund 32,500

Office services revolving fund 29,300

State services fee fund 978,700

Waterways fund 5,600

State general fund/general purpose $ 91,377,000

(3) LEGISLATIVE COUNCIL

Legislative council $ 9,546,200

Legislative service bureau automated data processing 1,342,200

e-Law, legislative council technology enhancement project 500

Worker's compensation $ 135,900

National association dues 100,000


GROSS APPROPRIATION $ 11,124,800

Appropriated from:

Special revenue funds:

Private - gifts and bequests revenues 400,000

State general fund/general purpose $ 10,724,800

(4) LEGISLATIVE RETIREMENT SYSTEM

General nonretirement expenses $ 4,057,000


GROSS APPROPRIATION $ 4,057,000

Appropriated from:

Special revenue funds:

Court fees 1,109,800

State general fund/general purpose $ 2,947,200

(5) PROPERTY MANAGEMENT

Capitol building $ 2,160,000

Cora Anderson building 7,340,300

Farnum building and other properties 773,100


GROSS APPROPRIATION $ 10,273,400

Appropriated from:

Special revenue funds:

State general fund/general purpose $ 10,273,400

Sec. 108. DEPARTMENT OF MANAGEMENT AND BUDGET

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions 6.0

Full-time equated classified positions 716.0

GROSS APPROPRIATION $ 230,187,800

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers $ 162,216,800

ADJUSTED GROSS APPROPRIATION $ 67,971,000

Federal revenues:

Total federal revenues 440,800

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 31,201,300

State general fund/general purpose $ 36,328,900

(2) MANAGEMENT AND BUDGET SERVICES

Full-time equated unclassified positions 6.0

Full-time equated classified positions 574.5

Unclassified positions--6.0 FTE positions $ 570,800

Executive operations--17.0 FTE positions 1,615,100

Administrative services--66.5 FTE positions 5,738,600

Budget and financial management--111.5 FTE positions 9,018,500

Office of the state employer--25.0 FTE positions 2,498,600

Design and construction services--40.0 FTE positions 4,491,200

Business support services--84.5 FTE positions 6,780,000

Building operation services--230.0 FTE positions 92,242,500

Building occupancy charges, rent, and utilities 4,304,900

Motor vehicle fleet 58,500,000


GROSS APPROPRIATION $ 185,760,200

Appropriated from:

Interdepartmental grant revenues:

IDG from MDOT, state aeronautics fund 38,300

IDG from MDOT, comprehensive transportation fund 63,700

IDG from MDOT, state trunkline fund 1,386,500

IDG from building occupancy and parking charges 94,958,700

IDG from department of career development 100,000

IDG from motor transport fund $ 58,500,000

IDG from MDCH 235,000

IDG from user fees 4,636,400

Federal revenues:

Federal funds 413,200

Special revenue funds:

Game and fish protection fund 310,700

Health management funds 1,462,700

Marine safety fund 29,900

Pension trust funds 1,299,000

Special revenue, internal service, and pension trust funds 4,775,500

State building authority revenue 511,200

State lottery fund 139,600

Waterways fund 67,500

State general fund/general purpose $ 16,832,300

(3) STATEWIDE APPROPRIATIONS

Professional development fund - MPES $ 105,000

Professional development fund - UAW 900,000

Professional development fund - AFSCME 400,000


GROSS APPROPRIATION $ 1,405,000

Appropriated from:

Interdepartmental grant revenues:

IDG from employer contributions 1,405,000

Special revenue funds:

State general fund/general purpose $ 0

(4) SPECIAL PROGRAMS

Full-time equated classified positions 141.5

Building occupancy charges - property management services for executive/legislative building

occupancy $ 1,875,100

Retirement services--127.5 FTE positions 14,034,800

Office of children's ombudsman--14.0 FTE positions 1,215,100


GROSS APPROPRIATION $ 17,125,000

Appropriated from:

Special revenue funds:

Deferred compensation 1,380,800

Pension trust funds 12,654,000

State general fund/general purpose $ 3,090,200

(5) INFORMATION TECHNOLOGY

Information technology services and projects $ 25,897,600


GROSS APPROPRIATION $ 25,897,600

Appropriated from:

Interdepartmental grant revenues:

IDG from MDOT, state aeronautics fund 1,100

IDG from MDOT, comprehensive transportation fund 2,100

IDG from MDOT, state trunkline fund 47,500

IDG from building occupancy and parking charges 655,700

IDG from user fees 186,800

Federal revenues:

Federal funds 27,600

Special revenue funds:

Game and fish protection fund 9,800

Health management funds 41,700

Marine safety fund 900

MAIN user charges 4,042,200

Pension trust funds 2,052,300

Special revenue, internal service, and pension trust funds 2,404,600

State building authority revenue 9,700

State lottery fund 4,600

Waterways fund 2,000

Deferred compensation 2,600

State general fund/general purpose $ 16,406,400

Sec. 109. DEPARTMENT OF STATE

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions 6.0

Full-time equated classified positions 1,849.8

GROSS APPROPRIATION $ 181,121,500

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers $ 20,000,000

ADJUSTED GROSS APPROPRIATION $ 161,121,500

Federal revenues:

Total federal revenues 1,319,500

Special revenue funds:

Total local revenues 0

Total private revenues 100

Total other state restricted revenues 143,070,200

State general fund/general purpose $ 16,731,700

(2) EXECUTIVE DIRECTION

Full-time equated unclassified positions 6.0

Full-time equated classified positions 28.2

Secretary of state $ 124,900

Unclassified positions--5.0 FTE positions 464,200

Operations--28.2 FTE positions 2,093,300


GROSS APPROPRIATION $ 2,682,400

Appropriated from:

Special revenue funds:

Auto repair facilities fees 50,700

Driver fees 98,300

Expedient service fees 43,400

Look-up fees 558,400

Parking ticket court fines 6,900

Personal identification card fees 10,200

Reinstatement fees - operator licenses 110,000

Transportation administration collection fund 1,185,600

Vehicle theft prevention fees 29,800

State general fund/general purpose $ 589,100

(3) DEPARTMENT SERVICES

Full-time equated classified positions 151.0

Operations--144.5 FTE positions $ 18,989,500

Assigned claims assessments--6.5 FTE positions 644,200


GROSS APPROPRIATION $ 19,633,700

Appropriated from:

Federal revenues:

Federal funds 50,300

Special revenue funds:

Assigned claims assessments 644,200

Auto repair facilities fees 375,100

Child support clearance fees 31,000

Driver fees 506,200

Expedient service fees 224,300

Look-up fees 6,149,000

Marine safety fund 67,400

Off-road vehicle title fees 6,900

Parking ticket court fines 47,500

Personal identification card fees 75,000

Reinstatement fees - operator licenses 419,000

Scrap tire fund 61,900

Snowmobile registration fee revenue 15,900

Transportation administration collection fund 10,740,100

Vehicle theft prevention fees 219,900

State general fund/general purpose $ 0

(4) REGULATORY SERVICES

Full-time equated classified positions 252.1

Operations--148.4 FTE positions $ 11,851,000

Auto regulation--101.7 FTE positions 7,332,900

Motorcycle safety education grants 875,800

Motorcycle safety education administration--2.0 FTE positions 324,200


GROSS APPROPRIATION $ 20,383,900

Appropriated from:

Federal revenues:

Federal funds 85,900

Special revenue funds:

Auto repair facilities fees 3,892,700

Commercial driver training school fees 59,100

Driver fees 865,800

Expedient service fees 27,900

Look-up fees 3,845,300

Motorcycle safety fund 1,200,000

Parking ticket court fines 7,600

Personal identification card fees 39,900

Reinstatement fees - operator licenses 1,463,700

Transportation administration collection fund 7,567,700

Vehicle theft prevention fees 1,324,900

State general fund/general purpose $ 3,400

(5) CUSTOMER DELIVERY SERVICES

Full-time equated classified positions 1,390.0

Customer services administration--149.7 FTE positions $ 15,433,300

Branch operations--962.4 FTE positions 63,797,300

Central records--261.7 FTE positions 15,590,300

Commemorative license plates--16.2 FTE positions 2,147,300

Specialty license plates 1,922,000

Olympic center plate 75,700

Organ donor program 104,100


GROSS APPROPRIATION $ 99,070,000

Appropriated from:

Interdepartmental grant revenues:

IDG from MDOT, Michigan transportation fund 20,000,000

Federal revenues:

Federal funds 1,183,300

Special revenue funds:

Private funds 100

Auto repair facilities fees 79,400

Child support clearance fees 340,300

Driver fees 11,349,700

Expedient service fees 2,500,300

Look-up fees 16,881,400

Marine safety fund 980,800

Michigan state police auto theft fund 100,000

Mobile home commission fees 407,100

Olympic center training fund 75,700

Off-road vehicle title fees 104,900

Parking ticket court fines 1,393,100

Personal identification card fees 1,312,700

Reinstatement fees - operator licenses 1,027,000

Snowmobile registration fee revenue 287,300

Transportation administration collection fund 36,517,700

Vehicle theft prevention fees 180,600

State general fund/general purpose $ 4,348,600

(6) ELECTION REGULATION

Full-time equated classified positions 28.5

Election administration and services--25.5 FTE positions $ 2,640,100

Fees to local units 69,800

Qualified voter file--3.0 FTE positions 1,334,300


GROSS APPROPRIATION $ 4,044,200

Appropriated from:

Special revenue funds:

State general fund/general purpose $ 4,044,200

(7) DEPARTMENTWIDE APPROPRIATIONS

Building occupancy charges/rent $ 10,486,700

Worker's compensation 749,000


GROSS APPROPRIATION $ 11,235,700

Appropriated from:

Special revenue funds:

Auto repair facilities fees 162,100

Driver fees 498,700

Expedient service fees 16,400

Look-up fees 2,159,400

Parking ticket court fines 537,700

Transportation administration collection fund 4,895,300

State general fund/general purpose $ 2,966,100

(8) INFORMATION TECHNOLOGY

Information technology services and projects $ 24,071,600


GROSS APPROPRIATION $ 24,071,600

Appropriated from:

Special revenue funds:

Administrative order processing fee 10,500

Auto repair facilities fees 170,500

Child support clearance fees 15,400

Driver fees 629,900

Expedient service fees 462,800

Look-up fees 2,646,600

Parking ticket court fines 78,700

Personal identification card fees 826,100

Reinstatement fees - operator licenses 442,400

Transportation administration collection fund 13,845,900

Vehicle theft prevention fees 162,500

State general fund/general purpose $ 4,780,300

Sec. 110. DEPARTMENT OF TREASURY

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions 9.0

Full-time equated classified positions 1,526.0

GROSS APPROPRIATION $ 1,853,369,300

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers $ 12,417,600

ADJUSTED GROSS APPROPRIATION $ 1,840,951,700

Federal revenues:

Total federal revenues 44,196,100

Special revenue funds:

Total local revenues 910,800

Total private revenues 0

Total other state restricted revenues 1,665,139,700

State general fund/general purpose $ 130,705,100

(2) EXECUTIVE DIRECTION

Full-time equated unclassified positions 9.0

Full-time equated classified positions 4.0

Unclassified positions--9.0 FTE positions $ 800,900

Office of the director--4.0 FTE positions 543,400


GROSS APPROPRIATION $ 1,344,300

Appropriated from:

Special revenue funds:

State lottery fund $ 139,500

State services fee fund 150,800

State general fund/general purpose $ 1,054,000

(3) DEPARTMENTWIDE APPROPRIATIONS

Travel $ 1,715,900

Rent and building occupancy charges - property management services 6,092,300

Worker's compensation insurance premium 557,000


GROSS APPROPRIATION $ 8,365,200

Appropriated from:

Interdepartmental grant revenues:

IDG from MDOT, state aeronautics fund 2,500

IDG, state agency collection fees 16,900

Special revenue funds:

Delinquent tax collection revenues 3,828,600

Municipal finance fees 10,600

Treasury fees 17,800

Waterways fund 2,200

State general fund/general purpose $ 4,486,600

(4) LOCAL GOVERNMENT PROGRAMS

Full-time equated classified positions 70.0

Supervision of the general property tax law--51.0 FTE positions $ 8,228,000

Property tax assessor training--4.0 FTE positions 360,600

Local finance--15.0 FTE positions 1,541,800

State compliance audits 60,000

Pari-mutuel audits 240,000


GROSS APPROPRIATION $ 10,430,400

Appropriated from:

Special revenue funds:

Local - assessor training fees 360,600

Local - audit charges 457,200

Local - equalization study charge-backs 40,000

Local - revenue from local government 50,000

Land reutilization fund 3,985,700

Municipal finance fees 236,500

State services fee fund 240,000

State general fund/general purpose $ 5,060,400

(5) TAX PROGRAMS

Full-time equated classified positions 663.0

Customer contact--180.0 FTE positions $ 13,770,100

Tax compliance--290.0 FTE positions 21,879,600

Tax policy--35.0 FTE positions 3,234,900

Tax processing--154.0 FTE positions 10,332,200

Home heating assistance 1,600,000

Bottle bill implementation 250,000

New hire reporting 1,545,000

Tobacco tax collection--4.0 FTE positions 210,600


GROSS APPROPRIATION $ 52,822,400

Appropriated from:

Interdepartmental grant revenues:

IDG from MDOT, Michigan transportation fund 6,364,000

IDG from MDOT, state aeronautics fund 43,100

IDG from FIA 1,545,000

IDG from MDCH 210,600

IDG, data/collection services fees 250,900

Federal revenues:

HHS-SSA, low-income energy assistance 1,600,000

Special revenue funds:

Bottle deposit fund $ 250,000

Delinquent tax collection revenue 38,132,400

Tobacco tax revenue 328,500

Waterways fund 56,200

State general fund/general purpose $ 4,041,700

(6) BANKING AND MANAGEMENT SERVICES

Full-time equated classified positions 295.0

Human resources, program management, purchasing--32.0 FTE positions $ 2,826,400

Internal audit--5.5 FTE positions 406,900

Mail operations--20.0 FTE positions 1,496,800

Office of revenue and tax analysis--15.5 FTE positions 1,111,700

Unclaimed property--19.0 FTE positions 2,972,500

Collections--131.0 FTE positions 11,787,200

Finance and accounting--32.0 FTE positions 1,235,000

Receipts processing--40.0 FTE positions 2,324,600


GROSS APPROPRIATION $ 24,161,100

Appropriated from:

Interdepartmental grant revenues:

IDG from MDOT, state aeronautics fund 16,900

IDG, receipt, warrant and cash processing fees 722,300

IDG, levy/warrant cost assessment fees 1,810,800

IDG, state agency collection fees 450,100

IDG from FIA, title IV-D 501,100

Special revenue funds:

Delinquent tax collection revenue 10,089,100

Escheats revenue 2,972,500

Garnishment fees 419,800

Treasury fees 162,100

Waterways fund 18,100

State general fund/general purpose $ 6,998,300

(7) FINANCIAL PROGRAMS

Full-time equated classified positions 226.0

Retirement investments--72.0 FTE positions $ 11,671,700

Michigan merit award board/MEAP administration--24.0 FTE positions 3,249,000

MEAP testing contracts 25,578,300

Michigan education savings program 1,000,000

Common cash investments and debt management--11.5 FTE positions 1,018,600

Student financial assistance programs--118.5 FTE positions 33,323,400


GROSS APPROPRIATION $ 75,841,000

Appropriated from:

Interdepartmental grant revenues:

IDG, fiscal agent service fees 147,400

Federal revenues:

DED-OPSE, federal lenders allowance 9,509,700

DED-OPSE, grants for federal assessments 10,698,800

DED-OPSE, higher education act of 1965, insured loans 21,887,600

Special revenue funds:

College work-study 46,300

Michigan merit award trust fund 19,497,600

Retirement funds 11,671,700

School bond fees 401,600

Treasury fees 230,900

State general fund/general purpose $ 1,749,400

(8) DEBT SERVICE

Water pollution control bond and interest redemption $ 2,750,400

Quality of life bond 37,500,000

Clean Michigan initiative 33,036,000


GROSS APPROPRIATION $ 73,286,400

Appropriated from:

Special revenue funds:

Recreation bond resources $ 878,000

State general fund/general purpose $ 72,408,400

(9) GRANTS

Grants to counties in lieu of taxes $ 10,000

Convention facility development distribution 48,000,000

Senior citizen cooperative housing tax exemption program 15,500,000

Commercial mobile radio service payments 26,500,000

Health and safety fund grants 23,500,000

City of Benton Harbor - enterprise zone 42,700

Qualified agricultural loan payments 5,200,000

Renaissance zone reimbursement 1,640,000

Grants to local government for activity under MCL 211.22a 7,000,000


GROSS APPROPRIATION $ 127,392,700

Appropriated from:

Special revenue funds:

Commercial mobile radio service fees 26,500,000

Convention facility development fund 48,000,000

Health and safety fund 23,500,000

State general fund/general purpose $ 29,392,700

(10) STATE LOTTERY

Full-time equated classified positions 166.0

Lottery operations--166.0 FTE positions $ 16,512,500

Promotion and advertising 18,622,000

Lottery information technology services and projects 3,363,100


GROSS APPROPRIATION $ 38,497,600

Appropriated from:

Special revenue funds:

State lottery fund 38,497,600

State general fund/general purpose $ 0

(11) CASINO GAMING

Full-time equated classified positions 102.0

Michigan gaming control board $ 50,000

Casino gaming control administration--102.0 FTE positions 16,516,600

Information technology services and projects 762,600


GROSS APPROPRIATION $ 17,329,200

Appropriated from:

Special revenue funds:

Casino gambling agreements 383,500

State services fee fund 16,945,700

State general fund/general purpose $ 0

(12) REVENUE SHARING

Constitutional state general revenue sharing grants $ 683,050,000

Statutory state general revenue sharing grants 724,800,000


GROSS APPROPRIATION $ 1,407,850,000

Appropriated from:

Special revenue funds:

Sales tax 1,407,850,000

State general fund/general purpose $ 0

(13) INFORMATION TECHNOLOGY

Information technology services and projects $ 16,049,000


GROSS APPROPRIATION $ 16,049,000

Appropriated from:

Interdepartmental grant revenues:

IDG from MDOT, Michigan transportation fund 336,000

Federal revenues:

DED-OPSE, higher education act of 1965, insured loans 500,000

Special revenue funds:

Local - assessor training fees $ 3,000

Delinquent tax collection revenue 8,667,400

Land reutilization fund 20,000

Michigan merit award trust fund 393,000

Retirement funds 616,000

State general fund/general purpose $ 5,513,600

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS


Sec. 201. (1) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2003-2004 is $2,222,641,900.00 and state spending from state resources to be paid to local units of government for fiscal year 2003-2004 is $1,517,367,300.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:

DEPARTMENT OF STATE

Fees to local units $ 69,800

Motorcycle safety education grants $ 875,800


Subtotal $ 945,600

DEPARTMENT OF TREASURY

Senior citizen cooperative housing tax exemption $ 15,500,000

Grants to counties in lieu of taxes 10,000

Health and safety fund grants 23,500,000

City of Benton Harbor enterprise zone 42,700

Constitutional state general revenue sharing grants 683,050,000

Statutory state general revenue sharing grants 724,800,000

Convention facility development fund distribution 48,000,000

Commercial mobile radio service payments 12,879,000

Grants to local government for activity under MCL 211.22a 7,000,000

Renaissance zone reimbursements 1,640,000


Subtotal $ 1,516,421,700


TOTAL GENERAL GOVERNMENT $ 1,517,367,300

(2) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources for fiscal year 2003-2004 is estimated at $25,466,171,400.00 in the 2003-2004 appropriations acts and total state spending from state sources paid to local units of government for fiscal year 2003-2004 is estimated at $16,096,726,058.00. The state-local proportion is estimated at 63.21% of total state spending from state resources.

(3) If payments to local units of government and state spending from state sources for fiscal year 2003-2004 are different than the amounts estimated in subsection (2), the state budget director shall report the payments to local units of government and state spending from state sources that were made for fiscal year 2003-2004 to the senate and house of representatives standing committees on appropriations within 30 days after the final book closing for fiscal year 2003-2004.

Sec. 202. The appropriations authorized under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 203. As used in this act:

(a) "AFSCME" means American federation of state, county, and municipal employees.

(b) "COBRA" means the consolidated omnibus budget reconciliation act of 1985, Public Law 99-272, 100 Stat. 82.

(c) "CPI" means consumer price index.

(d) "DAG" means the United States department of agriculture.

(e) "DED-OESE" means the United States department of education, office of elementary and secondary education.

(f) "DED-OPSE" means the United States department of education, office of postsecondary education.

(g) "DOL-ETA" means the United States department of labor, employment and training administration.

(h) "DOL-OSHA" means the United States department of labor, occupational safety and health administration.

(i) "EEOC" means the United States equal employment opportunity commission.

(j) "EPA" means the United States environmental protection agency.

(k) "FIA" means the Michigan family independence agency.

(l) "FTE" means full-time equated.

(m) "GF/GP" means general fund/general purpose.

(n) "HHS" means the United States department of health and human services.

(o) "HHS-OS" means the HHS office of the secretary.

(p) "HHS-SSA" means the HHS social security administration.

(q) "HUD" means the United States department of housing and urban development.

(r) "IDG" means interdepartmental grant.

(s) "MAIN" means the Michigan administrative information network.

(t) "MCL" means the Michigan Compiled Laws.

(u) "MDA" means the Michigan department of agriculture.

(v) "MDCH" means the Michigan department of community health.

(w) "MDCIS" means the Michigan department of consumer and industry services.

(x) "MDCS" means the Michigan department of civil service.

(y) "MDMB" means the Michigan department of management and budget.

(z) "MDOT" means the Michigan department of transportation.

(aa) "MDSP" means the Michigan department of state police.

(bb) "MEAP" means the Michigan educational assessment program.

(cc) "MESA" means the Michigan employment security agency.

(dd) "MPES" means the Michigan professional employees society.

(ee) "PA" means public act.

(ff) "PACC" means the prosecuting attorneys coordinating council.

(gg) "UAW" means the united auto workers.

Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.

Sec. 205. (1) A hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department.

(2) The attorney general and secretary of state may grant exceptions to the hiring freeze for their respective departments pursuant to the same criteria that the state budget director is able to grant exceptions under this subsection. The state budget director shall grant exceptions to this hiring freeze when the state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services, cause loss of revenue to the state, result in the inability of the state to receive federal funds, or necessitate additional expenditures that exceed any savings from maintaining a vacancy. The state budget director shall report quarterly to the chairpersons of the senate and house of representatives standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous quarter and the reasons to justify the exception.

Sec. 207. At least 60 days before beginning any effort to privatize, the departments and agencies receiving appropriations in part 1 shall submit a complete project plan to the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies within 30 months.

Sec. 208. Unless otherwise specified, departments and agencies receiving appropriations in part 1 shall use the Internet to fulfill the reporting requirements of this act. This requirement may include transmission of reports via electronic mail to the recipients identified for each reporting requirement, or it may include placement of reports on an Internet or Intranet site.

Sec. 209. Funds appropriated in part 1 shall not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods or services, or both, are available.

Sec. 210. The director of each department receiving appropriations in part 1 shall take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies, or both. Each director shall strongly encourage firms with which the department contracts to subcontract with certified businesses in depressed and deprived communities for services, supplies, or both.

Sec. 211. Pursuant to section 352 of the management and budget act, 1984 PA 431, MCL 18.1352, that provides for a transfer of state general funds into the countercyclical budget and economic stabilization fund, there is appropriated into the countercyclical budget and economic stabilization fund the sum of $0.00. The calculation required by section 352 of the management and budget act, 1984 PA 431, MCL 18.1352, is determined as follows:

2002 2003

Michigan personal income (millions) $304,491 $313,930

less: transfer payments 47,031 48,865

________ ________

Subtotal 257,460 265,065

Divided by: Detroit CPI for 12 months

Ending June 30 (1982=1.00) 1.729 1.781

Equals: Real adjusted Michigan personal income $148,907 $148,840

Percentage change 0.0%

Percentage change in excess of 2% 0.0%

Multiplied by: estimated GF/GP revenue in FY 2002-2003 (millions) 8,083.8

Equals: countercyclical budget and economic stabilization fund
calculation for the fiscal year ending September 30, 2004 $0.00

Sec. 212. The departments and agencies receiving appropriations in part 1 shall receive and retain copies of all reports funded from appropriations in part 1. Federal and state guidelines for short-term and long-term retention of records shall be followed.

Sec. 213. Funds appropriated in part 1 shall not be used by this state, a department, an agency, or an authority of this state to purchase an ownership interest in a casino enterprise or a gambling operation as those terms are defined in the Michigan gaming control and revenue act, the Initiated Law of 1996, MCL 432.201 to 432.226.

Sec. 214. From the funds appropriated in part 1 for information technology, departments and agencies shall pay user fees to the department of information technology for technology-related services and projects. Such user fees shall be subject to provisions of an interagency agreement between the departments and agencies and the department of information technology.

Sec. 215. A department or state agency shall not take disciplinary action against an employee for communicating with a member of the legislature or their staff.

Sec. 216. None of the funds appropriated in part 1 of this act shall be used to fund the cost of a 2004 presidential primary.

DEPARTMENT OF ATTORNEY GENERAL


Sec. 301. (1) The attorney general shall perform all legal services, including representation before courts and administrative agencies rendering legal opinions and providing legal advice to a principal executive department or state agency. A principal executive department or state agency shall not employ or enter into a contract with any other person for services described in this section.

(2) The attorney general shall defend judges of all state courts if a claim is made or a civil action is commenced for injuries to persons or property caused by the judge through the performance of the judge's duties while acting within the scope of his or her authority as a judge.

(3) The attorney general shall perform the duties specified in 1846 RS 12, MCL 14.28 to 14.35, and 1919 PA 232,
MCL 14.101 to 14.102, and as otherwise provided by law.

Sec. 302. The attorney general may sell copies of the biennial report in excess of the 350 copies that the attorney general may distribute on a gratis basis. Gratis copies shall not be provided to members of the legislature. Electronic copies of biennial reports shall be made available on the department of attorney general's website. The attorney general shall sell copies of the report at not less than the actual cost of the report and shall deposit the money received into the general fund.

Sec. 303. The department of attorney general is responsible for the legal representation for state of Michigan state employee worker's disability compensation cases. The risk management revolving fund revenue appropriation in part 1 is to be satisfied by billings from the department of attorney general for the actual costs of legal representation, including salaries and support costs.

Sec. 304. In addition to the funds appropriated in part 1, not more than $400,000.00 shall be reimbursed per fiscal year for food stamp fraud cases heard by the third circuit court of Wayne County that were initiated by the department of attorney general pursuant to the existing contract between the family independence agency, the prosecuting attorneys association of Michigan, and the department of attorney general. The source of this funding is money earned by the department of attorney general under the agreement after the allowance for reimbursement to the department of attorney general for costs associated with the prosecution of food stamp fraud cases. It is recognized that the federal funds are earned by the department of attorney general for its documented progress on the prosecution of food stamp fraud cases according to the United States department of agriculture regulations and that once earned by this state, the funds become state funds.

Sec. 305. Any proceeds from a lawsuit initiated by or settlement agreement entered into on behalf of this state against a manufacturer of tobacco products by the attorney general are state funds and are subject to appropriation as provided by law.

Sec. 306. Any unobligated antitrust enforcement revenue, not to exceed $250,000.00, may be carried forward and is available for appropriation in the succeeding fiscal year.

Sec. 307. (1) In addition to the funds appropriated in part 1, there is appropriated up to $500,000.00 from litigation expense reimbursements awarded to the state.

(2) The funds may be expended for the payment of attorney fees assessed against the governor or the attorney general when acting in an official capacity as the named party in litigation against the state. The funds may also be expended for the payment of state costs incurred under section 16 of chapter X of the code of criminal procedure, 1927 PA 175, MCL 770.16.

(3) Unexpended funds at the end of the fiscal year are carried forward for expenditure in the following year, up to a maximum authorization of $500,000.00.

Sec. 308. From the prisoner reimbursement funds appropriated in part 1, the department may spend up to $301,700.00 on activities related to the state correctional facilities reimbursement act, 1935 PA 253, MCL 800.401 to 800.406. If the department collects in excess of $1,131,000.00 in prisoner reimbursements, the excess, up to a maximum of $800,000.00, may be spent on defense of litigation against the state, its departments, or employees in civil actions filed by prisoners.

Sec. 309. (1) For the purposes of providing title IV-D child support enforcement funding, the family independence agency, as the state IV-D agency, shall within 30 days after this act is enacted enter into a cooperative agreement with the attorney general for federal IV-D funding to support the child support enforcement activities within the office of the attorney general.

(2) The attorney general or his or her designee shall, to the extent allowable under federal law, have access to any information used by the state to locate parents who fail to pay court ordered child support.

DEPARTMENT OF CIVIL RIGHTS


Sec. 401. (1) In addition to the appropriations contained in part 1, the department of civil rights may receive and expend funds from local or private sources for all of the following purposes:

(a) Developing and presenting training for employers on equal employment opportunity law and procedures.

(b) The publication and sale of civil rights related informational material.

(c) The provision of copy material made available under freedom of information requests.

(d) Other copy fees, subpoena fees, and witness fees.

(e) Developing, presenting, and participating in mediation processes for certain civil rights cases.

(f) Workshops, seminars, and recognition or award programs consistent with the programmatic mission of the individual unit sponsoring or coordinating the programs.

(2) The department of civil rights shall annually report to the state budget director, the senate and house of representatives standing committees on appropriations, and the senate and house fiscal agencies the amount of funds received and expended for purposes authorized under this section.

Sec. 402. The department of civil rights may contract with local units of government to review equal employment opportunity compliance of potential contractors and may charge for and expend amounts received from local units of government for the purpose of developing and providing these contractual services.

DEPARTMENT OF CIVIL SERVICE


Sec. 501. (1) All restricted funds shall be assessed a sum not less than 1% of the total aggregate payroll paid from those funds for financing the department of civil service on the basis of actual 1% restricted sources total aggregate payroll of the classified service for fiscal year 2003 in accordance with section 5 of article XI of the state constitution of 1963. This includes, but is not limited to, restricted funds appropriated in part 1 of any appropriations bill. Unexpended 1% appropriated funds shall be returned to each 1% fund source at the end of the fiscal year.

(2) The 1% financing from restricted sources shall be credited to the department of civil service by the end of the second fiscal quarter.

Sec. 502. Except where specifically appropriated for this purpose, 1% of the financing from restricted sources shall be credited to the department of civil service. For restricted sources of funding within the general fund that have the legislative authority for carryover, if current spending authorization or revenues are insufficient to accept the charge, the shortage shall be taken from carryforward balances of that funding source. Restricted revenue sources that do not have carryforward authority shall be utilized to satisfy departmental operating deducts first and civil service obligations second. General fund dollars are appropriated for any shortfall, pursuant to approval by the state budget director.

Sec. 503. The appropriation in part 1 to the department of civil service, for state-sponsored group insurance, flexible spending accounts, and COBRA, represents amounts, in part, included within the various appropriations throughout state government for the current fiscal year to fund the flexible spending account program included within the department of civil service. Deposits against state-sponsored group insurance, flexible spending accounts, and COBRA for the flexible spending account program shall be made from assessments levied during the current fiscal year in a manner prescribed by the department of civil service. Unspent employee contributions to the flexible spending accounts may be used to offset administrative costs for the flexible spending account program, with any remaining balance of unspent employee contributions to be lapsed to the general fund.

Sec. 504. (1) The department shall compile the following information about human resources for all executive branch departments:

(a) An organizational chart for each department that clearly identifies each department's human resources office and its relationship to other department offices.

(b) A detailed job description for each person employed in each department's human resources office.

(c) The total number of personnel employed in each department's human resources office.

(d) The amount of funding allocated to each department's human resources operations.

(2) The department shall submit a report containing this information for the previous fiscal year to the senate and house of representatives standing committees on appropriations subcommittees on general government by November 30, 2003. The report shall include recommendations for consolidating executive branch human resources functions into
1 department, and an estimate of cost savings, if any, that would be realized from combining these operations.

INFORMATION TECHNOLOGY


Sec. 571. The appropriation in part 1 for the department of information technology shall be funded by user fees assessed against other principal executive departments and agencies. Such user fees shall be based upon services provided by the department of information technology.

Sec. 572. (1) The department of information technology may sell and accept paid advertising for placement on any state website under its jurisdiction. The department shall review and approve the content of each advertisement. The department may refuse to accept advertising from any person or organization or require modification to advertisements based upon criteria determined by the department. Revenue received under this subsection will be used for operating costs of the department and for future technology enhancements to state of Michigan e-government initiatives. Funds received under this subsection shall be limited to $250,000.00. Any funds in excess of $250,000.00 shall be deposited in the state general fund.

(2) The department of information technology may accept gifts, donations, contributions, bequests, and grants of money from any public or private source to assist with the underwriting or sponsorship of state web pages or services offered on those web pages. A private or public funding source may receive recognition in the web page. The department of information technology may reject any gift, donation, contribution, bequest, or grant.

(3) Funds accepted by the department of information technology under subsections (1) and (2) are appropriated and allotted when received and may be expended upon receipt.

(4) Except as excluded under subsection (1), any unexpended revenue received under this section shall not lapse to the general fund and shall be available for future appropriations.

(5) The department of information technology shall develop a search function of all state departments and agencies. This search function shall be easily accessible to visitors on the front page of the state's website.

(6) The privacy policy adopted by the department of information technology shall include the following provisions:

(a) Instruction on how visitors can set their browsers to be warned before each cookie is written to a visitor's computer.

(b) The e-Michigan office will also include instructions for visitors to inform them how to view and remove cookies on their personal computers.

(7) By April 1, the department of information technology shall report to the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies that all of the following information is available on the department's website:

(a) The amount of gifts, donations, contributions, bequests, and grants of money received by the department of information technology under this section for the immediately preceding fiscal year.

(b) A listing of the expenditures made from the amounts received by the department of information technology as reported in subdivision (a).

(c) A listing of any gift, donation, contribution, bequest, or grant of property other than funding received by the department of information technology under this section for the immediately preceding year.

(d) The total revenue received from the sale of paid advertising accepted under this section and a statement of the total number of advertising transactions.

Sec. 573. The department of information technology may enter into agreements to supply spatial information and technical services to other principal executive departments, state agencies, local units of government, and other organizations. The department of information technology may receive and expend funds in addition to those authorized in part 1 for providing information and technical services, publications, maps, and other products. The department of information technology may expend amounts received for salaries, supplies, and equipment necessary to provide informational products and technical services.

Sec. 574. The legislature shall have access to all historical and current data contained within MAIN pertaining to state departments. State departments shall have access to all historical and current data contained within MAIN.

Sec. 576. When used in this act, "information technology services" means services involving all aspects of managing and processing information including, but not limited to, all of the following:

(a) Application development and maintenance.

(b) Desktop computer support and management.

(c) Mainframe computer support and management.

(d) Server support and management.

(e) Local area network support and management.

(f) Information technology contract, project, and procurement management.

(g) Information technology planning and budget management.

(h) Telecommunication services, security, infrastructure, and support.

(i) Software and software licensing.

Sec. 577. (1) Funds appropriated in part 1 for the Michigan public safety communications system shall be expended upon approval of an expenditure plan by the state budget director.

(2) The department of information technology shall assess all subscribers of the Michigan public safety communications system reasonable access and maintenance fees.

(3) All money received by the department of information technology under this section shall be deposited to the state general fund pursuant to section 443 of the management and budget act, 1984 PA 431, MCL 18.1443.

(4) The department of information technology shall provide a report to the senate and house of representatives standing committees on appropriations, the senate and house fiscal agencies, and the state budget director on April 15 and on October 15, indicating the amount of revenue collected under this section and deposited to the state general fund for the immediately preceding 6-month period.

Sec. 578. The department of information technology shall submit a report for the immediately preceding fiscal year ending September 30 to the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies by March 1. The report shall include the following:

(a) The total amount of funding appropriated for information technology services and projects, by funding source, for all principal executive departments and agencies.

(b) A listing of the expenditures made from the amounts received by the department of information technology, as reported in subdivision (a).

Sec. 579. The department of information technology shall provide a report that analyzes and makes recommendations on the life-cycle of information technology hardware and software. The report shall be submitted to the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies by March 1.

Sec. 580. (1) From the funds appropriated in part 1 to general services, for the department of state, there is appropriated $4,550,000.00 for the business application modernization project. Funds shall only be used for the development, implementation, and maintenance of the business application modernization project.

(2) The unexpended funds appropriated in part 1 for the business application modernization project are designated as work project appropriations and shall not lapse at the end of the fiscal year. Any unencumbered or unallotted funds are carried over into the succeeding fiscal year and shall continue to be available for expenditure until the project has been completed. The total cost is estimated at $30,000,000.00, and the tentative completion date is September 30, 2008.

LEGISLATURE


Sec. 600. The senate, the house of representatives, or an agency within the legislative branch may receive, expend, and transfer funds in addition to those authorized in part 1.

Sec. 601. (1) Funds appropriated in part 1 to an entity within the legislative branch shall not be expended or transferred to another account without written approval of the authorized agent of the legislative entity. If the authorized agent of the legislative entity notifies the state budget director of its approval of an expenditure or transfer before the year-end book-closing date for that legislative entity, the state budget director shall immediately make the expenditure or transfer. The authorized legislative entity agency shall be designated by the speaker of the house of representatives for house entities, the senate majority leader for senate entities, and the legislative council for legislative council entities.

(2) Funds appropriated within the legislative branch, to a legislative council component, shall not be expended by any agency or other subgroup included in that component without the approval of the legislative council.

Sec. 602. The senate may charge rent and assess charges for utility costs. The amounts received for rent charges and utility assessments are appropriated to the senate for the renovation, operation, and maintenance of the Farnum building and other properties.

Sec. 603. The appropriation contained in part 1 for national association dues is to be distributed by the legislative council.

Sec. 604. (1) The appropriation in part 1 to the legislative council includes funds to operate the legislative parking facilities in the capitol area. The legislative council shall establish rules regarding the operation of the legislative parking facilities.

(2) The legislative council shall collect a fee from state employees and the general public using certain legislative parking facilities. The revenues received from the parking fees shall be allocated by the legislative council.

Sec. 605. The appropriation in part 1 to the legislative council for publication of the Michigan manual is considered a work project account. The unexpended portion remaining on September 30 shall not lapse and shall be carried forward into the subsequent fiscal year for use in paying the associated biennial costs of publication of the Michigan manual.

Sec. 606. The appropriation in part 1 to the legislative branch, for property management, is considered a work project account. The unexpended portion remaining on September 30 shall not lapse and shall be carried forward into the subsequent fiscal year for the use for which it was intended.

Sec. 607. In addition to funds appropriated in part 1, the Michigan capitol committee publications save the flags fund account may accept contributions, gifts, bequests, devises, grants, and donations. Those funds that are not expended in the fiscal year ending September 30 shall not lapse at the close of the fiscal year and shall be carried forward for expenditure in the following fiscal years.

Sec. 608. Funds appropriated in part 1 for e-Law, the legislative council's technology enhancement project, shall be used to support technology improvements for legislative functions performed by the legislative council agencies and to provide greater access to the public regarding legislative information. These funds, along with funds previously appropriated for the legislative session integration system, are designated as a work project and shall not lapse at the end of the fiscal year, and shall continue to be available for expenditure until the project has been completed. The total cost is estimated at $3,992,750.00, and the tentative completion date is September 30, 2005.

Sec. 609. The funds appropriated in part 1 shall not be used to pay for health insurance benefits for unmarried domestic partners of legislators or legislative employees.

Sec. 611. Pursuant to section 53 of article IV of the state constitution of 1963, the auditor general shall conduct audits of the judicial branch. The audits may include the supreme court and its administrative units, the court of appeals, and trial courts.

Sec. 612. (1) The auditor general shall take all reasonable steps to ensure that certified minority- and women-owned and operated accounting firms, and accounting firms owned and operated by persons with disabilities participate in the audits of the books, accounts, and financial affairs of each principal executive department, branch, institution, agency, and office of this state.

(2) The auditor general shall strongly encourage firms with which the auditor general contracts to perform audits of the principal executive departments and state agencies to subcontract with certified minority- and women-owned and operated accounting firms, and accounting firms owned and operated by persons with disabilities.

(3) The auditor general shall compile an annual report regarding the number of contracts entered into with certified minority- and women-owned and operated accounting firms, and accounting firms owned and operated by persons with disabilities. The auditor general shall deliver the report to the state budget director and the senate and house of representatives standing committees on appropriations subcommittees on general government by November 1 of each year.

Sec. 615. From the funds appropriated in part 1 to the legislative auditor general, the legislative auditor general's salary and the salaries of the remaining 2.0 FTE unclassified positions shall be set by the speaker of the house of representatives, the senate majority leader, the house of representatives minority leader, and the senate minority leader.

Sec. 618. Any audits, reviews, or investigations requested of the auditor general by the legislature or by legislative leadership, legislative committees, or individual legislators should include an estimate of the additional costs involved and, when those costs exceed $50,000.00, should provide supplemental funding. The auditor general will determine whether to perform those activities in keeping with Audit Directive No. 29, which describes the office of auditor general policy on responding to legislative requests.

DEPARTMENT OF MANAGEMENT AND BUDGET


Sec. 701. Proceeds in excess of necessary costs incurred in the conduct of transfers or auctions of state surplus, salvage, or scrap property made pursuant to section 267 of the management and budget act, 1984 PA 431, MCL 18.1267, are appropriated to the department of management and budget to offset costs incurred in the acquisition and distribution of federal surplus property.

Sec. 702. The department of management and budget may receive and expend funds in addition to those authorized in part 1 for conducting training and orientation workshops and seminars that are consistent with the programmatic mission of the individual unit sponsoring or coordinating the program.

Sec. 703. (1) The department of management and budget may receive and expend funds in addition to those authorized by part 1 for maintenance and operation services provided specifically to other principal executive departments or state agencies, the legislative branch, or the judicial branch or provided in connection with facilities transferred to the operational jurisdiction of the department of management and budget.

(2) The department of management and budget may receive and expend funds in addition to those authorized by part 1 for real estate, architectural, design, and engineering services provided specifically to other principal executive departments or state agencies, the legislative branch, or the judicial branch.

(3) The department of management and budget may receive and expend funds in addition to those authorized in part 1 for mail pickup and delivery services provided specifically to other principal executive departments and state agencies, the legislative branch, or the judicial branch.

(4) The department of management and budget may receive and expend funds in addition to those authorized in part 1 for purchasing services provided specifically to other principal executive departments and state agencies, the legislative branch, or the judicial branch.

Sec. 705. (1) The appropriation in part 1 to the department of management and budget, for statewide appropriations from employer contributions, represents amounts included within the various appropriations for longevity and insurance, whether appropriated as a single line item or commingled with program line items, throughout state government for the current fiscal year for purposes of funding the child care information and referral services, severance pay funds, and professional development funds included within statewide appropriations. Deposits against the interdepartmental grant from employer contributions shall be made from assessments levied against the longevity and insurance appropriations during the current fiscal year in a manner prescribed by the department of management and budget. Any deposits made under this subsection and any unencumbered funds are restricted revenues, may be carried over into the succeeding fiscal years, and are appropriated.

(2) From the funds appropriated in part 1 to the department of management and budget for professional development funds and child care information and referral services, the department of management and budget may expend funds for staff support associated with administration of the professional development funds and child care information and referral services in amounts as may be specified in joint labor/management agreements or through the coordinated compensation hearings process.

(3) In addition to the funds appropriated in part 1 for severance pay funds, the department of management and budget may receive and expend funds from other state agencies for staff support associated with the administration of these funds.

(4) In addition to the funds appropriated in part 1 to the department of management and budget, for statewide appropriations from employer contributions, the department of management and budget may receive and expend funds in such additional amounts as may be specified in joint labor/management agreements or through the coordinated compensation hearings process in the same manner and subject to the same conditions as prescribed in subsections (1), (2), and (3).

Sec. 706. To the extent a specific appropriation is required for a detail source of financing included in part 1 for the department of management and budget appropriations financed from special revenue and internal service and pension trust funds, or MAIN user charges, the specific amounts are appropriated within the special revenue internal service and pension trust funds in portions not to exceed the aggregate amount appropriated in part 1.

Sec. 708. In addition to the funds appropriated in part 1 to the department of management and budget, the department may receive and expend funds from other principal executive departments and state agencies to implement donated annual leave and administrative leave bank transfer provisions as may be specified in joint labor/management agreements. The amounts may also be transferred to other principal executive departments and state agencies under the joint agreement and any amounts transferred under the joint agreement are authorized for receipt and expenditure by the receiving principal executive department or state agency. Any amounts received by the department of management and budget under this section and intended, under the joint labor/management agreements, to be available for use beyond the close of the fiscal year and any unencumbered funds may be carried over into the succeeding fiscal year.

Sec. 709. The source of financing in part 1 for the Michigan administrative information network shall be funded by proportionate charges assessed against the respective state funds benefiting from this project in the amounts determined by the department.

Sec. 710. (1) Deposits against the interdepartmental grant from building occupancy and parking charges appropriated in part 1 shall be collected, in part, from state agencies, the legislative branch, and the judicial branch based on estimated costs associated with maintenance and operation of buildings managed by the department of management and budget. To the extent excess revenues are collected due to estimates of building occupancy charges exceeding actual costs, the excess revenues may be carried forward into succeeding fiscal years for the purpose of returning funds to state agencies.

(2) Appropriations in part 1 to the department of management and budget, for management and budget services from building occupancy charges and parking charges, may be increased to return excess revenue collected to state agencies.

Sec. 713. The department of management and budget shall notify the chairpersons of the senate and house of representatives standing committees on appropriations and the chairpersons of the senate and house of representatives standing committees on appropriations subcommittees on general government on any revisions exceeding $500,000.00 to current contracts for computer software development, hardware acquisition, or quality assurance at least 14 days before the department of management and budget finalizes the revisions.

Sec. 715. The department of management and budget shall maintain an Internet website that contains notice of all invitations for bids and requests for proposals over $50,000.00 issued by the department or by any state agency operating under delegated authority. The department shall not accept an invitation for bid or request for proposal in less than 14 days after the notice is made available on the Internet website, except in situations where it would be in the best interest of the state and documented by the department. In addition to the requirements of this section, the department may advertise the invitations for bids and requests for proposals in any manner the department determines appropriate, in order to give the greatest number of individuals and businesses the opportunity to make bids or requests for proposals.

Sec. 716. The department of management and budget may receive and expend funds from the Vietnam veterans memorial monument fund as provided in the Michigan Vietnam veterans memorial act, 1988 PA 234, MCL 35.1051 to 35.1057. Funds are appropriated and allocated when received and may be expended upon receipt.

Sec. 717. The Michigan veterans' memorial park commission may receive and expend money from any source, public or private, including, but not limited to, gifts, grants, donations of money, and government appropriations, for the purposes described in Executive Order No. 2001-10. Funds are appropriated and allocated when received and may be expended upon receipt. Any deposits made under this section and unencumbered funds are restricted revenues and may be carried over into succeeding fiscal years.

Sec. 718. Funds collected by the department of management and budget under sections 55, 57, 58, and 59 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.255, 24.257, 24.258, and 24.259, and section 203 of the legislative council act, 1986 PA 268, MCL 4.1203, are appropriated for all expenses necessary to provide for the costs of publication and distribution. The funds appropriated under this section are allotted for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 719. (1) Funds in part 1 for motor vehicle fleet are appropriated to the department of management and budget for administration and for the acquisition, lease, operation, maintenance, repair, replacement, and disposal of state motor vehicles.

(2) The appropriation in part 1 for motor vehicle fleet shall be funded by revenue from rates charged to principal executive departments and agencies for utilizing vehicle travel services provided by the department.

(3) It is the intent of the legislature that the department of management and budget have the authority to determine the appropriateness of vehicle assignment, to include year, make, model, size, and price of vehicle. The department shall have the authority to assign motor vehicles, permanently or temporarily, to state agencies and to institutions of higher education.

(4) It is the intent of the legislature that the department of management and budget complete a project plan which results in the reduction of expenditures related to vehicle travel services, to include a reduction in the number of state vehicles in the motor vehicle fleet. The department shall report quarterly to the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies on the status of the project plan to reduce vehicle travel service expenditures and the number of cars in the motor vehicle fleet.

DEPARTMENT OF STATE


Sec. 801. All funds made available by section 3171 of the insurance code of 1956, 1956 PA 218, MCL 500.3171, are appropriated and made available to the department of state to be expended only for the uses and purposes for which the funds are received as provided by sections 3171 to 3177 of the insurance code of 1956, 1956 PA 218, MCL 500.3171 to 500.3177.

Sec. 802. From the funds appropriated in part 1, the department of state shall sell copies of records including, but not limited to, records of motor vehicles, off-road vehicles, snowmobiles, watercraft, mobile homes, personal identification cardholders, drivers, and boat operators and shall charge $7.00 per record sold only as authorized in section 208b of the Michigan vehicle code, 1949 PA 300, MCL 257.208b, section 7 of 1972 PA 222, MCL 28.297, and sections 80130, 80315, 81114, and 82156 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.80130, 324.80315, 324.81114, and 324.82156. The department shall use the revenue received from the sale of records for necessary expenses as appropriated in part 1. The balance of the fee revenue remaining on September 30 shall revert to the general fund.

Sec. 803. From the funds appropriated in part 1, the secretary of state may enter into agreements with the department of corrections for the manufacture of vehicle registration plates 15 months before the registration year in which the registration plates will be used.

Sec. 804. (1) The department of state may accept gifts, donations, contributions, and grants of money and other property from any private or public source to underwrite, in whole or in part, the cost of a departmental publication that is prepared and disseminated under the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923. A private or public funding source may receive written recognition in the publication and may furnish a traffic safety message, subject to departmental approval, for inclusion in the publication. The department may reject a gift, donation, contribution, or grant. The department may furnish copies of a publication underwritten, in whole or in part, by a private source to the underwriter at no charge.

(2) The department of state may sell and accept paid advertising for placement in a departmental publication that is prepared and disseminated under the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923. The department may charge and receive a fee for any advertisement appearing in a departmental publication and shall review and approve the content of each advertisement. The department may refuse to accept advertising from any person or organization. The department may furnish a reasonable number of copies of a publication to an advertiser at no charge.

(3) Pending expenditure, the funds received under this section shall be deposited in the Michigan department of state publications fund created by section 211 of the Michigan vehicle code, 1949 PA 300, MCL 257.211. Funds given, donated, or contributed to the department from a private source are appropriated and allocated for the purpose for which the revenue is furnished. Funds granted to the department from a public source are allocated and may be expended upon receipt. The department shall not accept a gift, donation, contribution, or grant if receipt is conditioned upon a commitment of state funding at a future date. Revenue received from the sale of advertising is appropriated and may be expended upon receipt.

(4) Any unexpended revenues received under this section shall be carried over into subsequent fiscal years and shall be available for appropriation for the purposes described in this section.

(5) On March 1 of each year, the department of state shall file a report with the senate and house of representatives standing committees on appropriations, the senate and house fiscal agencies, and the state budget director. The report shall include all of the following information:

(a) The amount of gifts, contributions, donations, and grants of money received by the department under this section for the prior fiscal year.

(b) A listing of the expenditures made from the amounts received by the department as reported in subdivision (a).

(c) A listing of any gift, donation, contribution, or grant of property other than funding received by the department under this section for the prior year.

(d) The total revenue received from the sale of paid advertising accepted under this section and a statement of the total number of advertising transactions.

(6) In addition to copies delivered without charge as the secretary of state considers necessary, the department of state may sell copies of manuals and other publications regarding the sale, ownership, or operation or regulation of motor vehicles, with amendments, at prices to be established by the secretary of state. As used in this subsection, the term "manuals and other publications" means videos and proprietary electronic publications. All funds received from sales of these manuals and other publications shall be credited to the Michigan department of state publications fund.

Sec. 805. Funds collected by the department of state under section 211 of the Michigan vehicle code, 1949 PA 300, MCL 257.211, are appropriated for all expenses necessary to provide for the costs of the publication. Funds are allotted for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 806. From the funds appropriated in part 1, the department of state shall use available balances at the end of the state fiscal year to provide payment to the department of state police in the amount of $315,900.00 for the services provided by the traffic accident records program as first appropriated in 1990 PA 196 and 1990 PA 208.

Sec. 807. From the funds appropriated in part 1, the department of state may restrict funds from miscellaneous revenue to cover cash shortages created from normal branch office operations. This amount shall not exceed $50,000.00 of the total funds available in miscellaneous revenue.

Sec. 808. (1) Commemorative and specialty license plate fee revenue collected by the department of state and deposited into the Michigan transportation fund is authorized for expenditure up to the amount of revenue collected but not to exceed the amount appropriated to the department of state in part 1 to administer commemorative and specialty license plate programs.

(2) Commemorative and specialty license plate fee revenue collected by the department of state and deposited in the Michigan transportation fund in addition to the amount appropriated in part 1 to the department of state shall be available for other Michigan transportation fund-supported programs.

Sec. 809. Funds or revenues in the Olympic education training center fund, after deducting manufacturing and administrative costs, are appropriated for distribution to the Olympic education training center at Northern Michigan University. Distributions shall occur on a quarterly basis. Any undistributed revenue remaining at the end of the fiscal year shall be carried over into the next fiscal year.

Sec. 810. The department of state may produce and sell copies of a training video designed to inform registered automotive repair facilities of their obligations under Michigan law. The price shall not exceed the cost of production and distribution. The money received from the sale of training videos shall revert to the department of state and be placed in the auto repair facility account.

Sec. 811. (1) The department of state, in collaboration with the gift of life transplantation society or its successor federally designated organ procurement organization, may develop and administer a public information campaign concerning the Michigan organ donor program.

(2) The department may solicit funds from any private or public source to underwrite, in whole or in part, the public information campaign authorized by this section. The department may accept gifts, donations, contributions, and grants of money and other property from private and public sources for this purpose. A private or public funding source underwriting the public information campaign, in whole or in substantial part, shall receive sponsorship credit for its financial backing.

(3) Funds received under this section, including grants from state and federal agencies, shall not lapse to the general fund at the end of the fiscal year but shall remain available for expenditure for the purposes described in this section.

Sec. 812. Collector plate and fund-raising registration plate revenues collected by the department of state are appropriated and allotted for distribution to the recipient university or public or private agency overseeing a state-sponsored goal when received. Distributions shall occur on a quarterly basis or as otherwise authorized by law. Any revenues remaining at the end of the fiscal year shall not lapse to the general fund but shall remain available for distribution to the university or agency in the next fiscal year.

Sec. 813. (1) Funding appropriated in part 1 for the organ donor program shall be used for producing a pamphlet to be distributed with driver licenses and personal identification cards regarding organ donations. The funds shall be used to update and print a pamphlet that will explain the organ donor program and encourage people to become donors by marking a checkoff on driver license and personal identification card applications.

(2) The pamphlet shall include a return reply form addressed to the gift of life organization. Funding appropriated in part 1 for the organ donor program shall be used to pay for return postage costs.

Sec. 814. The department shall consult with the senate and house of representatives standing committees on appropriations subcommittees on general government regarding the projected closing or consolidation of any secretary of state branch offices.

Sec. 815. (1) Any service assessment collected by the department of state from the user of a credit or debit card under section 3 of 1995 PA 144, MCL 11.23, is appropriated to the department for necessary expenses related to that service and may be remitted to a credit or debit card company, bank, or other financial institution. Funds are allocated for expenditure when they are received by the department of treasury.

(2) The service assessment imposed by the department of state for credit and debit card services may be based either on a percentage of each individual credit or debit card transaction, or on a flat rate per transaction, or both scaled to the amount of the transaction. However, the department shall not charge any amount for a service assessment which exceeds the costs billable to the department for service assessments.

(3) If there is a balance of service assessments received from credit and debit card services remaining on September 30, the balance may be carried forward to the following fiscal year and appropriated for the same purpose.

(4) As used in this section, "service assessment" means and includes costs associated with service fees imposed by credit and debit card companies and processing fees imposed by banks and other financial institutions.

Sec. 816. In addition to the funds appropriated in part 1, funds collected by the department of state under section 248j of the Michigan vehicle code, 1949 PA 300, MCL 257.248j, may be used to defray expenses of the secretary of state in administering chapter II of the Michigan vehicle code, 1949 PA 300, MCL 257.201 to 257.259. Funds shall be available for expenditure after approval of transfers by both the senate and house of representatives standing committees on appropriations in accord with the provisions of section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 817. (1) Funds in part 1 for motorcycle safety education grants and administration are appropriated to the department of state for operation of the motorcycle safety education program previously operated by the department of education under section 811a of the Michigan vehicle code, 1949 PA 300, MCL 257.811a.

(2) Funds in part 1 for motorcycle safety education grants and administration shall be derived from original and renewal motorcycle license endorsements, annual motorcycle registration fees, and motorcycle operator driving test fees.

(3) Funds in part 1 for motorcycle safety education grants and administration shall be used to provide grants to colleges, universities, intermediate school districts, local school districts, law enforcement agencies, or other governmental agencies located in the state, to help subsidize safety training courses for individuals interested in operating motorcycles.

(4) Funds in part 1 for motorcycle safety education grants and administration may be used by the department of state for administration costs of the motorcycle safety education program, to include, but not be limited to, review and approval or disapproval of grant applications, monitoring eligibility of motorcycle safety instructors, conducting program evaluation, certifying third party testers, and inspecting training sites.

DEPARTMENT OF TREASURY


OPERATIONS

Sec. 901. (1) Amounts needed to pay for interest, fees, principal, arbitrage rebates as required by federal law, and costs associated with the payment, registration, trustee services, credit enhancements, and issuing costs in excess of the amount appropriated to the department of treasury in part 1 for debt service on notes and bonds that are issued by the state under sections 14, 15, and 16 of article IX of the state constitution of 1963 as implemented by 1967 PA 266, MCL 17.451 to 17.455, are appropriated.

(2) In addition to the amount appropriated to the department of treasury for debt service in part 1, there is appropriated an amount for fiscal year cash-flow borrowing costs to pay for interest on interfund borrowing made under 1967 PA 55, MCL 12.51 to 12.53.

Sec. 902. (1) From the funds appropriated in part 1, the department of treasury may contract with private collection agencies and law firms to collect taxes and other accounts due this state. In addition to the amounts appropriated in part 1 to the department of treasury, there are appropriated amounts necessary to fund collection costs and fees not to exceed 25% of the collections or 2.5% plus operating costs, whichever amount is prescribed by the contract. The appropriation to fund collection costs and fees for the collection of taxes or other accounts due this state are from the fund or account to which the revenues being collected are recorded or dedicated. However, if the taxes collected are constitutionally dedicated for a specific purpose, the appropriation of collection costs and fees are from the general purpose account of the general fund.

(2) From the funds appropriated in part 1, the department of treasury may contract with private collections agencies and law firms to collect defaulted student loans and other accounts due the Michigan guaranty agency. In addition to the amounts appropriated in part 1 to the department of treasury, there are appropriated amounts necessary to fund collection costs and fees not to exceed 22% of the collection or a lesser amount as prescribed by the contract. The appropriation to fund collection costs and fees for the auditing and collection of defaulted student loans due the Michigan guaranty agency is from the fund or account to which the revenues being collected are recorded or dedicated.

(3) In cases in which the department of treasury is unable to collect defaulted student loans, the department shall explore the feasibility of donated services in lieu of repayment. The department of treasury shall file a report by January 1 with the senate and house of representatives standing committees on appropriations subcommittees on general government on the implementation status of this section, along with any suggested statutory changes.

(4) The department of treasury shall submit a report for the immediately preceding fiscal year ending September 30 to the state budget director and the senate and house of representatives standing committees on appropriations not later than November 30 stating the agencies or law firms employed, the amount of collections for each, the costs of collection, and other pertinent information relating to determining whether this authority should be continued.

Sec. 903. (1) The department of treasury, through its bureau of investments, may charge an investment service fee against the applicable retirement funds. The fees may be expended for necessary salaries, wages, contractual services, supplies, materials, equipment, travel, worker's compensation insurance premiums, and grants to the civil service commission and state employees' retirement funds. Service fees shall not exceed the aggregate amount appropriated in part 1. The department of treasury shall maintain accounting records in sufficient detail to enable the retirement funds to be reimbursed periodically for fee revenue that is determined by the department of treasury to be surplus.

(2) In addition to the funds appropriated in part 1 from the retirement funds to the department of treasury, there is appropriated from retirement funds an amount sufficient to pay for the services of money managers, investment advisors, investment consultants, custodians and other outside professionals, the state treasurer considers necessary to prudently manage the retirement funds' investment portfolios. The state treasurer shall report annually to the senate and house of representatives standing committees on appropriations concerning the performance of each portfolio by investment advisor.

Sec. 904. The department of treasury shall sell copies of the state tax manual, uniform accounting procedures manual, general property tax law manual, and other local government assistance manuals with amendments, at a price not to exceed the cost of printing. The revenue received from the sale of preparation and local government assistance manuals shall revert to the department of treasury and be placed in the local government assistance manual revolving fund.

Sec. 905. (1) The department of treasury shall charge for audits as permitted by state or federal law or under contractual arrangements with local units of government, other principal executive departments, or state agencies. A report detailing audits performed and audit charges for the immediately preceding fiscal year shall be submitted to the state budget director and the senate and house fiscal agencies not later than November 30.

(2) The appropriation in part 1 to the department of treasury, for state compliance audits, shall be used to cover the cost of the state audits performed by independent certified public accountants or department of treasury auditors. The scope of the state audit shall be defined by the state treasurer. The state audits shall be performed by independent certified public accountants contracted with by the state treasurer or by department of treasury auditors, if the county has agreed to contract with and pay the department for their financial single audit.

(3) The state audits shall be performed for the most current county fiscal year in conjunction with the financial single audit. The state audit may be performed either by certified public accountants contracted by the state treasurer or department of treasury staff, independent of the financial single audit, if a state audit has not been performed within the last 3 years.

Sec. 906. A revolving fund known as the assessor certification and training fund is created in the department of treasury. The assessor certification and training fund shall be used to organize and operate a property assessor certification and training program. Each participant certified and trained shall pay to the department of treasury an examination fee of $25.00, an initial certification fee of $35.00, an annual renewal fee of $50.00 for levels 1 and 2 and $95.00 for levels 3 and 4 to offset the cost of administering the certification and training program. Training courses shall be offered in assessment administration. Each participant shall pay a fee to cover the expenses incurred in offering the optional programs to certified assessing personnel and other individuals interested in an assessment career opportunity. The fees collected shall be credited to the assessor certification and training fund.

Sec. 907. The amount appropriated in part 1 to the department of treasury, home heating assistance program, is to cover the costs, including data processing, of administering federal home heating credits to eligible claimants and to administer the supplemental fuel cost payment program for eligible tax credit and welfare recipients.

Sec. 908. Revenue from the airport parking tax act, 1987 PA 248, MCL 207.371 to 207.383, is appropriated and shall be distributed under section 7a of the airport parking tax act, 1987 PA 248, MCL 207.377a.

Sec. 909. The disbursement by the department of treasury from the bottle deposit fund to dealers as required by section 3c(2) of the Initiated Law of 1976, MCL 445.573c, is appropriated.

Sec. 910. (1) There is appropriated an amount sufficient to recognize and pay refundable income tax credits as provided by the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

(2) The appropriations under subsection (1) shall be funded by restricting income tax revenue in an amount sufficient to record these expenditures.

Sec. 911. A plaintiff in a garnishment action involving this state shall pay to the state treasurer 1 of the following:

(a) A fee of $6.00 at the time a writ of garnishment of periodic payments is served upon the state treasurer, as provided in section 4012 of the revised judicature act of 1961, 1961 PA 236, MCL 600.4012.

(b) A fee of $6.00 at the time any other writ of garnishment is served upon the state treasurer, except that the fee shall be reduced to $5.00 for each writ of garnishment for individual income tax refunds or credits filed by magnetic media.

Sec. 912. (1) The department of treasury may contract with private firms to appraise and, if necessary, appeal the assessments of senior citizen cooperative housing units. Payment for this service shall be from savings resulting from the appraisal or appeal process.

(2) Of the funds appropriated in part 1 to the department of treasury for the senior citizens' cooperative housing tax exemption program, a portion is to be utilized for a program audit of the program. The department of treasury shall forward copies of the audit report to the senate and house of representatives standing committees on appropriations subcommittees on general government and to the state budget office. The department of treasury may utilize up to 1% of the funds for program administration and auditing.

Sec. 913. The state treasurer may make loans to local units of government from the state's common cash fund to implement local government infrastructure and private facility projects that will ultimately use long-term debt to finance the costs. These loans may be made at any time and shall be repaid, in full, not later than 12 months after the date of the loan. In addition to the full repayment of the loan principal, the borrowing unit shall pay interest at the average rate earned on common cash investments during the period of the loan. The total of all outstanding loans shall not exceed $50,000,000.00 in the aggregate and no single loan shall exceed $7,500,000.00.

Sec. 914. The department of treasury may provide a $200.00 annual prize from the Ehlers internship award account in the gifts, bequests, and deposit fund to the runner-up of the Rosenthal prize for interns. The Ehlers internship award account is interest bearing.

Sec. 915. Pursuant to section 61 of the Michigan campaign finance act, 1976 PA 388, MCL 169.261, there is appropriated from the general fund to the state campaign fund an amount equal to the amounts designated for tax year 2003. Except as otherwise provided in this section, the amount appropriated shall not revert to the general fund and shall remain in the state campaign fund. Any amounts remaining in the state campaign fund in excess of $10,000,000.00 on December 31, 2006 shall revert to the general fund.

Sec. 916. The department of treasury may make available to interested entities otherwise unavailable customized unclaimed property listings of nonconfidential information in its possession. The charge for this information is as follows: 1 to 100,000 records at 2.5 cents per record and 100,001 or more records at .5 cents per record. The revenue received from this service shall be deposited to the appropriate revenue account or fund. The department shall submit an annual report on or before June 1 to the state budget director and the senate and house of representatives standing committees on appropriations that states the amount of revenue received from the sale of information.

Sec. 917. (1) There is appropriated for write-offs and advances an amount equal to total write-offs and advances for departmental programs, but not to exceed current year authorizations that would otherwise lapse to the general fund.

(2) The department of treasury shall submit a report for the immediately preceding fiscal year to the state budget director and the senate and house fiscal agencies not later than November 30, stating the amounts appropriated for write-offs and advances under subsection (1).

Sec. 918. In addition to funds appropriated in part 1, the department of treasury may receive and expend funds for conducting tax orientation workshops and seminars. Funds received may not exceed costs incurred in conducting the workshops and seminars.

Sec. 919. (1) From funds appropriated in part 1, the department of treasury may contract with private auditing firms to audit for and collect unclaimed property due this state in accordance with the Michigan uniform unclaimed property act. In addition to the amounts appropriated in part 1 to the department of treasury, there are appropriated amounts necessary to fund auditing and collection costs and fees not to exceed 12% of the collections, or a lesser amount as prescribed by the contract. The appropriation to fund collection costs and fees for the auditing and collection of unclaimed property due this state is from the fund or account to which the revenues being collected are recorded or dedicated.

(2) The department of treasury shall submit a report for the immediately preceding fiscal year ending September 30 to the state budget director and the senate and house of representatives standing committees on appropriations not later than November 30 stating the auditing firms employed, the amount of collections for each, the costs of collection, and other pertinent information relating to determining whether this authority should be continued.

Sec. 920. Payments from the appropriation in part 1 to the department of treasury for grants to counties in lieu of taxes for lands transferred to the federal government include a payment for Sleeping Bear Dunes national lakeshore under 1974 PA 359, MCL 3.901 to 3.910.

Sec. 921. All of the revenue collected under section 12(3)(a) of the tobacco products tax act, 1993 PA 327, MCL 205.432, is appropriated to the health and safety fund of this state for distribution as set forth in the health and safety fund act, 1987 PA 264, MCL 141.471 to 141.479.

Sec. 922. The state general fund/general purpose appropriation in part 1 for renaissance zone reimbursement is allocated to reimburse public libraries as provided by section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692, for property taxes levied in 2003. Reimbursements shall be made in amounts to each eligible recipient not later than 60 days after the department of treasury certifies to the department that it has received all necessary information to properly determine the amounts due each eligible recipient under section 12(4) of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692. Any excess allocations shall lapse to the general fund.

Sec. 923. The department of treasury shall submit a report for the immediately preceding fiscal year ending September 30 to the senate and house of representatives standing committees on appropriations subcommittees on general government, the senate and house fiscal agencies, and the state budget director by November 30 stating the amount of Michigan transportation fund revenue collected and the cost of collection.

Sec. 924. Notwithstanding any other provision of this act, the department of treasury shall not expend any funds on initiating a new audit of any taxpayer until the department fully and completely complies with section 4(3) of 1941 PA 122, MCL 205.4. This provision shall not require the department to disclose audit selection or processing criteria as provided by section 28(1)(f) of 1941 PA 122, MCL 205.28. The department shall publish the required handbook which informs taxpayers and tax preparers of audit and collection procedures used by the department and procedures which govern departmental communications with taxpayers in the audit and collection process. The department may comply with this publishing requirement by making the audit information available to taxpayers and tax preparers through the department's website on the Internet.

Sec. 925. (1) In addition to the funds appropriated in part 1, the department of treasury may receive and expend homestead property tax exemption audit fund revenue for administration of homestead property tax exemption audits consistent with the provisions of Enrolled Senate Bill No. 520 of the 92nd Legislature.

(2) The department of treasury shall submit a report for the immediately preceding fiscal year to the state budget director and the senate and house fiscal agencies not later than December 31, stating the amount of revenue appropriated for homestead property tax exemption audits under subsection (1).

Sec. 926. From the amounts appropriated in part 1 for grants to local government for activity under MCL 211.22a, the department of treasury shall provide grants to cities, townships, or counties for the sole purpose of paying a portion of the costs of the activity undertaken under section 22a of the general property tax act, 1893 PA 206, MCL 211.22a, under contracts approved by the department of treasury. The total grants provided under this section shall not exceed $7,000,000.00 for the 2003-2004 fiscal year.

Sec. 940. The department of treasury may provide receipt, warrant and cash processing, data, collection, investment, fiscal agent, levy and warrant cost assessment, writ of garnishment, and other user services on a contractual basis for other principal executive departments and state agencies. Funds for the services provided are appropriated and shall be expended for salaries and wages, fees, supplies, and equipment necessary to provide the services. Any unobligated balance of the funds received shall revert to the general fund of this state as of September 30.

Sec. 941. The department of treasury may enter into agreements to supply data or collection services to other executive principal departments or state agencies, the United States department of treasury, or local units of government within this state. The department of treasury shall charge for this tax data service and amounts received are appropriated and shall be expended for salaries and wages, fees, supplies, and equipment necessary to provide the service.

Sec. 942. (1) The department of treasury shall provide accounts receivable collections services to other principal executive departments and state agencies under 1927 PA 375, MCL 14.131 to 14.134. The department of treasury shall deduct a fee equal to the cost of collections from all receipts except unrestricted general fund collections. Fees shall be credited to a restricted revenue account and appropriated to the department of treasury to pay for the cost of collections. The department of treasury shall maintain accounting records in sufficient detail to enable the respective accounts to be reimbursed periodically for fees deducted that are determined by the department of treasury to be surplus to the actual cost of collections.

(2) The department of treasury shall submit a report for the immediately preceding fiscal year to the state budget director and the senate and house fiscal agencies not later than November 30, stating the principal executive departments and state agencies served, funds collected, and costs of collection under subsection (1).

Sec. 943. The appropriation in part 1 to the department of treasury, for treasury fees, shall be assessed against all restricted funds that contribute to the total value of state managed investments in the ratio each restricted fund contributes to the total value of state managed investments. The department of treasury shall provide a report to the state budget director, the senate and house of representatives standing committees on appropriations subcommittees on general government, and the senate and house fiscal agencies by November 30 of each year identifying the fees assessed against each restricted fund.

Sec. 950. Revenue received under the Michigan education trust act, 1986 PA 316, MCL 390.1421 to 390.1444, may be expended by the board of directors of the Michigan education trust for necessary salaries, wages, supplies, contractual services, equipment, worker's compensation insurance premiums, and grants to the civil service commission and state employees' retirement fund.

Sec. 951. (1) From the funds appropriated in part 1 for the Michigan merit award board/MEAP administration, the department shall provide tests to nonpublic schools and home-schooled students upon request. The department shall notify nonpublic schools that they are eligible to receive the tests.

(2) The department shall release test results at the same time to all private schools and public school districts taking the tests.

(3) The results of each test administered as part of the Michigan educational assessment program, including tests administered to high school students, shall include an item analysis that lists all items that are counted for individual student scores and the percentage of students choosing each possible response.

Sec. 952. (1) The $1,000,000.00 appropriated in part 1 for the Michigan education savings program is from the Michigan merit award trust fund to fund an incentive program for the Michigan education savings program created under the Michigan education savings program act, 2000 PA 161, MCL 390.1471 to 390.1486.

(2) The funds appropriated for the Michigan education savings program shall be used to provide a state match to dollars invested on behalf of each child named as a designated beneficiary in the Michigan education savings program who is 6 years of age or less, who is a Michigan resident, and whose family's income is $80,000.00 or less.

(3) During the current fiscal year, the state shall provide $1.00 of matching funds for each $3.00 of individual contributions to the educational savings accounts. The maximum state match for each designated beneficiary shall be $200.00.

(4) The state match shall be available only in the first year the child is enrolled in the Michigan education savings program.

Sec. 960. The department of treasury may expend revenues received under the hospital finance authority act, 1969 PA 38, MCL 331.31 to 331.84, for necessary salaries, wages, supplies, contractual services, equipment, worker's compensation insurance premiums, and grants to the civil service commission and state employees' retirement fund. The department of treasury shall maintain accounting records in sufficient detail to enable the hospital clients to be reimbursed periodically for fees that are determined by the department of treasury to be surplus to needs.

Sec. 961. The department of treasury may expend revenue received under the shared credit rating act, 1985 PA 227, MCL 141.1051 to 141.1076, for necessary salaries, wages, supplies, contractual services, equipment, worker's compensation insurance premiums, and grants to the civil service commission and state employees' retirement fund.

Sec. 962. The department of treasury shall establish a separate account for the funds related to the Michigan higher education facilities authority. The department of treasury may expend revenue received under the higher education facilities authority act, 1969 PA 295, MCL 390.921 to 390.934, for necessary salaries, wages, supplies, contractual services, equipment, worker's compensation insurance premiums, and grants to the civil service commission and state employees' retirement fund. The department of treasury shall maintain accounting records in sufficient detail to enable the educational institution clients to be reimbursed periodically for fees that are determined by the department to be surplus to needs.

Sec. 963. The department of treasury may expend revenues received under the Michigan public educational facilities authority, Executive Order No. 2002-3, for necessary salaries, wages, supplies, contractual services, equipment, worker's compensation insurance premiums, and grants to the civil service commission and state employees' retirement fund.

Sec. 964. The department of treasury may expend revenues received under the Michigan broadband development authority act, 2002 PA 49, MCL 484.3201 to 484.3225, for necessary salaries, wages, supplies, contractual services, equipment, worker's compensation insurance premiums, and grants to the civil service commission and state employees' retirement fund.

REVENUE SHARING

Sec. 970. (1) Revenue collected in accordance with section 10 of article IX of the state constitution of 1963 in excess of the amount appropriated in part 1 for constitutional revenue sharing is appropriated for distribution to townships, cities, and villages on a population basis as specified by law. The appropriation in part 1 for statutory state general revenue sharing grants to townships, cities, and villages shall be reduced by an amount equal to any additional constitutional revenue sharing appropriations authorized in this section.

(2) The appropriation in part 1 for statutory state general revenue sharing grants shall be distributed according to the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921. Undistributed funds shall lapse to the general fund.

Sec. 971. County treasurers shall comply with section 151 of the state school aid act of 1979, 1979 PA 94, MCL 388.1751, to receive funds under part 1 for the statutory state general revenue sharing grant payments in excess of the constitutional state general revenue sharing grant payments. The payment of funds under part 1 for the statutory state general revenue sharing grant payments in excess of the constitutional state general revenue sharing grant payments shall not be withheld if a local unit of government or the department of treasury fails to provide a county treasurer with information necessary to comply with section 151 of the state school aid act of 1979, 1979 PA 94, MCL 388.1751.

LOTTERY

Sec. 980. In addition to the funds appropriated in part 1 to the bureau of state lottery, there is appropriated from lottery revenues the amount necessary for, and directly related to, implementing and operating lottery games. Appropriations under this section shall only be expended for contractually mandated payments for vendor commissions, contractually mandated payments for instant tickets intended for resale, the contractual costs of providing and maintaining the on-line system communications network, and incentive and bonus payments to lottery retailers.

Sec. 981. The funds appropriated in part 1 to the bureau of state lottery shall not be used for any promotional efforts directed towards individuals who are less than 18 years of age.

Sec. 982. The funds appropriated in part 1 to the bureau of state lottery shall not be used to directly or indirectly associate professional or amateur sports figures with the lottery or its products.

Sec. 983. The bureau of state lottery shall complete a project plan which includes new strategies for the bureau to use in its efforts to increase lottery ticket sales, and improvements they are going to make on how they expend funding for advertising and promotion. The bureau of state lottery shall report quarterly to the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies on the status of the project plan to increase lottery ticket sales and improve expenditure of funds.

CASINO GAMING

Sec. 990. Revenue collected by the Michigan gaming control board regarding the wagering tax imposed on adjusted gross receipts received by the licensee from gaming authorized under the Michigan gaming control and revenue act, the Initiated Law of 1996, MCL 432.201 to 432.226, at the rate of 8.15% is appropriated and shall be deposited in the state school aid fund to provide additional funds for K-12 classroom education.

Sec. 991. From the revenue collected by the Michigan gaming control board regarding the total annual assessment of each casino licensee, $2,000,000.00 is appropriated and shall be deposited in the compulsive gaming prevention fund as described in section 12a(5) of the Michigan gaming control and revenue act, the Initiated Law of 1996, MCL 432.212a.

Sec. 992. In addition to the funds appropriated in part 1, funds distributed by the Michigan gaming control board to the department of treasury for oversight of casino gaming are appropriated upon receipt. These funds may be used to pay for costs incurred for casino gaming oversight activities.

Sec. 993. (1) Funds appropriated in part 1 for local government programs may be used to provide assistance to a local revenue sharing board referenced in an agreement authorized by the Indian gaming regulatory act, Public Law 100-497, 102 Stat. 2467.

(2) A local revenue sharing board described in subsection (1) shall comply with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275, and the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

(3) A county treasurer is authorized to receive and administer funds received for and on behalf of a local revenue sharing board. Funds appropriated in part 1 for local government programs may be used to audit local revenue sharing board funds held by a county treasurer. This section does not limit the ability of local units of government to enter into agreements with federally recognized Indian tribes to provide financial assistance to local units of government or to jointly provide public services.

(4) The director of the department of state police and the executive director of the Michigan gaming control board are authorized to assist the local revenue sharing boards in determining allocations to be made to local public safety organizations.

(5) The department of treasury shall submit a report by September 30 to the senate and house of representatives standing committees on appropriations on the receipts and distribution of revenues by local revenue sharing boards.

Sec. 994. If revenues collected in the state services fee fund are less than the amounts appropriated from the fund, available revenues shall be used to fully fund the appropriation in part 1 of this act for casino gaming regulation activities before distributions are made to other state departments and agencies. If the remaining revenue in the fund is insufficient to fully fund appropriations to other state departments or agencies, the shortfall shall be distributed proportionally among those departments and agencies.

REVENUE STATEMENT


Sec. 1101. Pursuant to section 18 of article V of the state constitution of 1963, fund balances and estimates are presented in the following statement:

BUDGET RECOMMENDATIONS BY OPERATING FUNDS

(Amounts in millions)

Fiscal Year 2003-2004

Beginning

Fund Unreserved

Fund Estimated Ending

# Balance Revenue Balance

OPERATING FUNDS

General 0110 0.0 20,829.9 0.0

Special Revenue Funds:

Countercyclical budget and economic stabilization 0111 0.0 0.0 0.0

Game and fish protection 0112 12.8 63.0 8.0

Michigan employment security act administration 0113 1.2 102.9 1.3

State aeronautics 0114 0.0 57.8 0.0

Michigan veterans' benefit trust 0115 0.0 2.5 0.0

State trunkline 0116 0.0 1,748.2 0.0

Michigan state waterways 0117 0.5 24.1 0.2

Blue Water Bridge 0118 0.0 13.2 0.0

Michigan transportation 0119 0.0 2,118.8 0.0

Comprehensive transportation 0120 0.0 297.5 0.0

School aid 0122 0.0 12,359.2 0.0

Marine safety 0123 0.0 5.0 0.0

Game and fish protection trust 0124 0.0 17.4 0.0

State park improvement 0125 3.8 31.5 3.0

Forest development 0126 4.0 22.3 0.0

Michigan civilian conservation corps endowment 0128 0.2 2.3 0.0

Michigan natural resources trust 0129 0.0 49.4 0.0

Michigan state parks endowment 0130 11.2 21.7 11.2

Safety education and training 0131 1.6 7.6 0.0

Uninsured employers' security 0135 0.0 0.0 0.0

Bottle deposit 0136 0.0 24.7 0.0

State construction code 0138 8.5 11.0 9.0

Children's trust 0139 1.0 3.2 1.1

State casino gaming 0140 2.0 28.8 3.3

Homeowner construction lien recovery 0141 1.2 4.4 4.5

Michigan nongame fish and wildlife 0143 0.4 0.9 0.3

Michigan merit award trust 0154 0.0 227.8 0.0

Tobacco settlement trust 0155 12.0 76.0 0.0

Michigan underground storage tank finance assurance 0160 0.0 0.0 0.0

TOTALS $60.4 $38,151.1 $41.9

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor