part 1

line-item appropriations

Sec. 101. There is appropriated for various state departments

and agencies to supplement appropriations for the fiscal year ending September 30, 2023, from the following funds:

APPROPRIATION SUMMARY
GROSS APPROPRIATION	$	387,850,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers		0
ADJUSTED GROSS APPROPRIATION	$	387,850,000
Federal revenues:
Total federal revenues		0
Special revenue funds:
Total local revenues		0
Total private revenues		0
Total other state restricted revenues		0
State general fund/general purpose	$	387,850,000
Sec. 102. DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION	$	387,850,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers		0
ADJUSTED GROSS APPROPRIATION	$	387,850,000
Federal revenues:
Total federal revenues		0
Special revenue funds:
Total local revenues		0
Total private revenues		0

Total other state restricted revenues		0
State general fund/general purpose	$	387,850,000
(2) WORKFORCE DEVELOPMENT
Graduation alliance	$	3,500,000
GROSS APPROPRIATION	$	3,500,000
Appropriated from:
State general fund/general purpose	$	3,500,000
(3) MICHIGAN STRATEGIC FUND
Pure Michigan	$	10,000,000
GROSS APPROPRIATION	$	10,000,000
Appropriated from:
State general fund/general purpose	$	10,000,000
(4) ONE-TIME APPROPRIATIONS
Business attraction and community revitalization	$	50,000,000
Michigan business fast track		40,000,000
Michigan community development financial institution fund grants		75,000,000
Michigan enhancement grants		92,850,000
Michigan STEM FORWARD internship program		15,000,000
Missing middle gap program		100,000,000
State land bank authority		1,500,000
GROSS APPROPRIATION	$	374,350,000
Appropriated from:
State general fund/general purpose	$	374,350,000

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 sources under part 1 for the fiscal year ending September 30, 2023 is $387,850,000.00 and total state spending from state sources to be paid to local units of government is $39,000,000.00.

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

Sec. 203. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under this act, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, inter-transfer funds within this act for the particular department, board, commission, office, or institution.

DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY

Sec. 301. The funds appropriated in part 1 for business attraction and community revitalization must be allocated as follows:

(a) $10,000,000.00 must be used by the Michigan strategic fund for venture capital operations.

(b) $10,000,000.00 must be disbursed to the Michigan defense center.

(c) $30,000.000.00 must be used by the Michigan strategic fund to provide grants to businesses currently located within this state for expansion or improvements, or both, to business facilities.

Sec. 302. (1) The funds appropriated in part 1 for Michigan

business fast track shall be used to establish, operate, and capitalize a Michigan business fast track program. The program must do all of the following:

(a) Provide businesses with a comprehensive inventory of public and private programs and services that would assist in a business's decision to locate or expand operations in Michigan.

(b) Provide customized employee training solutions for businesses by partnering with public and private educational institutions and training providers, including curriculum development and training scholarships.

(c) Provide or facilitate human resources services, including employee recruitment, to businesses by matching those businesses with service providers.

(d) Utilizing partnerships with other public and private organizations and service providers, provide support to businesses in the following areas:

(i) Information technology services.

(ii) Project management.

(iii) Organization development.

(iv) Leadership instruction.

(v) Disability accommodation and ADA compliance.

(vi) Employee criminal expungement resources.

(2) By September 30, 2023, the department of labor and economic opportunity shall submit a report on the Michigan business fast track program to the house and senate appropriations subcommittees on labor and economic opportunity, the house and senate fiscal agencies, and the state budget director. The report shall contain, at a minimum, the following information:

(a) A list of the services provided to businesses under this

section during the current fiscal year.

(b) A detailed accounting of actual or estimated program expenditures for the current fiscal year.

(3) The unexpended funds appropriated in part 1 for Michigan business fast track are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to establish, operate, and capitalize a Michigan business fast track program.

(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.

(d) The tentative completion date is September 30, 2027.

Sec. 303. (1) From the funds appropriated in part 1 for missing middle gap program, $100,000,000.00 must be used by the Michigan state housing development authority to create a missing middle housing gap program to increase the supply of housing stock supporting the growth and economic mobility of employees by providing cost defrayment to developers investing in, constructing, or substantially rehabilitating properties that are targeted to household incomes between 185% and 300% of the federal poverty level.

(2) As used in this section:

(a) "Agreement" means an agreement between a developer and the

authority pursuant to subsection (8).

(b) "Agreement counterparty" means the counterparty to an agreement, including the developer or any transferee or assignee of the developer's rights and obligations under an agreement pursuant to subsection (8).

(c) "Area median income" means the median income for the area as published annually by the United States Department of Housing and Urban Development.

(d) "Attainable" means rent or a sale price resulting in a final mortgage payment no higher than 30% of the gross annual income of a missing middle household.

(e) "Authority" means the Michigan state housing development authority created by the state housing development authority act of 1966, 1966 PA 346, MCL 125.1401 to 125.1499c.

(f) "Energy efficient housing unit" means a housing unit that receives individually, or as part of a project, either a home energy rating system index score of 60 or below or that has received an Energy Star rating of 75 or higher.

(g) "Federal poverty level" means the federal poverty guideline published annually by the United States Department of Health and Human Services.

(h) "Final mortgage payment" means a mortgage payment calculated by the developer that must include principal, interest, taxes, insurance, private mortgage insurance, association fees or lease payments, or fees related to participation in a community land trust in accordance with financing assumptions consistent with market conditions as determined by the program administrator.

(i) "Housing unit" means a dwelling of less than 2,000 square feet, available for sale or lease on a permanent or year-round

basis, that has a permanent foundation, electrical, heating and cooling, plumbing, bathing and restroom facilities, kitchen, and sleeping spaces, all of which meet building code requirements sufficient to achieve a certificate of occupancy.

(j) "Local support" means 1 or a combination of the following forms of support provided by a local unit of government:

(i) Financial contributions or grants in an amount equal to or exceeding $5,000.00.

(ii) A tax abatement provided to a project in accordance with state law.

(iii) Tax increment revenues captured by a local unit of government and committed to a project in accordance with a tax increment finance and development plan.

(iv) Land transferred from the local unit of government at a cost of not more than $1,000.00 per housing unit.

(v) Any other form of support provided by a local unit of government determined by the program administrator to constitute local support for purposes of this section.

(k) "Local unit of government" means a city, village, township, county, or any intergovernmental, metropolitan, or local department, agency, or authority, or other local political subdivision.

(l) "Missing middle household" means a household earning between 185% and 300% of the federal poverty level.

(m) "Program administrator" means the executive director of the authority.

(n) "Project" means the construction or substantial rehabilitation of 1 or more housing units made available at a price or lease rate that is accessible to a missing middle household.

(o) "Rural community" means any geography designated by the United States Department of Agriculture Office of Rural Development as rural for purposes of its single-family housing guaranteed loan program.

(p) "Substantial rehabilitation" means rehabilitation of a housing unit that becomes an energy efficient housing unit and that requires a financial investment of at least $25,000.00.

(3) All of the following apply regarding the missing middle housing gap program:

(a) The missing middle housing gap program is created under the jurisdiction and control of the authority and may be administered by the authority in accordance with the provisions of this section. In developing program guidelines and design, the authority must receive the concurrence of the executive director of the state land bank.

(b) The authority must expend funds under this section only for the purposes of making awards as provided in subsection (4) and paying the costs of administering the program, which may not exceed 4% of the total program amount.

(c) The authority must develop and implement the use of forms, applications, agreements, and any other documents necessary or appropriate to implement this section and carry out its duties under this section.

(d) At least 30% of the dollar amount of awards under this section must be allocated to projects in rural communities.

(e) Not more than 15% of the dollar amount of awards under this section must be allocated to projects in any single city, village, or township.

(4) All of the following apply regarding the approval and

award of a grant under this section:

(a) Subject to subdivisions (b) and (c), upon satisfaction of the conditions set forth in subsection (6), the program administrator may approve and make a grant to a developer for a project consisting of the following amounts for each housing unit of the following types:

(i) A single-family detached home, townhome, or condominium with 2 or fewer bedrooms may receive up to $40,000.00.

(ii) A single-family detached home, townhome, or condominium with 3 or more bedrooms may receive up to $50,000.00.

(iii) A multifamily attached home, townhome, condominium, or apartment building may receive up to $35,000.00 per housing unit with no bedrooms or 1 bedroom, and may receive up to $40,000.00 per housing unit with 2 or more bedrooms.

(b) Subject to subdivision (c), in addition to the amounts under subdivision (a), the program administrator may approve and award to a project 1 or more of the following supplemental amounts:

(i) In a county where the countywide area median income is lower than the statewide area median income, an additional $10,000.00 to a housing unit serving household incomes at 185% to 225% of the federal poverty level.

(ii) In a county where the countywide area median income is 80% or less than the statewide area median income, an additional amount of up to 25% of the amount awarded under subdivision (a).

(iii) An additional amount of up to $10,000.00 to a housing unit that the program administrator determines qualifies as an energy efficient housing unit.

(c) The maximum amount that may be awarded to a project for a housing unit under this section is limited to the actual labor and

material cost of construction or substantial rehabilitation of the housing unit.

(5) To qualify as a developer under this section, the developer must satisfy all of the following conditions:

(a) The developer must be 1 of the following:

(i) A tax-exempt organization under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, authorized to do business in this state.

(ii) A private real estate developer that is authorized to do business in this state.

(b) The developer must pass a criminal and civil background check of key employees satisfactory to the program administrator.

(d) The developer must demonstrate to the program administrator that its mission or business model is consistent with the intent of this section, that it has a record of completing multiple projects similar to the proposed project, and that it has the ability to implement rent restrictions and purchaser restrictions for the term of the agreement for the project. The developer may contract with 1 or more entities that will provide materials or services to the developer for the development of the project.

(6) All of the following conditions apply to a grant award under this section:

(a) To qualify for a grant under this section, a project must meet all of the following conditions, as determined by the program administrator:

(i) The project must consist of new construction, substantial

rehabilitation, or a combination of both.

(ii) The developer must demonstrate site control, provide architectural drawings, identify the project general contractor, and provide a preliminary budget reflecting the ability to complete the project with funds distributed on a reimbursement basis.

(iii) The construction quality, design, and location of the project must be appropriate for the area in which the project will be developed. The program administrator may require preapproval of designs and plans and may condition approval on certain minimum design and quality of construction standards.

(iv) The developer must demonstrate that it has not received and will not receive low-income housing tax credits for the project.

(v) The developer must demonstrate that the project has received or will receive local support.

(vi) The developer must propose a method or methods by which it will ensure to the satisfaction of the program administrator that each housing unit will remain attainable for a period of 10 years following the disbursement of funds to the developer.

(b) Application for approval under this subsection must be made in the form and manner prescribed by the program administrator and must include all of the following:

(i) Estimated total number of total housing units in development within the project.

(ii) Estimated number of housing units in the project qualifying for a grant under this section.

(iii) Estimated total square footage of the project.

(iv) Estimated total project costs.

(v) Estimated total project costs not arising from a grant

under this section.

(c) Applications for awards under this section must be reviewed in the order in which the program administrator receives them, and the program administrator must approve or deny an application for a grant under this section within 30 days of receipt.

(7) To receive a distribution of funds from a grant approved under subsection (6), a project must meet all of the following conditions, as applicable:

(a) For a project consisting of 1 to 4 housing units, the developer must secure a certificate of occupancy within 24 months from the date of execution of the agreement for the project.

(b) For a project consisting of 5 or more housing units, the developer must secure a certificate of occupancy within 36 months from the date of execution of the agreement for the project.

(c) The developer may seek an extension of the time periods described in subdivisions (a) and (b) from the program administrator.

(d) The developer must have implemented the method or methods approved to ensure a project is attainable as described in subsection (6)(a)(vi).

(8) The terms and conditions for the distribution of awarded funds must be set forth in an agreement between the agreement counterparty and the program administrator as follows:

(a) The agreement may contain continuing obligations of the agreement counterparty for the term of the agreement, which must be 10 years from the date funds are distributed under the agreement.

(b) A developer may convey the project and transfer or assign the developer's rights and obligations under the related agreement

to a third party only after the developer has satisfied the conditions of subsection (7) and received the distribution of grant funds.

(c) The agreement must require that the agreement counterparty provide all of the following information to the program administrator as of the date of the certificate of occupancy for the project:

(i) Total number of total housing units developed within the project.

(ii) Number of housing units in the project qualifying for the grant.

(iii) Total square footage of the project.

(iv) Total project costs.

(v) Total project costs not arising from a grant under this section.

(d) The agreement must require that the agreement counterparty provide the following information annually during the term of the agreement:

(i) For a project consisting of housing units for sale, the price of each housing unit within the project sold during the reporting year.

(ii) For a project consisting of housing units for rent, each of the following:

(A) A statement of the rental rate of each housing unit for rent within the project during the reporting year.

(B) A statement of the income stated on tenant applications for the project during the reporting year.

(9) The program administrator may in any year adjust any dollar amount provided in this section by a percentage equal to or less than the Consumer Price Index for that year.

(10) The department must make $50,000,000.00 of the funds appropriated in part 1 for missing middle gap program available for grants to developers who qualify under subsection (5)(a)(ii).

(11) The unexpended funds appropriated in part 1 for missing middle gap program are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to expand access to housing stock for households between 185% to 300% of the federal poverty level.

(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.

(d) The tentative completion date is September 30, 2027.

Sec. 304. (1) From funds appropriated in part 1 for Michigan STEM FORWARD internship program, the Michigan strategic fund must allocate $15,000,000.00 for the purpose of increasing participation in the current MI STEM FORWARD program.

(2) The Michigan strategic fund must do all of the following:

(a) Ensure that employers from diverse industries and geographies within this state can access subgrants under the program, to the extent possible, leveraging SmartZones and small

business development centers.

(b) Develop a form or process for internship evaluations under subsection (3)(b).

(c) Collect internship evaluations and conduct analysis to ensure that internships funded under the program continue to provide a valuable learning experience for participating interns.

(d) Assist with coordinating an annual event held by each participating SmartZone or small business development center connection.

(e) By September 30 of each year, submit a report to the house and senate appropriations subcommittees on labor and economic opportunity, the house and senate fiscal agencies, and the state budget director. The report must contain all of the following, at a minimum:

(i) The number of students served by a grant under the program by county and sponsoring SmartZone or small business development center.

(ii) A detailed accounting of program expenditures, organized by type of expenditure, as applicable.

(iii) A summary of internship evaluation analysis findings under subsection (3)(b).

(iv) Any other relevant program information.

(3) Subgrants issued using funds received under this section must comply, at minimum, with all of the following:

(a) Subgrants must be in the amount of 50% of wages paid to each intern hired under a program subgrant, up to a maximum of $4,000.00 per internship.

(b) Interns must complete an internship evaluation upon completion of their internship, and that evaluation must be

submitted to the Michigan strategic fund. Every reasonable effort must be made to ensure the anonymity of internship evaluations with respect to the intern and the employer.

(4) The unexpended funds appropriated in part 1 for Michigan STEM FORWARD internship program are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to provide grants to local economic development corporations for the purpose of creating subgrants from those participating local economic development corporations to cover a portion of the cost of internships offered by businesses and other organizations served by those participating local economic development corporations.

(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.

(d) The tentative completion date is September 30, 2027.

Sec. 305. (1) Funds appropriated in part 1 for state land bank authority must be used for the administration of the blight elimination program as described under section 1094f of article 5 of 2022 PA 166.

(2) The unexpended funds appropriated in part 1 for state land bank authority are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The

following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to effectively administer blight elimination program grants.

(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.

(d) The tentative completion date is September 30, 2024.

Sec. 306. (1) From the funds appropriated in part 1 for Michigan community development financial institution fund grants, $75,000,000.00 is transferred to and appropriated from the Michigan community development financial institutions fund created under section 403 of 2022 PA 194 for grants to eligible community development financial institutions under this section and related expenditures permitted under this section. The legislature finds and declares that the appropriation described in this section is for a public purpose, including promoting community economic revitalization and community development through community development financial institutions.

(2) By December 31, 2022, the Michigan strategic fund shall develop a grant application, approval, agreement, and compliance process consistent with this section adopted by a resolution of the board and published and available on the Michigan strategic fund's website.

(3) The application required under subsection (2) must include all of the following:

(a) The name of the community development financial institution applying for a grant from the CDFI fund.

(b) The location of the principal office of the applicant.

(d) The amount of the grant sought, not to exceed the maximum eligible amount of the grant under subsections (4) to (6).

(e) If the community development financial institution is a depository institution, the net assets of the depository institution.

(f) If the community development financial institution is not a depository institution, the amount of qualifying commitments made by the community development financial institution during the 3 calendar years immediately preceding the calendar year in which the application is submitted.

(g) A description of the amount an applicant is eligible to apply for under subsections (4) to (6).

(h) A description of the proposed use of the grant award by the applicant for eligible activities consistent with the requirements of this section and the community development banking and financial institutions act of 1994, 12 USC 4701 to 4719, and any other requirements applicable under federal law.

(i) Documentation of the applicant's certification as a community development financial institution that meets the eligibility requirements under 12 CFR 1805.201, by the community development financial institutions fund established under section 104 of the community development banking and financial institutions act of 1994, 12 USC 4703. The documentation required by this subsection may include the list of community development financial institutions in good standing maintained and published by the federal fund.

(j) A statement that the applicant is in compliance with all

requirements applicable to the applicant under the community development banking and financial institutions act of 1994, 12 USC 4701 to 4719.

(4) A community development financial institution that is a depository institution is eligible for a grant award in 1 of the following amounts:

(a) Up to $1,000,000.00 if the depository institution has total net assets of less than $500,000,000.00.

(b) Up to $1,500,000.00 if the depository institution has total net assets of between $500,000,000.00 to $999,999,999.99.

(c) Up to $2,000,000.00 if the depository institution has total net assets of between $1,000,000,000.00 to $1,999,999,999.99.

(d) Up to $2,500,000.00 if the depository institution has total net assets of $2,000,000,000.00 or more.

(5) Except as otherwise provided in subsection (6), a community development financial institution is eligible for a grant award in 1 of the following amounts:

(a) Up to $500,000.00 if the community development financial institution made qualifying commitments in an amount that averaged less than $1,000,000.00 per year during the 3 calendar years immediately preceding the calendar year in which an application for a grant is submitted.

(b) Up to $1,500,000.00 if the community development financial institution made qualifying commitments in an amount that averaged from $1,000,000.00 to $3,999,999.99 per year during the 3 calendar years immediately preceding the calendar year in which an application for a grant is submitted.

(c) Up to $2,500,000.00 if the community development financial institution made qualifying commitments in an amount that averaged

from $4,000,000.00 to $5,999,999.99 per year during the 3 calendar years immediately preceding the calendar year in which an application for a grant is submitted.

(d) Up to $3,500,000.00 if the community development financial institution made qualifying commitments in an amount that averaged from $6,000,000.00 to $9,999,999.99 per year during the 3 calendar years immediately preceding the calendar year in which an application for a grant is submitted.

(e) Up to $4,000,000.00 if the community development financial institution made qualifying commitments in an amount that averaged at least $10,000,000.00 per year during the 3 calendar years immediately preceding the calendar year in which an application for a grant is submitted.

(6) A grant to a multistate CDFI under subsection (5) must not exceed $2,500,000.00.

(7) The Michigan strategic fund shall accept applications for a grant under this section until January 30, 2023. The Michigan strategic fund shall approve or deny a grant application within 49 days after the receipt of an administratively complete application as determined by the Michigan strategic fund. If the application complies with the requirements of this section, the Michigan strategic fund shall approve the award of the grant in the amount requested by the applicant. The Michigan strategic fund may deny a grant application submitted under this section for only the following reasons:

(a) The applicant does not satisfy all of the requirements described in this section.

(b) Subject to subsection (9), there is insufficient money in the CDFI fund to pay the grant amount requested.

(c) The applicant is not in compliance with applicable requirements under the community development banking and financial institutions act of 1994, 12 USC 4701 to 4719.

(8) If the Michigan strategic fund denies an application under subsection (7), the applicant may provide additional information to the Michigan strategic fund within 7 days after the notice of denial. The Michigan strategic fund shall review and reconsider the application and additional information within 28 days.

(9) If there is an insufficient amount of money in the CDFI fund to pay the grants approved, the amount of each grant shall be reduced proportionately by the Michigan strategic fund based on the amount of money available in the CDFI fund.

(10) Upon approval of an application, the Michigan strategic fund and the applicant shall sign a written grant agreement that provides for the terms of the grant agreement. A grant agreement must include all of the following:

(a) A requirement that at least 80% of the grant award be used for financial products and financial services or expenditures of money or commitments to expend money to reduce the interest rate otherwise applicable under a loan agreement or funding agreement.

(b) A restriction that no more than 10% of the grant award be used for technical assistance activities described in 12 CFR 1805.303.

(d) A requirement that a grant award be committed under a loan agreement or funding agreement or disbursed by the recipient within 3 years after the date that the recipient receives the grant award.

(e) A requirement that the entire amount of the grant award be

expended within this state.

(f) A requirement that the grant award recipient maintain its certification as a community development financial institution under 12 CFR 1805.201, while the grant agreement is in effect.

(g) A requirement that the grant award recipient comply with all requirements applicable under the community development banking and financial institutions act of 1994, 12 USC 4701 to 4719, while the agreement is in effect.

(h) Provisions authorizing the Michigan strategic fund to enforce the terms of the grant agreement, including a requirement that a noncompliant recipient of a grant award repay the award for deposit in the CDFI fund.

(i) A requirement for the grant award recipient to report on activities consistent with the requirements of subsection (14).

(j) If the grant agreement includes a grant of federal money, the grant agreement must require the recipient to comply with any requirements applicable to the use of the federal money.

(11) A grant agreement may provide for the community development financial institution that is the recipient of a grant award to serve as an intermediary lender to another community development financial institution consistent with the purposes of this section if not prohibited by federal law applicable to the expenditure of any federal grant money.

(12) If not prohibited by federal law applicable to the expenditure of any federal grant money, a grant agreement must permit a grant award recipient to assign the award to an affiliate and for the affiliate to assume the obligations of the grant award recipient if the affiliate satisfies all of the following:

(a) Is a community development financial institution.

(b) Is organized in the same manner as the grant award recipient.

(i) The grant award recipient owns a majority of the stock of the affiliate.

(ii) A majority of the members of the board of the affiliate also are members of the board of the grant award recipient.

(13) Except as otherwise provided in subsection (14), the Michigan strategic fund shall require the recipient of a grant award under this section to report annually to the Michigan strategic fund regarding its activities under this section beginning on the May 1 immediately following the calendar year in which the grant award was received by the recipient. The Michigan strategic fund shall publish on its website a standard form for the report. Except as otherwise provided in subsection (14), the report must include all of the following information:

(a) A copy of the recipient's most recent confirmation of recertification as a community development financial institution issued by the community development financial institutions fund under 12 CFR 1805.201, which may include the list of community development financial institutions in good standing maintained and published by the federal fund.

(b) A list of financial products and services provided during the prior calendar year that includes all of the following:

(i) The name of each transaction.

(ii) A transition tracking number for each transaction.

(iii) The date of each transaction.

(iv) The amount of each transaction.

(v) The total project cost for each transaction if other funding was involved.

(vi) The physical address of the borrower or customer for each transaction.

(vii) The census tract of the borrower or customer for each transaction.

(viii) An indication of whether the census tract in which the transaction is located is an eligible investment area.

(ix) A description of the projected economic impact of the transaction.

(x) A description of any financial products or financial services provided.

(d) A summary of expenditures for administration and operations provided during the prior calendar year that includes all of the following:

(i) A description of administration and operations costs incurred.

(ii) Professional fees and expenses incurred.

(iii) A summary of any other eligible expenses for administration and operation.

(14) A grant award recipient is not required to provide a report under this section for any calendar year in which it did not loan or otherwise commit or disburse grant award money. The Michigan strategic fund shall not include information in the report required under subsection (13) if information that otherwise would be included in a report under subsection (13) is either of the following:

(a) Exempt from disclosure or confidential as proprietary business or financial information under the community development banking and financial institutions act of 1994, 12 USC 4701 to 4719.

(b) Exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

(15) Except as otherwise provided in subsection (3), the Michigan strategic fund may expend up to 4% of the appropriation provided from the CDFI fund for the costs it incurs in administering the programs and activities under this section.

(16) The unexpended portion of money in the CDFI fund provided for grants under this section is considered a work project appropriation in accordance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a. The following apply to the work project:

(a) The purpose of the project is to provide grants to eligible community development financial institutions under this section.

(b) All grants will be distributed in accordance with this section and the grant guidelines as part of the application process and grant agreements between the Michigan strategic fund and grant recipients.

(d) The tentative completion date for the work project is September 30, 2027.

(17) As used in this section:

(a) "CDFI fund" means the Michigan community development financial institutions fund described in subsection (1).

(b) "Community development financial institution" means that term as defined in section 103 of the community development banking and financial institutions act of 1994, 12 USC 4702, but is limited to a community development financial institution that satisfies all of the following:

(i) Is an entity that meets the eligibility requirements described in 12 CFR 1805.200.

(ii) Is certified as a community development financial institution that meets the eligibility requirements under 12 CFR 1805.201 by the community development financial institutions fund established under section 104 of the community development banking and financial institutions act of 1994, 12 USC 4703.

(iii) Maintains 1 or more physical offices within this state.

(iv) Employs 2 or more individuals at a physical office within this state, including employees of an affiliate of the community development financial institution that provides services to the community development financial institution.

(v) Is a Michigan CDFI or a multistate CDFI.

(i) A bank as that term is defined in section 3(a) of the federal deposit insurance act, 12 USC 1813.

(ii) A savings association as that term is defined in section 3(b) of the federal deposit insurance act, 12 USC 1813.

(iii) A credit union as that term is defined in section 102 of the credit union act, 2003 PA 215, MCL 490.102.

(iv) A depository institution holding company as that term is defined in 12 CFR 1805.104.

(d) "Eligible activities" means activities described in 12 CFR 1805.301, and includes credit enhancements, loan loss reserves,

equity investments, expenditures of money or commitments to expend money to reduce the interest rate otherwise applicable under a loan agreement or funding agreement, and grants related to these activities.

(e) "Federal fund" means the federal community development financial institutions fund within the United States Department of Treasury.

(f) "Financial products" means that term as defined in 12 CFR 1805.104.

(g) "Financial services" means that term as defined in 12 CFR 1805.104.

(h) "Michigan CDFI" means a community development financial institution that satisfies all of the following:

(i) Is certified as a community development financial institution that meets the eligibility requirements under 12 CFR 1805.201 by the community development financial institutions fund established under section 104 of the community development banking and financial institutions act of 1994, 12 USC 4703.

(ii) Is headquartered at an address in this state, as recognized by the federal fund.

(iii) Has a target market that includes this state, as recognized by the federal fund.

(iv) Serves 1 or more targeted populations located within this state.

(i) "Multistate CDFI" means a community development financial institution that is not a Michigan CDFI but is a community development financial institution that committed under a loan agreement or other funding agreement of at least $10,000,000.00 in financial products and financial services to a target market within

this state under the community development banking and financial institutions act of 1994, 12 USC 4701 to 4719, during the 5 calendar years preceding the calendar year in which an application for a grant is submitted.

(j) "Qualifying commitment" means funding committed by a community development financial institution under a loan agreement or other funding agreement in target markets or targeted populations in this state that is either of the following:

(i) Financial products or financial services committed under the community development banking and financial institutions act of 1994, 12 USC 4701 to 4719.

(ii) An additional credit enhancement, loan loss reserve, or equity investment committed by the community development financial institution or an affiliate of the community development financial institution.

(k) "Target market" means that term as defined in 12 CFR 1805.104.

(l) "Targeted population" means that term as defined in 12 CFR 1805.104.

(18) Maximum grant amounts established under subsections (4), (5), and (6) apply only to grants issued using funds appropriated under this act. Grants issued under 2022 PA 194 must not be counted toward the maximum grant amounts established under this act.

Sec. 307. From the funds appropriated in part 1 for Michigan enhancement grants, $20,000,000.00 shall be awarded to a regional council of carpenters and millwrights located in this state to support building and retaining a Michigan-based construction workforce, which includes, but is not limited to, funding for training curriculum; purchasing supplies, materials, and equipment;

making improvements to its training institutes and other real or personal property used for training purposes; instructional costs; COVID-19 costs incurred on or after March 10, 2020; and any other necessary costs incurred to maintain or improve training services.

Sec. 308. From the funds appropriated in part 1 for Michigan enhancement grants, $2,000,000.00 shall be awarded to an organization dedicated to offering evidence-based martial arts therapy to kids located in a county with a population of between 1,200,000 and 1,300,000 and in a city with a population of between 76,500 and 80,000 according to the most recent federal decennial census.

Sec. 309. From the funds appropriated in part 1 for Michigan enhancement grants, $850,000.00 shall be awarded to a nonprofit that operates a program that satisfies all of the following conditions:

(a) The program provides services to parolees and probationers assessed by the department of corrections as moderate- or high-risk to recidivate.

(b) The program provides job readiness training, transitional employment, job coaching and placement, and postplacement retention services. As part of the transitional employment program phase, the nonprofit program shall provide low-skill, crew-based services to other state agencies.

(d) The program demonstrates an ability to serve multiple jurisdictions across this state.

Sec. 310. From the funds appropriated in part 1 for Michigan enhancement grants, $15,000,000.00 shall be awarded a downtown

development authority serving a city with a population between 4,900 and 5,000 in a county with a population between 180,000 and 191,000 according to the most recent federal decennial census to support a not-for-profit regional or state facility designed to host year-round sporting events and tournaments for 3 or more different sports.

Sec. 311. From the funds appropriated in part 1 for Michigan enhancement grants, $15,000,000.00 shall be awarded to a city with a population between 44,000 and 45,000 according to the most recent federal decennial census for necessary public infrastructure improvements to support economic development in its downtown area. Funds may be used for improvements that include seawall installation, road improvements, and water and sewer system upgrades.

Sec. 312. From the funds appropriated in part 1 for Michigan enhancement grants, $5,000,000.00 shall be awarded to a charter township with a population between 7,000 and 8,000 in a county with a population between 180,000 and 191,000 according to the most recent federal decennial census for blighted building removal and land development occurring after October 1, 2022 on a parcel or contiguous parcels of land within 2 miles of an interstate highway exit ramp.

Sec. 313. From the funds appropriated in part 1 for Michigan enhancement grants, $10,000,000.00 shall be awarded to a nonprofit manufacturing technical center that is headquartered in a county with a population between 180,000 and 191,000 according to the most recent federal decennial census to support an Industry 4.0 and additive materials laboratory space.

Sec. 314. From the funds appropriated in part 1 for Michigan

enhancement grants, $8,000,000.00 shall be awarded to a nonprofit established prior to 2005 that provides financial products and services to create and preserve affordable housing and is headquartered in a city with a population between 110,000 and 120,000 according to the most recent federal decennial census. Grant funds shall be used to support redevelopment of a building located in a city with a population between 44,000 and 45,000 according to the most recent federal decennial census for affordable housing purposes.

Sec. 315. From the funds appropriated in part 1 for Michigan enhancement grants, $4,000,000.00 shall be awarded to a county drain commission that serves a county with a population between 400,000 and 500,000 according to the most recent federal decennial census to support a biosolid digester project.

Sec. 316. From the funds appropriated in part 1 for Michigan enhancement grants, $3,000,000.00 shall be awarded to a nonprofit founded in 2014 that provides programming and services to urban young men and is headquartered in a city with a population greater than 600,000 according to the most recent federal decennial census to support a skilled trades workforce development initiative.

Sec. 317. From the funds appropriated in part 1 for Michigan enhancement grants, $5,000,000.00 shall be awarded to a company that provides STEM and CTE education services in a virtual environment, and that has active contracts with at least 2 Michigan school districts. Grant funds must be used to provide education services in STEM and CTE and must be allocated to enable at least 50,000 Michigan students to receive these services for 3 years. As used in this section:

(a) "STEM" means science, technology, engineering, and

mathematics.

(b) "CTE" means career technical education.

Sec. 318. From the funds appropriated in part 1 for Michigan enhancement grants, $3,000,000.00 shall be awarded to a nonprofit founded prior to 2002 that provides funding opportunities for nonprofit organizations, coordinates between governments, nonprofits, and grant funders, and is headquartered in a city with a population greater than 600,000 according to the most recent federal decennial census. Grant funds must be used to support a program that provides workforce training and job placement services to high school students in at least 6 Michigan school districts over a 2-year grant period.

Sec. 319. From the funds appropriated in part 1 for Michigan enhancement grants, $2,000,000.00 shall be awarded to a nonprofit founded prior to 2001 that provides youth-centered technology and music programs within urban school districts and community-based organizations, and is headquartered in a city with a population between 58,000 and 58,500 according to the most recent federal decennial census. Grant funds must be used to support a program to provide youth and young adults with marketable technical skills and experience in the music and film production field.

Sec. 320. (1) From the funds appropriated in part 1 for Michigan enhancement grants, the department shall execute a grant agreement with each recipient, pursuant to subsection (2). All grant funds are considered direct appropriations and, subject to receipt of all information under subsections (2) and (3), shall be disbursed by the department, as determined by the grant agreement. Any funds that are granted to a state department are appropriated in that department for the purpose of the intended grant. An

initial disbursement of 50% shall be provided to the grantee upon execution of the grant agreement.

(2) The department shall execute a grant agreement with each recipient in order to receive funding. The grant agreement shall include, but is not limited to, all of the following:

(a) All necessary identifying information for the recipient, including any necessary tax identification information.

(b) A description of the project for which the grant funds will be expended, including tentative timelines and the estimated budget. No expenditures outside of the project purpose, as stated in the executed grant agreement, shall be reimbursed from appropriations in part 1. Funds appropriated in part 1 may be used only for expenditures that occur on or after the effective date of this act, unless specifically authorized by this act.

(c) A requirement that after the initial 50% disbursement, additional funds shall be disbursed only after verification that the initial payment has been fully expended, in accordance with the project purpose. The remaining funds shall be disbursed in a manner specified in the grant agreement. The grantee must provide sufficient documentation, as determined by the department, to verify that all expenditures were made in accordance with the project purpose.

(d) A requirement for quarterly reports from the recipient to the department that provide the status of the project and an accounting of all funds expended by the recipient.

(e) A clawback provision that allows this state to recoup or otherwise collect any funds that are declined, unspent, or otherwise misused.

(3) The grantee shall respond to all reasonable information

requests from the department related to grant expenditures and retain grant records for a period of not less than 3 years, and the grant may be subject to audit and site visits as determined by the department. The grant agreement required under subsection (2) shall include signed assurance by the chief executive officer or other executive officer of the grant recipient that this requirement will be met.

(4) All funds awarded shall be expended by the recipient, and projects completed, by September 30, 2026. If at that time, as evidenced by the quarterly reports, any unexpended funds remain, those funds shall be returned by the grantee to the state treasury. The state budget director may, on a case-by-case basis, extend this deadline, upon request by a grant recipient.

(5) If a grantee does not provide information sufficient to execute a grant agreement by May 1, 2023, funds associated with that grant shall be returned to the state treasury.

(6) The department shall provide quarterly updates on the accounting and status of each project to the senate and house appropriations committees, the senate and house fiscal agencies, and the state budget office.