March 2, 2005, Introduced by Senators PRUSI and EMERSON and referred to the Committee on Appropriations.
EXECUTIVE BUDGET BILL
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
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 bill,
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........ 4,266.5
GROSS APPROPRIATION.................................... $ 1,476,138,400
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 489,700
ADJUSTED GROSS APPROPRIATION........................... $ 1,475,648,700
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.................. 539,543,800
State general fund/general purpose..................... $ 73,848,500
Sec. 102. DEPARTMENTWIDE ADMINISTRATION
Full-time equated unclassified positions......... 58.5
Full-time equated classified positions.......... 280.0
Unclassified salaries.................................. $ 5,349,400
Executive director programs--53.0 FTE positions........ 6,228,300
Regulatory efficiency improvements/backlog reduction
initiative........................................... 665,600
Bureau of hearings--68.0 FTE positions................. 8,757,200
Property management.................................... 10,945,100
Rent................................................... 17,338,600
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.................................... $ 67,514,800
Appropriated from:
Interdepartmental grant revenues:
IDG from department of community health................ 300,000
Federal revenues:
Corporation for national service....................... 295,700
DED-OSERS, rehabilitation services, vocational
rehabilitation....................................... 4,897,500
DOL-ETA, unemployment insurance........................ 22,501,300
DOL-ETA, workforce investment act...................... 809,400
DOL, federal funds..................................... 2,503,700
DOL, multiple grants for safety and health............. 837,300
Federal revenues....................................... 785,700
HHS, temporary assistance for needy families........... 347,000
HHS, title 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................................. 1,715,100
Consumer finance fees.................................. 168,800
Contingent fund penalty and interest account........... 890,000
Corporation fees....................................... 5,401,700
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.............................. 1,306,400
Licensing and regulation fees.......................... 1,916,200
Liquor license fees.................................... 4,743,200
Liquor purchase revolving fund......................... 1,128,100
Manufactured housing commission fees................... 414,400
Michigan state housing development authority fees
and charges.......................................... 3,575,400
Motor carrier fees..................................... 185,200
Public utility assessments............................. 2,396,900
Private occupational school license fees............... 14,000
Rehabilitation services fees........................... 90,300
Safety education and training fund..................... 679,300
Second injury fund..................................... 253,500
Securities fees........................................ 2,655,900
Self-insurers security fund............................ 83,300
Silicosis and dust disease fund........................ 101,300
Tax tribunal fees...................................... 1,100
State general fund/general purpose..................... $ 1,582,400
Sec. 103. OFFICE OF FINANCIAL AND INSURANCE SERVICES
Full-time equated classified positions.......... 273.0
Administration--9.0 FTE positions...................... $ 2,686,700
Financial evaluation--145.0 FTE positions.............. 20,796,200
Policy conduct and consumer assistance--119.0 FTE
positions............................................ 14,508,600
GROSS APPROPRIATION.................................... $ 37,991,500
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........................................ 1,872,000
State general fund/general purpose..................... $ 0
Sec. 104. PUBLIC SERVICE COMMISSION
Full-time equated classified positions.......... 163.0
Administration, planning and regulation--154.0 FTE
positions............................................ $ 19,710,800
Energy office--9.0 FTE positions....................... 5,267,100
GROSS APPROPRIATION.................................... $ 24,977,900
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
Motor carrier fees..................................... 2,060,700
Public utility assessments............................. 17,074,200
State general fund/general purpose..................... $ 0
Sec. 105. 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................................. 14,299,700
Liquor purchase revolving fund......................... 70,600
State general fund/general purpose..................... $ 0
Sec. 106. 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. 107. TAX TRIBUNAL
Full-time equated classified positions........... 12.0
Operations--12.0 FTE positions......................... $ 1,444,700
GROSS APPROPRIATION.................................... $ 1,444,700
Appropriated from:
Special revenue funds:
Corporation fees....................................... 323,400
Securities fees........................................ 396,200
Tax tribunal fees...................................... 725,100
State general fund/general purpose..................... $ 0
Sec. 108. 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................ 111,100
Federal revenues:
Federal emergency management agency.................... 150,000
Department of transportation........................... 85,000
HHS, title 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. 109. EMPLOYMENT RELATIONS
Full-time equated classified positions........... 25.0
Employment and labor relations--25.0 FTE positions..... $ 3,509,800
GROSS APPROPRIATION.................................... $ 3,509,800
Appropriated from:
Federal revenues:
EEOC, federal funds.................................... 10,000
Special revenue funds:
Securities fees........................................ 3,438,300
State general fund/general purpose..................... $ 61,500
Sec. 110. 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:
Corporate 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. 111. 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............. 81,423,300
Advocacy assistance program............................ 1,519,800
Expanded fraud control program--33.2 FTE positions..... 2,954,900
Special audit and collections program--34.0 FTE
positions............................................ 2,639,500
Training program for agency staff--2.1 FTE positions .. 1,788,600
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........................................ 3,842,500
Self-insurers security fund............................ 1,111,300
Silicosis and dust disease fund........................ 903,400
Worker's compensation administrative revolving fund.... 2,178,200
State general fund/general purpose..................... $ 0
Sec. 112. 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 license fees.................................... 3,522,600
Liquor purchase revolving fund......................... 818,000
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. 113. 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.............. 2,899,100
DED-OSERS, rehabilitation long-term training........... 566,900
DED-OSERS, rehabilitation services, vocational
rehabilitation of state grants....................... 47,335,400
DED-OSERS, state grants for technical related
assistance........................................... 56,000
DOL-ETA, workforce investment act...................... 6,448,400
DED, Perkins act....................................... 281,300
DOL, federal funds..................................... 62,671,800
DOL-office of disability employment policy............. 225,000
HHS, temporary assistance for needy families........... 3,320,200
HHS-SSA, supplemental security income.................. 4,491,800
Special revenue funds:
Local revenue.......................................... 4,132,400
Local vocational rehabilitation match.................. 3,054,000
Private - gifts, bequests, and donations............... 816,000
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 material fees................................. 256,400
State general fund/general purpose..................... $ 7,825,700
Sec. 114. 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. 115. DEPARTMENT GRANTS
Adult basic education.................................. $ 20,000,000
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:
Corporation for national service....................... 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
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
Federal section 903(d), social security act funds...... 6,300,000
HHS-SSA, supplemental security income.................. 2,480,600
HHS, temporary assistance for needy families........... 82,299,000
Special revenue funds:
Local vocational rehabilitation facilities match....... 1,278,300
Local vocational rehabilitation match.................. 6,630,500
Private - gifts, bequests, and donations............... 800,000
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......................... 7,421,000
Liquor license revenue................................. 12,201,100
Remonumentation grants................................. 14,000,000
State general fund/general purpose..................... $ 22,736,500
Sec. 116. BOARDS, AUTHORITIES, AND COMMISSIONS
Full-time equated classified positions.......... 148.0
MES board of review program--18.0 FTE positions $ 2,047,200
Right of way oversight authority—-5.0 FTE positions.... 515,900
Land bank fast track authority--3.0 FTE positions...... 661,700
Broadband development authority--13.0 FTE positions.... 1,588,200
Michigan community service commission--6.0 FTE position 3,202,600
Commission on Spanish-speaking affairs--2.0 FTE 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.................................... $ 28,794,200
Appropriated from:
Federal revenues:
Federal revenues....................................... 14,296,800
Corporation for national service....................... 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
Michigan broadband authority fees and charges.......... 1,588,200
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. 117. MICHIGAN STRATEGIC FUND
Full-time equated classified positions.......... 190.0
Administration--31.0 FTE positions..................... $ 2,870,500
Job creation services--159.0 FTE positions............. 19,851,700
Michigan promotion program............................. 5,717,500
Economic development job training grants............... 9,798,000
Community development block grants..................... 45,000,000
Michigan 21st century jobs initiative.................. 200,000,000
GROSS APPROPRIATION.................................... $ 283,237,700
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.......................................... 200,000,000
State general fund/general purpose..................... $ 34,432,300
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 $6.13,392,300 and state
spending from state resources to be paid to local units of
government for fiscal year 2005-2006 is $65,519,700. 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................. 250,000
Remonumentation grants................................. 14,000,000
Fire fighters training council......................... 1,700,000
Economic development job training grants............... 9,248,000
Welfare to work........................................ 17,199,600
Total department of labor and economic growth.......... $ 65,519,700
Sec. 202. The appropriations authorized under this bill subject
to the management and budget act, 1984 PA 431, MCL 18.1101 to
18.1594.
Sec. 203. As used in this appropriation bill:
(a) "CEO" means chief executive officer of the Michigan
economic development corporation.
(b) "DAG" means the United States department of agriculture.
(c) "DED" means the United States department of education.
(d) "DED-OESE" means the DED office of elementary and secondary
education.
(e) "DED-OPSE" means the DED office of postsecondary education.
(f) "DED-OSERS" means the DED office of special education
rehabilitation services.
(g) "DED-OVAE" means the DED office of vocational and adult
education.
(h) "Department" means the department of labor and economic
growth, including the Michigan strategic fund.
(i) "Director" means the director of the department of labor
and economic growth.
(j) "DOE" means the United States department of energy.
(k) "DOE-OEERE" means the DOE office of energy efficiency and
renewable energy.
(l) "DOL" means the United States department of labor.
(m) "DOL-ETA" means the DOL employment and training
administration.
(n) "DOL-ODEP" means the DOL office of disability employment
policy.
(o) "DOT" means the United States department of transportation.
(p) "DOT-RSPA" means the DOT research and special programs
administration.
(q) "EEOC" means equal employment opportunity commission.
(r) "Fiscal agencies" means Michigan house fiscal agency and
Michigan senate fiscal agency.
(s) "FTE" means full-time equated.
(t) "Fund" means the Michigan strategic fund.
(u) "GED" means general education degree.
(v) "HHS" means the United States department of health and
human services.
(w) "HHS-SSA" means HHS social security administration.
(x) "HUD" means the United States department of housing and
urban development.
(y) "HUD-CPD" means HUD community planning and development.
(z) "IDG" means interdepartmental grant.
(aa) "MDCH" means the Michigan department of community health.
(bb) "MDEQ" means the Michigan department of environmental
quality.
(cc) "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.
(dd) "MES" means Michigan employment security.
(ee) "METRO authority" means Metropolitan extension
telecommunications rights-of-way oversight authority
(ff) "MIOSHA" means Michigan occupational safety and health
administration.
(gg) "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.
(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 loss of revenue to the
state, result in the inability of the state to receive federal
funds, or necessitate additional expenditures that exceed any
savings from maintaining a vacancy. The state budget director
shall report quarterly to the chairpersons of the senate and house
of representatives standing committees on appropriations the number
of exceptions to the hiring freeze approved during the previous
quarter and the reasons to justify the exception.
Sec. 208. Unless otherwise specified, the department shall use
the Internet to fulfill the reporting requirements of this bill.
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
quality.
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. 213. From the funds appropriated in part 1 for information
technology, departments and agencies shall pay user fees to the
department of information technology for technology-related
services and projects. Such user fees shall be subject to
provisions of an interagency agreement between the departments and
agencies and the department of information technology.
Sec. 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. 217. (1) Due to the current budgetary problems in this
state, out-of-state travel for the fiscal year ending September 30,
2006 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 senate and house of representatives standing committees on
appropriations.
(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 senate and house of
representatives standing committees on appropriations, 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. 218. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $30,500,000.00 for
federal contingency funds. These funds are not available for
expenditure until they have been transferred to another line item
in this bill under section 393(2) of the department of management
and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $13,200,000.00 for state
restricted contingency funds. These funds are not available for
expenditure until they have been transferred to another line item
in this bill under section 393(2) of the department of management
and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $8,180,000.00 for local
contingency funds. These funds are not available for expenditure
until they have been transferred to another line item in this bill
under section 393(2) of the department of management and budget
act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $550,000.00 for private
contingency funds. These funds are not available for expenditure
until they have been transferred to another line item in this bill
under section 393(2) of the department of management and budget
act, 1984 PA 431, MCL 18.1393.
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. 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.
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 bill 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 $10.00 per bed
Plan review and construction inspection fees for hospitals, adult
foster care, homes for aged, nursing homes, penal institutions, and
schools
Project cost range (based on BCCFS Square
Foot Construction Cost Table) Fee
$10,000.00 or less minimum fee of $155.00
$10,001.00 to $100,000.00 $155.00 plus $4.00 per
$1,000.00 over $10,000.00
$100,001.00 or more $515.00 plus $2.00 per
$1,000.00 over $100,000.00
or a maximum fee of $60,000.00
Inspections where plan review $50.00 per hour
is not required
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. 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, MIOSHA, 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. 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 2005.
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. 356. Michigan commission for the blind shall work
collaboratively with service organizations to identify qualified
match dollars to maximize use of available federal funds.
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 billincluding, 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.
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, 2006.
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 may work with the Michigan association of centers
for independent living and the local workforce development boards
to identify other competitive sources of funding.
(2) As a condition for receipt of the funds appropriated in part
1, 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 which provide
employment and training services to family independence program
applicants and recipients and may be expended for grants that
provide employment and training services to former family
independence 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 family independence
agency, 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 family independence 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
family independence agency 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 family independence agency
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 family independence agency.
(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 by
the family independence agency and the department contracted staff
in accordance with department policy issuances and family
independence agency program bulletins. These guidelines presented
by the department and family independence agency 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) Work first participants may meet the participation
requirement through a combination of work activities. The combined
work activities must equal the minimum number of hours required to
meet the federal participation requirements, 30 hours per week for
a single parent, 35 hours per week for a two-parent family (55
hours if utilizing federally funded daycare), and 20 hours per week
for single parents with a child under the age of six. The
following nine activities count towards the first 20 hours of
participation: unsubsidized employment; subsidized private sector
employment; subsidized public sector employment; work experience;
on-the-job training; job search and job readiness activities;
community service programs; vocational educational training; and
providing child care services to an individual who is participating
in a community service program. Above 20 hours per week, the
following three activities may also count as participation: job
skills training directly related to employment; education directly
related to employment; and satisfactory attendance at secondary
school or in a course of study leading to a certificate of general
equivalence. Vocational educational training may be no longer than
a total of twelve 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 family independence 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) T he 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 family independence
agency 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 $340,050.00 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 provide a disabled veterans
outreach program specialist or local veterans employment
representative, at each Michigan works! service center to the
extent possible based on available funding.
(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.
(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
former future faculty program in the Martin Luther King, Jr.-Cesar
Chavez-Rosa Parks programs to offset costs of administering the
loan collections.
Sec. 418. (1) From the funds appropriated in part 1 for
postsecondary education, the department shall administer the Martin
Luther King, Jr.-Cesar Chavez-Rosa Parks education opportunity
competitive grant program appropriated in the higher education
appropriation act. The department's duties shall include:
(a) Establishing criteria and a process for awarding
competitive grants to increase the participation of
underrepresented minority students and to ensure their success in
postsecondary education institutions.
(b) Providing information about the program and application
process to public universities and community colleges.
(2) The department shall make grant awards for the program no
later than December 1 of each year.
(3) The department shall provide a report to the house and
senate appropriations committees, the house and senate fiscal
agencies, and the state budget director by February 1 of each year.
The report shall include at least the following information for
each program receiving funding in the prior school year, as
applicable:
(a) A description of the program.
(b) The total number of program participants.
(c) The number and percentage of program participants enrolled
in a postsecondary institution as a result of the program.
(d) The number and percentage of program participants
successfully completing their first year of college and enrolled
for a second year.
(e) The number and percentage of program participants who have
graduated.
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) As a condition for receipt of the funds
appropriated in part 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 $6,524,000.00, and the manufacturing
competitiveness program is allocated up to $3,524,000.00 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 November 1 of each year a report on the
economic development job training grants. 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
bill, 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. 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.
(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 Michigan 21st
century jobs initiative is for the purposes of increasing the
amount of research and development taking place in Michigan
universities, companies, and non-profit research institutions and
accelerating the pace of commercialization in the fields of
advanced automotive technologies, advanced materials and
manufacturing, alternative energy technologies, life sciences and
homeland security. These funds shall be distributed and
administered in a manner authorized in implementing legislation.
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.
(2) Any encumbered funds shall be used for the same purposes
for which funding was originally appropriated in this bill.
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 bill, 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 bill.
(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 director by January 31, for
the prior fiscal year.
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.
(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.