SB-0276, As Passed Senate, June 16, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 276

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to make appropriations for the department of labor and

 

economic growth, the Michigan strategic fund, and certain other

 

state purposes for the fiscal year ending September 30, 2006; to

 

provide for the expenditure of those appropriations; to provide for

 

the imposition of certain fees; to provide for the disposition of

 

fees and other income received by the state agencies; to provide

 

for reports to certain persons; and to prescribe powers and duties

 

of certain state departments and certain state and local agencies

 

and officers.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

PART 1

 

LINE-ITEM APPROPRIATIONS


Senate Bill No. 276 as amended June 16, 2005

     Sec. 101.  The amounts listed in this part are appropriated

 

for the department of labor and economic growth and the Michigan

 

strategic fund, subject to the conditions set forth in this act,

 

for the fiscal year ending September 30, 2006, from the funds

 

identified in this part. The following is a summary of the

 

appropriations in this part:

 

DEPARTMENT OF LABOR AND ECONOMIC GROWTH

 

APPROPRIATION SUMMARY:

 

   Full-time equated unclassified positions......... 58.5

 

   Full-time equated classified positions........ 4,354.5

 

GROSS APPROPRIATION. . . . . . . . . . . . . . . . . $ <<1,389,766,800>>

 

   Interdepartmental grant revenues:

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................        10,022,400

 

ADJUSTED GROSS APPROPRIATION . . . . . . . . . . . . $ <<1,379,744,400>>

 

   Federal revenues:

 

Total federal revenues.................................       842,527,600

 

   Special revenue funds:

 

Total local revenues...................................        15,738,200

 

Total private revenues.................................         3,990,600

 

Total other state restricted revenues..................       429,712,200

 

State general fund/general purpose..................... $ <<87,775,800>>

 

   Sec. 102. DEPARTMENTAL ADMINISTRATION

 

   Full-time equated unclassified positions......... 58.5

 

   Full-time equated classified positions.......... 212.0

 

Unclassifed salaries................................... $      5,349,400

 

Executive director programs--53.0 FTE positions........         6,228,300


 

Regulatory efficiency improvements/backlog reduction

 

   initiative...........................................           665,600

 

Property management....................................        10,945,100

 

Rent...................................................        17,213,400

 

Worker's compensation..................................         1,608,000

 

Special project advances...............................           940,000

 

HR optimization charges................................           147,600

 

Administrative services--159.0 FTE positions...........        15,535,000

 

GROSS APPROPRIATION.................................... $     58,632,400

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

IDG from department of community health................           300,000

 

   Federal revenues:

 

CNS....................................................           295,700

 

DED-OSERS, rehabilitation services, vocational

 

   rehabilitation of state grants.......................         4,897,500

 

DOL-ETA, unemployment insurance........................        16,739,900

 

DOL-ETA, workforce investment act......................           809,400

 

DOL, federal funds.....................................         2,503,700

 

DOL, multiple grants for safety and health.............           654,000

 

Federal revenues.......................................           785,700

 

HHS, temporary assistance for needy families...........           347,000

 

HHS, titles XVIII and XIX..............................            36,700

 

   Special revenue funds:

 

Private - special project advances.....................           940,000

 

Local revenues.........................................           134,100

 

Bank fees..............................................           485,100


 

Boiler fees............................................           239,400

 

Construction code fund.................................         1,444,700

 

Consumer finance fees..................................           168,800

 

Contingent fund penalty and interest account...........           890,000

 

Corporation fees.......................................         5,106,100

 

Credit union fees......................................           327,600

 

Elevator fees..........................................           264,000

 

Fees and collections/asbestos..........................            65,900

 

Fire service fees......................................           232,500

 

Insurance licensing and regulation fees................         2,209,400

 

Insurance regulatory fees..............................           996,000

 

Licensing and regulation fees..........................           900,900

 

Liquor purchase revolving fund.........................         5,767,800

 

Manufactured housing commission fees...................           288,200

 

Michigan state housing development authority fees

 

   and charges..........................................         3,575,400

 

Motor carrier fees.....................................           185,200

 

Public utility assessments.............................         2,157,200

 

Private occupational school license fees...............            14,000

 

Rehabilitation services fees...........................            90,300

 

Safety education and training fund.....................           502,300

 

Second injury fund.....................................           253,500

 

Securities fees........................................         2,381,500

 

Self-insurers security fund............................            83,300

 

Silicosis and dust disease fund........................           101,300

 

Tax tribunal fees......................................             1,100

 

State general fund/general purpose..................... $      1,457,200


 

   Sec. 103. OFFICE OF FINANCIAL AND INSURANCE SERVICES

 

   Full-time equated classified positions.......... 271.0

 

Administration--9.0 FTE positions...................... $      2,686,700

 

Policy conduct and consumer assistance--117.0 FTE

 

   positions............................................        14,194,400

 

Financial evaluation--145.0 FTE positions..............        20,940,400

 

GROSS APPROPRIATION.................................... $     37,821,500

 

    Appropriated from:

 

   Federal revenues:

 

Federal regulatory project revenue.....................            50,400

 

   Special revenue funds:

 

Bank fees..............................................         7,355,400

 

Consumer finance fees..................................         4,034,700

 

Credit union fees......................................         4,666,500

 

Insurance continuing education fees....................           829,600

 

Insurance licensing and regulation fees................         4,488,000

 

Insurance regulatory fees..............................        14,627,400

 

Multiple employer welfare arrangement..................            67,500

 

Securities fees........................................         1,702,000

 

State general fund/general purpose..................... $              0

 

   Sec. 104. MICHIGAN BROADBAND DEVELOPMENT AUTHORITY

 

   Full-time equated classified positions........... 13.0

 

Director of legal and regulatory affairs--1.0 FTE

 

   positions............................................ $        149,400

 

Director of finance--1.0 FTE positions.................           142,300

 

Project director--1.0 FTE positions....................           142,300

 

Director of accounting and purchasing--1.0 FTE


 

   positions............................................           123,500

 

Director of marketing and customer development--1.0

 

   FTE positions........................................           123,500

 

Director of community and government affairs--1.0

 

   FTE positions........................................            97,700

 

Executive assistant 13--1.0 FTE positions..............            75,300

 

Executive assistant 11--1.0 FTE positions..............            65,500

 

Accountant--1.0 FTE positions..........................            75,300

 

Department specialist 14--1.0 FTE positions............            97,700

 

Financial specialist 14--1.0 FTE positions.............            97,700

 

Financial specialist 12--1.0 FTE positions.............            81,300

 

Intern position--1.0 FTE positions.....................            39,500

 

Administration.........................................           277,200

 

GROSS APPROPRIATION.................................... $      1,588,200

 

    Appropriated from:

 

   Special revenue funds:

 

Michigan broadband authority fees and charges..........         1,588,200

 

State general fund/general purpose..................... $              0

 

   Sec. 105. PUBLIC SERVICE COMMISSION

 

Full-time equated classified positions.......... 158.0

 

Administration, planning and regulation--147.0 FTE

 

   positions............................................ $     18,795,000

 

Energy office--9.0 FTE positions.......................         5,267,100

 

Children's protection registry administration--2.0

 

   FTE positions........................................           250,000

 

GROSS APPROPRIATION.................................... $     24,312,100

 

    Appropriated from:


 

   Federal revenues:

 

DOE-OEERE, multiple grants.............................         4,828,100

 

DOT-RSPA, gas pipeline safety..........................           984,900

 

   Special revenue funds:

 

Private - oil overcharge...............................            30,000

 

Children's protection registry fund....................           250,000

 

Motor carrier fees.....................................         2,060,700

 

Public utility assessments.............................        16,158,400

 

State general fund/general purpose..................... $              0

 

   Sec. 106. LIQUOR CONTROL COMMISSION

 

   Full-time equated classified positions.......... 152.0

 

Management support services--28.0 FTE positions........ $      3,092,300

 

Liquor licensing and enforcement--124.0 FTE positions..        11,278,000

 

GROSS APPROPRIATION.................................... $     14,370,300

 

    Appropriated from:

 

   Special revenue funds:

 

Liquor license revenue.................................         5,699,300

 

Liquor purchase revolving fund.........................         8,671,000

 

State general fund/general purpose..................... $              0

 

   Sec. 107. MICHIGAN STATE HOUSING DEVELOPMENT

 

AUTHORITY

 

   Full-time equated classified positions.......... 232.0

 

Payments on behalf of tenants.......................... $    130,000,000

 

Housing and rental assistance program--232.0 FTE

 

   positions............................................        32,887,700

 

GROSS APPROPRIATION.................................... $    162,887,700

 

    Appropriated from:


 

   Federal revenues:

 

HUD, lower income housing assistance program...........       130,000,000

 

   Special revenue funds:

 

Michigan state housing development authority fees

 

   and charges..........................................        32,887,700

 

State general fund/general purpose..................... $              0

 

   Sec. 108. TAX TRIBUNAL

 

   Full-time equated classified positions........... 11.0

 

Operations--11.0 FTE positions......................... $       1,298,100

 

GROSS APPROPRIATION.................................... $      1,298,100

 

    Appropriated from:

 

   Special revenue funds:

 

Corporation fees.......................................           290,600

 

Securities fees........................................           356,000

 

Tax tribunal fees......................................           651,500

 

State general fund/general purpose..................... $              0

 

   Sec. 109. OCCUPATIONAL REGULATION

 

   Full-time equated classified positions.......... 419.0

 

Code enforcement and fire safety--177.0 FTE positions.. $     17,587,000

 

Boiler inspection program--25.0 FTE positions..........         2,592,200

 

Elevator inspection program--30.0 FTE positions........         2,751,700

 

Commercial services--154.0 FTE positions...............        16,282,000

 

Local manufactured housing communities inspections.....           250,000

 

Manufactured housing and land resources

 

   program--22.0 FTE positions..........................         2,853,200

 

Property development group--11.0 FTE positions.........         1,474,200

 

GROSS APPROPRIATION.................................... $     43,790,300


 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

IDG from department of community health, inspection

 

   contract.............................................           111,100

 

   Federal revenues:

 

FEMA...................................................           150,000

 

DOT....................................................            85,000

 

HHS, titles XVIII and XIX..............................           872,300

 

   Special revenue funds:

 

Boiler fee revenue.....................................         2,758,600

 

Construction code fund.................................        14,546,500

 

Corporation fees.......................................         5,430,000

 

Elevator fees..........................................         2,891,200

 

Fire service fees......................................         2,167,300

 

Homeowner construction lien recovery fund..............         1,532,800

 

Licensing and regulation fees..........................         9,084,300

 

Manufactured housing commission fees...................         2,452,200

 

Michigan boxing fund...................................           206,200

 

Property development fees..............................           265,700

 

Remonumentation fees...................................           666,600

 

Real estate appraiser continuing education fund........            45,000

 

Real estate education fund.............................           217,500

 

Security business fund.................................           308,000

 

State general fund/general purpose..................... $              0

 

   Sec. 110. EMPLOYMENT RELATIONS

 

   Full-time equated classified positions........... 21.0

 

Employment and labor relations--21.0 FTE positions..... $       3,006,900


 

GROSS APPROPRIATION.................................... $      3,006,900

 

    Appropriated from:

 

   Federal revenues:

 

EEOC, federal funds....................................            10,000

 

   Special revenue funds:

 

Securities fees........................................         2,944,200

 

State general fund/general purpose..................... $         52,700

 

   Sec. 111. MICHIGAN OCCUPATIONAL SAFETY AND HEALTH

 

ADMINISTRATION

 

   Full-time equated classified positions.......... 229.0

 

Occupational safety and health--229.0 FTE positions.... $      25,189,300

 

GROSS APPROPRIATION.................................... $     25,189,300

 

    Appropriated from:

 

   Federal revenues:

 

DOL, multiple grants for safety and health.............        12,084,200

 

   Special revenue funds:

 

Corporation fees.......................................         2,087,200

 

Fees and collections/asbestos..........................           795,600

 

Licensing and regulation fees..........................         1,126,900

 

Safety education and training fund.....................         7,371,000

 

Securities fees........................................         1,724,400

 

State general fund/general purpose..................... $              0

 

   Sec. 112. BUREAU OF WORKER'S AND UNEMPLOYMENT

 

COMPENSATION

 

   Full-time equated classified positions........ 1,216.0

 

Administration--96.6 FTE positions..................... $      9,220,600

 

Board of magistrates and appellate commission--19.4


 

   FTE positions........................................         2,786,200

 

Wage and hour division--31.0 FTE positions.............         2,548,500

 

Insurance funds administration--28.0 FTE positions.....         4,363,700

 

Supplemental benefit fund..............................         1,300,000

 

Unemployment programs--971.7 FTE positions.............        81,443,100

 

Advocacy assistance program............................         1,500,000

 

Special audit and collections program--34.0 FTE

 

   positions............................................         2,639,500

 

Training program for agency staff--2.1 FTE positions...         1,788,600

 

Expanded fraud control program--33.2 FTE positions.....         2,954,900

 

GROSS APPROPRIATION.................................... $    110,545,100

 

    Appropriated from:

 

   Federal revenues:

 

DOL-ETA, employment and training administration........           613,400

 

DOL-ETA, unemployment insurance........................        83,850,000

 

Federal Reed act funds.................................         4,362,700

 

   Special revenue funds:

 

Corporation fees.......................................         3,842,300

 

Contingent fund, penalty and interest account..........         6,739,100

 

Licensing and regulation fees..........................           753,100

 

Second injury fund.....................................         2,349,100

 

Securities fees........................................         3,842,600

 

Self-insurers security fund............................         1,111,200

 

Silicosis and dust disease fund........................           903,400

 

Worker's compensation administrative revolving fund....         2,178,200

 

State general fund/general purpose..................... $              0

 

   Sec. 113. STATE OFFICE OF ADMINISTRATIVE HEARINGS


 

AND RULES

 

   Full-time equated classified positions.......... 163.0

 

Administrative hearings and rules--163.0 FTE positions. $      19,855,200

 

GROSS APPROPRIATION.................................... $     19,855,200

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

IDG from department of community health................         1,547,300

 

IDG from department of corrections.....................         3,461,000

 

IDG from department of education.......................           966,300

 

IDG from department of environmental quality...........           479,300

 

IDG from department of human services..................         3,038,300

 

IDG from department of management and budget...........            40,500

 

   Federal revenues:

 

DOL-ETA, unemployment insurance........................         5,761,400

 

DOL, multiple grants for safety and health.............           183,300

 

   Special revenue funds:

 

Construction code fund.................................           270,400

 

Corporation fees.......................................           328,400

 

Insurance regulatory fees..............................           310,400

 

Licensing and regulation fees..........................         1,015,300

 

Liquor license fees....................................           100,000

 

Liquor purchase revolving fund.........................             3,500

 

Manufactured housing commission fees...................           126,200

 

Public utility assessments.............................         1,155,500

 

Safety education and training fund.....................           177,000

 

Securities fees........................................           808,700

 

Tax tribunal fees......................................            73,600


 

State general fund/general purpose..................... $          8,800

 

   Sec. 114. INFORMATION TECHNOLOGY

 

Information technology services and projects........... $      42,486,200

 

GROSS APPROPRIATION.................................... $     42,486,200

 

    Appropriated from:

 

   Federal revenues:

 

DOL-ETA, unemployment insurance........................        20,754,300

 

DOL, multiple grants for safety and health.............           518,400

 

Federal revenues.......................................         5,772,700

 

HHS, temporary assistance for needy families...........           176,300

 

   Special revenue funds:

 

Bank fees..............................................           477,300

 

Boiler fee revenue.....................................           264,300

 

Construction code fund.................................         1,435,900

 

Consumer finance fees..................................            94,200

 

Corporation fees.......................................         1,715,500

 

Credit union fees......................................           269,300

 

Elevator fees..........................................           254,400

 

Fees and collections/asbestos..........................            11,000

 

Insurance regulatory fees..............................           497,200

 

Licensing and regulation fees..........................         1,109,900

 

Liquor purchase revolving fund.........................         4,340,600

 

Manufactured housing commission fees...................            72,400

 

Michigan state housing development authority fees

 

   and charges..........................................         1,940,300

 

Motor carrier fees.....................................            95,900

 

Public utility assessments.............................           773,100


 

Safety education and training fund.....................           285,600

 

Second injury fund.....................................           106,500

 

Securities fees........................................         1,433,500

 

Self-insurers security fund............................            38,300

 

Silicosis and dust disease fund........................            49,300

 

State general fund/general purpose..................... $              0

 

   Sec. 115. WORKFORCE DEVELOPMENT

 

   Full-time equated classified positions.......... 872.5

 

Employment services--246.0 FTE positions............... $     44,999,700

 

Labor market information--52.0 FTE positions...........         6,020,800

 

Michigan rehabilitation services--513.5 FTE positions..        68,151,000

 

Office of workforce development--61.0 FTE positions....        29,898,200

 

GROSS APPROPRIATION.................................... $    149,069,700

 

    Appropriated from:

 

   Federal revenues:

 

DAG, employment and training...........................           178,700

 

DED-OPSE, multiple grants..............................         1,145,400

 

DED-OSERS, centers for independent living..............            58,200

 

DED-OSERS, rehabilitation long-term training...........           566,900

 

DED-OSERS, rehabilitation services, vocational

 

   rehabilitation of state grants.......................        50,176,300

 

DED-OSERS, state grants for technical related

 

   assistance...........................................            56,000

 

DED, Perkins act.......................................           281,300

 

DOL-ETA, workforce investment act......................         6,448,400

 

DOL, federal funds.....................................        62,671,800

 

DOL, ODEP..............................................           225,000


 

HHS-SSA, supplemental security income..................         4,491,800

 

HHS, temporary assistance for needy families...........         3,320,200

 

   Special revenue funds:

 

Private - gifts, bequests, and donations...............           816,000

 

Local revenue..........................................         4,132,400

 

Local vocational rehabilitation match..................         3,054,000

 

Contingent fund, penalty and interest account..........         1,736,300

 

Rehabilitation services fees...........................         1,269,400

 

Second injury fund.....................................            51,500

 

Student fees...........................................           308,000

 

Training materials fees................................           256,400

 

State general fund/general purpose..................... $      7,825,700

 

   Sec. 116. CAREER EDUCATION PROGRAMS

 

   Full-time equated classified positions........... 55.0

 

Career and technical education--25.0 FTE positions..... $      3,400,500

 

Postsecondary education--14.0 FTE positions............         2,558,200

 

Adult education--16.0 FTE positions....................         2,378,100

 

GROSS APPROPRIATION.................................... $      8,336,800

 

    Appropriated from:

 

   Federal revenues:

 

Federal revenues.......................................         6,358,400

 

   Special revenue funds:

 

Private occupational school license fees...............           409,700

 

Defaulted loan collection fees.........................           100,000

 

State general fund/general purpose..................... $      1,468,700

 

   Sec. 117. DEPARTMENT GRANTS

 

Adult basic education.................................. $     20,000,000


Senate Bill No. 276 as amended June 16, 2005

Carl D. Perkins grants.................................        47,500,000

 

Focus: HOPE............................................         5,860,200

 

Gear-up program grants.................................         3,000,000

 

Job training programs subgrantees......................       119,602,700

 

Michigan community service commission subgrantees......         5,900,000

 

Personal assistance services...........................           459,500

 

Precollege programs in engineering and the sciences....       <<680,100>>

 

Vocational rehabilitation client services/facilities...        54,989,500

 

Vocational rehabilitation independent living...........         3,079,700

 

Welfare-to-work programs...............................       113,798,600

 

Fire protection grants.................................        10,921,000

 

Low-income energy efficiency assistance................        60,000,000

 

Liquor law enforcement grants..........................        12,201,100

 

Remonumentation grants.................................        14,000,000

 

GROSS APPROPRIATION.................................... $ <<471,992,400>>

 

    Appropriated from:

 

   Federal revenues:

 

CNS....................................................         5,500,000

 

DAG, employment and training...........................        13,000,000

 

DED-OESE, gear-up......................................         3,000,000

 

DED-OSERS, centers for independent living..............           450,200

 

DED-OSERS, client assistance for individuals with

 

   disabilities.........................................           440,000

 

DED-OSERS, rehabilitation services, vocational

 

   rehabilitation of state grants.......................        35,797,900

 

DED-OSERS, rehabilitation services facilities..........         2,272,500

 

DED-OSERS, supported employment........................         1,541,300


Senate Bill No. 276 as amended June 16, 2005

DED-OSERS, state grants for technical related

 

   assistance...........................................         2,240,800

 

DED-OVAE, adult education..............................        20,000,000

 

DED-OVAE, basic grants to states.......................        47,500,000

 

DOL-ETA, workforce investment act......................       119,602,700

 

HHS, temporary assistance for needy families...........        82,299,000

 

HHS-SSA, supplemental security income..................         2,480,600

 

Federal section 903(d), SSA funds......................         6,300,000

 

   Special revenue funds:

 

Private - gifts, bequests, and donations...............           800,000

 

Local vocational rehabilitation match..................         6,630,500

 

Local vocational rehabilitation facilities match.......         1,278,300

 

Contingent fund, penalty and interest account..........         1,000,000

 

Low-income energy efficiency fund......................        60,000,000

 

Fire protection fund...................................         3,500,000

 

Liquor purchase revolving fund.........................         3,710,500

 

Liquor license revenue.................................         6,000,000

 

Remonumentation fees...................................        14,000,000

 

State general fund/general purpose..................... $ <<32,648,100>>

 

   Sec. 118. BOARDS, AUTHORITIES AND COMMISSIONS

 

   Full-time equated classified positions.......... 135.0

 

MES board of review program--18.0 FTE positions........ $      2,047,200

 

Rights-of-way oversight authority--5.0 FTE positions...           515,900

 

Land bank fast track authority--3.0 FTE positions......           661,700

 

Michigan community service commission--6.0 FTE

 

   positions............................................         3,202,600

 

Commission on Spanish speaking affairs--2.0 FTE


Senate Bill No. 276 as amended June 16, 2005

   positions............................................           234,000

 

Commission on disability concerns--7.0 FTE positions...         1,013,100

 

Commission for the blind--94.0 FTE positions...........        18,739,700

 

Utility consumer representation........................           550,000

 

Youth low vision program...............................           241,800

 

GROSS APPROPRIATION.................................... $     27,206,000

 

    Appropriated from:

 

   Federal revenues:

 

Federal revenues.......................................        14,296,800

 

CNS....................................................         1,631,400

 

DOL-ETA, unemployment insurance........................         2,047,200

 

   Special revenue funds:

 

Private - gifts, bequests, and donations...............           580,300

 

Private revenues.......................................           124,300

 

Local revenues.........................................           508,900

 

Land bank fast track funds.............................           661,700

 

METRO authority fund...................................           515,900

 

State restricted revenues..............................           548,100

 

Utility consumer representation fund...................           550,000

 

State general fund/general purpose..................... $      5,741,400

 

   Sec. 119. MICHIGAN STRATEGIC FUND

 

   Full-time equated classified positions.......... 195.0

 

Administration--31.0 FTE positions..................... $  <<2,827,100>>

 

Job creation services--164.0 FTE positions.............    <<21,351,700>>

 

Michigan promotion program.............................         6,401,800

 

Economic development job training grants...............        11,798,000

 

Community development block grants.....................        45,000,000


Senate Bill No. 276 as amended June 16, 2005

Strategic economic investment board....................       100,000,000

 

<<                                                

 

           .............................................                 >>

 

GROSS APPROPRIATION.................................... $ <<187,378,600>>

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

IDG-MDEQ, air quality fees.............................            78,600

 

   Federal revenues:

 

DOL-ETA, employment service............................           724,000

 

HUD-CPD, community development block grant.............        47,297,800

 

   Special revenue funds:

 

Private - special project advances.....................           700,000

 

Industry support fees..................................             5,000

 

Bond proceeds..........................................       100,000,000

 

State general fund/general purpose..................... $ <<38,573,200>>

 

 

 

 

 

PART 2

 

PROVISIONS CONCERNING APPROPRIATIONS

 

GENERAL SECTIONS

 

     Sec. 201.  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 2005-2006 is $518,888,000.00 and state

 

spending from state resources to be paid to local units of

 

government for fiscal year 2005-2006 is $67,471,400.00. The

 

itemized statement below identifies appropriations from which

 

spending to units of local government will occur:


 

DEPARTMENT OF LABOR AND ECONOMIC GROWTH

 

Fire protection grants................................. $     10,921,000

 

Liquor law enforcement.................................       12,201,100

 

Local manufactured housing inspections.................           201,700

 

Remonumentation grants.................................       14,000,000

 

Fire fighters training council.........................        1,700,000

 

Economic development job training grants...............       11,248,000

 

Welfare to work........................................        17,199,600

 

Total department of labor and economic

 

growth.................................................. $      67,471,400

 

     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 appropriation act:

 

     (a) "CEO" means chief executive officer of the Michigan

 

economic development corporation.

 

     (b) "CNS" means the corporation for national services.

 

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

 

     (d) "DED" means the United States department of education.

 

     (e) "DED-OESE" means the DED office of elementary and

 

secondary education.

 

     (f) "DED-OPSE" means the DED office of postsecondary

 

education.

 

     (g) "DED-OSERS" means the DED office of special education

 

rehabilitation services.

 

     (h) "DED-OVAE" means the DED office of vocational and adult

 

education.


 

     (i) "Department" means the department of labor and economic

 

growth, including the Michigan strategic fund.

 

     (j) "Director" means the director of the department of labor

 

and economic growth.

 

     (k) "DOE" means the United States department of energy.

 

     (l) "DOE-OEERE" means the DOE office of energy efficiency and

 

renewable energy.

 

     (m) "DOL" means the United States department of labor.

 

     (n) "DOL-ETA" means the DOL employment and training

 

administration.

 

     (o) "DOL-ODEP" means the DOL office of disability employment

 

policy.

 

     (p) "DOT" means the United States department of

 

transportation.

 

     (q) "DOT-RSPA" means the DOT research and special programs

 

administration.

 

     (r) "EEOC" means equal employment opportunity commission.

 

     (s) "Fiscal agencies" means Michigan house fiscal agency and

 

Michigan senate fiscal agency.

 

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

 

     (u) "Fund" means the Michigan strategic fund.

 

     (v) "GED" means general education degree.

 

     (w) "HHS" means the United States department of health and

 

human services.

 

     (x) "HHS-SSA" means HHS social security administration.

 

     (y) "HUD" means the United States department of housing and

 

urban development.


 

     (z) "HUD-CPD" means HUD community planning and development.

 

     (aa) "IDG" means interdepartmental grant.

 

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

 

     (cc) "MDEQ" means the Michigan department of environmental

 

quality.

 

     (dd) "MEDC" means the Michigan economic development

 

corporation, which is the public body corporate created under

 

section 28 of article VII of the state constitution of 1963 and the

 

urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to

 

124.512, by contractual interlocal agreement effective April 5,

 

1999, between local participating economic development corporations

 

formed under the economic development corporations act, 1974 PA

 

338, MCL 125.1601 to 125.1636, and the Michigan strategic fund.

 

     (ee) "MES" means Michigan employment security.

 

     (ff) "Subcommittees" means all members of the subcommittees of

 

the house and senate appropriations committees with jurisdiction

 

over the budget for the department.

 

     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 or state classified civil service

 

positions funded fully by federal funds.

 

     (2) The state budget director may 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 a loss of revenue to the

 

state, result in the inability of the state to receive federal

 

funds, or would 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 month

 

and the reasons to justify the exception.

 

     Sec. 207. At least 60 days before beginning any effort to

 

privatize, the department shall submit a complete project plan to

 

the subcommittees and the 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

 

fiscal agencies and to the subcommittees within 30 months.

 

     Sec. 208. Unless otherwise specified, the department 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 the 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. Preference should be given to

 

goods or services, or both, manufactured or provided by Michigan

 

businesses if they are competitively priced and of comparable

 

value.

 

     Sec. 210. The director 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. The

 

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. The department shall establish and maintain

 

affirmative action programs based on the guidelines developed by

 

the state equal opportunity workforce planning council which was

 

created by Executive Order No. 1996-13 in order to receive general

 

fund/general purpose dollars.

 

     Sec. 212. The department shall receive and retain copies of

 

all reports funded from appropriations in part 1. The department

 

shall follow federal and state guidelines for short-term and long-

 

term retention of these reports and records.

 

     Sec. 213. From the funds appropriated in part 1 for

 

information technology, the department 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 department and

 

the department of information technology.


 

     Sec. 214. Amounts appropriated in part 1 for information

 

technology may be designated as work projects and carried forward

 

to support technology projects under the direction of the

 

department of information technology. Funds designated in this

 

manner are not available for expenditure until approved as work

 

projects under section 451a of the management and budget act, 1984

 

PA 431, MCL 18.1451a.

 

     Sec. 216. It is the intent of the legislature that all revenue

 

sources for funds appropriated in part 1 shall not be aggregated

 

into general categories and shall be specifically identified and

 

detailed as much as possible.

 

     Sec. 217. (1) Due to the current budgetary problems in this

 

state, out-of-state travel for the fiscal year ending September 30,

 

2005 shall be limited to situations in which 1 or more of the

 

following conditions apply:

 

     (a) The travel is required by legal mandate or court order or

 

for law enforcement purposes.

 

     (b) The travel is necessary to protect the health or safety of

 

Michigan citizens or visitors or to assist other states in similar

 

circumstances.

 

     (c) The travel is necessary to produce budgetary savings or to

 

increase state revenues, including protecting existing federal

 

funds or securing additional federal funds.

 

     (d) The travel is necessary to comply with federal

 

requirements.

 

     (e) The travel is necessary to secure specialized training for

 

staff that is not available within this state.


 

     (f) The travel is financed entirely by federal or nonstate

 

funds.

 

     (2) If out-of-state travel is necessary but does not meet 1 or

 

more of the conditions in subsection (1), the state budget director

 

may grant an exception to allow the travel. Any exceptions granted

 

by the state budget director shall be reported on a monthly basis

 

to the house and senate appropriations committees.

 

     (3) Not later than January 1 of each year, each department

 

shall prepare a travel report listing all travel by classified and

 

unclassified employees outside this state in the immediately

 

preceding fiscal year that was funded in whole or in part with

 

funds appropriated in the department's budget. The report shall be

 

submitted to the chairs and members of the house and senate

 

appropriations committees, the fiscal agencies, and the state

 

budget director. The report shall include the following

 

information:

 

     (a) The name of each person receiving reimbursement for travel

 

outside this state or whose travel costs were paid by this state.

 

     (b) The destination of each travel occurrence.

 

     (c) The dates of each travel occurrence.

 

     (d) A brief statement of the reason for each travel

 

occurrence.

 

     (e) The transportation and related costs of each travel

 

occurrence, including the proportion funded with state general

 

fund/general purpose revenues, the proportion funded with state

 

restricted revenues, the proportion funded with federal revenues,

 

and the proportion funded with other revenues.


 

     (f) A total of all out-of-state travel funded for the

 

immediately preceding fiscal year.

 

     Sec. 219. The department of labor and economic growth shall

 

not take disciplinary action against an employee for communicating

 

with a member of the legislature or his or her staff.

 

 

 

REGULATORY

 

     Sec. 301. The appropriation in part 1 for fire protection

 

grants from the liquor purchase revolving fund and the fire

 

protection fund shall be appropriated to cities, villages, and

 

townships with state-owned facilities for fire services, instead of

 

taxes, in accordance with 1977 PA 289, MCL 141.951 to 141.956.

 

     Sec. 302. The funds collected by the office of financial and

 

insurance services in connection with a conservatorship pursuant to

 

section 32 of the mortgage brokers, lenders, and servicers

 

licensing act, 1987 PA 173, MCL 445.1682, shall be appropriated for

 

all expenses necessary to provide for the required services. Funds

 

are available 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. 303. The funds collected by the department from

 

corporations being liquidated pursuant to the insurance code of

 

1956, 1956 PA 218, MCL 500.100 to 500.8302, shall be appropriated

 

for all expenses necessary to provide for the required services.

 

Funds are available 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. 304. The department may make available to interested

 

entities otherwise unavailable customized listings of

 

nonconfidential information in its possession, such as names and

 

addresses of licensees, and charge for this information as follows:

 

base fee for 1 to 1,000 records at the cost to the department;

 

1,001 to 10,000 records at 2.5 cents per record; and 10,001 or more

 

records at .5 cents per record. The revenue received from this

 

service may be used to offset expenses of programs as appropriated

 

in part 1. The balance of this revenue collected and unexpended at

 

the end of the fiscal year shall revert to the appropriate

 

restricted revenue account or fund or, in absence of such an

 

account or fund, to the general fund. The department shall submit

 

an annual report on or before December 1 of each year to the state

 

budget office and the subcommittees that states the amount of

 

revenue received from the sale of information.

 

     Sec. 306. The Michigan state housing development authority

 

shall annually present a report to the state budget office and the

 

subcommittees on the status of the authority's housing production

 

goals under all financing programs established or administered by

 

the authority. The report shall give special attention to efforts

 

to raise affordable multifamily housing production goals.

 

     Sec. 308. The funds collected by the department for licenses,

 

permits, and other elevator regulation fees set forth in R 408.8151

 

of the Michigan administrative code and as determined under section

 

8 of 1976 PA 333, MCL 338.2158, and section 16 of 1967 PA 227, MCL

 

408.816, that are unexpended at the end of the fiscal year shall

 

carry forward to the subsequent fiscal year. The department shall


 

submit a report on an annual basis to the state budget office and

 

the subcommittees on the amount of funds available under this

 

section.

 

     Sec. 309. If the revenue collected by the department for

 

occupational safety and health from fees and collections exceeds

 

the amount appropriated in part 1, the revenue may be carried

 

forward into the subsequent fiscal year. The revenue carried

 

forward under this section shall be used as the first source of

 

funds in the subsequent fiscal year.

 

     Sec. 310. Money appropriated under this act for fire safety

 

programs shall not be expended unless, in accordance with section

 

2c of the fire prevention code, 1941 PA 207, MCL 29.2c, inspection

 

and plan review fees will be charged according to the following

 

schedule:

 

Operation and maintenance inspection fee

 

   Facility type            Facility size            Fee

 

   Hospitals                     Any             $8.00 per bed

 

Plan review and construction inspection fees for

 

hospitals and schools

 

   Project cost range                                Fee

 

$101,000.00 or less                       minimum fee of $155.00

 

$101,001.00 to $1,500,000.00                 $1.60 per $1,000.00

 

$1,500,001.00 to $10,000,000.00              $1.30 per $1,000.00

 

$10,000,001.00 or more                       $1.10 per $1,000.00

 

                                 or a maximum fee of $60,000.00.

 

     Sec. 313. If the revenue collected by the department from

 

licensing and regulation fees exceeds the amount appropriated in


 

part 1, the revenue may be carried forward into the subsequent

 

fiscal year. During fiscal year 2005-2006, $15,000,000.00 of

 

insurance licensing fees shall be transferred to the general fund.

 

The revenue carried forward under this section shall be used as the

 

first source of funds in the subsequent fiscal year.

 

     Sec. 314. Funds earned or authorized by the United States

 

department of labor in excess of the gross appropriation in part 1

 

for the unemployment insurance agency and the employment service

 

agency from the United States department of labor are appropriated

 

and may be expended for staffing and related expenses incurred in

 

the operation of its programs. These funds may be spent after the

 

department notifies the state budget office and the subcommittees

 

of the purpose and amount of each grant award.

 

     Sec. 315. The department shall sell documents at a price not

 

to exceed the cost of production and distribution. Money received

 

from the sale of these documents shall revert to the department.

 

The funds are available for expenditure when they are received by

 

the department of treasury and may only be used for costs directly

 

related to the continued updating and distribution of the documents

 

pursuant to this section. This section applies only for the

 

following documents:

 

     (a) Corporation and securities division documents, reports,

 

and papers required or permitted by law pursuant to section 1060(5)

 

of the business corporation act, 1972 PA 284, MCL 450.2060.

 

     (b) The subdivision control manual, the state boundary

 

commission operations manual, and other local government assistance

 

manuals.


 

     (c) The Michigan liquor control code of 1998, 1998 PA 58, MCL

 

436.1101 to 436.2303.

 

     (d) The mobile home commission act, 1987 PA 96, MCL 125.2301

 

to 125.2349; the business corporation act, 1972 PA 284, MCL

 

450.1101 to 450.2098; the nonprofit corporation act, 1982 PA 162,

 

MCL 450.2101 to 450.3192; and the uniform securities act, 1964 PA

 

265, MCL 451.501 to 451.818.

 

     (e) Labor law books.

 

     (f) Worker's compensation health care services rules.

 

     (g) Construction code manuals.

 

     (h) Copies of transcripts from administrative law hearings.

 

     Sec. 317. The department, bureau of safety and regulation,

 

shall provide an annual report by February 1 of each year to the

 

state budget office, the fiscal agencies, and the subcommittees on

 

the number of individuals killed and the number of individuals

 

injured on the job within industries regulated by the bureau during

 

the most recent year for which data are available.

 

     Sec. 322. From the funds appropriated in part 1 for utility

 

consumer representation, the department shall produce and

 

facilitate the airing of public service announcements that inform

 

utility customers of the availability and purpose of these funds.

 

The utility consumer participation board shall report to the

 

subcommittees, fiscal agencies, and state budget office by

 

September 30 on its efforts in this area, including the amount of

 

expenditures made for this purpose.

 

     Sec. 326. The appropriation in part 1 for the Michigan

 

commission for the blind includes funds for case services. These


 

funds may be used for tuition payments for blind clients for the

 

school year beginning September 2004.

 

     Sec. 332. It is the intent of the legislature that the

 

department make every effort to hold administrative law hearings on

 

actions initiated by the department against regulated businesses or

 

against individuals in regulated occupations in locations that are

 

within 150 miles of the regulated business or of the office of the

 

individual in a regulated occupation. In addition, it is the intent

 

of the legislature that the department make every effort to hold

 

administrative law hearings on actions initiated by an individual

 

outside the department in locations within 150 miles of the home of

 

the individual bringing the action if that individual wishes to

 

testify at the hearing.

 

     Sec. 335. The public service commission shall report by June 1

 

of each year to the subcommittees, the state budget office, and the

 

fiscal agencies on the distribution of funds appropriated in part 1

 

for the low-income/energy efficiency assistance program.

 

     Sec. 336. The department shall provide the subcommittees,

 

fiscal agencies, and state budget director with a report on or

 

before December 1 outlining actual expenditures for the last

 

completed fiscal year for each division within the office of

 

financial and insurance services.

 

     Sec. 337. The department shall not expend funds from the

 

appropriations in part 1 for the office of financial and insurance

 

services for the purpose of implementing prohibitions on the use of

 

credit scoring in establishing insurance premiums by insurance

 

companies until the legislature has, by statute, authorized such a


 

prohibition.

 

     Sec. 340. The office of financial and insurance services shall

 

provide copies of the quarterly and annual financial filings of

 

health maintenance organizations to the fiscal agencies on a timely

 

basis.

 

     Sec. 349. The department and the Michigan state housing

 

development authority shall work collaboratively with other state

 

departments and agencies to maximize the use of available Michigan

 

state housing development authority fund equity to provide senior

 

assisted living that offers a continuum of care from independent

 

apartments to assisted living to nursing care and Alzheimer

 

programs.

 

     Sec. 350. (1) The department shall allocate funds to promote

 

awareness of the right of a policyholder, subscriber, member,

 

enrollee, or other individual participating in a health benefit

 

plan, after the covered person has exhausted the health carrier's

 

internal grievance process provided for by law, to request an

 

external review for an adverse determination.

 

     (2) As used in this section, "covered person" means that term

 

as defined in section 3 of the patient's right to independent

 

review act, 2000 PA 251, MCL 550.1903.

 

     Sec. 351. (1) The department shall issue a report to the

 

subcommittees by the end of each calendar year, but not later than

 

December 31 of each year, showing the date each real estate

 

continuing education course was submitted for approval and the date

 

of final disposition, approval, or denial.

 

     (2) The department shall post on its website the approved real


 

estate continuing education courses, as well as the dates, times,

 

instructors, locations, course title, and credit hours of the

 

courses.

 

     (3) The department shall have available to the public online

 

the prelicensure and continuing education course approvals.

 

     (4) It is the intent of the legislature that sponsors of

 

continuing education be able to report an applicant's or licensee's

 

completion of courses to the department via electronic methods.

 

     Sec. 352. From the funds appropriated in part 1 for

 

unclassified salaries, the department shall provide funding for 5

 

worker's compensation appellate commissioners and 26 worker's

 

compensation board of magistrates. Expenditures shall be made so

 

that the 2 bodies shall decide worker's compensation cases in a

 

timely manner.

 

     Sec. 355. Of the funds appropriated in part 1, no funds shall

 

be used to support the development of, or activities that promote

 

the development of, guidelines, rules, standards, protocols, or

 

other similar mandates that are more stringent than federal

 

voluntary ergonomics guidelines. This section does not prohibit any

 

person from adopting, or working with the state to develop,

 

voluntary ergonomics standards.

 

     Sec. 356. It is the intent of the legislature that the

 

Michigan commission for the blind work collaboratively with service

 

organizations to identify qualified match dollars to maximize use

 

of available federal funds.

 

     Sec. 358. The real estate education fund created in section 37

 

of the state license fee act, 1979 PA 152, MCL 338.2237, and


 

administered by the department shall allow prelicensure and

 

postlicensure education to be delivered through on-line courses by

 

a community college, university, or private school, after licensure

 

and approval by the department. Expenditures from this fund may

 

also be made to support department grants for educational providers

 

to establish on-line courses that would be made available to

 

students throughout the year.

 

     Sec. 360. The department shall create a tracking system for

 

real estate license continuing education credits that would allow

 

the licensee to ascertain the number of approved course credits

 

that the licensee has completed.

 

     Sec. 361. In addition to the amounts appropriated in part 1

 

for the administration of the land bank fast track authority, the

 

authority may expend revenues received under the land bank fast

 

track act, 2003 PA 258, MCL 124.751 to 124.774, for the purposes

 

authorized by the act including, but not limited to, the

 

acquisition, lease, management, demolition, maintenance, or

 

rehabilitation of real or personal property, payment of debt

 

service for notes or bonds issued by the authority, and other

 

expenses to clear or quiet title property held by the authority.

 

     Sec. 362. Of the funds appropriated in part 1 for the

 

department, $200,000.00 may be used for administration and

 

enforcement of boxing regulation in Michigan.

 

     Sec. 364. The department shall provide a report to the chairs

 

of the appropriation subcommittees on labor and economic growth by

 

January 1 on the total administrative costs allocated for the

 

broadband development authority. These costs should include all


 

staffing and other related costs associated with contracts. The

 

report shall also include any payments to date for reimbursement to

 

the Michigan state housing development authority. If no payments

 

have been made, then the report shall include a detailed plan

 

outlining the reimbursement schedule.

 

     Sec. 365. From the funds appropriated in part 1 to the

 

Michigan occupational safety and health administration consultation

 

education and training (CET) grants, not less than $40,000.00 shall

 

be allocated to nonprofit organizations representing the aggregate

 

industry in Michigan.

 

     Sec. 366. It is the intent of the legislature to fund the

 

workers' compensation administration with general fund money.

 

     Sec. 367. The department shall develop a searchable website

 

where consumers can research the performance of licensed

 

residential builders, including the number of valid complaints

 

filed against the builder that require disciplinary actions taken

 

by the department. The website shall allow searches by licensee

 

name, company name, and license number.

 

     Sec. 368. Funds collected by the department of labor and

 

economic growth 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 cost 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.

 

 

 

WORKFORCE AND CAREER DEVELOPMENT

 

     Sec. 401. The Michigan career and technical institute may

 

receive equipment and in-kind contributions for the direct support

 

of staff services through the Pine Lake fund, the Delton-Kellogg

 

school district or other local or intermediate school district, or

 

any combination of local or intermediate school districts in

 

addition to those authorized in part 1.

 

     Sec. 402. The Michigan rehabilitation service shall make every

 

effort to ensure that all sources of matching funds in this state

 

are used to obtain federal vocational rehabilitation funds. All

 

sources include, but are not limited to, privately raised funds to

 

support public nonprofit rehabilitation centers as permitted by the

 

rehabilitation act of 1973, Public Law 93-112, 29 USC 701 to 718,

 

720 to 751, 760 to 765, 771 to 776, 780 to 785, 791 to 794e, 795 to

 

795n, and 796 to 796l.

 

     Sec. 403. The local match requirements for vocational

 

rehabilitation facilities establishment grants shall not exceed

 

21.3% for the fiscal year ending September 30.

 

     Sec. 404. (1) Of the funds appropriated in part 1 for

 

vocational rehabilitation independent living, all general

 

fund/general purpose revenue not used to match federal funds shall

 

be used for the support of centers for independent living which are

 

in compliance with federal standards for such centers, for the

 

development of new centers in areas presently unserved or

 

underserved, for technical assistance to centers, and for projects


 

to build capacity of centers to deliver independent living

 

services. Applications for such funds shall be reviewed in

 

accordance with criteria and procedures established by the

 

statewide independent living council, the Michigan rehabilitation

 

services unit within the department, and the Michigan commission

 

for the blind. Funds must be used in a manner consistent with the

 

priorities established in the state plan for independent living.

 

The department is directed to work with the Michigan association of

 

centers for independent living and the local workforce development

 

boards to identify other competitive sources of funding.

 

     (2) The statewide independent living council and the Michigan

 

association of centers for independent living shall jointly produce

 

a report providing the following information:

 

     (a) Results in terms of enhanced statewide access to

 

independent living services to individuals who do not have access

 

to such services through other existing public agencies, including

 

measures by which these results can be monitored over time. These

 

measures shall include:

 

     (i) Total number of persons assisted by the centers and a

 

comparison to the number assisted in the previous year.

 

     (ii) Number of persons moved out of nursing homes into

 

independent living situations and a comparison to the number

 

assisted in the previous year.

 

     (iii) Number of persons for whom accommodations were provided to

 

enable independent living or access to employment and a comparison

 

to the number assisted in the previous year.

 

     (iv) The total number of disabled individuals served by


 

personal care attendants and the number of personal care attendants

 

provided through the use of any funds appropriated in part 1

 

administered by a center for independent living and a comparison to

 

the number served in the previous year.

 

     (b) Information from each center for independent living

 

receiving funding through appropriations in part 1 detailing their

 

total budget for their most recently completed fiscal year as well

 

as the amount within that budget funded through the vocational

 

rehabilitation independent living grant program referenced in part

 

1, the total amount funded through other state agencies, the amount

 

funded through federal sources, and the amount funded through local

 

and private sources.

 

     (c) Savings to state taxpayers in other specific areas that

 

can be shown to be the direct result of activities funded from the

 

vocational rehabilitation independent living grant program during

 

the most recently completed state fiscal year.

 

     (3) The report required in subsection (2) shall be submitted

 

to the subcommittees, the fiscal agencies, and the state budget

 

director on or before January 30.

 

     Sec. 405. (1) The appropriation in part 1 to the department

 

for the work first program shall be expended for grants that

 

provide employment and training services to department of human

 

services program applicants and recipients and may be expended for

 

grants that provide employment and training services to former

 

department of human services program recipients, as well as to

 

recipients of noncash public assistance, specifically child day

 

care, Medicaid, or food stamp benefits. The work first program,


 

however, shall not be construed to be an entitlement to services.

 

     (2) An applicant may be a school district, intermediate school

 

district, community college, public or private nonprofit college or

 

university, nonprofit organization that provides school-to-work

 

transition programs or that provides employment and training

 

services or vocational rehabilitation programs or state licensed

 

accredited vocational or technical education programs, proprietary

 

school licensed by the state board of education, local workforce

 

development board, or a consortium consisting of any combination of

 

school districts, intermediate school districts, community

 

colleges, nonprofit organizations described in this subsection,

 

licensed proprietary schools, or public or private nonprofit

 

colleges or universities described in this subsection.

 

     (3) The work first site shall identify the barriers which may

 

prevent the participant from obtaining employment and assist the

 

client in removing those barriers. The work first site shall also

 

identify appropriate education and job training programs which

 

would be available to the participant. The department shall

 

encourage the Michigan works! agencies to consider transportation

 

challenges for work first participants placed in employment. When

 

an individual is re-referred to work first because of an inability

 

to retain employment, the Michigan works! agencies shall confer

 

with the Michigan rehabilitation services, the department of human

 

services, or other professionals if considered appropriate by the

 

Michigan works! agency to screen for and identify issues that are

 

preventing the participant from succeeding in the labor market.

 

Each Michigan works! agency shall determine locally the number of


 

times an individual may be re-referred back to the program before

 

consulting with other service agencies. If no prohibitive barriers

 

to work are found, the individual shall comply with the work first

 

program, or be subject to appropriate penalties.

 

     (4) Work first program participants shall include applicants

 

and recipients of the department of human services program

 

established under section 57a of the social welfare act, 1939 PA

 

280, MCL 400.57a, and such individuals referred to a job club

 

program by a county department of human services board or a county

 

friend of the court as long as the participation in the job club is

 

part of an application submitted under this section.

 

     (5) Participants in the work first program shall not be

 

enrolled and counted in membership in a school district or

 

intermediate school district.

 

     (6) The department will work with the department of human

 

services to coordinate support services to work first participants

 

relating to special/emergency needs.

 

     (7) Work first program participants must receive or be

 

provided an explanation of the program including their benefits and

 

responsibilities before the job interview phase of the program.

 

This explanation shall include clear guidelines with regard to an

 

individual's eligibility for postemployment training support and

 

for applying hours in training toward work requirements.

 

     (8) The department shall make every effort to place a minimum

 

of 50% of clients who participate in the work first program in

 

positions that provide wages of $8.00 per hour or more.

 

     (9) The department shall submit to the fiscal agencies and the


 

state budget director by March 15 a report on the work first

 

program, including the number of participants served under this

 

section, the number of persons who located employment through work

 

first, the average wage of participants who found employment, the

 

number of persons who retained jobs for 90 days, the number of

 

participants placed in employment training and education programs,

 

the number of clients referred to work first who failed to report,

 

a compilation of barriers to employment by incidence and type

 

experienced by participants, and the number of participants

 

referred back to the department of human services.

 

     (10) The department shall provide to the state budget director

 

and the fiscal agencies by May 15 and November 15 of each year a

 

report on the work first grants. The report due by May 15 shall

 

provide the information described in this subsection for each grant

 

or contract awarded during the preceding 2 quarters of the state

 

fiscal year. The report due by November 15 shall provide this

 

information for each grant or contract awarded during the preceding

 

full fiscal year. The report shall contain both of the following:

 

     (a) The amount and recipient of each grant or contract.

 

     (b) The number of participants in each service delivery area

 

and the number of clients placed in employment in each service

 

delivery area.

 

     (11) The department shall make available to work first

 

participants guidelines on eligibility for postemployment training

 

and how training/education hours are applied toward work

 

participation requirements. These guidelines will be presented

 

during joint orientation conducted by the department of human


 

services and the department contracted staff in accordance with

 

department policy issuances and department of human services

 

program bulletins. These guidelines presented by the department and

 

the department of human services shall balance the ability of

 

participants to obtain training and subsequent long-term high-wage

 

employment with the need to connect participants with the

 

workplace. Any and all training/education, with the exception of

 

high school completion and GED preparation, must be occupationally

 

relevant and in demand in the labor market as determined by the

 

workforce development board. Participants must make satisfactory

 

progress to continue in a training/education component.

 

     (12) The work participation requirement is up to 40 hours per

 

week. However, work first participants may meet the work

 

participation requirement by combining a minimum of 10 hours per

 

week of work with training/education. Training/education may last

 

up to 12 months and the calculated hours may include actual

 

classroom seat time up to 10 hours per week plus up to 1 hour of

 

study time for each hour of classroom seat time. Work first

 

participants may enroll in additional hours of classroom seat time

 

beyond 10 hours. However, these hours and the related study time

 

will not count toward the work participation requirement. The

 

training may be no longer than a 1-year program or the final year

 

of a 2- or 4-year undergraduate program designed to lead to

 

immediate labor force attachment.

 

     (13) Work first participants may meet the work participation

 

requirement through enrollment in a short-term vocational program

 

requiring 30 hours of classroom seat time per week for a period not


 

to exceed 6 months, or by enrollment in full-time internships,

 

practicums, or clinicals required by an academic or training

 

institution for licensure, professional certification, or degree

 

completion, without an additional work requirement. In cases where

 

a short-term vocational program lasts less than 6 months, the

 

participant shall be eligible to enroll in 1 additional short-term

 

vocational program for a combined period not to exceed a total of 6

 

months.

 

     (14) Work first participants who lack a high school diploma or

 

GED and who enroll in high school completion or classes to obtain a

 

GED may count up to 10 hours of classroom seat time, combined with

 

a minimum number of hours of work per week, to meet their work

 

participation requirement. There shall be no time limit on high

 

school completion. GED preparation shall be limited to 6 months.

 

     Sec. 406. (1) Using all relevant state data sources, the

 

department shall conduct a 3-year longitudinal study of all former

 

work first participants, whose department of human services program

 

cases closed due to earnings during fiscal year 1999 and in

 

succeeding fiscal years. The data will include the following:

 

     (a) The number and percentage employed.

 

     (b) The average hourly wage of those employed.

 

     (c) The current hourly wage of those employed.

 

     (d) The range of wages earned by those employed.

 

     (e) The number of individuals that earned each wage amount.

 

     (f) The number and percentage receiving health care benefits

 

from their employer.

 

     (g) The number and percentage receiving tuition reimbursement


 

from their employer.

 

     (h) The number and percentage receiving training benefits from

 

their employer.

 

     (i) The type of jobs obtained by former participants in

 

general categories.

 

     (j) The length of time former participants have retained their

 

jobs, or if participants have had more than 1 job, the length of

 

time employed at each job.

 

     (k) The number and percentage continuing to receive any type

 

of public assistance.

 

     (l) If the former recipient has children, whether the children

 

are enrolled in and attending school.

 

     (m) The extent to which the former participant feels that they

 

and their family are better off now than when they were on cash

 

assistance with regard to household income, housing, food and

 

nutritional needs, child health care, and access to health

 

insurance coverage.

 

     (2) The department shall notify the subcommittees, fiscal

 

agencies, and state budget director electronically by March 15 of

 

the location of the Internet site where the report containing the

 

identified data is located.

 

     (3) The department shall cooperate with the department of

 

human services in formulating and acquiring the identified data.

 

     (4) The department may retain a third party to conduct the

 

studies to obtain the data identified under this section.

 

     Sec. 407. State and federal funds allocated to local workforce

 

development boards for disbursement shall not be expended unless


 

the local workforce development boards maintain a partnership with

 

governmental agencies, public school districts, and public colleges

 

located within the local service delivery area. Each board shall

 

appoint an education advisory group made up of high-level

 

administrators within local educational institutions, workforce

 

development board members, other employers, labor, academic

 

educators, and parents of public school pupils.

 

     Sec. 409. (1) Of the funds appropriated in part 1 for

 

precollege programs in engineering and the sciences, $340,050.00

 

shall be provided in the form of a grant to the Detroit precollege

 

engineering program, incorporated and $_______.00 shall be provided

 

in the form of a grant to the Grand Rapids area precollege

 

engineering program.

 

     (2) The department shall submit a report to the subcommittees

 

and the fiscal agencies by February 1 regarding dropout rates,

 

grade point averages, enrollment in science, engineering, and math-

 

based curricula, and employment in science, engineering, and math-

 

based fields for students within the programs. The report shall

 

continue to evaluate the effectiveness of the precollege programs

 

in engineering and sciences funded through part 1 appropriations

 

and shall make recommendations on whether state support to expand

 

such programs to other areas of the state is warranted in future

 

fiscal years.

 

     Sec. 410. (1) The department shall have at least 1 disabled

 

veterans outreach program specialist or local veterans employment

 

representative present, at each Michigan works! service center on a

 

full- or part-time basis during hours of operation.


 

     (2) The department shall ensure that each Michigan works!

 

service center shall have the necessary equipment to allow the

 

disabled veterans outreach specialist or local veterans employment

 

representative to perform his or her duties in the same manner they

 

were performed prior to February 1, 1999.

 

     (3) The department shall require each Michigan works! service

 

center to have an employee available to ask each individual who

 

enters the office for service whether that individual is a veteran

 

and to refer each veteran to the disabled veterans outreach program

 

specialist or local veterans employment representative on duty at

 

the time.

 

     (4) The department shall require that each Michigan works!

 

service center shall have posted in a conspicuous place within the

 

office a notice advising veterans that a disabled veterans outreach

 

program specialist or a local veterans employment representative is

 

available to assist him or her.

 

     (5) The department shall require each Michigan works! service

 

center to provide free mediated services to employers wishing to

 

hire a veteran.

 

     (6) The department shall continue to make the appropriate

 

placement of veterans and disabled veterans a priority.

 

     Sec. 414. The department may carry into the succeeding fiscal

 

year unexpended federal pass-through funds to local institutions

 

and governments that do not require additional state matching

 

funds. Federal pass-through funds to local institutions and

 

governments that are received in amounts in addition to those

 

included in part 1 and that do not require additional state


 

matching funds are appropriated for the purposes intended.

 

     Sec. 415. Of the amounts appropriated in part 1 for

 

postsecondary education, private occupational school license fees

 

shall fund related administrative costs of the proprietary schools

 

oversight unit within the department.

 

     Sec. 417. The department is appropriated an amount not to

 

exceed $100,000.00 from collection of defaulted loans under the

 

future faculty program in the Martin Luther King, Jr. - Cesar

 

Chavez - Rosa Parks programs to offset costs of administering the

 

loan collections.

 

     Sec. 418. From the funds appropriated in part 1 for

 

postsecondary education, the department shall compile data from

 

each university that receives funding for the future faculty

 

program within the King-Chavez-Parks initiative on employment

 

outcomes for program participants. The report shall be distributed

 

to the house and senate appropriations committees, the fiscal

 

agencies, and the state budget office by February 1 of each year.

 

The report shall include data from each participating university

 

covering the most recently completed fiscal year. The data shall

 

include all of the following:

 

     (a) The number of participants receiving support under the

 

program.

 

     (b) The number of participants obtaining full-time employment.

 

     (c) The number of participants obtaining full-time employment

 

in college faculty positions.

 

     (d) The number of participants obtaining full-time employment

 

in college faculty positions within the university through which


 

they received future faculty program support for graduate studies.

 

     Sec. 421. The King-Chavez-Parks initiative shall be marketed

 

by the department to Michigan parents and high school and college

 

students, to promote the benefits and the availability of the

 

college day, select student support services, college/university

 

partnership, visiting professors, Morris Hood, Jr. educator

 

development, and future faculty programs. The department shall

 

provide electronic notification of the location of the report on

 

the Internet to the subcommittees on December 30, 2004, identifying

 

all efforts taken to market these programs, including, but not

 

limited to, the amount of funding allocated for this purpose, the

 

fund source and any expenditures or encumbrances relating to this

 

marketing effort. It is the intent of the legislature that the

 

department administer the King-Chavez-Parks initiative in the same

 

manner as when it was previously contained in the department of

 

education and consistent with all boilerplate language pertaining

 

to the above listed programs as included in the appropriations act

 

for higher education institutions.

 

     Sec. 425. The department shall work cooperatively with the

 

department of civil service to identify state employees who will

 

lose their jobs as a result of an agency or program being

 

reorganized, modified, or eliminated and shall develop training

 

programs and provide training to these individuals that will

 

provide them an opportunity and skills necessary to secure new

 

employment within state government or the private sector. It shall

 

be a priority of the department to provide training and employment

 

opportunities to these individuals through their employment service


 

locations.

 

     Sec. 426. From the funds appropriated in part 1 to job

 

training programs subgrantees, the department shall allocate

 

sufficient funds to the Michigan works! service centers to allow

 

these centers to remain fully operational.

 

     Sec. 427. The youth low-vision program is considered the payer

 

of last resort. Other available public or private insurance

 

coverage, including Medicaid or MIChild, and special education

 

funds, shall be exhausted prior to using any funds appropriated in

 

part 1 to purchase low-vision devices or equipment for an

 

individual.

 

     Sec. 429. (1) Focus: HOPE shall submit a report on the use of

 

the grant's funds appropriated in part 1 to the chairs of the

 

subcommittees, the fiscal agencies, and the state budget office

 

that includes, but is not limited to, the following:

 

     (a) Detailed expenditures for administration including

 

salaries and wages of employees.

 

     (b) Amount allocated for education and training programs

 

including number of students served by each program.

 

     (c) Amount allocated for job search assistance and career

 

planning including the number of students served by each program.

 

     (d) Detailed expenditures for any contracts entered into with

 

the use of these funds.

 

     (e) Detailed expenditures for any program enhancements

 

including number of new hires and capital expenditures.

 

     (2) The report shall be submitted on or before January 31.

 

 


 

MICHIGAN STRATEGIC FUND

 

     Sec. 501. (1) The appropriation in part 1 to the fund for

 

economic development job training shall be expended in 2

 

categories: the business response program for employee training

 

grants which maintain or attract permanent jobs for Michigan

 

residents and the manufacturing competitiveness program for grants

 

to fund collaborative efforts which increase the competitiveness of

 

multiple companies within a grant. The business response program is

 

allocated up to $7,865,000.00, and the manufacturing

 

competitiveness program is allocated up to $3,933,000.00 not to

 

exceed the part 1 appropriation for this program in its entirety.

 

The fund has the authority to reallocate these amounts during the

 

fiscal year dependent on business demand and economic conditions.

 

     (2) Not more than $800,000.00 of the total grant may be

 

expended for administrative costs. Not more than 10% of the total

 

grant award may be expended by a recipient for administration

 

costs.

 

     (3) No funds appropriated in part 1 to the fund for economic

 

development job training grants may be expended for the training of

 

permanent striker replacement workers, unless a strike exceeds 3

 

years and good faith negotiations are ongoing.

 

     (4) Of the total funds appropriated in part 1 for economic

 

development job training grants, at least 75% of the funds shall be

 

awarded to community colleges or a consortium of community colleges

 

and other eligible applicants pursuant to subsection (5).

 

     (5) An applicant may be a school district, intermediate school

 

district, community college, public or private nonprofit college or


 

university, nonprofit organization whose primary purpose is to

 

provide education programs or employment and training services or

 

vocational rehabilitation programs or school-to-work transition

 

programs, local workforce development board, the headquarters of a

 

federal and state sponsored manufacturing technology center, or a

 

consortium consisting of any combination of school districts,

 

intermediate school districts, community colleges, nonprofit

 

organizations described in this subsection, or public or private

 

nonprofit colleges or universities described in this subsection.

 

     (6) On or before October 1, the fund shall publish proposed

 

application criteria, instructions, and forms for use by eligible

 

applicants. The fund shall provide at least a 2-week period for

 

public comment prior to finalization of the application criteria,

 

instructions, and forms.

 

     (7) The award process will include a simple notice of intent

 

to be reviewed to see if the application merits further

 

consideration. If so, a full application may be submitted.

 

Applications for all grants shall be submitted to the fund, and

 

each application shall contain at least all of the following:

 

     (a) The name, address, and total number of employees of each

 

business organization whose employees are receiving job training.

 

     (b) A description of the specific job skills that will be

 

taught.

 

     (c) A clear statement of the project's scope of activities and

 

number of participants to be involved.

 

     (d) A commitment to maintain participant records in a form and

 

manner required by the fund.


 

     (e) A budget which relates to the proposed activities and

 

various program components.

 

     (8) Priority in the fund's awarding of grants shall be based

 

on the following criteria:

 

     (a) Demonstrated need for the type of training offered.

 

     (b) Creation and/or retention of high wage and high skilled

 

level jobs.

 

     (c) Other criteria determined by the fund to be important.

 

     (d) In addition, for the manufacturing competitiveness

 

program, the following criteria will receive priority: strong level

 

of collaboration and cooperation and demonstration of new

 

techniques, systems, and processes of value to the affected

 

companies.

 

     (9) Participants in economic development job training programs

 

shall be 16 years or older and not enrolled and counted in

 

membership in a school district, intermediate school district, or

 

community college.

 

     (10) A recipient of a grant under this section shall not

 

charge tuition or fees to participants in the program funded by the

 

grant. However, a nonprofit organization may charge tuition or fees

 

if the tuition plan or fees are recognized by the state and the

 

nonprofit organization receives additional funding from other

 

governmental or private funding sources for its programs.

 

     (11) For training delivered to incumbent workers under the

 

business response program, the business receiving the benefit of

 

the training shall provide a minimum of 20% of the program costs in

 

matching funds as necessitated by the program. For training


 

delivered under the manufacturing competitiveness program, the

 

business receiving the benefit of the training shall provide a

 

minimum of 30% of the program costs in matching funds as

 

necessitated by the program.

 

     (12) Grant funds shall be expended on a cost reimbursement

 

basis.

 

     (13) A recipient of a grant under this section shall allow the

 

fund or the agency's designee to audit all records related to the

 

grant for all entities that receive money, either directly or

 

indirectly through a contract, from the grant funds. A grant

 

recipient or contractor shall reimburse the state for all

 

disallowances found in the audit.

 

     (14) The fund shall provide to the state budget director and

 

the fiscal agencies by May 1 and November 1 of each year a report

 

on the economic development job training grants. The report due by

 

May 1 shall provide the information described in this subsection

 

for each grant or contract awarded during the preceding 2 quarters

 

of the state fiscal year. The report due by November 1 shall

 

provide this information for each grant or contract awarded during

 

the preceding full fiscal year. The report shall contain all of the

 

following:

 

     (a) The amount and recipient of each grant or contract.

 

     (b) The number of participants under each grant or contract

 

and the number of new hires who are in training under the grant.

 

     (c) The names, addresses, and total number of employees of all

 

business organizations for whom training is or will be provided.

 

     (d) The matching funds, if any, to be provided by a business


 

organization.

 

     (15) Of the funds appropriated in part 1 for economic

 

development job training grants, the fund shall not use these funds

 

to finance the startup or in any way subsidize any private

 

distributor of liquor products in Michigan.

 

     (16) As a condition of receiving funds under part 1 of this

 

act, the fund shall not expend any of the economic development job

 

training grant funds to train any employee who is an officer of a

 

corporation in a corporation employing more than 250 employees.

 

     Sec. 502. The Michigan growth capital fund shall be used to

 

develop the technology business sector in Michigan. The Michigan

 

growth capital fund will be used to encourage private and public

 

investment in the technology business sector, and all of the

 

following apply:

 

     (a) An applicant must match state funds on a 1:1 basis.

 

     (b) Eligible uses of the Michigan growth capital fund include

 

investments in organizations and programs that promote the

 

development of new industry sectors in Michigan; inducements to

 

attract additional venture capital funds to finance technology

 

development; support organizations, initiatives, or events that

 

promote entrepreneurship; provide match for university federal

 

research grants; and support technology transfer and

 

commercialization programs with universities and the private

 

sector.

 

     (c) The Michigan economic development corporation shall

 

administer the Michigan growth capital fund.

 

     (d) All funds received from repayment of loans, unused grants,


 

revenues received from sales or cash flow participation agreements,

 

guarantees, or any combination thereof or interest thereon,

 

originally distributed as part of the Michigan growth capital fund,

 

shall be received, held, and applied by the fund for the purposes

 

described in this subsection.

 

     (e) The Michigan economic development corporation shall

 

provide an annual report on the status of the Michigan growth

 

capital fund to the subcommittees, the fiscal agencies, and the

 

state budget office by January 31.

 

     Sec. 503. Travel Michigan may establish and collect a fee to

 

cover the cost of materials and processing of photographic prints,

 

slides, videotapes, and travel product database information that

 

are requested by the media and other segments of the public and

 

private sectors. The fees collected shall be appropriated for all

 

expenses necessary to purchase and distribute these photographic

 

prints, slides, videotapes, and travel product database

 

information. The funds are available for expenditure when they are

 

received by the department of treasury.

 

     Sec. 504. Travel Michigan may receive and expend private

 

revenue related to the use of the "Michigan Great Lakes. Great

 

Times." copyrighted slogan and image. This revenue may come from

 

the direct licensing of the name and image or from the royalty

 

payments from various merchandise sales. Revenue collected is

 

appropriated for the marketing of the state as a travel

 

destination. The funds are available for expenditure when they are

 

received by the department of treasury.

 

     Sec. 506. The fund shall submit on or before May 1 and


 

November 1 to the subcommittees, state budget office, and the

 

fiscal agencies a listing of all grants which have been awarded by

 

the fund or by the Michigan economic development corporation from

 

the funds appropriated in part 1. The list shall include all of the

 

following:

 

     (a) The name of the recipient.

 

     (b) The amount awarded to the recipient.

 

     (c) The purpose of the grant.

 

     Sec. 507. (1) The fund shall provide reports to the relevant

 

subcommittees, the state budget director, and the fiscal agencies

 

concerning the activities of the Michigan economic development

 

corporation grants and investment programs financed from the fund

 

using investment or Indian gaming revenues. The report shall

 

provide a list of individual grants and loans made from the fund.

 

The report shall include, but not be limited to, the following

 

programs funded in part 1:

 

     (a) Travel Michigan.

 

     (b) Michigan business development.

 

     (c) Global business development.

 

     (d) Small, minority, and disabled business services.

 

     (e) Community development block grants.

 

     (f) Strategic fund administration.

 

     (g) Renaissance zones.

 

     (h) Emerging business sectors and roundtables.

 

     (i) Business and clean air ombudsman.

 

     (j) Economic development job training grants.

 

     (k) Community assistance team.


 

     (l) Technology tri-corridor.

 

     (m) Any other programs of the fund.

 

     (2) The reports in subsection (1) shall be submitted by

 

January 1. The report for each program in subsection (1)(a) through

 

(m) shall include details on the actual spending and number of FTEs

 

for that program for the previous fiscal year.

 

     Sec. 508. As a condition of receiving funds under part 1, any

 

interlocal agreement entered into by the fund shall include

 

language which states that if a local unit of government has a

 

contract or memorandum of understanding with a private economic

 

development agency, the Michigan economic development corporation

 

will work cooperatively with that private organization in that

 

local area.

 

     Sec. 509. (1) Of the funds appropriated to the fund or through

 

grants to the Michigan economic development corporation, no funds

 

shall be expended for the purchase of options on land or the

 

purchase of land unless at least 1 of the following conditions

 

applies:

 

     (a) The land is located in an economically distressed area.

 

     (b) The land is obtained through a purchase or exercise of an

 

option at the invitation of the local unit of government and local

 

economic development agency.

 

     (2) Consideration may be given to purchases where the proposed

 

use of the land is consistent with a regional land use plan, will

 

result in the redevelopment of an economically distressed area, can

 

be supported by existing infrastructure, and will not cause shifts

 

in population away from the area's population centers.


Senate Bill No. 276 as amended June 16, 2005

     (3) As used in this section, "economically distressed area"

 

means an area in a city, village, or township that has been

 

designated as blighted; a city, village, or township that shows

 

negative population change from 1970 and a poverty rate and

 

unemployment rate greater than the statewide average; or an area

 

certified as a neighborhood enterprise zone.

 

     Sec. 510. The appropriation in part 1 for the strategic

 

economic investment board is for the purposes of increasing the

 

amount of research and development taking place in Michigan

 

universities, companies, and nonprofit research institutions and

 

accelerating the pace of commercialization. The proceeds of the

 

bonds shall be distributed by the strategic economic investment

 

board as described in Senate Bill No. 533 of the 93rd Legislature.

 

Funding shall be distributed in the following manner:

 

     (a) Not less than 50% for life sciences technology. <<Of the funds

allocated for life sciences technology, $1,500,000.00 shall be allocated to a private research institute that has received a specific federal appropriation prior to 2005 for the creation of a good manufacturing practice facility.  The facility shall be used for the production of drugs approved for use in clinical trials, as approved by the United States food and drug administration, and shall work to market the core technology alliance for the purposes of commercialization and providing access to advanced technologies to researchers affiliated with universities, private research institutes, and biotech or pharmaceutical firms.  It is the intent of the legislature that $1,500,000.00 shall be made available for these purposes in fiscal year 2007.>>

 

     (b) The balance for advanced automotive technology,

 

manufacturing and materials technology, alternative energy

 

technology, and homeland security and defense technology.

 

     Sec. 511. The money appropriated in part 1 to the fund is

 

subject to the condition that none is spent for premiums or

 

advertising material involving personal effects or apparel

including, but not limited to, T-shirts, hats, coffee mugs, or

other promotional items, except travel Michigan.

     Sec. 512. (1) From the general fund/general purpose

appropriations in part 1 to the fund and granted or transferred to

the Michigan economic development corporation, any unexpended or

unencumbered balance shall be disposed of in accordance with the


 

requirements in the management and budget act, 1984 PA 431, MCL

 

18.1101 to 18.1594, unless carryforward authorization has been

 

otherwise provided for.

 

     (2) Any encumbered funds shall be used for the same purposes

 

for which funding was originally appropriated in this act.

 

     Sec. 513. As a condition of receiving funds under part 1, the

 

fund shall ensure that the MEDC and the fund comply with all of the

 

following:

 

     (a) The freedom of information act, 1976 PA 442, MCL 15.231 to

 

15.246.

 

     (b) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

     (c) Annual audits of all financial records by the auditor

 

general or his or her designee.

 

     (d) All reports required by law to be submitted to the

 

legislature.

 

     (e) If the MEDC is unable for any reason to perform duties

 

under this act, the fund may exercise those duties.

 

     Sec. 514. As a condition for receiving the appropriations in

 

part 1, any staff of the Michigan economic development corporation

 

involved in private fund-raising activities shall not be party to

 

any decisions regarding the awarding of grants or tax abatements

 

from the fund, the Michigan economic development corporation, or

 

the Michigan economic growth authority.

 

     Sec. 515. (1) All funds received from repayment of loans,

 

unused grants, revenues received from sales or cash flow

 

participation agreements, guarantees, or any combination thereof or

 

interest thereon, originally distributed as part of the core


 

communities fund, shall be received, held, and applied by the fund

 

for the purposes described in this act.

 

     (2) The fund shall provide an annual report on the status of

 

this fund. The report shall be provided to the subcommittees, the

 

fiscal agencies, and the state budget office by January 31.

 

     Sec. 518. (1) The funding appropriated in part 1 of 2000 PA

 

291 for the Michigan core communities fund may be used to create an

 

urban revitalization infrastructure program in the fund for

 

economic development awards to create new jobs or contribute to

 

redevelopment and encourage private investment in core communities.

 

     (2) Awards may be provided to qualified local governmental

 

units as defined in the obsolete property rehabilitation act, 2000

 

PA 146, or certified technology parks, as defined in the local

 

development financing act, 1986 PA 281, MCL 125.2151 to 125.2174.

 

     (3) Awards can be used for land and property acquisition and

 

assembly, demolition, site development, utility modifications and

 

improvements, street and road improvements, telecommunication

 

infrastructure, site location and relocation, infrastructure

 

improvements, and any other costs related to the successful

 

development and implementation of core community or certified

 

technology park projects, at the discretion of the Michigan

 

economic development corporation.

 

     (4) Funding may be provided in the form of loans, grants,

 

sales or cash flow participation agreements, guarantees, or any

 

combination of these. A cash match of at least 10%, or local

 

repayment guarantee with a dedicated funding source, is required.

 

Priority shall be given to projects which are integrated with


 

existing economic development programs, and to projects in

 

proportion to the amount that local matching rates exceed 10%.

 

     (5) The Michigan economic development corporation shall have

 

all administrative responsibility for the Michigan core communities

 

fund and shall establish application and application scoring

 

criteria and approve awards. The Michigan economic development

 

corporation may utilize up to 1/2 of 1% of the fund for

 

administrative purposes.

 

     (6) Funds will be awarded through an open competitive process

 

based on criteria including the following: project impact, project

 

marketability, lack of adequate infrastructure or land assembly

 

financing sources, local administrative capacity, and the level of

 

local matching funds. Awardees shall agree to expedite the local

 

development process, such as fast-track permitting procedures,

 

streamlined regulatory requirements, standardized construction and

 

building codes, and the use of competitive construction permitting

 

fees.

 

     (7) No single applicant shall be awarded more than

 

$10,000,000.00 per project.

 

     (8) Fifteen days prior to the award of the funds, notification

 

shall be provided to the speaker of the house of representatives,

 

the senate majority leader, the members of the house and senate

 

appropriations committees, the fiscal agencies, and the state

 

budget director.

 

     (9) Funds shall not be awarded for any of the following

 

purposes:

 

     (a) Land sited for use as, or support for, a gaming facility.


Senate Bill No. 276 as amended June 16, 2005

     (b) Land or other facilities owned or operated by a gaming

 

facility.

 

     (c) Publicly owned land or facilities which may directly or

 

indirectly support a gaming facility.

 

     Sec. 519. It is the intent of the legislature that the members

 

of the executive committee of the corporation board of the MEDC be

 

subject to the advice and consent of the senate.

 

     Sec. 523. Of the funds appropriated in part 1 for the Michigan

 

strategic fund unit, job creation services line, $1,525,000.00 in

 

general fund/general purpose revenue shall be used to provide

 

funding to procurement technical assistance centers.

 

     Sec. 524. Of the funds appropriated in part 1 for the job

 

creation services line item, <<$500,000.00>> in general fund/general

 

purpose revenue shall be used to fund 5.0 full-time equivalent

 

employees and administrative expenses of a defense contract

 

coordination center.

 

     <<Sec. 525. (1) Contingent upon the failure of Senate Joint

 

Resolution C to be ratified by the electors in this state on November 8,

 

2005, there is appropriated for the technology tri-corridor:  life

 

sciences initiative $30,000,000.00 general fund/general purpose revenue

 

for the fiscal year ending September 30, 2006. All funding for the areas

of homeland security, automotive initiative and alternative energy shall be funded from the Indian casino revenue or other federal sources.  The program shall be administered by the Michigan economic development corporation.

     (2) A technology tri-corridor steering committee, appointed by the governor, shall consist of 19 members including the CEO, the director, the state treasurer, a member from Michigan State University, the University of Michigan, Wayne State University, Western Michigan University, and the Van Andel Institute, 2 members representing the legislature, 1 of whom is chosen by the speaker of the house of representatives and 1 of whom is chosen by the majority leader of the senate, and 2 members actively engaged in each of the 3 targeted business sectors. The remaining members shall be appointed at large and may include members from the private sector, public sector, or other Michigan


 

Senate Bill No. 276 as amended June 16, 2005

universities. Committee members are authorized to designate alternate

members. The purpose of the steering committee is to provide advice and oversight of the initiative, including the development of criteria for the awards to qualifying universities, institutions, companies, or individuals. The steering committee will make decisions regarding distribution of these funds.

     (3) Of the funds appropriated, $1,500,000.00 shall be allocated to a private research institute that has received a specific federal appropriation prior to 2005 for the creation of a good manufacturing practice facility. The facility shall be used for the production of drugs approved for use in clinical trials, as approved by the United States Food and Drug Administration and shall work to market the core technology alliance for the purposes of commercialization and providing access to advanced technologies to researchers affiliated with universities, private research institutes, and biotech or pharmaceutical firms. It is the intent of the legislature that $1,500,000.00 shall be made available for these purposes in fiscal year 2007.

     (4) Of the funds appropriated, up to $2,500,000.00 may be used for administering the life sciences initiative including the monitoring of previous years' awards. Not less than $5,000,000.00 shall be used to support a competitive business commercial development fund to support business commercialization research opportunities in Michigan. In allocating funding to the business commercial development fund, the steering committee shall give maximum priority to supporting all potential commercialization opportunities that appear to have merit. Funds appropriated for the life science initiative may be allocated for basic research, applied research, and commercialization.  All applications shall be peer reviewed and funds shall be allocated on a competitive basis.

     (5) Repayment of any funds received as a result of awards made under 1999 PA 120, 2000 PA 292, 2001 PA 80, 2002 PA 517, 2003 PA 169, or 2004 PA 354 or this act including, but not limited to, funds received as interest or return on investment shall be deposited in the business commercial development fund. These funds are authorized for expenditure upon receipt and shall not lapse to the general fund.

     (6) The records of the steering committee involving a proposal submitted by an eligible entity that are of a scientific, technical, or proprietary nature, the release of which could cause competitive harm to the eligible entity as determined by the steering committee, are exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.>>

 

<<                                                              

 

                                                                

 

                                                                 

 

                                                            

 

                                                                

 

                                                                   


Senate Bill No. 276 as amended June 16, 2005

                                                                   

 

                                                              

 

                                                                  

 

                                                                  

 

                                   >>