2006-HJ-07-26-069

No. 69

STATE OF MICHIGAN

JOURNAL

OF THE

House of Representatives

93rd Legislature

REGULAR SESSION OF 2006

House Chamber, Lansing, Wednesday, July 26, 2006.

10:00 a.m.

The House was called to order by the Speaker Pro Tempore.

The roll was called by the Clerk of the House of Representatives, who announced that a quorum was present.

Accavitti--present Elsenheimer--present Law, Kathleen--present Robertson--present

Acciavatti--present Emmons--present Leland--present Rocca--present

Adamini--present Espinoza--present Lemmons, III--present Sak--present

Amos--present Farhat--present Lemmons, Jr.--present Schuitmaker--present

Anderson--present Farrah--present Lipsey--present Shaffer--present

Angerer--present Gaffney--present Marleau--present Sheen--present

Ball--present Garfield--present Mayes--present Sheltrown--present

Baxter--present Gillard--present McConico--present Smith, Alma--present

Bennett--present Gleason--present McDowell--present Smith, Virgil--present

Bieda--present Gonzales--present Meisner--present Spade--present

Booher--present Gosselin--present Meyer--present Stahl--present

Brandenburg--present Green--present Miller--present Stakoe--present

Brown--present Hansen--present Moolenaar--present Steil--present

Byrnes--present Hildenbrand--present Moore--present Stewart--present

Byrum--present Hood--present Mortimer--present Taub--present

Casperson--present Hoogendyk--present Murphy--present Tobocman--present

Caswell--present Hopgood--present Newell--present Vagnozzi--present

Caul--present Huizenga--excused Nitz--present Van Regenmorter--present

Cheeks--present Hummel--present Nofs--present Vander Veen--present

Clack--present Hune--present Palmer--present Walker--present

Clemente--present Hunter--present Palsrok--present Ward--present

Condino--present Jones--present Pastor--present Waters--present

Cushingberry--present Kahn--present Pavlov--present Wenke--present

DeRoche--present Kolb--present Pearce--e/d/s Williams--present

Dillon--present Kooiman--present Plakas--present Wojno--present

Donigan--present LaJoy--present Polidori--present Zelenko--present

Drolet--present Law, David--present Proos--present

e/d/s = entered during session

Rep. Tom Casperson, from the 108th District, offered the following invocation:

"Heavenly Father, as we come together today we acknowledge You and Your sovereignty and who You are. Lord, we ask for Your special guidance and wisdom, Lord, as we move forward with the people's business of the state of Michigan. Lord, I ask for Your hand upon each and everyone of us. Lord, I just ask for Your guidance and give us direction. Lord, we thank You for who You are and we praise Your name. We ask these things in Jesus' name, Amen."

______

The Speaker assumed the Chair.

Rep. Palmer moved that Rep. Huizenga be excused from today's session.

The motion prevailed.

Reports of Select Committees

First Conference Report

The Committee of Conference on the matters of difference between the two Houses concerning

House Bill No. 5786, entitled

A bill to make appropriations for the Michigan strategic fund and certain other state purposes for the fiscal year ending September 30, 2007; to provide for the expenditure of the appropriations; to provide certain conditions on appropriations; and to provide for the disposition of fees and other income received by certain state agencies.

Recommends:

First: That the Senate recede from the Substitute of the Senate as passed by the Senate.

Second: That the House and Senate agree to the Substitute of the House as passed by the House, amended to read as follows:

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

ARTICLE 13

MICHIGAN STRATEGIC FUND

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. There is appropriated for the Michigan strategic fund for the fiscal year ending September 30, 2007, from the funds indicated in this part, the following:

MICHIGAN STRATEGIC FUND

APPROPRIATION SUMMARY:

Full-time equated classified positions 152.0

GROSS APPROPRIATION $ 80,479,800

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 78,600

ADJUSTED GROSS APPROPRIATION $ 80,401,200

Federal revenues:

Total federal revenues 47,687,000

Special revenue funds:

Total local revenues 0

Total private revenues 700,000

Total local and private revenues 700,000

Total other state restricted revenues 5,000

State general fund/general purpose $ 32,009,200

Sec. 102. MICHIGAN STRATEGIC FUND

Full-time equated classified positions 152.0

Administration--22.0 FTE positions $ 2,451,000

HR optimization user charges 17,300

Job creation services--130.0 FTE positions 17,496,000

Michigan promotion program 5,717,500

Economic development job training grants 9,798,000

Community development block grants 45,000,000

GROSS APPROPRIATION $ 80,479,800

Appropriated from:

Interdepartmental grant revenues:

IDG-MDEQ, air quality fees 78,600

Federal revenues:

DOL-ETA, employment service 300,000

HUD-CPD, community development block grant 47,387,000

Special revenue funds:

Private - special project advances 700,000

Industry support fees 5,000

State general fund/general purpose $ 32,009,200

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2006-2007 is $32,014,200.00 and state spending from state resources to be paid to local units of government for fiscal year 2006-2007 is $9,798,000.00 from the entire appropriation for economic development job training grants.

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

Sec. 203. As used in this article:

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

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

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

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

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

(g) "IDG" means interdepartmental grant.

(h) "MDEQ" means the Michigan department of environmental quality.

(i) "MDLEG" means the Michigan department of labor and economic growth.

(j) "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, MCL125.1601 to 125.1636, and the Michigan strategic fund.

(k) "PA" means public act.

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

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

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

Sec. 208. Unless otherwise specified, the fund shall use the Internet to fulfill the reporting requirements of this article. 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 chair of the fund 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 chair of the fund shall strongly encourage firms with which the fund contracts to subcontract with certified businesses in depressed and deprived communities for services, supplies, or both.

Sec. 212. The fund shall receive and retain copies of all reports funded from appropriations in part 1. The fund shall follow federal and state guidelines for short-term and long-term retention of these reports and records.

Sec. 213. From the funds appropriated in part 1 for information technology, the 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 fund 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, 2007 shall be limited to situations in which 1 or more of the following conditions apply:

(a) The travel is required by legal mandate or court order or for law enforcement purposes.

(b) The travel is necessary to protect the health or safety of Michigan citizens or visitors or to assist other states in similar circumstances.

(c) The travel is necessary to produce budgetary savings or to increase state revenues, including protecting existing federal funds or securing additional federal funds.

(d) The travel is necessary to comply with federal requirements.

(e) The travel is necessary to secure specialized training for staff that is not available within this state.

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

(2) If out-of-state travel is necessary but does not meet 1 or more of the conditions in subsection (1), the state budget director may grant an exception to allow the travel. Any exceptions granted by the state budget director shall be reported on a monthly basis to the house and senate appropriations committees.

(3) Not later than January 1 of each year, each department shall prepare a travel report listing all travel by classified and unclassified employees outside this state in the immediately preceding fiscal year that was funded in whole or in part with funds appropriated in the department's budget. The report shall be submitted to the chairs and members of the house and senate appropriations committees, the fiscal agencies, and the state budget director. The report shall include the following information:

(a) The name of each person receiving reimbursement for travel outside this state or whose travel costs were paid by this state.

(b) The destination of each travel occurrence.

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

(e) The transportation and related costs of each travel occurrence, including the proportion funded with state general fund/general purpose revenues, the proportion funded with state restricted revenues, the proportion funded with federal revenues, and the proportion funded with other revenues.

(f) A total of all out-of-state travel funded for the immediately preceding fiscal year.

Sec. 219. The fund shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

MICHIGAN STRATEGIC FUND

Sec. 1001. (1) The appropriation in part 1 to the fund for economic development job training shall be expended in 2categories: the business response program for employee training grants that maintain or attract permanent jobs for Michigan residents and the manufacturing competitiveness program for grants to fund collaborative efforts that increasethe competitiveness of multiple companies within a grant. The business response program is allocated up to $6,532,000.00, and the manufacturing competitiveness program is allocated up to $3,266,000.00 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.

(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.

(d) In addition, for the manufacturing competitiveness program, the following criteria will receive priority: strong level of collaboration and cooperation and demonstration of new techniques, systems, and processes of value to the affected companies.

(9) Participants in economic development job training programs shall be 16 years or older and not enrolled and counted in membership in a school district, intermediate school district, or community college.

(10) A recipient of a grant under this section shall not charge tuition or fees to participants in the program funded by the grant. However, a nonprofit organization may charge tuition or fees if the tuition plan or fees are recognized by the state and the nonprofit organization receives additional funding from other governmental or private funding sources for its programs.

(11) For training delivered to incumbent workers under the business response program, the business receiving the benefit of the training shall provide a minimum of 20% of the program costs in matching funds as necessitated by the program. For training delivered under the manufacturing competitiveness program, the business receiving the benefit of the training shall provide a minimum of 30% of the program costs in matching funds as necessitated by the program.

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

(13) A recipient of a grant under this section shall allow the fund or the agency's designee to audit all records related to the grant for all entities that receive money, either directly or indirectly through a contract, from the grant funds. A grant recipient or contractor shall reimburse the state for all disallowances found in the audit.

(14) The fund shall provide to the state budget director and the fiscal agencies by May 1 and November 1 of each year a report on the economic development job training grants. The report due by May 1 shall provide the information described in this subsection for each grant or contract awarded during the preceding 2 quarters of the state fiscal year. The report due by November 1 shall provide this information for each grant or contract awarded during the preceding full fiscal year. The report shall contain all of the following:

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

(b) The number of participants under each grant or contract and the number of new hires who are in training under the grant.

(c) The names, addresses, and total number of employees of all business organizations for whom training is or will be provided.

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

(15) Of the funds appropriated in part 1 for economic development job training grants, the fund shall not use these funds to finance the startup or in any way subsidize any private distributor of liquor products in Michigan.

(16) As a condition of receiving funds under part 1 of this article, 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. 1002. 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.

(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 section.

(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. 1003. 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. 1004. 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. 1005. The fund shall submit on or before May 1 and November 1 to the subcommittees, state budget office, and the fiscal agencies a listing of all grants which have been awarded by the fund or by the Michigan economic development corporation from the funds appropriated in part 1. The list shall include all of the following:

(a) The name of the recipient.

(b) The amount awarded to the recipient.

Sec. 1006. (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.

(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. 1007. 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. 1008. (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. 1009. 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. 1010. (1) From the general fund/general purpose appropriations in part 1 to the fund and granted or transferred to the Michigan economic development corporation, any unexpended or unencumbered balance shall be disposed of in accordance with the requirements in the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, unless carryforward authorization has been otherwise provided for.

(2) Any encumbered funds shall be used for the same purposes for which funding was originally appropriated in this article.

Sec. 1011. (1) 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.

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

(2) If the MEDC is unable for any reason to perform duties under this article, the fund may exercise those duties.

Sec. 1012. 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. 1013. (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 article.

(2) The fund shall provide an annual report on the status of this fund. The report shall be provided to the subcommittees, the fiscal agencies, and the state budget office by January 31.

Sec. 1014. (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, MCL 125.2781 to 125.2797, 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.

(10) 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 part.

(11) The fund shall provide an annual report on the status of this fund. The report shall be provided to the subcommittees, the fiscal agencies, and the state budget office by January 31.

Sec. 1015. It is the intent of the legislature that the members of the executive committee of the corporation board of the MEDC be subject to the advice and consent of the senate.

Sec. 1016. The Michigan economic development corporation shall work with the office of the auditor general to implement procedures to annually audit the number of jobs claimed to be created by firms receiving Michigan economic growth authority grants, and all other claims of job creation for which MEDC has provided tax credits or other economic incentives.

Sec. 1017. The Michigan economic development corporation shall report on the number of individuals it employs with an annual salary of $80,000.00 or more to the subcommittees, the fiscal agencies, and the state budget office by October 31, 2007. The report shall include the name, the job title, and a description of the duties and responsibilities of all such employees.

Sec. 1018. From the funds appropriated in part 1 for the Michigan promotion program, the Michigan economic development corporation shall contract with a state research university in Michigan to conduct a scientific study of the return on investment of state tourism advertising expenditures. The results of this study shall be reported to the subcommittees, the fiscal agencies, and the state budget office by September 30, 2007.

Sec. 1019. (1) As a condition of receiving the funds appropriated in part 1, the fund shall ensure that the Michigan economic development corporation and the fund promulgate or create no guidelines, rules, standards, protocols, or other similar mandates that would prevent a firm, which otherwise qualifies for Michigan economic growth authority tax credits, from receiving such credits because the new employees who fill qualified new jobs as defined in the Michigan economic growth authority act of 1995, 1995 PA 24, MCL 207.801 to 207.810, are leased from a professional employer organization.

(2) For purposes of this section, a professional employer organization is defined as an organization that provides the management and administration of the human resources and employer risk of another entity by contractually assuming substantial employer rights, responsibilities, and risk through a professional employer agreement that establishes an employer relationship with the leased officers or employees assigned to the other entity by doing all of the following:

(a) Maintaining the right of direction and control of the employees' work, although this responsibility may be shared with the other entity.

(b) Paying wages and employment taxes of the employees out of its own accounts.

(d) Retaining the right to hire and fire employees.

Third: That the House and Senate agree to the title of the bill to read as follows:

Jack Brandenburg

Fran Amos

Chris Kolb

Conferees for the House

Michelle McManus

Michael Switalski

Conferees for the Senate

The Speaker announced that under Joint Rule 9 the conference report would lie over one day.

Reports of Standing Committees

The Committee on Regulatory Reform, by Rep. Rocca, Chair, reported

House Bill No. 5853, entitled

A bill to amend 1998 PA 58, entitled "Michigan liquor control code of 1998," by amending sections 522 and 532 (MCL 436.1522 and 436.1532), section 522 as amended by 1998 PA 416 and section 532 as added by 2001 PA 223.

With the recommendation that the substitute (H-3) be adopted and that the bill then pass.

The bill and substitute were referred to the order of Second Reading of Bills.

Favorable Roll Call

To Report Out:

Yeas: Reps. Rocca, Jones, Gaffney, Wojno, McDowell, Virgil Smith and Lemmons, III

Nays: Rep. Van Regenmorter

The Committee on Regulatory Reform, by Rep. Rocca, Chair, reported

Senate Bill No. 50, entitled

A bill to amend 1998 PA 58, entitled "Michigan liquor control code of 1998," (MCL 436.1101 to 436.2303) by adding section 545.

Without amendment and with the recommendation that the bill pass.

The bill was referred to the order of Second Reading of Bills.

Favorable Roll Call

To Report Out:

Yeas: Reps. Rocca, Jones, Gaffney, Palsrok, Wojno, McDowell and Virgil Smith

Nays: Rep. Van Regenmorter

COMMITTEE ATTENDANCE REPORT

The following report, submitted by Rep. Rocca, Chair, of the Committee on Regulatory Reform, was received and read:

Meeting held on: Wednesday, July 26, 2006

Present: Reps. Rocca, Jones, Van Regenmorter, Gaffney, Palsrok, Wojno, McDowell, Virgil Smith and Lemmons, III

Messages from the Governor

The following message from the Governor was received July 17, 2006 and read:

EXECUTIVE ORDER

No. 2006 11

COMMISSION ON HIGHER EDUCATION

AND ECONOMIC GROWTH IN MACOMB COUNTY

WHEREAS, Section 1 of Article V of the Michigan Constitution of 1963 vests the executive power of the State of Michigan in the Governor;

WHEREAS, Section 4 of Article V of the Michigan Constitution of 1963 authorizes the establishment of temporary commissions or agencies for special purposes;

WHEREAS, both Michigan's core manufacturing industries and the new technology-based enterprises we seek to grow in the 21st century demand the talents of an increasingly educated workforce;

WHEREAS, two-thirds of the jobs that will be created in the next decade will require post-secondary education and training;

WHEREAS, those earning bachelor's degrees can be expected to earn $1 million more than those with high school diplomas over their lifetimes, while those with associate's degrees can be expected to earn $400,000 more than high school graduates;

WHEREAS, the businesses we hope to attract to Michigan cite the availability of a skilled workforce as a chief factor in determining where to make job-creating investments;

WHEREAS, Michigan cannot hope to maintain its economic vitality and the quality of life of its residents without making a dramatic increase in the number of our citizens who attain degrees and other credentials that link them to economic opportunity;

WHEREAS, that opportunity must include the ability to earn degrees and other credentials linked to success in our knowledge-based economy;

WHEREAS, the Lieutenant Governor's Commission on Higher Education and Economic Growth, created by Executive Order 2004-32, recommended that Michigan attempt to make post-secondary education universal over the next decade and greatly expand access to baccalaureate institutions and degrees;

WHEREAS, Macomb County is third most populous county in Michigan and its population is growing rapidly;

WHEREAS, in the 20th century Macomb County established itself as a world-renowned center for manufacturing and industrial research and development;

WHEREAS, Macomb County will continue to serve as an indispensable engine of economic growth in Michigan as we enter the knowledge economy of the 21st century;

WHEREAS, the residents of Macomb County have articulated a desire to improve post-secondary education opportunities in the county in recognition of the vital link between educational attainment and economic development;

WHEREAS, only 18 percent of Macomb County residents over the age of 25 currently have a bachelor's degree; and

WHEREAS, according to the Congressional Research Service, Macomb County is one of the three most populous counties in the United States without a four-year public higher education institution within its boundaries;

NOW, THEREFORE, I, Jennifer M. Granholm, Governor of the State of Michigan, by virtue of the power and authority vested in the Governor by the Michigan Constitution of 1963 and Michigan law, order the following:

I. ESTABLISHMENT OF MACOMB COUNTY COMMISSION ON HIGHER EDUCATION AND ECONOMIC GROWTH

A. The Commission on Higher Education and Economic Growth in Macomb County (the "Commission") is created as an advisory body within the Executive Office of the Governor.

B. The Commission shall consist of 15 voting members appointed by the Governor.

C. Members of the Commission shall serve at the pleasure of the Governor.

D. A vacancy on the Commission shall be filled in the same manner as the original appointment.

II. CHARGE TO THE COMMISSION

A. The Commission is advisory to the Governor. It shall assess the need for expanded post-secondary education opportunities in Macomb County by engaging the residents of Macomb County in a broad-based community dialogue. The Commission may conduct inquiries and investigations and consult with outside experts as appropriate in order to perform its duties.

B. The Commission shall hold hearings and receive public comments regarding Macomb County's post-secondary education needs.

C. The Commission shall advise the state's efforts to explore policy options regarding post-secondary education in Macomb County.

D. The Commission shall provide other information or advice or take other actions as directed by the Governor.

E. The Commission, not later than December 31, 2006, shall complete its work and report its findings to the Governor and the State Board of Education for their consideration.

III. OPERATIONS OF THE COMMISSION

A. The Commission may promulgate bylaws, not inconsistent with Michigan law and this Order, governing its organization, operation, and procedures.

B The Governor shall designate one of the members of the Commission to serve as its Chairperson. The Commission may select from among its members a Vice-Chairperson.

C. The Commission shall meet at the call of the Chair and as may be provided in procedures adopted by the Commission.

D. The Commission shall act by majority vote of its present and voting members. A majority of the voting members of the Commission constitutes a quorum for the transaction of business.

E. Members of the Commission shall serve without compensation.

F. The Commission may accept donations of labor, services, or other things of value from any public or private agency or person.

G. Members of the Commission, staff, and contractors shall refer all legal, legislative, and media contacts to the Office of the Governor.

IV. MISCELLANEOUS

A. All departments, committees, commissioners, or officers of this state or of any political subdivision of this state shall give to the Commission, or to any representative of the Commission, any necessary assistance required by the Commission, in the performance of the duties of the Commission so far as is compatible with its, his, or her duties. Free access shall also be given to any books, records, or documents in its, his, or her custody, relating to matters within the scope of inquiry, study, or investigation of the Commission.

B. Nothing in this Order shall be construed to diminish the constitutional authority of the State Board of Education pursuant to Section 3 of Article VIII of the Michigan Constitution of 1963, to provide leadership and general supervision over all public education, including adult education and instructional programs in state institutions, except as to institutions of higher education granting baccalaureate degrees; to serve as the general planning and coordinating body for all public education, including higher education; and to advise the Legislature as to the financial requirements in connection therewith.

C. Nothing in this Order shall be construed to change the organization of the executive branch of state government or the assignment of functions among its units in a manner requiring the force of law.

D. The invalidity of any portion of this Order shall not affect the validity of the remainder of the Order.

This Order is effective upon filing.

[SEAL] Given under my hand and the Great Seal of the State of Michigan this 17th day of July, in the year of our Lord, two thousand and six.

Jennifer M. Granholm

Governor

By the Governor:

Terri L. Land

Secretary of State

The message was referred to the Clerk.

The following message from the Governor was received July 21, 2006 and read:

EXECUTIVE ORDER

No. 2006 12

DEPARTMENT OF COMMUNITY HEALTH

MICHIGAN DEVELOPMENTAL DISABILITIES COUNCIL

WHEREAS, Section 1 of Article V of the Michigan Constitution of 1963 vests the executive power of the State of Michigan in the Governor;

WHEREAS, under Section 8 of Article V of the Michigan Constitution of 1963 the Governor is responsible for the faithful execution of the laws;

WHEREAS, the State of Michigan recognizes a need to ensure that resources are developed, implemented, and coordinated to achieve the maximum impact on current and future needs of individuals with developmental disabilities and their families;

WHEREAS, development and implementation of needed services for individuals with developmental disabilities are ongoing responsibilities of the Department of Community Health and other state departments and agencies, in collaboration with non-governmental agencies and resources;

WHEREAS, Executive Order 1977-3 established the Michigan State Planning Council for Developmental Disabilities;

WHEREAS, Executive Order 1984-13 established the Michigan Developmental Disabilities Council;

WHEREAS, Section 125 of the federal Developmental Disabilities Assistance and Bill of Rights Act of 2000, Public Law 106-402, 42 USC 15025, requires that each state receiving funding establish and maintain a council to undertake advocacy, capacity building, and systematic change activities that contribute to a coordinated, consumer- and family-centered, consumer- and family-directed, comprehensive system of community services, individualized supports, and other forms of assistance beneficial for individuals with developmental disabilities;

WHEREAS, modification of this state's council for developmental disabilities is necessary to reflect the current organizational structure of state government and to comply with federal law;

I. DEFINITIONS

As used in this Order:

A. "Council" means the Michigan Developmental Disabilities Council re-created under this Order.

B. "Department of Community Health" or "Department" means the principal department of state government created as the Department of Mental Health under Section 400 of the Executive Organization Act of 1965, 1965 PA 380, MCL 16.500, and renamed the "Department of Community Health" under Executive Order 1996-1, MCL 330.3101.

C. "Developmental Disabilities Act" means the federal Developmental Disabilities Assistance and Bill of Rights Act of 2000, Public Law 106-402, as amended, 42 USC 15001 to 15115.

D. "State Developmental Disabilities Plan" means the state plan described under Section 124 of the Developmental Disabilities Act.

II. DEPARTMENT OF COMMUNITY HEALTH

A. The Department shall continue to serve as the state agency designated to provide support to the Council on behalf of this state as provided under Sections 124 and 125(d) of the Developmental Disabilities Act.

III. CREATION OF NEW MICHIGAN DEVELOPMENTAL DISABILITIES COUNCIL

A. The Michigan Developmental Disabilities Council is created within the Department of Community Health and shall be the state council on developmental disabilities required under Section 125 of the Developmental Disabilities Act.

B. The Governor shall appoint the members of the Council. The members shall be appointed at the discretion of the Governor after recommendations are solicited from organizations representing a broad range of individuals with developmental disabilities and individuals interested in individuals with developmental disabilities, including, but not limited to, the members of the Council not employed by this state. The Council may, at the initiative of the Council or on the request of the Governor, coordinate Council and public input to the Governor regarding all recommendations. The members of the Council shall be geographically representative of this state and reflect the diversity of the State of Michigan with respect to race and ethnicity.

C. The Council shall consist of 21 members appointed by the Governor, including all of the following:

1. An individual representing the Department with sufficient authority to engage in policy planning and implementation on behalf of the Department.

2. An individual representing the Department of Education with sufficient authority to engage in policy planning and implementation on behalf of the Department of Education.

3. An individual representing the Department of Human Services with sufficient authority to engage in policy planning and implementation on behalf of the Department of Human Services.

4. An individual representing the Department of Labor and Economic Growth with sufficient authority to engage in policy planning and implementation on behalf of the Department of Labor and Economic Growth.

5. Not less than one individual representing a university center for excellence in developmental disabilities education, research, and service with sufficient authority to engage in policy planning on behalf of the university center.

6. Not less than one individual representing the protection and advocacy system in this state with sufficient authority to engage in policy planning and implementation.

7. Not less than 2 individuals representing local and non-governmental agencies and private nonprofit groups concerned with services for individuals with developmental disabilities in this state with sufficient authority to engage in policy planning and implementation on behalf of the agency or group.

D. Subject to Section III.E and III.F, not less than 60 percent of the members of the Council shall be individuals who are one or more of the following:

1. An individual with developmental disabilities.

2. A parent or guardian of a child with developmental disabilities.

3. An immediate relative or guardian of an adult with mentally impairing developmental disabilities who cannot advocate for himself or herself.

E. Of the individuals described in Section III.D, all of the following shall apply:

1. Not less than 1/3 of the individuals shall be individuals with developmental disabilities.

2. Not less than 1/3 of the individuals shall be parents or guardians of an individual with developmental disabilities or immediate relatives or guardians of an adult with mentally impairing developmental disabilities who cannot advocate for himself or herself.

3. Not less than 1/3 of the individuals shall be a combination of the individuals described in Section III.D.

4. If such an individual resides in this state, at least one of the individuals shall be an immediate relative or guardian of an individual with a developmental disability who resides or previously resided in an institution or shall be an individual with a developmental disability who resides or previously resided in an institution.

F. An individual meeting the criteria established under Section III.D also shall not be any of the following:

1. An employee of a state department or agency that receives funds or provides services under Subtitle B of the Developmental Disabilities Act.

2. A managing employee as defined in Section 1126(b) of the Social Security Act, 42 USC 1320a-5(b).

3. An employee of any other entity that receives funds or provides services under Subtitle B of the Developmental Disabilities Act.

G. Of the members of the Council initially appointed under this Order, 6 members shall be appointed for terms expiringSeptember 30, 2006, 5 members shall be appointed for terms expiring September 30, 2007, 5 members shall be appointed for terms expiring September 30, 2008, and 5 members shall be appointed for terms expiring September 30, 2009. After the expiration of the initial terms, members of the Council shall be appointed for terms of 4 years.

H. A member of the Council shall continue to serve until a successor is appointed and qualified. A vacancy on the Council occurring other than by expiration of a term shall be filled in the same manner as the original appointment for the balance of the unexpired term.

I. The Council shall advise the Governor regarding the membership requirements of the Council and shall notify the Governor if a vacancy on the Council remains unfilled for more than 180 days.

IV. CHARGE TO THE COUNCIL

A. The Council shall undertake advocacy, capacity building, and systematic change activities, consistent with Sections 101(b) and 101(c) of the Developmental Disabilities Act that contribute to a coordinated, consumer- and family-centered, consumer- and family-directed, comprehensive system of community services, individualized supports, and other forms of assistance that contribute to the achievement of the purpose of Subtitle B of the Developmental Disabilities Act.

B. The Council shall serve as an advocate for individuals with developmental disabilities and conduct or support programs, projects, and activities that carry out the purpose of Subtitle B of the Developmental Disabilities Act.

C. At the end of each federal grant year, the Council shall:

1. Determine the extent to which each goal of the Council was achieved for the grant year.

2. Determine the extent to which each goal of the Council was not achieved and the factors that impeded the achievement.

3. Determine needs that require amendment of the State Developmental Disabilities Plan.

4. Separately determine the information on the self-advocacy goal described in Section 124(c)(4)(A)(ii) of the Developmental Disabilities Act.

5. Determine customer satisfaction with activities supported or conducted by the Council.

D. The Council shall continue to develop the State Developmental Disabilities Plan and submit the State Developmental Disabilities Plan to the Secretary of Health and Human Services after consultation with the Director of the Department of Community Health. The consultation required by this paragraph shall be solely for the purpose of obtaining assurances from this state and ensuring consistency of the State Developmental Disabilities Plan with state law.

E. The Council shall implement the State Developmental Disabilities Plan by conducting and supporting advocacy, capacity building, and systemic change activities, including, but not limited to, any of the following:

1. The Council may support and conduct outreach activities to identify individuals with developmental disabilities and their families who otherwise might not come to the attention of the Council and assist and enable the individuals and families to obtain services, individualized supports, and other forms of assistance, including access to special adaptation of generic community services or specialized services.

2. The Council may support and conduct training for individuals with developmental disabilities, their families, and personnel, including professionals, paraprofessionals, students, volunteers, and other community members, to enable such persons to obtain access to, or to provide, community services, individualized supports, and other forms of assistance, including special adaptation of generic community services or specialized services for individuals with developmental disabilities and their families. To the extent that the Council supports or conducts training activities under this paragraph, such activities shall contribute to the achievement of the purpose of Subtitle B of the Developmental Disabilities Act.

3. The Council may support and conduct technical assistance activities to assist public and private entities to contribute to the achievement of the purpose of Subtitle B of the Developmental Disabilities Act.

4. The Council may support and conduct activities to assist neighborhoods and communities to respond positively to individuals with developmental disabilities and their families by any of the following:

a. Encouraging local networks to provide informal and formal supports.

b. Education.

c. Enabling neighborhoods and communities to offer individuals with developmental disabilities and their families access to, and use of, services, resources, and opportunities.

5. The Council may support and conduct activities to promote interdepartmental and interagency collaboration and coordination to better serve, support, assist, or advocate for individuals with developmental disabilities and their families.

6. The Council may support and conduct activities to enhance coordination of services with other councils, groups, entities, or committees, authorized by federal or state law concerning individuals with disabilities and other groups or entities as authorized under Section 125(c)(5)(G) of the Developmental Disabilities Act.

7. The Council may support and conduct activities to eliminate barriers to access and use of community services by individuals with developmental disabilities, enhance systems design and redesign, and enhance citizen participation to address issues identified in the State Developmental Disabilities Plan.

8. The Council may support and conduct activities to educate the public about the capabilities, preferences, and needs of individuals with developmental disabilities and their families and to develop and support coalitions that support the policy agenda of the Council, including training in self-advocacy, education of policymakers, and citizen leadership skills.

9. The Council may support and conduct activities to provide information to policymakers by supporting and conducting studies and analyses, gathering information, and developing and disseminating model policies and procedures,information, approaches, strategies, findings, conclusions, and recommendations. The Council may provide the information directly to federal, state, and local policymakers, including, but not limited to, Congress, the federal executive branch, the Governor, the Michigan Legislature, and state departments and agencies, in order to increase the ability of the policymakers to offer opportunities and to enhance or adapt generic services to meet the needs of, and provide specialized services to, individuals with developmental disabilities and their families.

10. The Council may support and conduct, on a time-limited basis, activities to demonstrate new approaches to serving individuals with developmental disabilities that are a part of an overall strategy for systemic change. The strategy may involve the education of policymakers and the public about how to deliver effectively, to individuals with developmental disabilities and their families, services, supports, and assistance that contribute to the achievement of the purpose of Subtitle B of the Developmental Disabilities Act. The Council may carry out this paragraph by supporting and conducting demonstration activities through sources of available funding other than funding provided under Subtitle B of the Developmental Disabilities Act, and by assisting entities conducting demonstration activities to develop strategies to secure funding from other sources.

11. The Council may support and conduct other advocacy, capacity building, and systemic change activities to promote the development of a coordinated, consumer- and family-centered, consumer- and family-directed, comprehensive system of community services, individualized supports, and other forms of assistance that contribute to the achievement of the purpose of Subtitle B of the Developmental Disabilities Act.

F. The Council shall periodically review the activities of the Department of Community Health carried out under Subtitle B of the Developmental Disabilities Act and report any recommendations for change to the Governor.

G. The Council shall annually prepare and transmit to the Secretary of Health and Human services a report as required by Section 125(c)(7) of the Developmental Disabilities Act.

H. The Council shall prepare, approve, and implement a budget using amounts paid to the this state under Subtitle B of the Developmental Disabilities Act to fund and implement all programs, projects, and activities carried out under Subtitle B of the Developmental Disabilities Act, including all of the following, consistent with the requirements of state and federal law and Council policy:

1. Conducting hearings and forums as the Council determines necessary to carry out the duties of the Council.

2. Reimbursing members of the Council for reasonable and necessary expenses, including expenses for child care and personal assistance services, for attending Council meetings and performing Council duties.

3. Paying a stipend to a member of the Council, if the member is not employed or must forfeit wages from other employment to attend Council meetings or perform other Council duties.

4. Supporting Council member and staff travel to authorized training and technical assistance activities, including in-service training and leadership development activities.

5. Carrying out appropriate contracting and subcontracting activities.

6. Hiring and maintaining such numbers and types of staff, qualified by training and experience and obtaining the services of such professional, consulting, technical, and clerical staff, qualified by training and experience, as the Council determines to be necessary to carry out the functions of the Council under Subtitle B of the Developmental Disabilities Act, subject to applicable federal law and regulations of the Civil Service Commission.

7. Directing the expenditure of funds for grants, contracts, interagency agreements that are binding contracts, and other activities authorized by the State Developmental Disabilities Plan.

I. The Council may participate in the planning, design, or redesign, and monitoring of quality assurance systems of this state that affect individuals with developmental disabilities.

J. The Council also shall fulfill the functions and responsibilities determined by the Governor that are consistent with the Developmental Disabilities Act.

V. OPERATIONS OF THE COUNCIL

A. The Department of Community Health shall provide necessary support services, including qualified staff, to permit the Council to fulfill its responsibilities.

B. The Council shall, consistent with state law and applicable regulations of the Civil Service Commission, recruit and hire a Director of the Council if the position of Director becomes vacant, supervise the Director, and annually evaluate the Director. The Director of the Council shall hire, supervise, and annually evaluate the staff of the Council. Council recruitment, hiring, and dismissal of staff shall be conducted in a manner consistent with state and federal nondiscrimination laws and regulations, including applicable Civil Service Commission regulations. Dismissal of personnel shall be conducted in a manner consistent with state law, applicable Civil Service Commission regulations, and Department of Community Health personnel policies.

C. The staff and other personnel of the Council, while working for the Council, shall be responsible solely for assisting the Council in carrying out its duties, and shall not be assigned duties by the Department or any other entity of this state.

D. The Department and the Council shall maintain a written Memorandum of Agreement to clarify the discharge of administrative responsibilities.

E. The Council may establish committees and subcommittees, and request public participation on advisory groups or panels, including, but not limited to, regional coordinating councils serving as local forums for services coordination and problem resolution, as it deems necessary. The Council may adopt, reject, or modify recommendations made by committees, subcommittees, advisory groups, or panels.

F. The Council may enter into agreements with state agencies and other providers of services for improvements in services for persons with disabilities.

G. The Council shall conduct its business in accordance with the procedures established under the Open Meetings Act, 1976 PA 267, MCL 15.261 to 15.275.

H. As required under Section 124(c)(5)(D) of the Developmental Disabilities Act, no member of the Council shall cast a vote on any matter that would provide direct financial benefit of the member or otherwise give the appearance of a conflict of interest. As required under Section 125(b)(4)(B) of the Developmental Disabilities Act, a member of the Council appointed under Sections II.D.4 to II.D.9 shall recuse himself or herself from any discussion of grants or contracts for which the member's department, agency, or program is a grantee, contractor, or applicant.

VI. RESCISSIONS

A. The Michigan State Planning Council for Developmental Disabilities established under Executive Order 1977-3 is abolished. Executive Order 1977-3 is rescinded in its entirety.

B. The Michigan Developmental Disabilities Council established by Executive Order 1984-13 is abolished. Executive Order 1984-13 is rescinded in its entirety.

VII. MISCELLANEOUS

A. Nothing in this Order shall be construed to authorize the Council to direct, control, or exercise any policymaking authority or administrative authority over any program assisted under the federal Rehabilitation Act of 1973 or the federal Individuals with Disabilities Education Act.

B. Any rules, orders, contracts, and agreements relating to the assigned functions lawfully adopted prior to the effective date of this Order shall continue to be effective until revised, amended, or repealed.

C. Any suit, action, or other proceeding lawfully commenced by, against, or before any entity affected by this Order, shall not abate by reason of the taking effect of this Order. Any suit, action, or other proceeding may be maintained by, against, or before the appropriate successor of any entity affected by this Order.

D. The invalidity of any portion of this Order shall not affect the validity of the remainder of the Order, which may be given effect without any invalid portion. Any portion of this Order found invalid by a court or other entity with proper jurisdiction shall be severable from the remaining portions of this Order.

This Order is effective upon filing.

[SEAL] Given under my hand and the Great Seal of the State of Michigan this 21st day of July, in the year of our Lord, two thousand and six.

Jennifer M. Granholm

Governor

By the Governor:

Terri L. Land

Secretary of State

The message was referred to the Clerk.

The following message from the Governor was received July 21, 2006 and read:

EXECUTIVE ORDER

No. 2006 13

DEPARTMENT OF ENVIRONMENTAL QUALITY

DEPARTMENT OF LABOR AND ECONOMIC GROWTH

MICHIGAN STRATEGIC FUND

EXECUTIVE REORGANIZATION

WHEREAS, Section 1 of Article V of the Michigan Constitution of 1963 vests the executive power of the State of Michigan in the Governor;

WHEREAS, Section 2 of Article V of the Michigan Constitution of 1963 empowers the Governor to make changes in the organization of the executive branch or in the assignment of functions among its units that the Governor considers necessary for efficient administration;

WHEREAS, the organization of economic development functions within state government can benefit from regular review and periodic reorganization;

WHEREAS, improvements in the organization of state government are necessary to provide Michigan residents and job providers with improved delivery of state services;

WHEREAS, it is necessary in the interests of efficient administration and effectiveness of government to change the organization of the executive branch of state government;

NOW, THEREFORE, I, Jennifer M. Granholm, Governor of the State of Michigan, by virtue of the power vested in the Governor by the Michigan Constitution of 1963 and Michigan law direct the following:

I. DEFINITIONS

As used in this Order:

A. "Brownfield Redevelopment Board" means the board created within the Department of Environmental Quality under Section 20104a of the Natural Resources and Environmental Protection Act, 1994 PA 451, MCL 324.20104a.

B. "Department of Environmental Quality" means the principal department of state government created under Executive Order 1995-18, MCL 324.99903.

C. "Michigan Economic Growth Authority" means the authority created under the Michigan Economic Growth Authority Act, 1995 PA 24, MCL 207.801 to 207.810, and transferred to the Michigan Strategic Fund under Executive Order 1999-1, MCL 408.40.

D. "Michigan Strategic Fund" means the public body corporate and politic created under Section 5 of the Michigan Strategic Fund Act, 1984 PA 270, MCL 125.2005.

II. MICHIGAN ECONOMIC GROWTH AUTHORITY

A. The position as a member of the Michigan Economic Growth Authority designated for the Director of the Michigan Jobs Commission or his or her authorized representative under Section 4(2)(a) of the Michigan Economic Growth Authority Act, 1995 PA 24, MCL 207.804(2)(a), and transferred to the Chief Executive Officer of the Michigan Economic Development Corporation or his or her authorized representative under Executive Order 2003-18, MCL 445.2011, is transferred to the President of the Michigan Strategic Fund. The President of the Michigan Strategic Fund, or his or her authorized representative from within the Michigan Strategic Fund, shall serve as a member of the Michigan Economic Growth Authority.

B. The designation as Chairperson of the Michigan Economic Growth Authority provided for the Director of the Michigan Jobs Commission or his or her authorized representative under Section 4(2)(a) of the Michigan Economic Growth Authority Act, 1995 PA 24, MCL 207.804(2)(a), and transferred to the Director of the Department of Labor and Economic Growth under Executive Order 2003-18, MCL 445.2011, is transferred to the President of the Michigan Strategic Fund or his or her authorized representative from within the Michigan Strategic Fund. The President of the Michigan Strategic Fund, or his or her authorized representative from within the Michigan Strategic Fund serving as a member of the Michigan Economic Growth Authority under Section II.A, shall serve as the Chairperson of the Michigan Economic Growth Authority.

III. BROWNFIELD REDEVELOPMENT BOARD

A. The position on the Brownfield Redevelopment Board created under Section 20104a of the Natural Resources and Environmental Protection Act, 1994 PA 451, MCL 324.20104a, designated for the Chief Executive Officer of the Michigan Jobs Commission or his or her designee and transferred to the Director of the Department of Labor and Economic Growth or his or her authorized representative under Executive Order 2003-18, MCL 445.2011, is transferred to the President of the Michigan Strategic Fund. The President of the Michigan Strategic Fund, or his or her authorized representative from within the Michigan Strategic Fund, shall serve as a member of the Brownfield Redevelopment Board.

B. The Director of the Department of Environmental Quality or the authorized representative of the Director of the Department of Environmental Quality serving as a member of the Brownfield Development Board shall serve as the Chairperson of the Brownfield Redevelopment Board.

IV. MISCELLANEOUS

A. The President of the Michigan Strategic Fund shall provide executive direction and supervision for the implementation of all transfers under this Order.

B. The President of the Michigan Strategic Fund shall administer the assigned functions transferred under this Order in such ways as to promote efficient administration.

C. The President of the Michigan Strategic Fund may delegate within the Michigan Strategic Fund a duty or power conferred on the President of the Michigan Strategic Fund by this Order or by other law or order, and the individual to whom the duty or power is delegated may perform the duty or exercise the power at the time and to the extent that the power is delegated by the President of the Michigan Strategic Fund.

D. All rules, orders, contracts, and agreements relating to the functions transferred under this Order lawfully adopted prior to the effective date of this Order shall continue to be effective until revised, amended, repealed, or rescinded.

E. Any suit, action, or other proceeding lawfully commenced by, against, or before any entity affected by this Order, shall not abate by reason of the taking effect of this Order. Any suit, action, or other proceeding may be maintained by, against, or before the appropriate successor of any entity affected by this Order.

F. The invalidity of any portion of this Order shall not affect the validity of the remainder of the Order, which may be given effect without any invalid portion. Any portion of this Order found invalid by a court or other entity with proper jurisdiction shall be severable from the remaining portions of this Order.

In fulfillment of the requirements under Section 2 of Article V of the Michigan Constitution of 1963, the provisions of this Order are effective September 24, 2006 at 12:01 a.m.

[SEAL] Given under my hand and the Great Seal of the State of Michigan this 21st day of July, in the year of our Lord, two thousand and six.

Jennifer M. Granholm

Governor

By the Governor:

Terri L. Land

Secretary of State

The message was referred to the Clerk.

The following message from the Governor was received July 21, 2006 and read:

EXECUTIVE ORDER

No. 2006 14

AMENDMENT OF EXECUTIVE ORDER 2003-8

GOVERNOR'S COUNCIL OF ECONOMIC ADVISORS

WHEREAS, Section 1 of Article V of the Michigan Constitution of 1963 vests the executive power of the State of Michigan in the Governor;

WHEREAS, Executive Order 2003-8 reestablished the Governor's Council of Economic Advisors;

WHEREAS, the organization of economic development functions within state government can benefit from regular review and periodic reorganization;

NOW, THEREFORE, I, Jennifer M. Granholm, Governor of the State of Michigan, by virtue of the power vested in the Governor by the Michigan Constitution of 1963 and Michigan law order the following:

A. Section I.A of Executive Order 2003-8 is amended to read as follows:

"A. The Governor's Council of Economic Advisors ("Council") is created as an advisory body within the Michigan Strategic Fund."

B. Section I.C of Executive Order 2003-8 is amended to read as follows:

"C. The Director of the Department of Labor and Economic Growth, the President of the Michigan Strategic Fund, and the State Treasurer shall serve as non-voting ex officio, members of the Council."

C. Section III.A of Executive Order 2003-8 is amended to read as follows:

"The President of the Michigan Strategic Fund shall serve as the Chairperson of the Council."

D. Section III.C of Executive Order 2003-8 is amended to read as follows:

"The Council shall be staffed by personnel from and be assisted by the Michigan Strategic Fund."

E. Section III.I of Executive Order 2003-8 is amended to read as follows:

"The Council may hire or retain such contractors, sub-contractors, advisors, consultants and agents, and may make and enter into contracts necessary or incidental to the exercise of the powers of the Council and the performance of its duties as the President of the Michigan Strategic Fund deems advisable and necessary, in accordance with any applicable statutes, rules, and procedures of the Civil Service Commission or the Department of Management and Budget."

F. Section III.K of Executive Order 2003-8 is amended to read as follows:

"Members of the Council shall refer all legal, legislative, and media contacts to the President of the Michigan Strategic Fund."

This Order is effective upon filing.

[SEAL] Given under my hand and the Great Seal of the State of Michigan this 21st day of July, in the year of our Lord, two thousand and six.

Jennifer M. Granholm

Governor

By the Governor:

Terri L. Land

Secretary of State

The message was referred to the Clerk.

The following message from the Governor was received July 21, 2006 and read:

EXECUTIVE ORDER

No. 2006 15

AMENDMENT OF EXECUTIVE ORDER 2004-36

COUNCIL FOR LABOR AND ECONOMIC GROWTH

WHEREAS, Section 1 of Article V of the Michigan Constitution of 1963 vests the executive power of the State of Michigan in the Governor;

WHEREAS, under Section 111 of the federal Workforce Investment Act of 1998, Public Law 105-220, as amended, 29 USC 2821, the Governor must establish a state workforce investment board;

WHEREAS, Executive Order 2004-36 established the Council for Labor and Economic Growth as the workforce investment board for the State of Michigan;

WHEREAS, changes in the structure of the Council for Labor and Economic Growth will facilitate a statewide policy dialogue involving local workforce boards, universities, community colleges, K-12 schools, appropriate state officials, and other key stakeholders;

WHEREAS, the organization of economic development functions within state government can benefit from regular review and periodic reorganization;

NOW, THEREFORE, I, Jennifer M. Granholm, Governor of the State of Michigan, by virtue of the power vested in the Governor by the Michigan Constitution of 1963 and Michigan law order the following:

Section II.G of Executive Order 2004-36 is amended to read as follows:

"G. The following state officers shall serve as voting ex officio members of the Council:

a. The Director of the Department of Community Health.

b. The Director of the Department of Human Services.

c. The Director of the Department of Labor and Economic Growth.

d. The President of the Michigan Strategic Fund.

e. The Superintendent of Public Instruction.".

This Order is effective upon filing.

[SEAL] Given under my hand and the Great Seal of the State of Michigan this 21st day of July, in the year of our Lord, two thousand and six.

Jennifer M. Granholm

Governor

By the Governor:

Terri L. Land

Secretary of State

The message was referred to the Clerk.

Date: July 14, 2006

Time: 11:41 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5952 (Public Act No. 287, I.E.), being

An act to amend 2000 PA 403, entitled "An act to prescribe a tax on the sale and use of certain types of fuel in motor vehicles on the public roads or highways of this state and on certain other types of gas; to prescribe the manner and the time of collection and payment of this tax and the duties of officials and others pertaining to the payment and collection of this tax; to provide for the licensing of persons involved in the sale, use, or transportation of motor fuel and the collection and payment of the tax imposed by this act; to prescribe fees; to prescribe certain other powers and duties of certain state agencies and other persons; to provide for exemptions and refunds and for the disposition of the proceeds of this tax; to provide for appropriations from the proceeds of this tax; to prescribe remedies and penalties for the violation of this act; and to repeal acts and parts of acts," by repealing section 124 (MCL 207.1124).

(Filed with the Secretary of State July 20, 2006, at 8:11 a.m.)

Date: July 14, 2006

Time: 1:40 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5953 (Public Act No. 288, I.E.), being

An act to amend 1909 PA 259, entitled "An act to provide that judgments of divorce and judgments of separate maintenance shall make provision in satisfaction of the claims of the wife in the property of the husband and in satisfaction of the claims of the husband and wife in contracts of insurance and annuity upon the life of the husband or wife, and in satisfaction of claims of the husband and wife in or to any pension, annuity, retirement allowance, or accumulated contributions in any pension, annuity, or retirement system, including any rights or contingent rights in and to unvested pension, annuity, or retirement benefits; and to change the tenure of lands owned by husband and wife in case of divorce, and to provide for the disposition or partition of such lands or the proceeds thereof," by amending section 1 (MCL 552.101), as amended by 1985 PA 42.

(Filed with the Secretary of State July 20, 2006, at 8:13 a.m.)

Date: July 14, 2006

Time: 11:50 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 6196 (Public Act No. 289, I.E.), being

An act to amend 1956 PA 218, entitled "An act to revise, consolidate, and classify the laws relating to the insurance and surety business; to regulate the incorporation or formation of domestic insurance and surety companies and associations and the admission of foreign and alien companies and associations; to provide their rights, powers, and immunities and to prescribe the conditions on which companies and associations organized, existing, or authorized under this act may exercise their powers; to provide the rights, powers, and immunities and to prescribe the conditions on which other persons, firms, corporations, associations, risk retention groups, and purchasing groups engaged in an insurance or surety business may exercise their powers; to provide for the imposition of a privilege fee on domestic insurance companies and associations and the state accident fund; to provide for the imposition of a tax on the business of foreign and alien companies and associations; to provide for the imposition of a tax on risk retention groups and purchasing groups; to provide for the imposition of a tax on the business of surplus line agents; to provide for the imposition of regulatory fees on certain insurers; to provide for assessment fees on certain health maintenance organizations; to modify tort liability arising out of certain accidents; to provide for limited actions with respect to that modified tort liability and to prescribe certain procedures for maintaining those actions; to require security for losses arising out of certain accidents; to provide for the continued availability and affordability of automobile insurance and homeowners insurance in this state and to facilitate the purchase of that insurance by all residents of this state at fair and reasonable rates; to provide for certain reporting with respect to insurance and with respect to certain claims against uninsured or self-insured persons; to prescribe duties for certain state departments and officers with respect to that reporting; to provide for certain assessments; to establish and continue certain state insurance funds; to modify and clarify the status, rights, powers, duties, and operations of the nonprofit malpractice insurance fund; to provide for the departmental supervision and regulation of the insurance and surety business within this state; to provide for regulation over worker's compensation self-insurers; to provide for the conservation, rehabilitation, or liquidation of unsound or insolvent insurers; to provide for the protection of policyholders, claimants, and creditors of unsound or insolvent insurers; to provide for associations of insurers to protect policyholders and claimants in the event of insurer insolvencies; to prescribe educational requirements for insurance agents and solicitors; to provide for the regulation of multiple employer welfare arrangements; to create an automobile theft prevention authority to reduce the number of automobile thefts in this state; to prescribe the powers and duties of the automobile theft prevention authority; to provide certain powers and duties upon certain officials, departments, and authorities of this state; to provide for an appropriation; to repeal acts and parts of acts; and to provide penalties for the violation of this act," by amending section 5248 (MCL 500.5248).

(Filed with the Secretary of State July 20, 2006, at 8:15 a.m.)

Date: July 14, 2006

Time: 11:48 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 6195 (Public Act No. 290, I.E.), being

(Filed with the Secretary of State July 20, 2006, at 8:17 a.m.)

Date: July 14, 2006

Time: 11:46 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 6194 (Public Act No. 291, I.E.), being

(Filed with the Secretary of State July 20, 2006, at 8:19 a.m.)

Date: July 18, 2006

Time: 7:42 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5955 (Public Act No. 292, I.E.), being

An act to amend 1917 PA 273, entitled "An act to regulate and license pawnbrokers in certain governmental units of this state; and to prescribe certain powers and duties of certain local governmental units and state agencies," by amending sections 1 and 3 (MCL 446.201 and 446.203), section 1 as amended by 2004 PA 585 and section 3 as amended by 2002 PA 469.

(Filed with the Secretary of State July 20, 2006, at 8:21 a.m.)

Date: July 18, 2006

Time: 7:44 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5956 (Public Act No. 293, I.E.), being

An act to amend 1945 PA 231, entitled "An act to prescribe additional regulations and requirements for pawnbrokers, secondhand dealers and junk dealers; to provide for the taking of fingerprints and the making of reports to enforcement officers; to prescribe penalties for the violation of the provisions of this act; and to declare the effect of this act," by amending sections 1 and 6 (MCL 445.471 and 445.476).

(Filed with the Secretary of State July 20, 2006, at 8:23 a.m.)

Date: July 18, 2006

Time: 7:46 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5957 (Public Act No. 294, I.E.), being

An act to amend 1917 PA 350, entitled "An act to regulate and license second hand dealers and junk dealers; and to prescribe penalties for the violation of the provisions of this act," by amending sections 1 and 3 (MCL 445.401 and 445.403).

(Filed with the Secretary of State July 20, 2006, at 8:25 a.m.)

Date: July 18, 2006

Time: 7:48 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5958 (Public Act No. 295, I.E.), being

An act to amend 1981 PA 95, entitled "An act to regulate the business of buying and receiving gold, silver, platinum, gems, jewelry, and other precious items; to provide powers to certain state and local officers and agencies with respect to such regulation; to provide for the registration of precious metal and gem dealers; to provide for civil damages; and to prescribe penalties," by amending sections 2 and 3 (MCL 445.482 and 445.483), section 2 as amended by 1990 PA 34.

(Filed with the Secretary of State July 20, 2006, at 8:27 a.m.)

Date: July 18, 2006

Time: 7:52 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4807 (Public Act No. 297, I.E.), being

An act to amend 1956 PA 62, entitled "An act to authorize the director of the department of state police to promulgate a uniform traffic code; to authorize a city, township, or village to adopt the uniform traffic code by reference without publication in full; and to prescribe criminal penalties and civil sanctions for violation of the code," by amending section 1 (MCL 257.951), as amended by 1998 PA 69.

(Filed with the Secretary of State July 20, 2006, at 8:31 a.m.)

Date: July 18, 2006

Time: 7:54 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 6084 (Public Act No. 298, I.E.), being

An act to amend 1949 PA 300, entitled "An act to provide for the registration, titling, sale, transfer, and regulation of certain vehicles operated upon the public highways of this state or any other place open to the general public or generally accessible to motor vehicles and distressed vehicles; to provide for the licensing of dealers; to provide for the examination, licensing, and control of operators and chauffeurs; to provide for the giving of proof of financial responsibility and security by owners and operators of vehicles; to provide for the imposition, levy, and collection of specific taxes on vehicles, and the levy and collection of sales and use taxes, license fees, and permit fees; to provide for the regulation and use of streets and highways; to create certain funds; to provide penalties and sanctions for a violation of this act; to provide for civil liability of owners and operators of vehicles and service of process on residents and nonresidents; to provide for the levy of certain assessments; to provide for the enforcement of this act; to provide for the creation of and to prescribe the powers and duties of certain state and local agencies; to impose liability upon the state or local agencies; to provide appropriations for certain purposes; to repeal all other acts or parts of acts inconsistent with this act or contrary to this act; and to repeal certain parts of this act on a specific date," by amending sections 248f, 302, 302a, 303, 306, 307, 307a, 312e, 312f, 314, 319b, 319f, 319g, 324, 732, 741, 743, 746, 801c, 811k, and 907 (MCL 257.248f, 257.302, 257.302a, 257.303, 257.306, 257.307, 257.307a, 257.312e, 257.312f, 257.314, 257.319b, 257.319f, 257.319g, 257.324, 257.732, 257.741, 257.743, 257.746, 257.801c, 257.811k, and 257.907),section 248f as added by 1993 PA 300, section 302 as amended by 1991 PA 100, section 302a as added by 1990 PA 181,sections 303 and 307 as amended by 2005 PA 142, sections 306, 312f, and 314 as amended by 2004 PA 362, section 307a as added and section 743 as amended by 1988 PA 346, section 312e as amended by 2006 PA 212, sections 319b, 319g, and 732 as amended by 2004 PA 495, section 319f as added by 1996 PA 404, section 324 as amended by 2001 PA 159, section 746 as amended by 1980 PA 426, section 801c as amended by 1980 PA 281, section 811k as added by 2000 PA 73, and section 907 as amended by 2005 PA 1, and by adding section 303a.

(Filed with the Secretary of State July 20, 2006, at 8:33 a.m.)

Date: July 18, 2006

Time: 7:56 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4870 (Public Act No. 299, I.E.), being

An act to amend 1998 PA 386, entitled "An act to codify, revise, consolidate, and classify aspects of the law relating to wills and intestacy, relating to the administration and distribution of estates of certain individuals, relating to trusts, and relating to the affairs of certain individuals under legal incapacity; to provide for the powers and procedures of the court that has jurisdiction over these matters; to provide for the validity and effect of certain transfers, contracts, and deposits that relate to death; to provide procedures to facilitate enforcement of certain trusts; and to repeal acts and parts of acts," by amending sections 1104, 3614, and 3701 (MCL 700.1104, 700.3614, and 700.3701), section 1104 as amended by 2005 PA 204 and section 3614 as amended by 2004 PA 343, and by adding sections 3206, 3207, 3208, and 3209.

(Filed with the Secretary of State July 20, 2006, at 8:35 a.m.)

Date: July 18, 2006

Time: 7:58 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4891 (Public Act No. 300, I.E.), being

An act to amend 1980 PA 299, entitled "An act to revise, consolidate, and classify the laws of this state regarding the regulation of certain occupations; to create a board for each of those occupations; to establish the powers and duties of certain departments and agencies and the boards of each occupation; to provide for the promulgation of rules; to provide for certain fees; to provide for penalties and civil fines; to establish rights, relationships, and remedies of certain persons under certain circumstances; to repeal certain parts of this act on a specific date; and to repeal certain acts and parts of acts," by amending sections 1801 and 1810 (MCL 339.1801 and 339.1810), section 1810 as amended by 1990 PA 15.

(Filed with the Secretary of State July 20, 2006, at 8:37 a.m.)

Date: July 18, 2006

Time: 8:00 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5836 (Public Act No. 301, I.E.), being

An act to amend 1978 PA 368, entitled "An act to protect and promote the public health; to codify, revise, consolidate, classify, and add to the laws relating to public health; to provide for the prevention and control of diseases and disabilities; to provide for the classification, administration, regulation, financing, and maintenance of personal, environmental, and other health services and activities; to create or continue, and prescribe the powers and duties of, departments, boards, commissions, councils, committees, task forces, and other agencies; to prescribe the powers and duties of governmental entities and officials; to regulate occupations, facilities, and agencies affecting the public health; to regulate health maintenance organizations and certain third party administrators and insurers; to provide for the imposition of a regulatory fee; to provide for the levy of taxes against certain health facilities or agencies; to promote the efficient and economical delivery of health care services, to provide for the appropriate utilization of health care facilities and services, and to provide for the closure of hospitals or consolidation of hospitals or services; to provide for the collection and use of data and information; to provide for the transfer of property; to provide certain immunity from liability; to regulate and prohibit the sale and offering for sale of drug paraphernalia under certain circumstances; to provide for the implementation of federal law; to provide for penalties and remedies; to provide for sanctions for violations of this act and local ordinances; to provide for an appropriation and supplements; to repeal certain acts and parts of acts; to repeal certain parts of this act; and to repeal certain parts of this act on specific dates," by amending sections 2652, 2653, 2655, 2658, 2663, 2851, 2855, and 10108 (MCL 333.2652, 333.2653, 333.2655, 333.2658, 333.2663, 333.2851, 333.2855, and 333.10108), section 2851 as added by 1996 PA 284, section 2855 as amended by 1982 PA 3, and section 10108 as amended by 1986 PA 186; and to repeal acts and parts of acts.

(Filed with the Secretary of State July 20, 2006, at 8:39 a.m.)

Date: July 18, 2006

Time: 8:02 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 6175 (Public Act No. 302, I.E.), being

An act to amend 1950 (Ex Sess) PA 27, entitled "An act defining and regulating certain installment sales of motor vehicles; prescribing the conditions under which such sales may be made and regulating the financing thereof; regulating and licensing persons engaged in the business of making or financing such sales; prescribing the form, contents and effect of instruments used in connection with such sales and the financing thereof; prescribing certain rights and obligations of buyers, sellers, persons financing such sales and others; limiting charges in connection with such instruments and fixing maximum interest rates for delinquencies, extensions and loans; regulating insurance in connection with such sales; regulating repossessions, redemptions, resales and deficiency judgments and the rights of parties with respect thereto; authorizing extensions, loans and forbearances related to such sales; authorizing investigations and examinations of persons engaged in the business of making or financing such sales; transferring certain powers and duties with respect to finance companies to the commissioner of the financial institutions bureau; and prescribing penalties," by amending section 17 (MCL 492.117).

(Filed with the Secretary of State July 20, 2006, at 8:41 a.m.)

Date: July 19, 2006

Time: 8:37 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5456 (Public Act No. 304, I.E.), being

An act to amend 1996 PA 376, entitled "An act to create and expand certain renaissance zones; to foster economic opportunities in this state; to facilitate economic development; to stimulate industrial, commercial, and residential improvements; to prevent physical and infrastructure deterioration of geographic areas in this state; to authorize expenditures; to provide exemptions and credits from certain taxes; to create certain obligations of this state and local governmental units; to require disclosure of certain transactions and gifts; to provide for appropriations; and to prescribe the powers and duties of certain state and local departments, agencies, and officials," by amending sections 3, 6, and 8 (MCL 125.2683, 125.2686, and 125.2688), section 3 as amended by 2005 PA 275, section 6 as amended by 2006 PA 116, and section 8 as amended by 2003 PA 266.

(Filed with the Secretary of State July 20, 2006, at 8:45 a.m.)

Date: July 18, 2006

Time: 7:17 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5143 (Public Act No. 309, I.E.), being

An act to clarify the rights and duties of self-defense and the defense of others.

(Filed with the Secretary of State July 20, 2006, at 8:54 a.m.)

Date: July 18, 2006

Time: 7:19 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5153 (Public Act No. 310, I.E.), being

An act to exempt an individual who uses deadly force or force other than deadly force from criminal prosecution under certain circumstances; to establish certain procedures; and to prescribe the duties of certain public officials.

(Filed with the Secretary of State July 20, 2006, at 8:56 a.m.)

Date: July 18, 2006

Time: 7:25 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5142 (Public Act No. 313, I.E.), being

An act to amend 1927 PA 175, entitled "An act to revise, consolidate, and codify the laws relating to criminal procedure and to define the jurisdiction, powers, and duties of courts, judges, and other officers of the court under the provisions of this act; to provide laws relative to the rights of persons accused of criminal offenses and ordinance violations; to provide for the arrest of persons charged with or suspected of criminal offenses and ordinance violations; to provide for bail of persons arrested for or accused of criminal offenses and ordinance violations; to provide for the examination of persons accused of criminal offenses; to regulate the procedure relative to grand juries, indictments, informations, and proceedings before trial; to provide for trials of persons complained of or indicted for criminal offenses and ordinance violations and to provide for the procedure in those trials; to provide for judgments and sentences of persons convicted of criminal offenses and ordinance violations; to establish a sentencing commission and to prescribe its powers and duties; to provide for procedure relating to new trials and appeals in criminal and ordinance violation cases; to provide a uniform system of probation throughout this state and the appointment of probation officers; to prescribe the powers, duties, and compensation of probation officers; to provide penalties for the violation of the duties of probation officers; to provide for procedure governing proceedings to prevent crime and proceedings for the discovery of crime; to provide for fees of officers, witnesses, and others in criminal and ordinance violation cases; to set forth miscellaneous provisions as to criminal procedure in certain cases; to provide penalties for the violation of certain provisions of this act; and to repeal all acts and parts of acts inconsistent with or contravening any of the provisions of this act," (MCL 760.1 to 777.69) by adding section 21c to chapter VIII.

(Filed with the Secretary of State July 20, 2006, at 9:02 a.m.)

Date: July 18, 2006

Time: 7:27 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5548 (Public Act No. 314, I.E.), being

An act to amend 1961 PA 236, entitled "An act to revise and consolidate the statutes relating to the organization and jurisdiction of the courts of this state; the powers and duties of such courts, and of the judges and other officers thereof; the forms and attributes of civil claims and actions; the time within which civil actions and proceedings may be brought in said courts; pleading, evidence, practice and procedure in civil and criminal actions and proceedings in said courts; to provide remedies and penalties for the violation of certain provisions of this act; to repeal all acts and parts of acts inconsistent with or contravening any of the provisions of this act; and to repeal acts and parts of acts," (MCL 600.101 to 600.9947) by adding section 2922b.

(Filed with the Secretary of State July 20, 2006, at 9:04 a.m.)

Date: July 20, 2006

Time: 6:57 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5967 (Public Act No. 316, I.E.), being

An act to amend 1953 PA 232, entitled "An act to revise, consolidate, and codify the laws relating to probationers and probation officers, to pardons, reprieves, commutations, and paroles, to the administration of correctional institutions, correctional farms, and probation recovery camps, to prisoner labor and correctional industries, and to the supervision and inspection of local jails and houses of correction; to provide for the siting of correctional facilities; to create a state department of corrections, and to prescribe its powers and duties; to provide for the transfer to and vesting in said department of powers and duties vested by law in certain other state boards, commissions, and officers, and to abolish certain boards, commissions, and offices the powers and duties of which are transferred by this act; to allow for the operation of certain facilities by private entities; to prescribe the powers and duties of certain other state departments and agencies; to provide for the creation of a local lockup advisory board; to prescribe penalties for the violation of the provisions of this act; to make certain appropriations; to repeal certain parts of this act on specific dates; and to repeal all acts and parts of acts inconsistent with the provisions of this act," by amending sections 36 and 40a (MCL 791.236 and 791.240a), section 36 as amended by 2006 PA 168 and section 40a as amended by 1993 PA 346.

(Filed with the Secretary of State July 20, 2006, at 10:37 a.m.)

Date: July 20, 2006

Time: 9:29 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5581 (Public Act No. 320, I.E.), being

An act to amend 1990 PA 187, entitled "An act to regulate the equipment, maintenance, operation, and use of school buses and pupil transportation vehicles; to prescribe the qualifications of school bus and pupil transportation vehicle drivers; to prescribe the powers and duties of certain state and local governmental agencies; to create an advisory committee and to prescribe its powers and duties; and to prescribe remedies and penalties," by amending section 55 (MCL 257.1855), as amended by 2006 PA 108.

(Filed with the Secretary of State July 20, 2006, at 10:45 a.m.)

Date: July 20, 2006

Time: 9:31 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 6047 (Public Act No. 321, I.E.), being

An act to amend 1994 PA 451, entitled "An act to protect the environment and natural resources of the state; to codify, revise, consolidate, and classify laws relating to the environment and natural resources of the state; to regulate the discharge of certain substances into the environment; to regulate the use of certain lands, waters, and other natural resources of the state; to prescribe the powers and duties of certain state and local agencies and officials; to provide for certain charges, fees, assessments, and donations; to provide certain appropriations; to prescribe penalties and provide remedies; and to repeal acts and parts of acts," (MCL 324.101 to 324.90106) by adding sections 21553, 21554, 21555, 21556, and 21557.

(Filed with the Secretary of State July 20, 2006, at 10:47 a.m.)

Date: July 20, 2006

Time: 9:33 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 6202 (Public Act No. 322, I.E.), being

(Filed with the Secretary of State July 20, 2006, at 10:49 a.m.)

Date: July 20, 2006

Time: 9:35 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4971 (Public Act No. 323, I.E.), being

An act to amend 1975 PA 228, entitled "An act to provide for the imposition, levy, computation, collection, assessment and enforcement, by lien or otherwise, of taxes on certain commercial, business, and financial activities; to prescribe the manner and times of making certain reports and paying taxes; to prescribe the powers and duties of public officers and state departments; to permit the inspection of records of taxpayers; to provide for interest and penalties on unpaid taxes; to provide exemptions, credits, and refunds; to provide penalties; to provide for the disposition of funds; to provide for the interrelation of this act with other acts; and to provide an appropriation," (MCL 208.1 to 208.145) by adding section 32.

(Filed with the Secretary of State July 20, 2006, at 10:51 a.m.)

Date: July 20, 2006

Time: 10:08 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4375 (Public Act No. 324, I.E.), being

An act to amend 1976 PA 451, entitled "An act to provide a system of public instruction and elementary and secondary schools; to revise, consolidate, and clarify the laws relating to elementary and secondary education; to provide for the organization, regulation, and maintenance of schools, school districts, public school academies, intermediate school districts, and other public school entities; to prescribe rights, powers, duties, and privileges of schools, school districts, public school academies, intermediate school districts, and other public school entities; to provide for the regulation of school teachers and certain other school employees; to provide for school elections and to prescribe powers and duties with respect thereto; to provide for the levy and collection of taxes; to provide for the borrowing of money and issuance of bonds and other evidences of indebtedness; to establish a fund and provide for expenditures from that fund; to provide for and prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to provide for licensure of boarding schools; to prescribe penalties; and to repeal acts and parts of acts," (MCL 380.1 to 380.1852) by adding section 1171.

(Filed with the Secretary of State July 20, 2006, at 10:53 a.m.)

Communications from State Officers

The following communications from the Secretary of State were received and read:

Notices of Filing

Administrative Rules

April 28, 2006

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Michigan Department of Labor and Economic Growth, State Office of Administrative Hearings and Rules filed at 4:47 P.M. this date, administrative rule (06-04-04) for the Department of Labor and Economic Growth, Director's Office, entitled "Part 7. Disciplinary Proceedings" These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, or 45a(6) of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

May 3, 2006

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Michigan Department of Labor and Economic Growth, State Office of Administrative Hearings and Rules filed at 3:52 P.M. this date, administrative rule (06-05-01) for the Department of Community Health, Director's Office, entitled "Board of Chiropractic Rules" These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, or 45a(6), or 48 of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

May 19, 2006

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Michigan Department of Labor and Economic Growth, State Office of Administrative Hearings and Rules filed at 3:55 P.M. this date, administrative rule (06-05-02) for the Department of Military and Veteran's Affairs, Military Family Relief Fund, entitled "Military Family Relief Fund, Procedure for Review of Applications and Disbursement of Funds" These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, or 45a(6), of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

May 19, 2006

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Michigan Department of Labor and Economic Growth, State Office of Administrative Hearings and Rules filed at 3:57 P.M. this date, administrative rule (06-05-03) for the Department of Labor and Economic Growth, Director's Office "Residential Builders and Maintenance and Alteration Contractors" These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, or 45a(6), of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

May 26, 2006

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Michigan Department of Labor and Economic Growth, State Office of Administrative Hearings and Rules filed at 11:56 A.M. this date, administrative rule (06-05-04) for the Department of Community Health, Bureau of Epidemiology "Communicable and Related Diseases" These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, or 45a(6), or 48 of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

May 26, 2006

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Michigan Department of Labor and Economic Growth, State Office of Administrative Hearings and Rules filed at 11:58 A.M. this date, administrative rule (06-05-05) for the Department of Labor and Economic Growth, Director's Office "Cosmetology" These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, or 45a(6), of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

June 2, 2006

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Michigan Department of Labor and Economic Growth, State Office of Administrative Hearings and Rules filed at 1:29 P.M. this date, administrative rule (06-06-01) for the Department of Labor and Economic Growth, Director's Office "Real Estate Appraisers" These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, or 45a(6), of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

June 8, 2006

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Michigan Department of Labor and Economic Growth, State Office of Administrative Hearings and Rules filed at 4:48 P.M. this date, administrative rule (06-06-02) for the Department of Labor and Economic Growth, Director's Office "Prepaid Funeral and Cemetery Sales" These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, or 45a(6), of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

June 9, 2006

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Michigan Department of Labor and Economic Growth, State Office of Administrative Hearings and Rules filed at 4:01 P.M. this date, administrative rule (06-06-04) for the Department of State Police, Michigan Commission on Law Enforcement Standards "Law Enforcement Standards and Training" These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, or 45a(6) of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

June 9, 2006

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Michigan Department of Labor and Economic Growth, State Office of Administrative Hearings and Rules filed at 4:03 P.M. this date, administrative rule (06-06-05) for the Department of Community Health, Director's Office "Dentistry" These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, or 45a(6) of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

July 3, 2006

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Michigan Department of Labor and Economic Growth, State Office of Administrative Hearings and Rules filed at 8:45 A.M. this date, administrative rule (06-07-01) for the Department of Labor and Economic Growth, State Office of Administrative Hearings and Rules "Due Process Procedures For Special Education Hearings" These rescissions take effect immediately upon filing with the Secretary of State.

Sincerely,

Terri Lynn Land

Secretary of State

Robin Houston, Office Supervisor

Office of the Great Seal

The communications were referred to the Clerk.

The following communications from the Department of Labor and Economic Growth were received and read:

July 2006

The Annual Report, presented to Governor Granholm and prepared pursuant to Section 238 of the Michigan Insurance Code of 1956, 1956 PA 218, MCL 500.238 and Section 2108 of the Michigan Banking Code of 1999, 1999 PA 276, MCL 487.12108, is a valuable reference for information about regulated entities engaged in the business of insurance, banking and securities in Michigan. It is more than just a statistical report, however. We offer updates about each of our areas of the agency, a summary of legislative activity, and descriptions of changes in the status of the entities we regulate.

This annual report is also available on the Office of Financial and Insurance Services (OFIS) web site at www.michigan.gov/ofis under "Publications."

Sincerely,

Linda A. Watters

Commissioner

July 7, 2006

Enclosed are copies of the State of Michigan Unemployment Insurance Agency Single Audits for the fiscal years ended September 30, 2004 and 2005.

Inquiries regarding this information may be addressed to Mr. Rodger M. Palm, Director, Trust Fund, Tax and Employer Compliance at (313) 456-2405 or me at (313) 456-2507.

Sincerely,

Debbie Ciccone

Chief Accountant, U.I. Trust Fund

The communications were referred to the Clerk.

The following communications from the Auditor General were received and read:

July 11, 2006

Enclosed is a copy of the following audit report and/or report summary:

Financial audit of the

Michigan Education Trust Plans B and C,

(A Component Unit of the State of Michigan),

for the period October 1, 2003 through September 30, 2005

July 11, 2006

Enclosed is a copy of the following audit report and/or report summary:

Financial audit of the

Michigan Education Trust Plan D,

(A Component Unit of the State of Michigan),

for the period October 1, 2003 through September 30, 2005

July 12, 2006

Enclosed is a copy of the following audit report and/or report summary:

Financial audit of the

Michigan Economic Development Corporation,

(A Component Unit of the State of Michigan),

for the period October 1, 2003 through September 30, 2005

Sincerely,

Thomas H. McTavish, C.P.A.

Auditor General

The communications were referred to the Clerk and the accompanying reports referred to the Committee on Government Operations.

The following communication from the Department of Human Services was received and read:

July 12, 2006

Michigan Department of Human Services announces availability of Fiscal Year 2007 Community Services Block Grant (CSBG) State Plan, Low Income Home Energy Assistance Program (LIHEAP) State Plan, and the Title XX Social Services Block Grant (SSBG) State Plan.

In accordance with federal requirements, the LIHEAP state plan and Title XX report will be available for review and comment at local Department of Human Services offices throughout the state beginning July 13, 2006. The CSBG plan will be available for review at community action agency offices throughout Michigan.

Public hearings will be held on the state plans:

July 19, 2006 from 10 a.m. - Noon at Cadillac Place Conference Room L150, 3040 W. Grand Blvd., Detroit, MI.

July 20, 2006 from 10 a.m. - Noon, Grand Tower Room 1D, 235 S. Grand Ave., Lansing, Michigan.

Comments on the state plans will be received from July 13-28, 2006. Written comments may be submitted to Marianne Udow, Director, Michigan Department of Human Services, P.O. Box 30037, Lansing, MI 48909.

Attached please find the 2007 modified LIHEAP Proposed State Plan and the 2005 Final LIHEAP detailed plan for reference. We respectfully request that you distribute it to your members.

Joan B. Lamoreaux

Energy and Emergency Services

Michigan Department of Human Services

235 S. Grand, Suite 1314

PO Box 30037

Lansing, MI 48909

(517) 373-0864

(517) 335-4801 fax

lamoreauxj@michigan.gov

The communication was referred to the Clerk.

The following communication from the Department of Community Health was received and read:

July 14, 2006

In accordance with MCL 333.7524a., I am pleased to present to the Michigan Legislature the 14th comprehensive report on asset forfeiture. Michigan's asset forfeiture program saves taxpayer money and deprives drug criminals of cash and property obtained through illegal activity. Michigan's law enforcement community has done an outstanding job of stripping drug dealers of illicit gain and utilizing these proceeds to expand and enhance drug enforcement efforts to protect our citizens.

During 2005, over $21.6 million in cash and assets amassed by drug traffickers was forfeited and put back into the fight against drugs through the use of state and federal forfeiture laws. Extensive multi-agency teamwork is evident in this report. Considerable assets were obtained as the result of joint enforcement involving several agencies at the federal, state, and local levels.

Forfeiture funds were used to further enforce drug laws by providing resources for drug enforcement personnel, needed equipment, undercover informant and investigative costs, and matching funds to obtain federal grants. Some of the forfeited assets were also used for drug and gang prevention education programs.

I commend our law enforcement community for the tremendous job they have done and submit this report for your information and review.

Sincerely,

Donald L. Allen, Jr.

Director

The communication was referred to the Clerk.

______

The Speaker called the Speaker Pro Tempore to the Chair.

Rep. Sak moved that Reps. Anderson, Gleason and Plakas be excused temporarily from today's session.

The motion prevailed.

By unanimous consent the House returned to the order of

Reports of Select Committees

First Conference Report

The Committee of Conference on the matters of difference between the two Houses concerning

House Bill No. 5796, entitled

A bill to make, supplement, adjust, and consolidate appropriations for various state departments and agencies, the judicial branch, and the legislative branch for the fiscal years ending September 30, 2006 and September 30, 2007; to provide for certain conditions on appropriations; and to provide for the expenditure of the appropriations.

Recommends:

First: That the Senate recede from the Substitute of the Senate as passed by the Senate.

Second: That the House and Senate agree to the Substitute of the House as passed by the House, amended to read as follows:

A bill to make, supplement, adjust, and consolidate appropriations for various state departments and agencies, capital outlay, the judicial branch, and the legislative branch for the fiscal years ending September 30, 2006 and September 30, 2007; to provide for certain conditions on appropriations; to provide for the expenditure of the appropriations; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

ARTICLE 1

AGRICULTURE

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this article, the amounts listed in this part are appropriated for the department of agriculture for the fiscal year ending September 30, 2007, from the funds indicated in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF AGRICULTURE

APPROPRIATION SUMMARY:

Full-time equated unclassified positions 6.0

Full-time equated classified positions 690.0

GROSS APPROPRIATION $ 113,628,800

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 10,382,700

ADJUSTED GROSS APPROPRIATION $ 103,246,100

Federal revenues:

Total federal revenues 23,700,000

Special revenue funds:

Total local revenues 0

Total private revenues 183,800

Total other state restricted revenues 48,449,000

State general fund/general purpose $ 30,913,300

Sec. 102. EXECUTIVE

Full-time equated unclassified positions 6.0

Full-time equated classified positions 51.0

Commission and boards $ 47,300

Unclassified positions 354,000

Executive direction--10.0 FTE positions 1,119,600

Management services--34.5 FTE positions 2,647,700

Statistical reporting service--4.0 FTE positions 376,000

Emergency management--2.5 FTE positions 232,900

Human resources optimization user charges 40,100

GROSS APPROPRIATION $ 4,817,600

Appropriated from:

Special revenue funds:

Agricultural equine industry development fund 50,000

Gasoline inspection and testing fund 57,200

Industry support funds 32,300

Nonretail liquor fees 8,800

Refined petroleum fund 229,900

State services fee fund 577,000

Upper Peninsula state fair revenue 9,000

State general fund/general purpose $ 3,853,400

Sec. 103. DEPARTMENTWIDE

Rent and building occupancy charges $ 1,469,000

GROSS APPROPRIATION $ 1,469,000

Appropriated from:

Federal revenues:

DAG, multiple grants 106,300

EPA, multiple grants 64,800

HHS-FDA 13,900

Special revenue funds:

Agricultural preservation fund 23,900

Groundwater and freshwater protection fund 10,100

Licensing and inspection fees 63,200

Nonretail liquor fees 8,400

Refined petroleum fund 114,000

State services fee fund 312,600

State general fund/general purpose $ 751,800

Sec. 104. FOOD AND DAIRY

Full-time equated classified positions 107.0

Food safety and quality assurance--107.0 FTE positions $ 11,932,100

Local public health operations 8,878,700

GROSS APPROPRIATION $ 20,810,800

Appropriated from:

Interdepartmental grant revenues:

IDG from MDCH, local public health operations 8,878,700

Federal revenues:

DAG, multiple grants 25,900

HHS-FDA 362,200

Special revenue funds:

Civil penalties 47,700

Consumer and industry food safety education fund 250,000

Licensing and inspection fees 2,437,900

State general fund/general purpose $ 8,808,400

Sec. 105. ANIMAL INDUSTRY

Full-time equated classified positions 49.0

Animal health and welfare--22.5 FTE positions $ 2,428,400

Bovine tuberculosis program--26.5 FTE positions 5,577,400

GROSS APPROPRIATION $ 8,005,800

Appropriated from:

Federal revenues:

DAG, multiple grants 1,099,400

HHS-FDA 70,800

Special revenue funds:

Agriculture equine industry development fund 2,399,100

Licensing and inspection fees 105,000

State general fund/general purpose $ 4,331,500

Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT

Full-time equated classified positions 231.8

Pesticide and plant pest management--119.8 FTE positions $ 13,426,000

Emerald ash borer control program--112.0 FTE positions 13,782,000

GROSS APPROPRIATION $ 27,208,000

Appropriated from:

Federal revenues:

DAG, multiple grants 16,008,700

EPA, multiple grants 1,451,600

HHS-FDA 66,300

Special revenue funds:

Private - slow-the-spread foundation 143,800

Commodity inspection fees 920,700

Horticulture fund 77,500

Industry support funds 331,500

Licensing and inspection fees 3,337,600

State general fund/general purpose $ 4,870,300

Sec. 107. ENVIRONMENTAL STEWARDSHIP

Full-time equated classified positions 47.0

Environmental stewardship--32.7 FTE positions $ 3,155,300

Groundwater and freshwater protection program--8.3 FTE positions 5,391,000

Farmland and open space preservation--6.0 FTE positions 946,300

Cooperative resources management initiative program 1,000,000

Agriculture pollution prevention program 400,100

Local conservation districts 1,516,800

Migrant labor housing 150,100

Aquifer protection program 50,000

GROSS APPROPRIATION $ 12,609,600

Appropriated from:

Interdepartmental grant revenues:

IDG from MDEQ, aquifer protection and dispute resolution 50,000

IDG from MDEQ, biosolids 90,200

IDG from MDEQ, MAEAP 155,100

IDG from MDEQ, type II well survey 16,800

IDG from MDNR, district forestry and wildlife program 1,000,000

Federal revenues:

DAG, multiple grants 400,000

United States department of labor 150,000

EPA, multiple grants 436,700

Corporation for national and community services 250,000

Special revenue funds:

Agricultural preservation fund 875,900

Agriculture pollution prevention fund 100

Groundwater and freshwater protection fund 5,083,300

State general fund/general purpose $ 4,101,500

Sec. 108. LABORATORY PROGRAM

Full-time equated classified positions 148.0

Laboratory services--62.5 FTE positions $ 6,239,900

USDA monitoring program--18.0 FTE positions 2,070,700

Consumer protection program--67.5 FTE positions 4,948,600

GROSS APPROPRIATION $ 13,259,200

Appropriated from:

Interdepartmental grant revenues:

IDG from MDLEG (LCC), liquor quality testing fees 189,100

Federal revenues:

DAG, multiple grants 2,092,700

EPA, multiple grants 351,200

HHS-FDA 543,000

Special revenue funds:

Gasoline inspection and testing fund 2,477,700

Refined petroleum fund 2,973,800

State services fee fund 519,700

Testing fees 434,500

Weights and measures regulation fees 650,300

State general fund/general purpose $ 3,027,200

Sec. 109. AGRICULTURE DEVELOPMENT

Full-time equated classified positions 8.0

Agriculture development--5.0 FTE positions $ 901,800

Grape and wine program--3.0 FTE positions 670,000

Export market development program 50,000

Michigan agricultural surplus system 630,500

Michigan FFA association 80,000

Michigan 4-H foundation 20,000

GROSS APPROPRIATION $ 2,352,300

Appropriated from:

Federal revenues:

DAG, multiple grants 206,500

Special revenue funds:

Private - commodity group 40,000

Agriculture equine industry development fund 100,000

Industry support funds 159,000

Nonretail liquor fees 614,800

State services fee fund 350,700

State general fund/general purpose $ 881,300

Sec. 110. FAIRS AND EXPOSITIONS

Full-time equated classified positions 16.5

Upper Peninsula state fair--7.0 FTE positions $ 1,351,500

Fairs, racing and producer security--9.5 FTE positions 1,104,300

Building and track improvement - county and state fairs 963,200

Premiums - county and state fairs 1,614,000

Purses and supplements - fairs/licensed tracks 3,031,700

Licensed tracks - light horse racing 170,900

Standardbred breeders' awards 1,273,000

Standardbred purses and supplements - licensed tracks 2,305,700

Standardbred sire stakes 1,040,000

Thoroughbred sire stakes 1,063,100

Standardbred training and stabling 44,900

Thoroughbred program 3,092,400

Thoroughbred owners' awards 159,900

Distribution of outstanding winning tickets 700,000

GROSS APPROPRIATION $ 17,914,600

Appropriated from:

Special revenue funds:

Agriculture equine industry development fund 13,844,800

Industry support funds 10,600

Licensing and inspection fees 127,000

State services fee fund 2,580,700

Upper Peninsula state fair revenue 1,351,500

State general fund/general purpose $ 0

Sec. 111. OFFICE OF RACING COMMISSIONER

Full-time equated classified positions 31.7

Office of racing commissioner--31.7 FTE positions $ 3,644,100

GROSS APPROPRIATION $ 3,644,100

Appropriated from:

Special revenue funds:

State services fee fund 3,644,100

State general fund/general purpose $ 0

Sec. 112. INFORMATION TECHNOLOGY

Information technology services and projects $ 1,537,800

GROSS APPROPRIATION $ 1,537,800

Appropriated from:

Interdepartmental grant revenues:

IDG from MDLEG (LCC), liquor quality testing fees 2,800

Special revenue funds:

Agricultural preservation fund 200

Agriculture equine industry development fund 221,100

Gasoline inspection and testing fund 27,000

Groundwater and freshwater protection fund 100

Nonretail liquor fees 500

State services fee fund 997,300

Upper Peninsula state fair revenue 900

State general fund/general purpose $ 287,900

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 2006-2007 is $79,362,300.00 and state spending from state resources to be paid to local units of government for fiscal year 2006-2007 is $3,216,800.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF AGRICULTURE

Groundwater and freshwater protection program $ 1,700,000

Local conservation districts 1,516,800

TOTAL $ 3,216,800

Sec. 202. The appropriations authorized under this article are subject to the management and budget act, 1984 PA431, MCL 18.1101 to 18.1594.

Sec. 203. As used in this article:

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

(b) "Department" means the department of agriculture.

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

(e) "FFA" means future farmers of America.

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

(g) "HHS-FDA" means the United States department of health and human services - food and drug administration.

(h) "IDG" means interdepartmental grant.

(i) "MAEAP" means the Michigan agriculture environmental assurance program.

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

(k) "MDLEG (LCC)" means the Michigan department of labor and economic growth - liquor control commission.

(l) "MDEQ" means the Michigan department of environmental quality.

(m) "MDNR" means the Michigan department of natural resources.

(n) "USDA" means the United States department of agriculture.

(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, causes loss of revenue to the state, would result in the inability of the state to receive federal funds, or would necessitate additional expenditures that exceed any savings from maintaining a vacancy. The state budget director shall report by the thirtieth of each month to the chairpersons of the senate and house of representatives standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous month and the reasons to justify the exception.

Sec. 208. Unless otherwise specified, the department shall use the Internet to fulfill the reporting requirements of this article. This requirement shall include transmission of reports via electronic mail to the recipients identified for each reporting requirement and shall include placement of reports on an Internet or Intranet site.

Sec. 209. (1) 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.

(2) In addition to the requirements in subsection (1), the purchase of goods or services, or both, if competitively priced and of comparable quality shall be Michigan goods or services, or both, if available. The department shall also encourage the use of Michigan produced agricultural products by all state agencies and departments if competitively priced and of comparable quality and if available.

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

Sec. 212. (1) Of the funds appropriated in part 1, the department may provide for indemnity as provided for pursuant to the animal industry act, 1988 PA 466, MCL 287.701 to 287.745, not to exceed $100,000.00 per order from any line item for the fiscal year ending September 30, 2007. Before the department provides for an indemnification under this section, the department shall report the reason for the indemnification, the amount of the indemnification, and to whom the indemnification is to be paid. The report shall be given to each member of the house and senate appropriations subcommittees on agriculture and to the senate and house fiscal agencies and the state budget director.

(2) The department of agriculture shall make an indemnification payment for the fair market value of livestock killed by a wolf, coyote, or cougar, if the kill is verified by the department of natural resources. The fair market value of the livestock shall be determined pursuant to the indemnification procedures prescribed in the animal industry act, 1988 PA 466, MCL 287.701 to 287.745. In addition to the funds appropriated in part 1, the department of agriculture is authorized to expend the funds received from the department of natural resources to reimburse the department of agriculture for all indemnification payments made pursuant to this subsection.

Sec. 214. Of the funds appropriated in part 1 that are other than line-item grants, the department shall not provide grants to local government agencies, institutions of higher education, or nonprofit organizations unless the department provides notice of the grant to the house and senate appropriations subcommittees on agriculture at least 10 days before the grant is issued. The grants shall be used to support research or other related activities for the purpose of enhancing the agricultural industries in this state.

Sec. 219. From the funds appropriated in part 1 for information technology, the department shall pay user fees to the department of information technology for technology-related services and projects. The user fees shall be subject to provisions of an interagency agreement between the department and the department of information technology.

Sec. 220. 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. 223. (1) Due to the current budgetary problems in this state, out-of-state travel for the fiscal year ending September 30, 2007 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.

(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.

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

(f) A total of all out-of-state travel funded for the immediately preceding fiscal year.

Sec. 224. The department shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

Sec. 225. In recognition of the important role it can play in attracting large scale agricultural events, it is the intent of the legislature that the department of agriculture, in conjunction with interested parties, explore opportunities to expand the facilities and size of the Michigan State University pavilion for agriculture and livestock education.

Sec. 227. On or before April 1, 2007, the department shall provide to the senate and house appropriations subcommittees on agriculture and the senate and house fiscal agencies a summary report on the real and potential return on investment for each of the department's programs.

EXECUTIVE

Sec. 301. Per diem rates for commodity committees established in the agriculture commodities marketing act, 1965 PA 232, MCL 290.651 to 290.674, 1970 PA 29, MCL 290.421 to 290.430, 1965 PA 114, MCL 290.551 to 290.568, and the beef industry commission act, 1972 PA 291, MCL 287.601 to 287.610, will be set based upon levels established in section 301 of 2002 PA 516.

Sec. 302. (1) The department may receive and expend revenue and use that revenue to cover necessary expenses related to publications, audit and licensing functions, livestock sales, certification of nursery stock, bean inspection services, and laboratory analyses as specified in the following:

(a) Management services publications.

(b) Management services audit and licensing functions.

(d) Pesticide and plant pest management bean inspection and grading services.

(e) Laboratory support testing for testing horses in draft horse pulling contests at county fairs when local jurisdictions request state assistance.

(f) Laboratory support analyses to determine foreign substances in horses engaged in racing or pulling contests at tracks.

(g) Laboratory support analysis of food, livestock, and agricultural products for disease, foreign products for disease, toxic materials, foreign substances, and quality standards.

(h) Laboratory support test samples for other agencies and organizations.

(i) Fruit and vegetable inspection at shipping and termination points and processing plants.

(2) The department shall notify the senate and house of representatives appropriations subcommittees on agriculture and the senate and house fiscal agencies 30 days prior to proposing changes in fees authorized under this section or under section 5 of the market conditions act, 1915 PA 91, MCL 285.35.

(3) Annually, before February 1, the department shall provide a report to the senate and house of representatives appropriations subcommittees on agriculture and the senate and house fiscal agencies detailing all the fees charged by the department under the authorization provided in this section, including, but not limited to, rates, number of individuals paying each fee, and the revenue generated by each fee in the previous fiscal year.

Sec. 304. (1) From the funds appropriated in section 108, not less than $3,800,000.00 shall be used for the motor fuel quality program to ensure motor fuel quality and quantity. Notwithstanding the provisions of section 205, the department shall maintain additional field and laboratory staff for the motor fuel quality program.

(2) On or before January 1, 2007 and every 6 months thereafter, the department shall report to the senate and house appropriations subcommittees on agriculture and the senate and house fiscal agencies the results of both complaint-based and random-based inspections, including the number of inspections performed, samples collected, and compliance rates.

Sec. 305. From the appropriation for statistical reporting service in part 1, it is the intent of the legislature that the department, in consultation with representatives of the equine industry, conduct a survey of the equine industry in Michigan.

FOOD AND DAIRY

Sec. 401. (1) The department shall monitor restaurant inspection and licensing functions carried out by local health departments to ensure uniform application and enforcement of minimum program requirements. On or before April 1, 2007, the department shall report to the senate and house appropriations subcommittees on agriculture, the senate and house fiscal agencies, and the state budget director on local health department conformance with minimum program requirements.

(2) If a local unit of government incurs additional costs resulting from its efforts to control a significant food-borne outbreak, the director shall seek additional resources to reimburse the local unit of government for these additional costs. The director shall involve the local health officer of the jurisdiction affected in all aspects of the control of any food-borne outbreak.

Sec. 402. Not later than April 1, 2007, the department shall provide a report to the house and senate appropriations subcommittees on agriculture and the house and senate fiscal agencies describing significant food-borne outbreaks and emergencies including any enforcement actions taken related to food safety during the 2005-2006 fiscal year.

Sec. 403. The department, in conjunction with the department of community health, shall assure that a process is in place that requires a local unit of government to obtain prior approval from the department before any reallocation or redistribution of program funds appropriated in section 104.

Sec. 404. From the funds appropriated in section 104 for food safety and quality assurance, not less than $150,000.00 from the consumer and industry food safety education fund shall be expended for purposes required under the food act, 2000 PA 92, MCL 289.4117, including the statewide training and education to consumers on food safety and the training and education on food safety to food service establishment employees and department employees and agents who enforce section 4117 of the food act, 2000 PA 92, MCL 289.4117.

ANIMAL INDUSTRY

Sec. 450. From the funds appropriated in section 105 for the bovine tuberculosis program, the department shall reimburse the department of natural resources for those costs associated with monitoring and testing wildlife for bovine tuberculosis that are necessary to support the department goals and are jointly agreed to by the department and the department of natural resources to be in excess of efforts necessary to effectively plan and execute the eradication of bovine tuberculosis from Michigan's wild free-ranging deer herd.

Sec. 451. From the funds appropriated in section 105 for bovine tuberculosis, the department shall pay for all whole herd testing costs and individual animal testing costs in the modified accredited zone to maintain split-state status requirements. These costs include indemnity and compensation for injury causing death or downer to animals.

ENVIRONMENTAL STEWARDSHIP

Sec. 603. The department shall apply for all federal funds for which it is eligible that can be used to support the migrant labor housing program.

Sec. 604. The appropriation in section 107 for local conservation districts shall be allocated in the following manner:

(a) Of the total appropriation, each local conservation district meeting the minimum grant requirements shall receive a grant of $19,200.00 to support basic operations, unless the district resides in a county consisting of multiple districts, inwhich case a $19,200.00 grant shall be divided equally among the districts in that county. The amount of money allocatedunder this subdivision shall not be used by local conservation districts to replace any money received from local sources.

(b) Any amount remaining from the appropriation after distributions under subdivision (a) shall be allocated for local conservation district training.

AGRICULTURE DEVELOPMENT

Sec. 702. In any given year when insufficient amounts of Michigan surplus products are offered to the food bank council and accepted for distribution, unused funds may be applied by the food bank council for the direct purchase of foods from Michigan growers, manufacturers, or wholesalers.

Sec. 703. From the appropriation in part 1 for agriculture development, $30,000.00 shall be provided to the northwest Michigan horticultural research station.

Sec. 704. Indirect costs may not be charged against the FFA grant in section 109 by any administering agency. The grant shall not be used by the administering agency to supplant existing resources dedicated to the FFA organization. The grant only shall be used, awarded, or expended for additional leadership activities, awards, or training programs that encourage agriculture as a career.

Sec. 705. The appropriation in section 109 for the export market development program shall be used to coordinate state participation in the federal market access program and to leverage federal and private funds for the purpose of developing new and enhancing existing export markets for Michigan agricultural products.

Sec. 706. Not later than April 1, 2007, the department shall provide a report to the house and senate appropriations subcommittees on agriculture and the house and senate fiscal agencies describing the department's agriculture development and export market development activities. The report shall identify grants awarded during the prior fiscal year, including a description of federal or private funds made available as a result of department activities.

Sec. 707. In awarding grants from the agricultural development fund created under the Julian-Stille value-added act, 2000 PA 322, MCL 285.302, the department shall give due consideration to the diversity of Michigan agriculture and its economic importance.

Sec. 708. The department is authorized to receive and expend funds appropriated from the agricultural development fund created in section 2 of the Julian-Stille value-added act, 2000 PA 322, MCL 285.302.

Sec. 709. (1) Not later than April 1, 2007, the department shall provide a report to the house and senate appropriations subcommittees on agriculture and the house and senate fiscal agencies describing the activities of the grape and wine industry council established under section 303 of the Michigan liquor control act of 1998, 1998 PA 58, MCL 436.1303.

(2) The report shall include all of the following:

(a) Council activities and accomplishments for the previous fiscal year.

(b) Council expenditures for the previous fiscal year by category of administration, industry support, research and education grants, and promotion and consumer education.

(c) Grants awarded during the prior fiscal year and the results of research grant projects completed during the prior fiscal year.

Sec. 710. The department may match external funding for domestic and international marketing programs for the purpose of developing new and enhancing existing export markets for Michigan agricultural products.

FAIRS AND EXPOSITIONS

Sec. 801. The department shall submit a report each month to the state budget director, the senate and house appropriations subcommittees on agriculture, and the senate and house fiscal agencies that states the simulcasting revenues generated in the preceding month by each licensed track and the amount received from license fees.

Sec. 802. From the amount appropriated in section 110 for purses and supplements fairs/licensed tracks, $280,000.00is to be used for state purse supplements at state licensed pari-mutuel tracks for races comprised only of Michigan-bred horses segregated into a 4-year-old colt trot division, a 4-year-old filly trot division, a 4-year-old colt pace division, and a 4-year-old filly pace division.

Sec. 803. Included in the appropriation made in section 110 for the thoroughbred program is $30,500.00 for the Michigan united thoroughbred breeders and owners association to conduct a thoroughbred yearling show. The Michigan united thoroughbred breeders and owners association shall submit to the department an itemized list of expenses showing that the expenses of the yearling show were paid.

Sec. 804. From the funds appropriated in section 110 for thoroughbred owners' awards, awards shall be distributed pursuant to section 20 of the horse racing law of 1995, 1995 PA 279, MCL 431.320.

Sec. 805. The department shall notify the senate and house appropriations subcommittees and the fiscal agencies of any planned reductions in appropriations, allocations, or expenditures from the agriculture equine industry development fund no less than 10 days before such reductions are implemented.

Sec. 806. A county fair, district fair, 4-H fair, or state fair receiving funds in section 110 to be used for prizes or awards, in whole or in part, as a condition precedent to the receiving of the funds for those purposes, shall publish the rules relative to the prizes, awards, and deadlines for entries eligible for the funds in their official premium books or lists relative to the prizes or awards. An aggrieved exhibitor may make a written complaint to the fair within 10 days after the fair ends. If the fair has not satisfactorily settled the grievance within 45 days after it is submitted to the fair, the aggrieved person may file the complaint with the department and the department shall investigate the complaint and make a finding of fact regarding the complaint and take appropriate action regarding the complaint.

Sec. 807. Of the amount appropriated in section 110 for purses and supplements - fairs/licensed tracks, a sufficient amount is appropriated to provide for overnight purse supplements pursuant to the horse racing law of 1995, 1995 PA 279,MCL 431.301 to 431.336.

Sec. 808. Of the amount appropriated in section 110 for premiums - county and state fairs, $91,400.00 shall be expended to reimburse up to 75% premiums paid to large livestock and equine exhibitors in shows or exhibitions held by statewide associations as defined by the department. Livestock expositions shall be limited to participation in this program and prohibited from participation in any state funded premium programs. The Michigan horse show association fall youth show shall be included.

Sec. 809. From the appropriations for premiums - county and state fairs in section 110, $40,000.00 shall be awarded through a competitive grant program to local, regional, or state fairs or youth education programs to promote youth involvement and adult exhibitions in the animal agriculture industry.

Sec. 811. The funds appropriated in section 110 for distribution of outstanding winning tickets are not available for expenditure until they are deposited in the Michigan agriculture equine industry development fund pursuant to section2 of 1951 PA 90, MCL 431.252. These funds shall be expended in accordance with section 2 of 1951 PA 90, MCL 431.252. The department shall provide notice to the house and senate appropriations subcommittees on agriculture at least 10 days before the funds are expended. This notice shall include the amount that each program receives from the outstanding winning ticket revenue deposited in the Michigan agriculture equine industry development fund.

OFFICE OF RACING COMMISSIONER

Sec. 901. The racing commissioner may pay rewards of not more than $5,800.00 to a person who provides information that results in the arrest and conviction on a felony or misdemeanor charge for a crime that involves the horse racing industry. A reward paid pursuant to this section shall be paid out of the office of racing commissioner line item.

ARTICLE 7

GENERAL GOVERNMENT

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this article, the amounts listed in this part are appropriated for the departments of attorney general, civil rights, civil service, information technology, management and budget, state, and treasury, the executive office, the legislative branch, and certain other state purposes, for the fiscal year ending September 30, 2007, from the funds indicated in this part. The following is a summary of the appropriations in this part:

TOTAL GENERAL GOVERNMENT

APPROPRIATION SUMMARY:

Full-time equated unclassified positions 49.0

Full-time equated classified positions 7,089.4

GROSS APPROPRIATION $ 2,913,277,200

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 588,867,600

ADJUSTED GROSS APPROPRIATION $ 2,324,409,600

Federal revenues:

Total federal revenues 55,540,200

Special revenue funds:

Total local revenues 2,766,200

Total private revenues 550,100

Total other state restricted revenues 1,658,248,000

State general fund/general purpose $ 607,305,100

Sec. 102. DEPARTMENT OF ATTORNEY GENERAL

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions 6.0

Full-time equated classified positions 559.0

GROSS APPROPRIATION $ 68,532,300

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 13,914,300

ADJUSTED GROSS APPROPRIATION $ 54,618,000

Federal revenues:

Total federal revenues 10,236,500

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 11,485,500

State general fund/general purpose $ 32,896,000

(2) ATTORNEY GENERAL OPERATIONS (EFFECTIVE GOVERNMENT, SAFETY)

Full-time equated unclassified positions 6.0

Full-time equated classified positions 559.0

Attorney general $ 124,900

Unclassified positions--5.0 FTE positions 476,300

Attorney general operations--519.0 FTE positions 62,154,000

Child support enforcement--25.0 FTE positions 2,851,500

Prosecuting attorneys coordinating council--15.0 FTE positions 1,860,900

PACC, training project 325,000

GROSS APPROPRIATION $ 67,792,600

Appropriated from:

Interdepartmental grant revenues:

IDG from MDCH, health services 1,780,300

IDG from MDHS 3,209,200

IDG from MDLEG, financial and insurance services 1,068,300

IDG from MDLEG, public utility assessments 1,965,300

IDG from MDMB, risk management revolving fund 1,321,300

IDG from MDOT, comprehensive transportation fund 153,400

IDG from MDOT, state aeronautics fund 151,400

IDG from MDOT, state trunkline fund 2,708,300

IDG from MDSP, Michigan justice training fund 325,000

IDG from Michigan gaming control board 979,500

IDG from treasury, land reutilization fund 252,300

Federal revenues:

DAG, state administrative match grant/food stamps 387,700

DED-OPSE, student loan, federal lender allowance 320,200

DOL-ETA, unemployment insurance 1,564,500

DOL-OSHA, occupational safety and health 274,700

EPA, multiple grants 280,800

Federal funds 2,624,200

HHS, medical assistance, medigrant 628,100

HHS-OS, state Medicaid fraud control units 4,156,300

Special revenue funds:

Antitrust enforcement collections 627,200

Attorney general's operations fund 838,200

Auto repair facilities fees 225,500

Collections revenue 683,200

Environmental response fund 760,400

Franchise fees 282,600

Game and fish protection fund 740,800

Liquor purchase revolving fund 1,025,100

Manufactured housing fees 219,900

Merit award trust fund 406,700

Michigan state housing development authority fees 552,300

Oil and gas privilege fee revenue 198,600

Prisoner reimbursement 445,800

Prosecuting attorneys training fees 357,700

Real estate enforcement fund 226,000

Retirement funds 730,000

Second injury fund 999,800

Self-insurers security fund 168,700

Silicosis and dust disease fund 516,000

State building authority revenue 94,700

State hospital authority 357,500

State lottery fund 239,700

Utility consumers fund 539,500

Waterways fund 96,700

Worker's compensation administrative revolving fund 152,900

State general fund/general purpose $ 32,156,300

(3) INFORMATION TECHNOLOGY (EFFECTIVE GOVERNMENT)

Information technology services and projects $ 739,700

GROSS APPROPRIATION $ 739,700

Appropriated from:

State general fund/general purpose $ 739,700

Sec. 103. DEPARTMENT OF CIVIL RIGHTS

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions 5.0

Full-time equated classified positions 136.0

GROSS APPROPRIATION $ 14,020,200

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 14,020,200

Federal revenues:

Total federal revenues 1,566,200

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 0

State general fund/general purpose $ 12,454,000

(2) CIVIL RIGHTS OPERATIONS (VULNERABLE)

Full-time equated unclassified positions 5.0

Full-time equated classified positions 136.0

Unclassified positions--5.0 FTE positions $ 264,100

Civil rights operations--136.0 FTE positions 12,967,100

Human resources optimization user charges 8,500

GROSS APPROPRIATION $ 13,239,700

Appropriated from:

Federal revenues:

EEOC, state and local antidiscrimination agency contracts 1,024,800

HUD, grant 541,400

State general fund/general purpose $ 11,673,500

(3) INFORMATION TECHNOLOGY (VULNERABLE)

Information technology services and projects $ 780,500

GROSS APPROPRIATION $ 780,500

Appropriated from:

State general fund/general purpose $ 780,500

Sec. 104. DEPARTMENT OF CIVIL SERVICE

(1) APPROPRIATION SUMMARY

Full-time equated classified positions 240.5

GROSS APPROPRIATION $ 36,547,100

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 5,788,100

ADJUSTED GROSS APPROPRIATION $ 30,759,000

Federal revenues:

Total federal revenues 4,779,100

Special revenue funds:

Total local revenues 1,700,000

Total private revenues 150,000

Total other state restricted revenues 17,157,500

State general fund/general purpose $ 6,972,400

(2) CIVIL SERVICE OPERATIONS (EFFECTIVE GOVERNMENT)

Full-time equated classified positions 240.5

Agency services--118.5 FTE positions $ 12,840,100

Executive direction--45.0 FTE positions 8,586,900

Employee benefits--31.0 FTE positions 5,769,500

Audit and compliance--16.0 FTE positions 2,114,600

Training 1,300,000

Human resources optimization--30.0 FTE positions 2,117,200

GROSS APPROPRIATION $ 32,728,300

Appropriated from:

Interdepartmental grant revenues:

IDG, training charges 1,300,000

IDG, 1% special funds 1,300,000

IDG, human resources optimization user charges 2,117,200

Federal revenues:

Federal funds 1% 3,637,100

Special revenue funds:

Local funds 1% 1,700,000

Private funds 1% 150,000

Freedom of information fees 1,100

State restricted funds 1% 7,744,300

State sponsored group insurance 2,650,000

State sponsored group insurance, flexible spending accounts, and COBRA 5,769,500

State general fund/general purpose $ 6,359,100

(3) INFORMATION TECHNOLOGY (EFFECTIVE GOVERNMENT)

Information technology services and projects $ 3,818,800

GROSS APPROPRIATION $ 3,818,800

Appropriated from:

Interdepartmental grant revenues:

IDG, human resources optimization user charges 1,070,900

Federal revenues:

Federal funds 1% 1,142,000

Special revenue funds:

State restricted funds 1% 852,300

State sponsored group insurance, flexible spending accounts, and COBRA 140,300

State general fund/general purpose $ 613,300

Sec. 105. EXECUTIVE OFFICE

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions 10.0

Full-time equated classified positions 74.2

GROSS APPROPRIATION $ 5,509,900

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 5,509,900

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 $ 5,509,900

(2) EXECUTIVE OFFICE OPERATIONS (EFFECTIVE GOVERNMENT)

Full-time equated unclassified positions 10.0

Full-time equated classified positions 74.2

Governor $ 177,000

Lieutenant governor 123,900

Executive office--74.2 FTE positions 4,359,200

Unclassified positions--8.0 FTE positions 849,800

GROSS APPROPRIATION $ 5,509,900

Appropriated from:

State general fund/general purpose $ 5,509,900

Sec. 106. DEPARTMENT OF INFORMATION TECHNOLOGY

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions 6.0

Full-time equated classified positions 1,776.4

GROSS APPROPRIATION $ 378,222,000

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 378,222,000

ADJUSTED GROSS APPROPRIATION 0

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 0

State general fund/general purpose $ 0

(2) ADMINISTRATION (EFFECTIVE GOVERNMENT)

Full-time equated unclassified positions 6.0

Full-time equated classified positions 1,776.4

Unclassified positions--6.0 FTE positions $ 300,000

Enterprisewide services--75.0 FTE positions 23,574,000

Health and human services--775.6 FTE positions 209,190,600

Education services--38.9 FTE positions 3,173,500

Public protection--302.0 FTE positions 39,860,800

Resources services--171.1 FTE positions 16,769,900

Transportation services--107.0 FTE positions 27,504,900

General services--306.8 FTE positions 57,848,300

GROSS APPROPRIATION $ 378,222,000

Appropriated from:

Interdepartmental grant revenues:

IDG from department of agriculture 1,537,800

IDG from department of attorney general 739,700

IDG from department of civil rights 780,500

IDG from department of civil service 3,818,800

IDG from department of community health 31,427,100

IDG from department of corrections 16,618,500

IDG from department of education 2,614,700

IDG from department of environmental quality 6,810,400

IDG from Michigan gaming control board 1,286,000

IDG from department of history, arts, and libraries 953,100

IDG from department of human services 136,083,900

IDG from department of labor and economic growth 43,188,500

IDG from bureau of state lottery 4,497,300

IDG from department of management and budget 28,433,600

IDG from department of military and veterans affairs 1,161,700

IDG from department of natural resources 9,002,900

IDG from department of state 23,629,300

IDG from department of state police 21,035,700

IDG from department of transportation 27,876,500

IDG from department of treasury 16,726,000

State general fund/general purpose $ 0

Sec. 107. LEGISLATURE

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 116,576,400

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 116,576,400

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 400,000

Total other state restricted revenues 1,109,800

State general fund/general purpose $ 115,066,600

(2) LEGISLATURE (EFFECTIVE GOVERNMENT)

Senate $ 30,285,900

Senate automated data processing 2,683,800

Senate fiscal agency 3,223,500

House of representatives 46,893,200

House automated data processing 2,131,500

House fiscal agency 3,119,100

GROSS APPROPRIATION $ 88,337,000

Appropriated from:

State general fund/general purpose $ 88,337,000

(3) LEGISLATIVE COUNCIL (EFFECTIVE GOVERNMENT)

Legislative council $ 10,520,100

Legislative service bureau automated data processing 1,447,200

Worker's compensation 140,000

National association dues 103,000

GROSS APPROPRIATION $ 12,210,300

Appropriated from:

Special revenue funds:

Private - gifts and bequests revenues 400,000

State general fund/general purpose $ 11,810,300

(4) LEGISLATIVE RETIREMENT SYSTEM (EFFECTIVE GOVERNMENT)

General nonretirement expenses $ 4,533,900

GROSS APPROPRIATION $ 4,533,900

Appropriated from:

Special revenue funds:

Court fees 1,109,800

State general fund/general purpose $ 3,424,100

(5) PROPERTY MANAGEMENT (EFFECTIVE GOVERNMENT)

Capitol building $ 2,363,700

Cora Anderson building 8,163,600

Farnum building and other properties 967,900

GROSS APPROPRIATION $ 11,495,200

Appropriated from:

State general fund/general purpose $ 11,495,200

Sec. 108. OFFICE OF THE AUDITOR GENERAL

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 16,347,500

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 1,801,500

ADJUSTED GROSS APPROPRIATION $ 14,546,000

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 1,539,900

State general fund/general purpose $ 13,006,100

(2) OFFICE OF THE AUDITOR GENERAL (EFFECTIVE GOVERNMENT)

Unclassified positions $ 313,500

Field operations 16,034,000

GROSS APPROPRIATION $ 16,347,500

Appropriated from:

Interdepartmental grant revenues:

IDG from MDCS 107,900

IDG from MDLEG, liquor purchase revolving fund 11,300

IDG from MDOT, comprehensive transportation fund 25,200

IDG from MDOT, Michigan transportation fund 204,300

IDG from MDOT, state aeronautics fund 19,600

IDG from MDOT, state trunkline fund 474,600

IDG, single audit act 958,600

Special revenue funds:

Cadillac local development finance authority 12,000

Clean Michigan initiative implementation bond fund 37,500

Commercial mobile radio system emergency telephone fund 37,500

Construction lien fund 7,200

Contract audit administration fees 52,700

Correctional industries revolving fund 31,300

Fee adequacy, air quality delegated authority 9,400

Game and fish protection fund 21,400

Legislative retirement system 18,700

Marine safety fund 1,900

Michigan economic development corporation 41,200

Michigan education trust fund 30,000

Michigan justice training commission fund 28,100

Michigan state fair revolving fund 33,000

Michigan state housing development authority fees 22,100

Michigan strategic fund 87,500

Michigan tobacco settlement authority 75,000

Michigan veterans' trust fund 24,400

Motor transport revolving fund 4,700

Office services revolving fund 6,800

State disbursement unit, office of child support 25,000

State services fee fund 926,900

Waterways fund 5,600

State general fund/general purpose $ 13,006,100

Sec. 109. DEPARTMENT OF MANAGEMENT AND BUDGET

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions 7.0

Full-time equated classified positions 752.0

GROSS APPROPRIATION $ 476,142,000

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 155,293,500

ADJUSTED GROSS APPROPRIATION $ 320,848,500

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 52,438,900

State general fund/general purpose $ 268,409,600

(2) MANAGEMENT AND BUDGET SERVICES (EFFECTIVE GOVERNMENT)

Full-time equated unclassified positions 6.0

Full-time equated classified positions 588.5

Unclassified positions--6.0 FTE positions $ 570,800

Executive operations--21.0 FTE positions 2,444,900

Administrative services--61.5 FTE positions 6,337,300

Budget and financial management--113.5 FTE positions 10,319,300

Office of the state employer--23.0 FTE positions 2,719,900

Design and construction services--40.0 FTE positions 5,162,600

Business support services--88.5 FTE positions 7,898,300

Building operation services--241.0 FTE positions 87,546,000

Building occupancy charges, rent, and utilities 4,179,600

Human resources optimization user charges 64,200

Motor vehicle fleet 56,724,200

GROSS APPROPRIATION $ 183,967,100

Appropriated from:

Interdepartmental grant revenues:

IDG from building occupancy and parking charges 90,280,400

IDG from department of labor and economic growth 100,000

IDG from MDCH 425,800

IDG from MDHS 102,400

IDG from MDOT, comprehensive transportation fund 60,300

IDG from MDOT, state aeronautics fund 37,500

IDG from MDOT, state trunkline fund 1,319,000

IDG from motor transport fund 56,724,200

IDG from user fees 5,175,700

Special revenue funds:

Game and fish protection fund 249,300

Health management funds 1,684,400

Marine safety fund 22,400

Special revenue, internal service, and pension trust funds 9,002,100

State building authority revenue 587,200

State lottery fund 108,600

State services fee fund 75,300

Waterways fund 56,700

State general fund/general purpose $ 17,955,800

(3) STATEWIDE APPROPRIATIONS (EFFECTIVE GOVERNMENT)

Professional development fund - AFSCME $ 50,000

Professional development fund - MPES 125,000

GROSS APPROPRIATION $ 175,000

Appropriated from:

Interdepartmental grant revenues:

IDG from employer contributions 175,000

State general fund/general purpose $ 0

(4) SPECIAL PROGRAMS (EFFECTIVE GOVERNMENT, VULNERABLE)

Full-time equated classified positions 154.5

Building occupancy charges - property management services for executive/legislative

building occupancy $ 1,878,200

Retirement services--140.5 FTE positions 16,044,800

Office of children's ombudsman--14.0 FTE positions 1,384,800

GROSS APPROPRIATION $ 19,307,800

Appropriated from:

Special revenue funds:

Deferred compensation 1,542,400

Pension trust funds 14,502,400

State general fund/general purpose $ 3,263,000

(5) STATE FAIR (THRIVING ECONOMY)

Full-time equated unclassified positions 1.0

Full-time equated classified positions 9.0

Unclassified positions--1.0 FTE position $ 101,000

Michigan state fair operations--9.0 FTE positions 6,360,400

Michigan state fair information technology 88,800

GROSS APPROPRIATION $ 6,550,200

Appropriated from:

Special revenue funds:

State exposition and fairgrounds fund 6,550,200

State general fund/general purpose $ 0

(6) INFORMATION TECHNOLOGY (EFFECTIVE GOVERNMENT)

Information technology services and projects $ 28,344,800

GROSS APPROPRIATION $ 28,344,800

Appropriated from:

Interdepartmental grant revenues:

IDG from building occupancy and parking charges 655,700

IDG from MDOT, comprehensive transportation fund 2,100

IDG from MDOT, state aeronautics fund 1,100

IDG from MDOT, state trunkline fund 47,500

IDG from user fees 186,800

Special revenue funds:

Deferred compensation 2,600

Game and fish protection fund 9,800

Health management funds 41,700

Marine safety fund 900

MAIN user charges 3,773,700

Pension trust funds 6,563,300

Special revenue, internal service, and pension trust funds 2,554,600

State building authority revenue 9,700

State lottery fund 4,600

Waterways fund 2,000

State general fund/general purpose $ 14,488,700

(7) STATE BUILDING AUTHORITY RENT (EFFECTIVE GOVERNMENT)

State building authority rent - state agencies $ 55,293,000

State building authority rent - department of corrections 61,645,500

State building authority rent - universities 106,518,500

State building authority rent - community colleges 14,340,100

GROSS APPROPRIATION $ 237,797,100

Appropriated from:

Special revenue funds:

Commercial mobile radio suppliers fund 3,300,000

Roosevelt parking facility reimbursement 275,000

State lottery fund 1,520,000

State general fund/general purpose $ 232,702,100

Sec. 110. DEPARTMENT OF STATE

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions 6.0

Full-time equated classified positions 1,853.8

GROSS APPROPRIATION $ 204,793,500

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 20,000,000

ADJUSTED GROSS APPROPRIATION $ 184,793,500

Federal revenues:

Total federal revenues 3,052,100

Special revenue funds:

Total local revenues 0

Total private revenues 100

Total other state restricted revenues 162,608,600

State general fund/general purpose $ 19,132,700

(2) EXECUTIVE DIRECTION (EFFECTIVE GOVERNMENT)

Full-time equated unclassified positions 6.0

Full-time equated classified positions 30.2

Secretary of state $ 124,900

Unclassified positions--5.0 FTE positions 459,200

Operations--30.2 FTE positions 2,712,000

GROSS APPROPRIATION $ 3,296,100

Appropriated from:

Special revenue funds:

Auto repair facilities fees 60,500

Driver fees 116,900

Expedient service fees 51,800

Parking ticket court fines 8,300

Personal identification card fees 12,200

Reinstatement fees - operator licenses 131,400

Transportation administration collection fund 2,179,700

Vehicle theft prevention fees 35,600

State general fund/general purpose $ 699,700

(3) DEPARTMENT SERVICES (MOBILITY, EFFECTIVE GOVERNMENT)

Full-time equated classified positions 172.3

Operations--163.8 FTE positions $ 23,775,400

Assigned claims assessments--6.5 FTE positions 743,200

Motorcycle safety education administration--2.0 FTE positions 382,100

Motorcycle safety education grants 1,400,000

GROSS APPROPRIATION $ 26,300,700

Appropriated from:

Federal revenues:

Federal funds 55,700

Special revenue funds:

Abandoned vehicle fees 666,200

Assigned claims assessments 743,200

Auto repair facilities fees 415,000

Child support clearance fees 34,300

Driver fees 394,300

Expedient service fees 248,100

Marine safety fund 74,500

Motorcycle safety fund 1,782,100

Off-road vehicle title fees 7,700

Parking ticket court fines 52,700

Personal identification card fees 83,000

Reinstatement fees - operator licenses 536,600

Scrap tire fund 68,500

Snowmobile registration fee revenue 17,700

Transportation administration collection fund 20,356,400

Vehicle theft prevention fees 243,400

State general fund/general purpose $ 521,300

(4) REGULATORY SERVICES (MOBILITY, EFFECTIVE GOVERNMENT)

Full-time equated classified positions 245.1

Operations--245.1 FTE positions $ 22,617,800

County clerk education and training 100,000

GROSS APPROPRIATION $ 22,717,800

Appropriated from:

Federal revenues:

Federal funds 102,500

Special revenue funds:

Auto repair facilities fees 4,644,800

Commercial driver training school fees 70,500

Driver fees 1,693,200

Expedient service fees 33,300

Notary education and training fund 100,000

Notary fee fund 311,900

Parking ticket court fines 20,700

Personal identification card fees 47,700

Reinstatement fees - operator licenses 1,704,700

Transportation administration collection fund 11,779,400

Vehicle theft prevention fees 1,580,900

State general fund/general purpose $ 628,200

(5) CUSTOMER DELIVERY SERVICES (EFFECTIVE GOVERNMENT, MOBILITY)

Full-time equated classified positions 1,377.7

Branch operations--957.4 FTE positions $ 73,410,800

Central operations--404.1 FTE positions 36,201,900

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

Specialty license plates 1,922,000

Olympic center plate 75,700

Organ donor program 104,100

GROSS APPROPRIATION $ 113,861,800

Appropriated from:

Interdepartmental grant revenues:

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

Federal revenues:

Federal funds 2,893,900

Special revenue funds:

Private funds 100

Auto repair facilities fees 93,100

Child support clearance fees 395,500

Driver fees 13,733,000

Expedient service fees 2,853,800

Marine safety fund 1,144,000

Michigan state police auto theft fund 115,600

Mobile home commission fees 476,000

Off-road vehicle title fees 122,700

Parking ticket court fines 1,590,500

Personal identification card fees 1,527,100

Reinstatement fees - operator licenses 1,152,500

Snowmobile registration fee revenue 335,200

Transportation administration collection fund 60,581,200

Vehicle theft prevention fees 209,500

State general fund/general purpose $ 6,638,100

(6) ELECTION REGULATION (EFFECTIVE GOVERNMENT)

Full-time equated classified positions 28.5

Election administration and services--25.5 FTE positions $ 2,821,600

Fees to local units 69,800

Qualified voter file--3.0 FTE positions 1,833,900

GROSS APPROPRIATION $ 4,725,300

Appropriated from:

State general fund/general purpose $ 4,725,300

(7) DEPARTMENTWIDE APPROPRIATIONS (EFFECTIVE GOVERNMENT)

Building occupancy charges/rent $ 9,795,500

Worker's compensation 467,000

GROSS APPROPRIATION $ 10,262,500

Appropriated from:

Special revenue funds:

Auto repair facilities fees 142,000

Driver fees 436,800

Expedient service fees 14,400

Parking ticket court fines 470,800

Transportation administration collection fund 6,364,500

State general fund/general purpose $ 2,834,000

(8) INFORMATION TECHNOLOGY (EFFECTIVE GOVERNMENT)

Information technology services and projects $ 23,629,300

GROSS APPROPRIATION $ 23,629,300

Appropriated from:

Special revenue funds:

Administrative order processing fee 11,000

Auto repair facilities fees 180,800

Child support clearance fees 16,300

Driver fees 1,332,200

Expedient service fees 453,900

Parking ticket court fines 83,300

Personal identification card fees 876,100

Reinstatement fees - operator licenses 469,200

Transportation administration collection fund 16,948,200

Vehicle theft prevention fees 172,200

State general fund/general purpose $ 3,086,100

Sec. 111. DEPARTMENT OF TREASURY

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions 9.0

Full-time equated classified positions 1,697.5

GROSS APPROPRIATION $ 1,596,586,300

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 13,848,200

ADJUSTED GROSS APPROPRIATION $ 1,582,738,100

Federal revenues:

Total federal revenues 35,906,300

Special revenue funds:

Total local revenues 1,066,200

Total private revenues 0

Total other state restricted revenues 1,411,907,800

State general fund/general purpose $ 133,857,800

(2) EXECUTIVE DIRECTION (EFFECTIVE GOVERNMENT)

Full-time equated unclassified positions 9.0

Full-time equated classified positions 5.0

Unclassified positions--9.0 FTE positions $ 812,600

Office of the director--5.0 FTE positions 820,900

GROSS APPROPRIATION $ 1,633,500

Appropriated from:

Special revenue funds:

State lottery fund 158,400

State services fee fund 198,300

State general fund/general purpose $ 1,276,800

(3) DEPARTMENTWIDE APPROPRIATIONS (EFFECTIVE GOVERNMENT)

Travel $ 1,415,900

Rent and building occupancy charges - property management services 5,715,300

Worker's compensation insurance premium 216,000

GROSS APPROPRIATION $ 7,347,200

Appropriated from:

Special revenue funds:

Delinquent tax collection revenue 3,580,600

State general fund/general purpose $ 3,766,600

(4) LOCAL GOVERNMENT PROGRAMS (EFFECTIVE GOVERNMENT)

Full-time equated classified positions 106.0

Supervision of the general property tax law--83.0 FTE positions $ 13,411,200

Property tax assessor training--4.0 FTE positions 412,300

Local finance--19.0 FTE positions 2,338,300

GROSS APPROPRIATION $ 16,161,800

Appropriated from:

Special revenue funds:

Local - assessor training fees 412,300

Local - audit charges 563,900

Local - equalization study charge-backs 40,000

Local - revenue from local government 50,000

Land reutilization fund 6,917,200

Municipal finance fees 458,200

State education tax collections 50,000

State general fund/general purpose $ 7,670,200

(5) TAX PROGRAMS (EFFECTIVE GOVERNMENT, RESOURCE

CONSERVATION, VULNERABLES)

Full-time equated classified positions 766.0

Customer contact--186.0 FTE positions $ 13,966,500

Tax compliance--338.0 FTE positions 30,675,700

Tax policy--38.0 FTE positions 4,496,200

Tax processing--150.0 FTE positions 15,141,300

Revenue enhancement program--50.0 FTE positions 5,856,800

Home heating assistance 2,101,300

Bottle bill implementation 250,000

New hire reporting 1,545,000

Tobacco tax collection--4.0 FTE positions 332,000

GROSS APPROPRIATION $ 74,364,800

Appropriated from:

Interdepartmental grant revenues:

IDG, data/collection services fees 50,900

IDG from MDHS 1,545,000

IDG from MDOT, Michigan transportation fund 8,354,900

IDG from MDOT, state aeronautics fund 64,700

Federal revenues:

HHS-SSA, low-income energy assistance 2,101,300

Special revenue funds:

Bottle deposit fund 250,000

Delinquent tax collection revenue 55,357,700

Tobacco tax collection and enforcement 332,000

Tobacco tax revenue 375,600

Waterways fund 75,900

State general fund/general purpose $ 5,856,800

(6) BANKING AND MANAGEMENT SERVICES (EFFECTIVE GOVERNMENT)

Full-time equated classified positions 328.5

Human resources optimization user charges $ 82,900

Human resources, program management, and purchasing--30.0 FTE positions 3,039,000

Mail operations--20.0 FTE positions 2,077,900

Economic and revenue forecasting--15.5 FTE positions 1,401,400

Unclaimed property--21.0 FTE positions 3,438,100

Collections--170.0 FTE positions 16,833,500

Finance and accounting--32.0 FTE positions 1,635,300

Receipts processing--40.0 FTE positions 2,841,500

GROSS APPROPRIATION $ 31,349,600

Appropriated from:

Interdepartmental grant revenues:

IDG data/collection service fees 204,400

IDG from MDHS, title IV-D 599,500

IDG, levy/warrant cost assessment fees 1,848,800

IDG, state agency collection fees 565,700

Special revenue funds:

Delinquent tax collection revenue 15,736,800

Escheats revenue 3,438,100

Garnishment fees 510,800

Justice system fund 605,500

Treasury fees 181,100

State general fund/general purpose $ 7,658,900

(7) FINANCIAL PROGRAMS (PREPARED FOR JOBS, EFFECTIVE

GOVERNMENT)

Full-time equated classified positions 213.0

Investments--78.0 FTE positions $ 14,426,700

Michigan education savings program 1,000,000

Michigan merit award administration--5.0 FTE positions 1,544,200

Common cash and debt management--11.5 FTE positions 1,201,500

Student financial assistance programs--118.5 FTE positions 35,298,200

GROSS APPROPRIATION $ 53,470,600

Appropriated from:

Interdepartmental grant revenues:

IDG, fiscal agent service fees 167,700

Federal revenues:

DED-OPSE, federal lenders allowance 10,289,000

DED-OPSE, higher education act of 1965, insured loans 22,983,100

Special revenue funds:

College work-study 46,300

Michigan merit award trust fund 2,954,100

Retirement funds 13,341,600

School bond fees 590,900

Treasury fees 1,241,400

State general fund/general purpose $ 1,856,500

(8) DEBT SERVICE (RESOURCE CONSERVATION)

Water pollution control bond and interest redemption $ 2,458,200

Quality of life bond 59,300,000

Clean Michigan initiative 36,900,000

Great Lakes water quality bond 1,500,000

GROSS APPROPRIATION $ 100,158,200

Appropriated from:

Special revenue funds:

Refined petroleum fund 23,914,500

State general fund/general purpose $ 76,243,700

(9) GRANTS (THRIVING ECONOMY, EFFECTIVE GOVERNMENT, HEALTH,

SAFETY)

Grants to counties in lieu of taxes $ 5,000

Convention facility development distribution 58,850,000

Senior citizen cooperative housing tax exemption program 18,800,000

Commercial mobile radio service payments 17,900,000

Health and safety fund grants 25,000,000

Qualified agricultural loan payments 2,500,000

Renaissance zone reimbursement 2,630,000

GROSS APPROPRIATION $ 125,685,000

Appropriated from:

Special revenue funds:

Commercial mobile radio service fees 17,900,000

Convention facility development fund 58,850,000

Health and safety fund 25,000,000

State general fund/general purpose $ 23,935,000

(10) BUREAU OF STATE LOTTERY (THRIVING ECONOMY)

Full-time equated classified positions 173.0

Lottery operations--173.0 FTE positions $ 19,326,100

Human resources optimization user charges 10,600

Promotion and advertising 18,622,000

Lottery information technology services and projects 4,497,300

GROSS APPROPRIATION $ 42,456,000

Appropriated from:

Special revenue funds:

State lottery fund 42,456,000

State general fund/general purpose $ 0

(11) CASINO GAMING (THRIVING ECONOMY)

Full-time equated classified positions 106.0

Michigan gaming control board $ 50,000

Casino gaming control administration--106.0 FTE positions 18,376,200

Human resources optimization user charges 7,000

Casino gaming information technology services and projects 1,286,000

GROSS APPROPRIATION $ 19,719,200

Appropriated from:

Special revenue funds:

Casino gambling agreements 383,500

State services fee fund 19,335,700

State general fund/general purpose $ 0

(12) REVENUE SHARING (EFFECTIVE GOVERNMENT)

Constitutional state general revenue sharing grants $ 698,925,000

Statutory state general revenue sharing grants 407,485,000

Special census revenue sharing payments 892,400

Special grants 212,000

GROSS APPROPRIATION $ 1,107,514,400

Appropriated from:

Special revenue funds:

Sales tax 1,106,410,000

State general fund/general purpose $ 1,104,400

(13) INFORMATION TECHNOLOGY (EFFECTIVE GOVERNMENT)

Treasury operations information technology services and projects $ 16,726,000

GROSS APPROPRIATION $ 16,726,000

Appropriated from:

Interdepartmental grant revenues:

IDG from MDOT, Michigan transportation fund 446,600

Federal revenues:

DED-OPSE, federal lender allowance 532,900

Special revenue funds:

Delinquent tax collection revenue 10,183,000

Land reutilization fund 20,000

Michigan merit award trust fund 407,500

Retirement funds 647,100

State general fund/general purpose $ 4,488,900

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. (1) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2006-2007 is $2,265,553,100.00 and state spending from state resources to be paid to local units of government for fiscal year 2006-2007 is $1,248,390,700.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF STATE

Fees to local units $ 69,800

Motorcycle safety education grants 1,400,000

Subtotal $ 1,469,800

DEPARTMENT OF TREASURY

Senior citizen cooperative housing tax exemption $ 18,800,000

Grants to counties in lieu of taxes 5,000

Health and safety fund grants 25,000,000

Constitutional state general revenue sharing grants 698,925,000

Statutory state general revenue sharing grants 407,485,000

Convention facility development fund distribution 58,850,000

Commercial mobile radio service payments 15,221,500

Renaissance zone reimbursements 2,630,000

Special grants 212,000

Special census revenue sharing payments 892,400

Airport parking distribution pursuant to section 909 18,900,000

Subtotal $ 1,246,920,900

TOTAL GENERAL GOVERNMENT $ 1,248,390,700

(2) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources for fiscal year 2006-2007 is estimated at $28,062,027,500.00 in the 2006-2007 appropriations acts and total state spending from state sources paid to local units of government for fiscal year 2006-2007 is estimated at $16,029,076,400.00. The state-local proportion is estimated at 57.12% of total state spending from state resources.

(3) If payments to local units of government and state spending from state sources for fiscal year 2006-2007 are different than the amounts estimated in subsection (2), the state budget director shall report the payments to local units of government and state spending from state sources that were made for fiscal year 2006-2007 to the senate and house of representatives standing committees on appropriations within 30 days after the final book-closing for fiscal year 2006-2007.

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

Sec. 203. As used in this article:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(p) "IDG" means interdepartmental grant.

(q) "JCOS" means the joint capital outlay subcommittee.

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

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

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

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

(v) "MDHS" means the Michigan department of human services.

(w) "MDLEG" means the Michigan department of labor and economic growth.

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

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

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

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

(bb) "PA" means public act.

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

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

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

Sec. 211. Pursuant to section 352 of the management and budget act, 1984 PA 431, MCL 18.1352, that provides for a transfer of state general funds into the countercyclical budget and economic stabilization fund, there is appropriated into the countercyclical budget and economic stabilization fund the sum of $0.00. The calculation required by section352 of the management and budget act, 1984 PA 431, MCL 18.1352, is determined as follows:

2005 2006

Michigan personal income (millions) $335,164 $348,571

less: transfer payments 51,756 56,070

________ ________

Subtotal 283,409 292,501

Divided by: Detroit CPI for 12 months

ending June 30 1.878 1.944

Equals: Real adjusted Michigan personal income $150,910 $150,438

Percentage change 0.3%

Percentage change in excess of 2% 0.0%

Multiplied by: estimated GF/GP revenue in FY 2005-2006 (millions) 8,281.7

Equals: countercyclical budget and economic stabilization fund
calculation for the fiscal year ending September 30, 2007 $0.0

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

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

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

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

Sec. 216. (1) Due to the current budgetary problems in this state, out-of-state travel for the fiscal year ending September 30, 2007 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.

(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 senate and house of representatives standing committees on appropriations, the senate and house 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.

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

(f) A total of all out-of-state travel funded for the immediately preceding fiscal year.

Sec. 217. General fund appropriations in this article shall not be expended for items in cases where federal funding is available for the same expenditures.

Sec. 220. Funds appropriated in this article shall not be used to establish, operate, or administer a payroll deduction plan that enables classified state employees to make contributions to either a committee, as defined in section 3 of the Michigan campaign finance act, 1976 PA 388, MCL 169.203, or a political organization, as defined in section 527 of the internal revenue code.

DEPARTMENT OF ATTORNEY GENERAL

Sec. 302. (1) The attorney general shall perform all legal services, including representation before courts and administrative agencies rendering legal opinions and providing legal advice to a principal executive department or state agency. A principal executive department or state agency shall not employ or enter into a contract with any other person for services described in this section.

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

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

Sec. 303. The attorney general may sell copies of the biennial report in excess of the 350 copies that the attorney general may distribute on a gratis basis. Gratis copies shall not be provided to members of the legislature. Electronic copies of biennial reports shall be made available on the department of attorney general's website. The attorney general shall sell copies of the report at not less than the actual cost of the report and shall deposit the money received into the general fund.

Sec. 304. The department of attorney general is responsible for the legal representation for state of Michigan state employee worker's disability compensation cases. The risk management revolving fund revenue appropriation in part1 is to be satisfied by billings from the department of attorney general for the actual costs of legal representation, including salaries and support costs.

Sec. 305. In addition to the funds appropriated in part 1, not more than $400,000.00 shall be reimbursed per fiscal year for food stamp fraud cases heard by the third circuit court of Wayne County that were initiated by the department of attorney general pursuant to the existing contract between the department of human services, the prosecuting attorneys association of Michigan, and the department of attorney general. The source of this funding is money earned by the department of attorney general under the agreement after the allowance for reimbursement to the department of attorney general for costs associated with the prosecution of food stamp fraud cases. It is recognized that the federal funds are earned by the department of attorney general for its documented progress on the prosecution of food stamp fraud cases according to the United States department of agriculture regulations and that once earned by this state, the funds become state funds.

Sec. 306. Any proceeds from a lawsuit initiated by or settlement agreement entered into on behalf of this state against a manufacturer of tobacco products by the attorney general are state funds and are subject to appropriation as provided by law.

Sec. 307. In addition to the antitrust revenues in part 1, antitrust, securities fraud, consumer protection or class action enforcement revenues, or attorney fees recovered by the department, not to exceed $1,000,000.00, are appropriated to the department for antitrust, securities fraud, and consumer protection or class action enforcement cases. Any unexpended funds from antitrust, securities fraud, or consumer protection or class action enforcement revenues at the end of the fiscal year, including antitrust funds in part 1, shall be carried forward for expenditure in the following fiscal year up to the maximum authorization of $1,000,000.00.

Sec. 308. (1) In addition to the funds appropriated in part 1, there is appropriated up to $500,000.00 from litigation expense reimbursements awarded to the state.

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

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

Sec. 309. From the prisoner reimbursement funds appropriated in part 1, the department may spend up to $445,800.00 on activities related to the state correctional facilities reimbursement act, 1935 PA 253, MCL 800.401 to 800.406. In addition to the funds appropriated in part 1, if the department collects in excess of $1,131,000.00 in gross annual prisoner reimbursement receipts provided to the general fund, the excess, up to a maximum of $1,000,000.00, is appropriated to the department of attorney general and may be spent on the representation of the department of corrections and its officers, employees, and agents, including, but not limited to, the defense of litigation against the state, its departments, officers, employees, or agents in civil actions filed by prisoners. Any unexpended funds at the end of the fiscal year shall be carried forward for expenditure in the following fiscal year up to the maximum authorization of $500,000.00.

Sec. 310. (1) For the purposes of providing title IV-D child support enforcement funding, the department of human services, as the state IV-D agency, shall maintain a cooperative agreement with the attorney general for federal IV-D funding to support the child support enforcement activities within the office of the attorney general.

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

DEPARTMENT OF CIVIL RIGHTS

Sec. 402. (1) In addition to the appropriations contained in part 1, the department of civil rights may receive and expend funds from local or private sources for all of the following purposes:

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

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

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

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

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

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

Sec. 403. The department of civil rights may contract with local units of government to review equal employment opportunity compliance of potential contractors and may charge for and expend amounts received from local units of government for the purpose of developing and providing these contractual services.

DEPARTMENT OF CIVIL SERVICE

Sec. 502. (1) All restricted funds shall be assessed a sum not less than 1% of the total aggregate payroll paid from those funds for financing the department of civil service on the basis of actual 1% restricted sources total aggregate payroll of the classified service for fiscal year 2006 in accordance with section 5 of article XI of the state constitution of 1963. This includes, but is not limited to, restricted funds appropriated in part 1 of any appropriations act. Unexpended 1% appropriated funds shall be returned to each 1% fund source at the end of the fiscal year.

(2) The 1% appropriations in part 1 are estimates of actual 1% charges based on payroll appropriations. With the approval of the state budget director, the department is authorized to adjust financing sources for civil service 1%charges based on actual payroll expenditures, provided that such adjustments do not increase the total appropriation for the department of civil service.

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

Sec. 503. Except where specifically appropriated for this purpose, 1% of the financing from restricted sources shall be credited to the department of civil service. For restricted sources of funding within the general fund that have the legislative authority for carryover, if current spending authorization or revenues are insufficient to accept the charge, the shortage shall be taken from carryforward balances of that funding source. Restricted revenue sources that do not have carryforward authority shall be utilized to satisfy departmental operating deducts first and civil service obligations second. General fund dollars are appropriated for any shortfall, pursuant to approval by the state budget director.

Sec. 504. The appropriation in part 1 to the department of civil service, for state-sponsored group insurance, flexible spending accounts, and COBRA, represents amounts, in part, included within the various appropriations throughout state government for the current fiscal year to fund the flexible spending account program included within the department of civil service. Deposits against state-sponsored group insurance, flexible spending accounts, and COBRA for the flexible spending account program shall be made from assessments levied during the current fiscal year in a manner prescribed by the department of civil service. Unspent employee contributions to the flexible spending accounts may be used to offset administrative costs for the flexible spending account program, with any remaining balance of unspent employee contributions to be lapsed to the general fund.

INFORMATION TECHNOLOGY

Sec. 573. (1) The department of information technology may sell and accept paid advertising for placement on any state website under its jurisdiction. The department shall review and approve the content of each advertisement. The department may refuse to accept advertising from any person or organization or require modification to advertisements based upon criteria determined by the department. Revenue received under this subsection shall be used for operating costs of the department and for future technology enhancements to state of Michigan e-government initiatives. Funds received under this subsection shall be limited to $250,000.00. Any funds in excess of $250,000.00 shall be deposited in the state general fund.

(2) Funds accepted by the department of information technology under subsection (1) are appropriated and allotted when received and may be expended upon approval of the state budget director. The state budget office shall notify the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies within 10 days after the approval is given.

(3) By April 1, the department of information technology shall report to the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies that a statement of the total revenue received from the sale of paid advertising accepted under this section and a statement of the total number of advertising transactions are available on the department's website.

Sec. 574. The department of information technology may enter into agreements to supply spatial information and technical services to other principal executive departments, state agencies, local units of government, and other organizations. The department of information technology may receive and expend funds in addition to those authorized in part 1 for providing information and technical services, publications, maps, and other products. The department of information technology may expend amounts received for salaries, supplies, and equipment necessary to provide informational products and technical services. Prior to December 1 of each year, the department shall provide a report to the senate and house of representatives standing committees on appropriations subcommittees on general government, detailing the sources of funding and expenditures made under this section.

Sec. 575. The legislature shall have access to all historical and current data contained within MAIN pertaining to state departments. State departments shall have access to all historical and current data contained within MAIN.

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

(a) Application development and maintenance.

(b) Desktop computer support and management.

(d) Server support and management.

(e) Local area network support and management.

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

(g) Information technology planning and budget management.

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

(i) Software and software licensing.

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

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

(3) All money received by the department of information technology under this section shall be expended for the support and maintenance of the Michigan public safety communications system.

(4) The department of information technology shall provide a report to the senate and house of representatives standing committees on appropriations, the senate and house fiscal agencies, and the state budget director on April 15 and on October 15, indicating the amount of revenue collected under this section and expended for support and maintenance of the Michigan public safety communications system for the immediately preceding 6-month period. Any deposits made under this section and unencumbered funds are restricted revenues and may be carried forward into succeeding fiscal years.

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

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

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

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

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

(2) The unexpended funds appropriated in part 1 for the business application modernization project are designated as work project appropriations and shall not lapse at the end of the fiscal year. Any unencumbered or unallotted funds shall be carried over into the succeeding fiscal year and shall continue to be available for expenditure until the project has been completed. The total cost is estimated at $30,000,000.00, and the tentative completion date is September 30, 2010.

Sec. 581. From the funds appropriated in part 1, the department of information technology shall conduct a study of the state's information technology assets, including hardware, software, and networks to determine any benefits and economies that can be achieved through, but not limited to, hardware and software consolidation and standardization, process improvements, project management improvements, and increased standards-based information sharing between agencies. The department shall provide a report on the findings of the study by March 1 to the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies. The report shall summarize the top 10 initiatives that would provide the most benefit to the state and the cost of implementing those initiatives.

Sec. 584. Pursuant to section 584 of 2005 PA 146, the department of information technology shall complete a study with the department of human services, the department of community health, the department of labor and economic growth, the department of education, and the department of state police identifying all information and referral services for state government, including, but not limited to, 1-800 help lines, community resource databases, and public information outreach initiatives. The report shall summarize the purpose, scope, and cost of each service and identify potential cost savings to the state of Michigan through the shared use of 2-1-1. Due to the scope of the study, the original completion date for the study was not attainable. However, the department of information technology provided a preliminary report on April 7, 2006 reporting on funding secured for the study and communications to department directors enlisting support and identification of study liaisons for each department. The completed report shall be delivered to the senate and house of representatives standing committees on appropriations subcommittees on general government not later than October 15, 2006.

Sec. 585. The department shall provide a report that calculates the total amount of funds expended for the child support enforcement system to date from the inception of the program. The report shall contain information on the original start and completion dates for the project, the original cost to complete the project, and a listing of all revisions to project completion dates and costs. The report shall include the total amount of funds paid to the federal government for penalties. The report shall be submitted to the senate and house of representatives standing committees on government operations, the senate and house of representatives standing committees on appropriations subcommittees on general government, and the senate and house fiscal agencies by January 1.

LEGISLATURE

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

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

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

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

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

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

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

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

Sec. 606. The appropriations in part 1 to the legislative branch, for property management, shall be used to purchase equipment and services for building maintenance in order to ensure a safe and productive work environment. These funds are designated as work project appropriations and shall not lapse at the end of the fiscal year, and shall continue to be available for expenditure until the project has been completed. The total cost is estimated at $500,000.00, and the tentative completion date is September 30, 2011.

Sec. 607. The appropriations in part 1 to the legislative branch, for automated data processing, shall be used to purchase equipment, software, and services in order to support and implement data processing requirements and technology improvements. These funds are designated as work project appropriations and shall not lapse at the end of the fiscal year, and shall continue to be available for expenditure until the project has been completed. The total cost is estimated at $500,000.00, and the tentative completion date is September 30, 2011.

Sec. 608. In addition to funds appropriated in part 1, the Michigan capitol committee publications save the flags fund account may accept contributions, gifts, bequests, devises, grants, and donations. Those funds that are not expended in the fiscal year ending September 30 shall not lapse at the close of the fiscal year, and shall be carried forward for expenditure in the following fiscal years.

Sec. 610. The funds appropriated in part 1 shall not be used to pay for health insurance benefits for unmarried domestic partners of legislators or legislative employees.

OFFICE OF THE AUDITOR GENERAL

Sec. 620. Pursuant to section 53 of article IV of the state constitution of 1963, the auditor general shall conduct audits of the judicial branch. The audits may include the supreme court and its administrative units, the court of appeals, and trial courts.

Sec. 621. (1) The auditor general shall take all reasonable steps to ensure that certified minority- and women-owned and operated accounting firms, and accounting firms owned and operated by persons with disabilities participate in the audits of the books, accounts, and financial affairs of each principal executive department, branch, institution, agency, and office of this state.

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

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

Sec. 622. From the funds appropriated in part 1 to the office of the auditor general, the auditor general's salary and the salaries of the remaining 2.0 FTE unclassified positions shall be set by the speaker of the house of representatives, the senate majority leader, the house of representatives minority leader, and the senate minority leader.

Sec. 623. Any audits, reviews, or investigations requested of the auditor general by the legislature or by legislative leadership, legislative committees, or individual legislators shall include an estimate of the additional costs involved and, when those costs exceed $50,000.00, should provide supplemental funding. The auditor general shall determine whether to perform those activities in keeping with Audit Directive No. 29, which describes the office of the auditor general's policy on responding to legislative requests.

DEPARTMENT OF MANAGEMENT AND BUDGET

Sec. 702. Proceeds in excess of necessary costs incurred in the conduct of transfers or auctions of state surplus, salvage, or scrap property made pursuant to section 267 of the management and budget act, 1984 PA 431, MCL18.1267, are appropriated to the department of management and budget to offset costs incurred in the acquisition and distribution of federal surplus property.

Sec. 704. (1) The department of management and budget may receive and expend funds in addition to those authorized by part 1 for maintenance and operation services provided specifically to other principal executive departments or state agencies, the legislative branch, the judicial branch, or private tenants, or provided in connection with facilities transferred to the operational jurisdiction of the department of management and budget.

(2) The department of management and budget may receive and expend funds in addition to those authorized by part1 for real estate, architectural, design, and engineering services provided specifically to other principal executive departments or state agencies, the legislative branch, or the judicial branch.

(3) The department of management and budget may receive and expend funds in addition to those authorized in part1 for mail pickup and delivery services provided specifically to other principal executive departments and state agencies, the legislative branch, or the judicial branch.

(4) The department of management and budget may receive and expend funds in addition to those authorized in part1 for purchasing services provided specifically to other principal executive departments and state agencies, the legislative branch, or the judicial branch.

Sec. 705. (1) The source of financing in part 1 for statewide appropriations shall be funded by assessments against longevity and insurance appropriations throughout state government in a manner prescribed by the department of management and budget. Funds shall be used as specified in joint labor/management agreements or through the coordinated compensation hearings process. Any deposits made under this subsection and any unencumbered funds are restricted revenues, may be carried over into the succeeding fiscal years, and are appropriated.

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

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

Sec. 707. In addition to the funds appropriated in part 1 to the department of management and budget, the department may receive and expend funds from other principal executive departments and state agencies to implement donated annual leave and administrative leave bank transfer provisions as may be specified in joint labor/management agreements. The amounts may also be transferred to other principal executive departments and state agencies under the joint agreement and any amounts transferred under the joint agreement are authorized for receipt and expenditure by the receiving principal executive department or state agency. Any amounts received by the department of management and budget under this section and intended, under the joint labor/management agreements, to be available for use beyond the close of the fiscal year and any unencumbered funds may be carried over into the succeeding fiscal year.

Sec. 708. The source of financing in part 1 for the Michigan administrative information network shall be funded by proportionate charges assessed against the respective state funds benefiting from this project in the amounts determined by the department.

Sec. 709. (1) Deposits against the interdepartmental grant from building occupancy and parking charges appropriated in part 1 shall be collected, in part, from state agencies, the legislative branch, and the judicial branch based on estimated costs associated with maintenance and operation of buildings managed by the department of management and budget. To the extent excess revenues are collected due to estimates of building occupancy charges exceeding actual costs, the excess revenues may be carried forward into succeeding fiscal years for the purpose of returning funds to state agencies.

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

Sec. 710. The department of management and budget shall notify the chairpersons of the senate and house of representatives standing committees on appropriations and the chairpersons of the senate and house of representatives standing committees on appropriations subcommittees on general government on any revisions that increase or decrease current contracts by more than $500,000.00 for computer software development, hardware acquisition, or quality assurance at least 14 days before the department of management and budget finalizes the revisions.

Sec. 711. The department of management and budget shall maintain an Internet website that contains notice of all invitations for bids and requests for proposals over $50,000.00 issued by the department or by any state agency operating under delegated authority. The department shall not accept an invitation for bid or request for proposal in less than 14 days after the notice is made available on the Internet website, except in situations where it would be in the best interest of the state and documented by the department. In addition to the requirements of this section, the department may advertise the invitations for bids and requests for proposals in any manner the department determines appropriate, in order to give the greatest number of individuals and businesses the opportunity to make bids or requests for proposals.

Sec. 712. The department of management and budget may receive and expend funds from the Vietnam veterans memorial monument fund as provided in the Michigan Vietnam veterans memorial act, 1988 PA 234, MCL 35.1051 to 35.1057. Funds are appropriated and allocated when received and may be expended upon receipt.

Sec. 713. The Michigan veterans' memorial park commission may receive and expend money from any source, public or private, including, but not limited to, gifts, grants, donations of money, and government appropriations, for the purposes described in Executive Order No. 2001-10. Funds are appropriated and allocated when received and may be expended upon receipt. Any deposits made under this section and unencumbered funds are restricted revenues and may be carried over into succeeding fiscal years.

Sec. 715. (1) Funds in part 1 for motor vehicle fleet are appropriated to the department of management and budget for administration and for the acquisition, lease, operation, maintenance, repair, replacement, and disposal of state motor vehicles.

(2) The appropriation in part 1 for motor vehicle fleet shall be funded by revenue from rates charged to principal executive departments and agencies for utilizing vehicle travel services provided by the department. Revenue in excess of the amount appropriated in part 1 from the motor transport fund and any unencumbered funds are restricted revenues and may be carried over into the succeeding fiscal year.

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

(4) Pursuant to the department of management and budget's authority under sections 213 and 215 of the management and budget act, 1984 PA 431, MCL 18.1213 and 18.1215, the department shall maintain a plan regarding the operation of the motor vehicle fleet. The plan shall include the number of vehicles assigned to, or authorized for use by, state departments and agencies, efforts to reduce vehicle expenditures, the number of cars in the motor vehicle fleet, the number of miles driven by fleet vehicles, and the number of gallons of fuel consumed by fleet vehicles. The plan shall include a calculation of the amount of state motor vehicle fuel taxes that would have been incurred by fleet vehicles if fleet vehicles were required by law to pay motor fuel taxes. The plan shall include a description of fleet garage operations, the goods sold and services provided by the fleet garage, the cost to operate the fleet garage, the number of fleet garage locations, and the number of employees assigned to each fleet garage. The plan may be adjusted during the fiscal year based on needs and cost savings to achieve the maximum value and efficiency from the state motor fleet. Within 60 days after the close of the fiscal year, the department shall provide a report to the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies detailing the current plan and changes made to the plan during the fiscal year.

(5) The department of management and budget may charge state agencies for fuel cost increases that exceed $2.27 per gallon of unleaded gasoline. Revenues received from these charges are appropriated upon receipt.

Sec. 716. The department of management and budget shall adopt policies and procedures necessary for compliance by the department, other state departments and agencies, and state vendors and subcontractors, with the requirement under subsection (1) of section 261 of the management and budget act, 1984 PA 431, MCL 181.261, to provide a purchasing preference for products manufactured or services offered by Michigan-based firms.

Sec. 717. In determining whether the purchase, contracting for, providing of supplies, materials, services, insurance, utilities, third-party financing, equipment, printing, and other items needed by state departments or agencies is in the best interests of this state, and in making all discretionary decisions concerning the solicitation, award, amendment, cancellation, or appeal of state contracts, the department of management and budget shall consider all of the following:

(a) Whether a proposal by a vendor to provide services to this state using employees, contractors, subcontractors, or other individuals who are not citizens of the United States, legal resident aliens, or individuals with a valid visa would be detrimental to the state of Michigan, its residents, or the state's economy.

(b) Whether a proposal by a vendor to provide services to this state from a location outside of this state or the United States would be detrimental to the state of Michigan, its residents, or the state's economy.

(c) Whether a proposal by a vendor to provide goods to this state produced outside of this state or the United States would be detrimental to the state of Michigan, its residents, or the state's economy.

(d) Whether the acquisition of goods or services from a vendor that is an expatriated business entity located in a tax haven country or an affiliate of an expatriated business entity located in a tax haven country would be detrimental to the state of Michigan, its residents, or the state's economy. As used in this section, "expatriated business entity" means a corporation or an affiliate of the corporation incorporated in a tax haven country after September 11, 2001, but with the United States as the principal market for the public trading of the corporation's stock, as determined by the director of the department of management and budget. "Tax haven country" means each of the following: Barbados, Bermuda, British Virgin Islands, Cayman Islands, Commonwealth of the Bahamas, Cyprus, Gibraltar, Isle of Man, the Principality of Liechtenstein, the Principality of Monaco, and the Republic of the Seychelles.

(e) Whether the provision of services to this state at a location outside of this state or the United States would be detrimental to the privacy interests of Michigan residents, or risk the disclosure of personal information of Michigan residents, such as social security, financial, or medical data.

(f) Whether a proposal by a vendor to provide services to this state from a location outside of this state or the United States would constitute undue risk under a risk management policy, practice, or procedure adopted by the department of management and budget under section 204 of the management and budget act, 1984 PA 431, MCL 18.1204.

(g) Whether a proposal by a vendor to provide goods to this state produced outside of this state or the United States would constitute undue risk under a risk management policy, practice, or procedure adopted by the department of management and budget under section 204 of the management and budget act, 1984 PA 431, MCL 18.1204.

Sec. 718. The department of management and budget shall collect from vendors information necessary to comply with the requirements of this act, as determined by the department. The department of management and budget may require vendors to provide any of the following:

(a) Information relating to the location of work performed under a state contract by the vendor and any subcontractors, employees, or other persons performing a state contract.

(b) Information regarding the corporate structure and location of corporate employees and activities of the vendor, its affiliates, or any subcontractors.

(c) Notice of the relocation of the vendor, employees of the vendor, subcontractors of the vendor, or other persons performing services under a state contract outside of the state of Michigan.

Sec. 719. The department of management and budget may require that any vendor or subcontractor providing call or contact center services to the state of Michigan disclose to inbound callers the location from which the call or contact center services are being provided.

Sec. 721. In addition to the funds appropriated in part 1, the department of management and budget may receive and expend money from the Michigan law enforcement officers memorial monument fund as provided in the Michigan law enforcement officers memorial act, 2004 PA 177, MCL 28.781 to 28.787.

Sec. 722. In addition to the funds appropriated in part 1, the department of management and budget may receive and expend money from the Ronald Wilson Reagan memorial monument fund as provided in the Ronald Wilson Reagan memorial monument fund commission act, 2004 PA 489, MCL 399.261 to 399.266.

Sec. 723. The department shall make available to the public a list of all parcels of real property owned by the state that are available for purchase. The list shall be posted on the Internet through the department's website.

STATE BUILDING AUTHORITY

Sec. 725. (1) Subject to section 242 of the management and budget act, 1984 PA 431, MCL 18.1242, and upon the approval of the state building authority, the department may expend from the general fund of the state during the fiscal year ending September 30, 2007 an amount to meet the cash flow requirements of those state building authority projects solely for lease to a state agency identified in both part 1 and this section, and for which state building authority bonds or notes have not been issued, and for the sole acquisition by the state building authority of equipment and furnishings for lease to a state agency as permitted by 1964 PA 183, MCL 830.411 to 830.425, for which the issuance of bonds or notes is authorized by a legislative concurrent resolution that is effective for the fiscal year ending September 30, 2007. Any general fund advances for which state building authority bonds have not been issued shall bear an interest cost to the state building authority at a rate not to exceed that earned by the state treasurer's common cash fund during the period in which the advances are outstanding and are repaid to the general fund of the state.

(2) Upon sale of bonds or notes for the projects identified in part 1 or for equipment as authorized by legislative concurrent resolution and in this section, the state building authority shall credit the general fund of the state an amount equal to that expended from the general fund plus interest, if any, as defined in this section.

(3) For state building authority projects for which bonds or notes have been issued and upon the request of the state building authority, the state treasurer shall make advances without interest from the general fund as necessary to meet cash flow requirements for the projects, which advances shall be reimbursed by the state building authority when the investments earmarked for the financing of the projects mature.

(4) In the event that a project identified in part 1 is terminated after final design is complete, advances made on behalf of the state building authority for the costs of final design shall be repaid to the general fund in a manner recommended by the director and approved by the JCOS.

Sec. 726. (1) State building authority funding to finance construction or renovation of a facility that collects revenue in excess of money required for the operation of that facility shall not be released to a university or community college unless the institution agrees to reimburse that excess revenue to the state building authority. The excess revenue shall be credited to the general fund to offset rent obligations associated with the retirement of bonds issued for that facility. The auditor general shall annually identify and present an audit of those facilities that are subject to this section. Costs associated with the administration of the audit shall be charged against money recovered pursuant to this section.

(2) As used in this section, "revenue" includes state appropriations, facility opening money, other state aid, indirect cost reimbursement, and other revenue generated by the activities of the facility.

Sec. 727. (1) The state building authority rent appropriations in part 1 may also be expended for the payment of required premiums for insurance on facilities owned by the state building authority or payment of costs that may be incurred as the result of any deductible provisions in such insurance policies.

(2) If the amount appropriated in part 1 for state building authority rent is not sufficient to pay the rent obligations and insurance premiums and deductibles identified in subsection (1) for state building authority projects, there is appropriated from the general fund of the state the amount necessary to pay such obligations.

Sec. 728. The department of management and budget shall provide the JCOS and the senate and house fiscal agencies a report relative to the status of construction projects associated with state building authority bonds as of September 30 of each year, on or before October 15, or not more than 30 days after a refinancing or restructuring bond issue is sold. The report shall include, but is not limited to, the following:

(a) A list of all completed construction projects for which state building authority bonds have been sold, and which bonds are currently active.

(b) A list of all projects under construction for which sale of state building authority bonds is pending.

(c) A list of all projects authorized for construction or identified in an appropriations act for which approval of schematic/preliminary plans or total authorized cost is pending that have state building authority bonds identified as a source of financing.

DEPARTMENT OF STATE

Sec. 802. All funds made available by section 3171 of the insurance code of 1956, 1956 PA 218, MCL 500.3171, are appropriated and made available to the department of state to be expended only for the uses and purposes for which the funds are received as provided by sections 3171 to 3177 of the insurance code of 1956, 1956 PA 218, MCL500.3171 to 500.3177.

Sec. 803. From the funds appropriated in part 1, the department of state shall sell copies of records including, but not limited to, records of motor vehicles, off-road vehicles, snowmobiles, watercraft, mobile homes, personal identification cardholders, drivers, and boat operators and shall charge $7.00 per record sold only as authorized in section 208b of the Michigan vehicle code, 1949 PA 300, MCL 257.208b, section 7 of 1972 PA 222, MCL 28.297, and sections 80130, 80315, 81114, and 82156 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.80130, 324.80315, 324.81114, and 324.82156. The revenue received from the sale of records shall be credited to the transportation administration collection fund created under section 810b of the Michigan vehicle code, 1949 PA 300, MCL 257.810b.

Sec. 804. From the funds appropriated in part 1, the secretary of state may enter into agreements with the department of corrections for the manufacture of vehicle registration plates 15 months before the registration year in which the registration plates will be used.

Sec. 805. (1) The department of state may accept gifts, donations, contributions, and grants of money and other property from any private or public source to underwrite, in whole or in part, the cost of a departmental publication that is prepared and disseminated under the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923. A private or public funding source may receive written recognition in the publication and may furnish a traffic safety message, subject to departmental approval, for inclusion in the publication. The department may reject a gift, donation, contribution, or grant. The department may furnish copies of a publication underwritten, in whole or in part, by a private source to the underwriter at no charge.

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

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

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

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

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

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

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

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

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

Sec. 806. Funds collected by the department of state under section 211 of the Michigan vehicle code, 1949 PA 300, MCL 257.211, are appropriated for all expenses necessary to provide for the costs of the publication. Funds are allotted for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 807. From the funds appropriated in part 1, the department of state shall use available balances at the end of the state fiscal year to provide payment to the department of state police in the amount of $321,900.00 for the services provided by the traffic accident records program as first appropriated in 1990 PA 196 and 1990 PA 208.

Sec. 808. From the funds appropriated in part 1, the department of state may restrict funds from miscellaneous revenue to cover cash shortages created from normal branch office operations. This amount shall not exceed $50,000.00 of the total funds available in miscellaneous revenue.

Sec. 809. (1) Commemorative and specialty license plate fee revenue collected by the department of state and deposited into the transportation administration collection fund is authorized for expenditure up to the amount of revenue collected but not to exceed the amount appropriated to the department of state in part 1 to administer commemorative and specialty license plate programs.

(2) Commemorative and specialty license plate fee revenue collected by the department of state and deposited in the transportation administration collection fund, in addition to the amount appropriated in part 1 to the department of state, shall remain in the transportation administration collection fund and be available for future appropriation.

Sec. 810. (1) Collector plate and fund-raising registration plate revenues collected by the department of state are appropriated and allotted for distribution to the recipient university or public or private agency overseeing a state-sponsored goal when received. Distributions shall occur on a quarterly basis or as otherwise authorized by law. Any revenues remaining at the end of the fiscal year shall not lapse to the general fund but shall remain available for distribution to the university or agency in the next fiscal year.

(2) Funds or revenues in the Olympic education training center fund are appropriated for distribution to the Olympic education training center at Northern Michigan University. Distributions shall occur on a quarterly basis. Any undistributed revenue remaining at the end of the fiscal year shall be carried over into the next fiscal year.

Sec. 811. The department of state may produce and sell copies of a training video designed to inform registered automotive repair facilities of their obligations under Michigan law. The price shall not exceed the cost of production and distribution. The money received from the sale of training videos shall revert to the department of state and be placed in the auto repair facility account.

Sec. 812. (1) The department of state, in collaboration with the gift of life transplantation society or its successor federally designated organ procurement organization, may develop and administer a public information campaign concerning the Michigan organ donor program.

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

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

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

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

(6) In addition to the appropriations in part 1, the department of state may receive and expend funds from the organ and tissue donation education fund for administrative expenses.

Sec. 815. (1) At least 60 days prior to the announcement of secretary of state branch office closings, consolidations, or relocations, the department of state shall inform members of the senate and house of representatives standing committees on appropriations and legislators who represent affected areas regarding the details of the proposal. The information provided shall be in written form and include all analysis done regarding criteria for changes in the location of branch offices, including, but not limited to, branch transactions, revenue, and the impact on citizens of the affected area. The impact on citizens shall include information regarding additional distance to branch office locations resulting from the plan. The written notice provided by the department of state shall also include detailed estimates of costs and savings that will result from the overall changes made to the branch office structure.

(2) Prior to October 4, 2006, the department of state shall provide a report to the senate and house of representatives standing committees on appropriations subcommittees on general government regarding the department's branch optimization plan that was announced on April 26, 2004. The report shall include a listing of all closed offices detailing savings by office, including lease, utilities, and all other savings associated with the closed office. The department shall provide the same level of detail regarding costs for new leased facilities and expansions of current leased space.

Sec. 815a. By December 15, the department of state shall report to the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies the number of branch office transactions completed online by Michigan residents in the immediately preceding fiscal year.

Sec. 816. (1) Any service assessment collected by the department of state from the user of a credit or debit card under section 3 of 1995 PA 144, MCL 11.23, is appropriated to the department for necessary expenses related to that service and may be remitted to a credit or debit card company, bank, or other financial institution. Funds are allocated for expenditure when they are received by the department of treasury.

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

(3) If there is a balance of service assessments received from credit and debit card services remaining on September30, the balance may be carried forward to the following fiscal year and appropriated for the same purpose.

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

Sec. 818. (1) Funds in part 1 for motorcycle safety education grants and administration are appropriated to the department of state for operation of the motorcycle safety education program previously operated by the department of education under section 811a of the Michigan vehicle code, 1949 PA 300, MCL 257.811a.

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

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

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

Sec. 819. (1) From the funds appropriated in part 1 to the department of state for information technology services and projects, there is appropriated $4,550,000.00 for the business application modernization project. Funds shall only be used for the development, implementation, and maintenance of the business application modernization project.

Sec. 821. From the funds appropriated in part 1, the department of state shall complete a cost/benefit analysis regarding the feasibility of locating the Keweenaw County secretary of state branch office with the Keweenaw County department of human services office. The analysis shall include, but not be limited to, lease costs, building occupancy costs, property management costs, utilities, parking, distance between branch offices and issues related to the overall convenience for the citizens of Michigan. No later than December 1, 2006, the analysis shall be delivered to the members of the senate and house standing committees on appropriations subcommittees on general government and the house and senate fiscal agencies.

DEPARTMENT OF TREASURY

OPERATIONS

Sec. 902. (1) Amounts needed to pay for interest, fees, principal, arbitrage rebates as required by federal law, and costs associated with the payment, registration, trustee services, credit enhancements, and issuing costs in excess of the amount appropriated to the department of treasury in part 1 for debt service on notes and bonds that are issued by the state under sections 14, 15, and 16 of article IX of the state constitution of 1963 as implemented by 1967 PA 266, MCL 17.451 to 17.455, are appropriated.

(2) In addition to the amount appropriated to the department of treasury for debt service in part 1, there is appropriated an amount for fiscal year cash-flow borrowing costs to pay for interest on interfund borrowing made under 1967 PA55, MCL 12.51 to 12.53.

Sec. 903. (1) From the funds appropriated in part 1, the department of treasury may contract with private collection agencies and law firms to collect taxes and other accounts due this state. In addition to the amounts appropriated in part 1 to the department of treasury, there are appropriated amounts necessary to fund collection costs and fees not to exceed 25% of the collections or 2.5% plus operating costs, whichever amount is prescribed by the contract. The appropriation to fund collection costs and fees for the collection of taxes or other accounts due this state are from the fund or account to which the revenues being collected are recorded or dedicated. However, if the taxes collected are constitutionally dedicated for a specific purpose, the appropriation of collection costs and fees are from the general purpose account of the general fund.

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

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

Sec. 904. (1) The department of treasury, through its bureau of investments, may charge an investment service fee against the applicable retirement funds. The fees may be expended for necessary salaries, wages, contractual services, supplies, materials, equipment, travel, worker's compensation insurance premiums, and grants to the civil service commission and state employees' retirement funds. Service fees shall not exceed the aggregate amount appropriated in part 1. The department of treasury shall maintain accounting records in sufficient detail to enable the retirement funds to be reimbursed periodically for fee revenue that is determined by the department of treasury to be surplus.

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

Sec. 904a. (1) There is appropriated an amount sufficient to recognize and pay expenditures for financial services provided by financial institutions as provided under section 1 of 1861 PA 111, MCL 21.181.

(2) The appropriations under subsection (1) shall be funded by restricting revenues from common cash interest earnings and investment earnings in an amount sufficient to record these expenditures.

Sec. 905. (1) The department of treasury shall sell copies of the state tax manual, uniform accounting procedures manual, general property tax law manual, and other local government assistance manuals with amendments, at a price not to exceed the cost of production. The revenue received from the sale of preparation and local government assistance manuals shall revert to the department of treasury and be placed in the local government assistance manual revolving fund.

(2) In addition to the funds appropriated in part 1, revenue received from the sale of those manuals is appropriated.

Sec. 906. (1) The department of treasury shall charge for audits as permitted by state or federal law or under contractual arrangements with local units of government, other principal executive departments, or state agencies. A report detailing audits performed and audit charges for the immediately preceding fiscal year shall be submitted to the state budget director and the senate and house fiscal agencies not later than November 30.

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

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

Sec. 907. A revolving fund known as the assessor certification and training fund is created in the department of treasury. The assessor certification and training fund shall be used to organize and operate a property assessor certification and training program. Each participant certified and trained shall pay to the department of treasury an examination fee of $50.00, an initial certification fee of $50.00, an annual renewal fee of $75.00 for levels 1 and 2, and $125.00 for levels 3 and 4 to offset the cost of administering the certification and training program. Training courses shall be offered in assessment administration. Each participant shall pay a fee to cover the expenses incurred in offering the optional programs to certified assessing personnel and other individuals interested in an assessment career opportunity. The fees collected shall be credited to the assessor certification and training fund.

Sec. 908. The amount appropriated in part 1 to the department of treasury, home heating assistance program, is to cover the costs, including data processing, of administering federal home heating credits to eligible claimants and to administer the supplemental fuel cost payment program for eligible tax credit and welfare recipients.

Sec. 909. Revenue from the airport parking tax act, 1987 PA 248, MCL 207.371 to 207.383, is appropriated and shall be distributed under section 7a of the airport parking tax act, 1987 PA 248, MCL 207.377a.

Sec. 910. The disbursement by the department of treasury from the bottle deposit fund to dealers as required by section 3c(2) of the Initiated Law of 1976, MCL 445.573c, is appropriated.

Sec. 911. (1) There is appropriated an amount sufficient to recognize and pay refundable income tax credits as provided by the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

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

Sec. 912. A plaintiff in a garnishment action involving this state shall pay to the state treasurer 1 of the following:

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

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

Sec. 913. (1) The department of treasury may contract with private firms to appraise and, if necessary, appeal the assessments of senior citizen cooperative housing units. Payment for this service shall be from savings resulting from the appraisal or appeal process.

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

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

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

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

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

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

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

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

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

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

Sec. 921. The state general fund/general purpose appropriation in part 1 for renaissance zone reimbursement is allocated to reimburse public libraries as provided by section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692, for property taxes levied in 2006. Reimbursements shall be made in amounts to each eligible recipient not later than 60 days after the department of treasury has received all necessary information to properly determine the amounts due each eligible recipient under section 12(4) of the Michigan renaissance zone act, 1996 PA 376, MCL125.2692. Any excess allocations shall lapse to the general fund.

Sec. 922. The department of treasury shall submit a report for the immediately preceding fiscal year ending September 30 to the senate and house of representatives standing committees on appropriations subcommittees on general government, the senate and house fiscal agencies, and the state budget director by November 30 stating the amount of Michigan transportation fund revenue collected and the cost of collection.

Sec. 924. (1) In addition to the funds appropriated in part 1, the department of treasury may receive and expend principal residence audit fund revenue for administration of principal residence audits under the general property tax act, 1893 PA 206, MCL 211.1 to 211.157.

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

Sec. 928. The department of treasury may provide receipt, warrant and cash processing, data, collection, investment, fiscal agent, levy and warrant cost assessment, writ of garnishment, and other user services on a contractual basis for other principal executive departments and state agencies. Funds for the services provided are appropriated and shall be expended for salaries and wages, fees, supplies, and equipment necessary to provide the services. Any unobligated balance of the funds received shall revert to the general fund of this state as of September 30.

Sec. 929. The department of treasury may enter into agreements to supply data or collection services to other executive principal departments or state agencies, the United States department of treasury, or local units of government within this state. The department of treasury shall charge for this tax data service and amounts received are appropriated and shall be expended for salaries and wages, fees, supplies, and equipment necessary to provide the service. Any unobligated balance of the fund shall revert to the general fund of this state as of September 30.

Sec. 930. (1) The department of treasury shall provide accounts receivable collections services to other principal executive departments and state agencies under 1927 PA 375, MCL 14.131 to 14.134. The department of treasury shall deduct a fee equal to the cost of collections from all receipts except unrestricted general fund collections. Fees shall be credited to a restricted revenue account and appropriated to the department of treasury to pay for the cost of collections. The department of treasury shall maintain accounting records in sufficient detail to enable the respective accounts to be reimbursed periodically for fees deducted that are determined by the department of treasury to be surplus to the actual cost of collections.

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

Sec. 931. (1) The appropriation in part 1 to the department of treasury for treasury fees shall be assessed against all restricted funds that receive common cash earnings. Treasury fees include all costs, including administrative overhead, relating to the investment of each restricted fund. The fee assessed against each restricted fund will be based on the size of the restricted fund (the absolute value of the average daily cash balance plus the market value of investments in the prior fiscal year) and the level of effort necessary to maintain the restricted fund as required by each department. The department of treasury shall provide a report to the state budget director, the senate and house of representatives standing committees on appropriations subcommittees on general government, and the senate and house fiscal agencies by November 30 of each year identifying the fees assessed against each restricted fund.

(2) In addition to the funds appropriated in part 1, the department of treasury may receive and expend investment fees relating to new restricted funding sources that participate in common cash earnings during the current fiscal year. When a new restricted fund is created starting on or after October 1, that restricted fund shall be assessed a fee using the same criteria identified in subsection (1).

Sec. 932. Revenue received under the Michigan education trust act, 1986 PA 316, MCL 390.1421 to 390.1442, may be expended by the board of directors of the Michigan education trust for necessary salaries, wages, supplies, contractual services, equipment, worker's compensation insurance premiums, and grants to the civil service commission and state employees' retirement fund.

Sec. 933. (1) The $1,000,000.00 appropriated in part 1 for the Michigan education savings program is from the Michigan merit award trust fund to fund an incentive program for the Michigan education savings program created under the Michigan education savings program act, 2000 PA 161, MCL 390.1471 to 390.1486.

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

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

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

Sec. 934. The department of treasury may expend revenues received under the hospital finance authority act, 1969 PA 38, MCL 331.31 to 331.84, for necessary salaries, wages, supplies, contractual services, equipment, worker's compensation insurance premiums, and grants to the civil service commission and state employees' retirement fund. The department of treasury shall maintain accounting records in sufficient detail to enable the hospital clients to be reimbursed periodically for fees that are determined by the department of treasury to be surplus to needs.

Sec. 935. The department of treasury may expend revenue received under the shared credit rating act, 1985 PA 227, MCL 141.1051 to 141.1076, for necessary salaries, wages, supplies, contractual services, equipment, worker's compensation insurance premiums, and grants to the civil service commission and state employees' retirement fund.

Sec. 936. The department of treasury shall establish a separate account for the funds related to the Michigan higher education facilities authority. The department of treasury may expend revenue received under the higher education facilities authority act, 1969 PA 295, MCL 390.921 to 390.934, for necessary salaries, wages, supplies, contractual services, equipment, worker's compensation insurance premiums, and grants to the civil service commission and state employees' retirement fund. The department of treasury shall maintain accounting records in sufficient detail to enable the educational institution clients to be reimbursed periodically for fees that are determined by the department to be surplus to needs.

Sec. 937. The department of treasury may expend revenues received under the Michigan public educational facilities authority, Executive Order No. 2002-3, for necessary salaries, wages, supplies, contractual services, equipment, worker's compensation insurance premiums, and grants to the civil service commission and state employees' retirement fund.

Sec. 939. It is the intent of the legislature that the state treasurer, acting within his or her capacity as the investment fiduciary for public employee pension funds and consistent with 1965 PA 314, MCL 38.1132 to 38.1140m, give appropriate consideration to investments in early stage, university derived life science companies located in Michigan, or investments in venture capital funds that invest in those companies to the extent those investments offer the safety and rate of return comparable to other investments permitted and available at the time the investment decision is made.

Sec. 941. In addition to the funds appropriated in part 1, there is appropriated up to $570,000.00 from standardized audit schedules recovered delinquent tax collection revenues for the support of standardized audit schedule project expenses. The funding shall be used to exclusively support business tax audits related to sales tax, use tax, withholding, single business tax, and motor fuel tax obligations. Any unexpended funds at the end of the fiscal year shall lapse to the general fund.

Sec. 943. The department of treasury shall not include complete social security numbers in form 1099-G mailings to taxpayers.

Sec. 945. The assessment and certification division of the department of treasury may conduct a review of local unit assessment administration practices, procedures, and records, also known as the 14-point review, in at least 1 assessment jurisdiction per county.

Sec. 946. Members of the state tax commission and management level staff of the assessment and certification division may meet with statewide assessment organizations on a quarterly basis for the purpose of coordinating assessment and training activities. Recertification and training activities may be conducted at regional locations chosen to maximize participation of local officials.

Sec. 947. (1) Of the $5,856,800.00 included in part 1 for the revenue enhancement program, $5,356,800.00 shall be used for revenue collection enhancement activities including auditing functions.

(2) The department of treasury shall submit quarterly progress reports to the senate and house of representatives standing appropriation committees subcommittees on general government and the senate and house fiscal agencies, regarding personal property tax audits funded under subsection (1). The report shall include the number of audits, revenue generated, and number of complaints received by the department related to the audits.

(3) The $500,000.00 balance of the $5,856,800.00 shall be used for the principal residence exemption compliance program. Along with other program costs, expenditures shall include the development of a statewide web-based database created for the purpose of enforcing the principal residence exemption compliance program. The department shall submit quarterly progress reports that include the number of exemptions denied and the revenue received under this program. The legislative auditor general shall complete a performance audit of the principal residence exemption compliance program prior to April 1, 2007. Revenue generated to the state from the principal residence exemption compliance program shall be used to reimburse the state general fund for the $500,000.00 appropriation prior to any other allocation. Additional funds from the revenue enhancement program and carryforward appropriations may be used to support costs in excess of $500,000.00.

(4) Unexpended appropriations of the revenue enhancement program are designated as work project appropriations and shall not lapse at the end of the fiscal year and shall continue to be available for expenditure until the project has been completed. The 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 enhance revenue collection activities.

(b) The project will be accomplished by contract.

(d) The tentative completion date is September 30, 2009.

Sec. 948. By December 15, the department of treasury shall report to the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies the number of tax returns, to include state income tax returns and single business tax returns, filed online by Michigan residents in the immediately preceding fiscal year.

Sec. 949. The department of treasury shall develop a plan for individual income tax form check-off initiatives. The plan shall be implemented beginning with the 2006 tax year. The plan shall include a process for determining the legal and operational feasibility of each proposed income tax form checkoff. The department shall submit the plan to the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies by October 31, 2006.

Sec. 949b. From the funds appropriated in part 1, the state treasurer shall develop a cost allocation plan to identify the actual costs of work based on time and effort performed by the department of treasury for state restricted transportation funds. The cost allocation plan shall specifically identify the costs of collecting constitutionally restricted motor fuel taxes. The cost allocation plan shall be submitted to the senate and house of representatives standing committees on appropriations subcommittees on general government, the senate and house fiscal agencies, the auditor general, and the state budget director by November 1. The cost allocation plan shall be subject to audit by the auditor general.

REVENUE SHARING

Sec. 950. (1) Revenue collected in accordance with section 10 of article IX of the state constitution of 1963 in excess of the amount appropriated in part 1 for constitutional revenue sharing is appropriated for distribution to townships, cities, and villages on a population basis as specified by law. The appropriation in part 1 for statutory state general revenue sharing grants to townships, cities, and villages shall be reduced by an amount equal to any additional constitutional revenue sharing appropriations authorized in this section.

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

Sec. 952. The appropriation in part 1 for special grants to cities shall be used to restore revenue sharing reductions contained in Executive Order No. 2003-23 to a city that had an emergency financial manager appointed pursuant to the local government fiscal responsibility act, 1990 PA 72, MCL 141.1201 to 141.1291, continuously from December 10, 2003 through September 30, 2007.

Sec. 955. (1) There is appropriated to each county an amount equal to the amount distributed to each county for the fiscal year ending September 30, 2004, pursuant to the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921, adjusted by the inflation rate as defined in section 34d of the general property tax act, 1893 PA 206, MCL 211.34d, and reduced by the amount each county is authorized to annually expend in that county's fiscal year beginning after September 30, 2004, from its revenue sharing reserve fund pursuant to section 44a of the general property tax act, 1893 PA 206, MCL 211.44a.

(2) The department of treasury shall annually certify to the state budget director the amount each county is authorized to expend from its revenue sharing reserve fund.

Sec. 956. The department of treasury shall transmit special census revenue sharing payments to eligible cities, villages, and townships under the Glenn Steil revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921.

LOTTERY

Sec. 960. In addition to the funds appropriated in part 1 to the bureau of state lottery, there is appropriated from lottery revenues the amount necessary for, and directly related to, implementing and operating lottery games. Appropriations under this section shall only be expended for contractually mandated payments for vendor commissions, contractually mandated payments for instant tickets intended for resale, the contractual costs of providing and maintaining the on-line system communications network, and incentive and bonus payments to lottery retailers.

Sec. 961. The funds appropriated in part 1 to the bureau of state lottery shall not be used for any promotional efforts directed towards individuals who are less than 18 years of age.

Sec. 962. (1) The funds appropriated in part 1 to the bureau of state lottery shall not be used to directly or indirectly associate professional or amateur sports figures with the lottery or its products.

(2) The prohibition in subsection (1) does not apply to the use of NASCAR drivers in conjunction with the promotion of instant ticket products. By November 1, 2006, the bureau of state lottery shall provide a report detailing the amount of revenue generated under this subsection to the senate and house of representatives standing committees on appropriations subcommittees on general government. The report shall include the cost of obtaining the use of NASCAR drivers, other administrative costs, and net revenue deposited in the state school aid fund.

Sec. 963. The bureau of state lottery shall inform all lottery retailers that the cash side of department of human services bridge cards cannot be used to purchase lottery tickets.

CASINO GAMING

Sec. 971. From the revenue collected by the Michigan gaming control board regarding the total annual assessment of each casino licensee, $2,000,000.00 is appropriated and shall be deposited in the compulsive gaming prevention fund as described in section 12a(5) of the Michigan gaming control and revenue act, the Initiated Law of 1996, MCL432.212a.

Sec. 972. In addition to the funds appropriated in part 1, funds distributed by the Michigan gaming control board to the department of treasury for oversight of casino gaming are appropriated upon receipt. These funds may be used to pay for costs incurred for casino gaming oversight activities.

Sec. 973. (1) Funds appropriated in part 1 for local government programs may be used to provide assistance to a local revenue sharing board referenced in an agreement authorized by the Indian gaming regulatory act, Public Law100-497, 102 Stat. 2467.

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

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

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

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

Sec. 974. If revenues collected in the state services fee fund are less than the amounts appropriated from the fund, available revenues shall be used to fully fund the appropriation in part 1 for casino gaming regulation activities before distributions are made to other state departments and agencies. If the remaining revenue in the fund is insufficient to fully fund appropriations to other state departments or agencies, the shortfall shall be distributed proportionally among those departments and agencies.

REVENUE STATEMENT

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

BUDGET RECOMMENDATIONS BY OPERATING FUNDS

(Amounts in millions)

Fiscal Year 2006-2007

Beginning
Fund Unreserved
Fund Estimated Ending
Balance Revenue Balance

OPERATING FUNDS

General fund/general purpose 0110 136.7 9,020.4 0.0

General fund/special purpose 478.7 15,297.5 662.7

Special Revenue Funds:

Countercyclical budget and economic stabilization 0111 2.0 0.1 2.1

Game and fish protection 0112 18.9 63.2 4.0

Michigan employment security act administration 0113 0.0 123.4 4.1

State aeronautics 0114 1.4 182.3 0.0

Michigan veterans' benefit trust 0115 0.0 4.9 0.0

State trunkline 0116 0.0 1,200.1 0.0

Michigan state waterways 0117 14.9 25.5 7.6

Blue Water Bridge 0118 0.0 16.3 0.0

Michigan transportation 0119 0.0 2,080.2 0.0

Comprehensive transportation 0120 4.0 158.8 0.0

School aid 0122 93.8 13,022.9 0.0

Marine safety 0123 1.0 5.0 0.0

Game and fish protection trust 0124 6.0 12.0 6.0

State park improvement 0125 3.6 41.5 0.0

Forest development 0126 11.7 30.3 4.1

Michigan civilian conservation corps endowment 0128 0.3 6.0 0.0

Michigan natural resources trust 0129 34.1 54.7 30.8

Michigan state parks endowment 0130 10.9 16.2 7.8

Safety education and training 0131 4.9 7.1 2.6

Bottle deposit 0136 0.0 18.5 0.0

State construction code 0138 5.7 10.2 0.0

Children's trust 0139 1.3 3.3 2.3

State casino gaming 0140 16.2 32.0 1.2

Homeowner construction lien recovery 0141 4.4 1.6 2.8

Michigan nongame fish and wildlife 0143 0.3 0.5 0.0

Michigan merit award trust 0154 9.5 286.6 0.0

TOTALS $860.3 $41,721.1 $738.1

ARTICLE 9

HISTORY, ARTS, AND LIBRARIES

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this article, the amounts listed in this part are appropriated for the department of history, arts, and libraries for the fiscal year ending September 30, 2007, from the funds indicated in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF HISTORY, ARTS, AND LIBRARIES

APPROPRIATION SUMMARY:

Full-time equated unclassified positions 6.0

Full-time equated classified positions 232.0

GROSS APPROPRIATION $ 54,863,700

Total interdepartmental grants and intradepartmental transfers 79,000

ADJUSTED GROSS APPROPRIATION $ 54,784,700

Total federal revenues 8,450,900

Total local revenues 0

Total private revenues 577,400

Total other state restricted revenues 2,581,200

State general fund/general purpose $ 43,175,200

Sec. 102. DEPARTMENT OPERATIONS (THRIVING ECONOMY)

Full-time equated unclassified positions 6.0

Full-time equated classified positions 30.0

Unclassified salaries $ 222,300

Management services--29.0 FTE positions 2,090,600

Building occupancy charges and rent 3,180,100

Worker's compensation 14,000

Office of film and television services--1.0 FTE position 175,000

Human resources optimization user charges 16,100

GROSS APPROPRIATION $ 5,698,100

Appropriated from:

State general fund/general purpose $ 5,698,100

Sec. 103. INFORMATION TECHNOLOGY (THRIVING ECONOMY)

Information technology services and projects $ 953,100

GROSS APPROPRIATION $ 953,100

Appropriated from:

Interdepartmental grant revenues:

Special revenue funds:

Mackinac Island state park fund 46,900

State general fund/general purpose $ 906,200

Sec. 104. MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS

(THRIVING ECONOMY)

Full-time equated classified positions 9.0

Administration--9.0 FTE positions $ 726,600

Arts and cultural grants 10,144,300

GROSS APPROPRIATION $ 10,870,900

Appropriated from:

Federal revenues:

NFAH-NEA, promotion of the arts, partnership agreements 700,000

State general fund/general purpose $ 10,170,900

Sec. 105. MACKINAC ISLAND STATE PARK COMMISSION (THRIVING

ECONOMY)

Full-time equated classified positions 39.0

Mackinac Island park operation--24.3 FTE positions $ 1,489,000

Historical facilities system--14.7 FTE positions 1,928,600

GROSS APPROPRIATION $ 3,417,600

Appropriated from:

Interdepartmental grant revenues:

Federal revenues:

Federal funds 200,000

Special revenue funds:

Mackinac Island state park fund 1,521,200

Mackinac Island state park operation fund 154,500

State general fund/general purpose $ 1,541,900

Sec. 106. MICHIGAN HISTORICAL PROGRAM (THRIVING ECONOMY)

Full-time equated classified positions 83.0

Federal programs--12.0 FTE positions $ 1,993,500

Heritage publications 700,000

Historical administration and services--71.0 FTE positions 5,269,500

Private grants and gifts 502,400

Thunder Bay national marine sanctuary and underwater preserve 197,500

GROSS APPROPRIATION $ 8,662,900

Appropriated from:

Interdepartmental grant revenues:

IDG-MDOT, comprehensive transportation fund 3,400

IDG-MDOT, state aeronautics fund 2,100

IDG-MDOT, state trunkline fund 73,500

Federal revenues:

DOI-NPS, historic preservation grants-in-aid 1,419,000

Federal funds 574,500

Special revenue funds:

Private - grants and gifts 400,000

Private - Mann house trust fund 102,400

Game and fish protection fund 2,400

Heritage publication fund 700,000

Marine safety fund 500

Special revenue, internal service and pension trust 49,400

State lottery fund 18,800

Waterways fund 600

State general fund/general purpose $ 5,316,300

Sec. 107. LIBRARY OF MICHIGAN (THRIVING ECONOMY)

Full-time equated classified positions 71.0

Book distribution centers $ 350,000

Collected gifts and fees 161,900

Library of Michigan operations--71.0 FTE positions 6,543,800

Library services and technology act 5,557,400

State aid to libraries 12,143,000

Subregional state aid 505,000

GROSS APPROPRIATION $ 25,261,100

Appropriated from:

Federal revenues:

Library services and technology act 5,557,400

Special revenue funds:

Private - gifts and bequests revenues 75,000

User fees 86,900

State general fund/general purpose $ 19,541,800

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 2006-2007 is $45,756,400.00 and state spending from state resources to be paid to local units of government for fiscal year 2006-2007 is $14,058,900.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:

DEPARTMENT OF HISTORY, ARTS, AND LIBRARIES

Arts and cultural grants $ 1,410,900

State aid to libraries 12,143,000

Subregional state aid 505,000

Total department of history, arts, and libraries $ 14,058,900

Sec. 202. The appropriations authorized under this article are subject to the management and budget act, 1984 PA431, MCL 18.1101 to 18.1594.

Sec. 203. As used in this appropriation article:

(a) "Department" means the department of history, arts, and libraries.

(b) "Director" means the director of the department of history, arts, and libraries.

(d) "Fiscal agencies" means the house fiscal agency and the senate fiscal agency.

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

(f) "IDG" means interdepartmental grant.

(g) "MCACA" means the Michigan council for arts and cultural affairs.

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

(i) "NEA" means the national endowment for the arts.

(j) "NFAH" means the national foundation of the arts and the humanities.

(k) "Subcommittees" means all members of the appropriate subcommittees of the senate and house of representatives appropriations committees.

Sec. 204. The department of civil service shall bill the 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. 207. At least 60 days before beginning any effort to privatize, the department shall submit a complete project plan to the subcommittees and the fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the fiscal agencies and to the subcommittees within 30 months.

Sec. 208. Unless otherwise specified, the department shall use the Internet to fulfill the reporting requirements of this article. This requirement may include transmission of reports via electronic mail to the recipients identified for each reporting requirement, or it may include placement of reports on an Internet or Intranet site.

Sec. 211. The department shall establish and maintain affirmative action programs based on guidelines developed by the state equal opportunity workforce planning council which was created by Executive Order No. 1996-13 in order to receive general fund/general purpose dollars.

Sec. 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. The user fees shall be subject to provisions of an interagency agreement between the departments and agencies and the department of information technology.

Sec. 215. (1) The department may provide and enter into agreements to provide general services, training, meetings, information, special equipment, software, and facility use, and technical consulting services to other principal executive departments, state agencies, local units of government, the judicial branch of government, other organizations, and patrons of department facilities. Fees for services shall be reasonably related to the cost of providing the services and shall be used to offset the costs of the services. The department may receive and expend funds in addition to those authorized in part 1 for the following:

(a) Supplying census-related information and technical services, publications, statistical studies, population projections and estimates, and other demographic products.

(b) Microfilming and other document and data imaging services, media, storage, and copies.

(d) Conferences, training classes, exhibits, programs, and workshops conducted as part of the department's mission.

(e) Use of specialized equipment, facilities, and software that permit distance learning and meetings, and group decision making.

(f) Special services including the rental of department exhibits and collections.

(g) Application fees.

(h) Grants, gifts, and bequests, including those for capital projects.

(2) The funds received under this section shall be deposited in and expended from the history, arts, and libraries fund established in section 216 of this article.

Sec. 216. (1) A fund known as the history, arts, and libraries fund is created in the department. The fund shall be used to receive and expend funds in addition to those authorized in part 1. The fund balance may be carried forward for expenditure in subsequent fiscal years.

(2) The department shall provide a report to the senate and house of representatives appropriations subcommittees on history, arts, and libraries of all revenues to and expenditures from the history, arts, and libraries fund. The report shall include an estimated fund balance for the fiscal year ending September 30, 2007. The report is due November 1, 2007.

(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.

(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 appropriations committees, the fiscal agencies, and the state budget director. The report shall include the following information:

(a) The name of each person receiving reimbursement for travel outside this state or whose travel costs were paid by this state.

(b) The destination of each travel occurrence.

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

(f) A total of all out-of-state travel funded for the immediately preceding fiscal year.

Sec. 218. It is the intent of the legislature to explore supplemental fund sourcing options for the department of history, arts, and libraries.

Sec. 219. The department shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

Sec. 220. The department shall publish the proposed minutes of the Michigan film advisory commission on the Internet within 8 business days after the meeting to which the minutes refer. Approved minutes of the Michigan film advisory commission shall be posted on the Internet within 8 business days after their approval.

Sec. 221. It is the intent of the legislature to explore the costs and the benefits associated with strategically marketing this state's unique geographic and demographic filming locations through satellite film offices.

MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS

Sec. 401. (1) The MCACA in the department shall administer the arts and cultural grants appropriated in part 1.

(2) The MCACA shall render fair and independent decisions concerning arts and cultural grant requests and shall do all of the following:

(a) Use published criteria to evaluate program quality, including all of the following:

(i) The department's intended goals and outcomes for each program.

(ii) The department's quantifiable measures of success in meeting the intended goals and outcomes.

(b) Seek to award grants on an equitable geographic basis to the extent possible given the quality of grant applications received.

(c) Give priority to projects that serve multiple counties, leverage significant additional public and private investment, or demonstrate a significant potential to increase tourism or attract or retain businesses or residents.

(3) The MCACA shall not award a grant unless the proposed grant recipient agrees to both of the following:

(a) The grant will not be used to fund a project or activity that includes a display of human waste on religious symbols, a display of a sex act, or a depiction of flag desecration.

(b) Grant funding will not be used to create or promote a specific work that includes a display or depiction for which funding is prohibited under subdivision (a).

(4) The MCACA shall provide for fair, equitable, and efficient distribution of funds granted through the regional regranting program. The MCACA shall provide for an annual assessment of grant management and distribution of mini-grant awards by designated regional regranting agencies and review the methodology employed.

(5) The MCACA shall continue and expand its efforts to encourage and support nonprofit arts and cultural organizations to transition from solely volunteer-based organizations to professionally directed operations. Criteria for support include the requirement of collaboration between these organizations and other community organizations.

(6) The department shall withhold undistributed grant payments from a grant recipient who violates the terms of the agreement required under subsection (3) and may disqualify the grant recipient from award of future grants for a period of not more than 3 years.

Sec. 402. The MCACA may award grants to counties, cities, villages, townships, community foundations and organizations in the following categories:

(a) Anchor organization program for organizations that serve regional and statewide audiences. Anchor organizations shall demonstrate a commitment to education, to mentoring smaller organizations, and to reaching underserved audiences.

(b) Arts projects program.

(d) Artists in residence for education program.

(e) Arts organization development program.

(f) Capital improvement program.

(g) Local arts agencies services program.

(h) Regional regranting program.

(i) Partnership program.

(j) Rural arts and cultural program.

(k) Cultural projects program.

(l) Historical projects program.

(m) Discretionary grants program.

(n) Cultural and ethnic heritage centers and museums.

Sec. 403. (1) From the state funds appropriated in part 1 for arts and cultural grants, no one organization may receive more than 16% of this funding. It is the intent of the legislature that this percentage be reduced to 15% in fiscal year 2008.

(2) The MCACA shall make every effort to provide total grant awards in the anchor organization program at a level not to exceed 70% of the total amount appropriated for arts and cultural grants.

(3) As documented in the audit report that is submitted as part of the grant application process, the total of all grants awarded to any organization receiving grants within the anchor organization program may not exceed 15% of their "total unrestricted revenues, gains, and other support", as defined by the financial accounting standards board in the accounting standards for not-for-profit organizations or equivalent accounting standards for other types of eligible organizations.

(4) Before any amount appropriated for arts and cultural grants in part 1 may be expended for a grant to an eligible recipient, the department shall execute a grant agreement with the recipient. The grant agreement shall identify the projects funded, specify the category in section 402 under which the grant is awarded, and include the prohibitions and sanctions identified in section 401(3) and (6).

Sec. 404. Grant applicants must meet and adhere to the following requirements:

(a) Each applicant shall pay a nonrefundable application fee of $300.00 or 3% of the desired grant amount, whichever is less. Application fees shall be deposited in the history, arts, and libraries fund established in section 216. The department may use the application fee to offset its direct and indirect costs.

(b) An applicant for a grant under the anchor organization program shall submit with the application the applicant's most recent annual audit report which states their "total unrestricted revenues, gains, and other support", as defined by the financial accounting standards board in the accounting standards for not-for-profit organizations or equivalent accounting standards for other types of eligible organizations. The audit report must cover an audit period that ends within 18 months of the date of the application.

(c) Each applicant shall identify proposed matching funds from local and/or private sources on a dollar-for-dollar basis. The dollar-for-dollar match may include the reasonable value of services, materials, and equipment as allowed under the federal internal revenue code for charitable contributions.

Sec. 405. Each grant recipient shall provide the MCACA with the following:

(a) Proof of the entire amount of the matching funds, services, materials, or equipment by the end of the award period.

(b) Within 30 days following the end of the grant period, a final report that includes the following:

(i) Project revenues and expenditures including grant matching fund amounts.

(ii) Number of patrons attracted or benefiting during the grant period.

(iii) A narrative summary of each project and its outcome, including all of the following:

(A) How the project supported achieving the department's intended goals and outcomes for each program.

(B) How the project met the quantifiable measures of success in meeting the goals and outcomes.

(c) By April 7 of the grant year, each recipient of a grant greater than $100,000.00 shall submit an interim report that includes the items identified in subdivision (b).

Sec. 406. (1) The department shall make the following reports:

(a) A report identifying the website location that contains a list of all grant recipients, sorted by county. This report shall be provided to each legislator within 1 business day of the announcement of annual awards by the MCACA.

(b) A report to the senate and house of representatives appropriations subcommittees, the state budget office, and the fiscal agencies, within 30 days after the MCACA announces the annual grant awards, that includes all of the following:

(i) A listing of each applicant.

(ii) The county of residence of the applicant.

(iii) The amount requested.

(iv) The amount awarded.

(v) The grant category under which an applicant applied.

(vi) A summary of projects funded for each recipient.

(vii) The expected number of patrons for an applicant during the grant period.

(viii) The amount of matching funds proposed by each applicant.

(ix) A listing containing the applicant, county of residence of the applicant, and amount awarded for any regranted funds in the preceding fiscal year.

(c) An annual report to the appropriations subcommittees, the state budget office, and the fiscal agencies is due when materials are first distributed by the MCACA seeking grant applications for the subsequent fiscal year. The report shall contain the following:

(i) The MCACA guidelines for awarding grants, including the intended program goals and outcomes and quantifiable measures of success in meeting the goals and outcomes.

(ii) A summary of any changes in the program guidelines from the previous fiscal year.

(d) An annual report to the appropriations subcommittees, the state budget office, and the fiscal agencies on the success in meeting program goals and outcomes for the preceding fiscal year. The report is due by February 1 and shall contain all of the following:

(i) The MCACA intended program goals and outcomes.

(ii) A summary by program of performance according to the established quantifiable measures of success for meeting intended goals and outcomes.

(iii) The reasons why outcomes or goals were not met.

(iv) The plans for better achieving the outcomes and goals in the future.

(2) The council shall report to the chairpersons of the senate and house of representatives appropriations subcommittees on history, arts, and libraries by August 1 all unexpended or unencumbered discretionary grant funding that is available. The council shall not redistribute any unexpended or unencumbered grant funds during the fiscal year without a 10-day notice to the chairpersons of the senate and house of representatives appropriations subcommittees on history, arts, and libraries.

Sec. 407. It is the intent of the legislature to amend the income tax act of 1967, MCL 206.1 to 206.532, to create a designation on the Michigan income tax form for contributions to the Michigan council for arts and cultural affairs grant program.

Sec. 408. From the funds appropriated in section 104, arts and cultural grants, the department may assign priority funding to cultural and ethnic heritage centers and museums whose primary mission is to present, preserve, and promote the culture and heritage of distinct ethnic and racial groups and to educate the public regarding their contributions in a manner that fosters tolerance and understanding of diversity among Michigan citizens. These organizations must meet all other application eligibility criteria and requirements to be considered for an MCACA grant award. Applications for these grants for fiscal year 2007 may be accepted by the department until November 30, 2006.

MICHIGAN HISTORICAL PROGRAM

Sec. 501. The federal funds appropriated in part 1 for the historic site preservation grants are for work projects and shall not lapse at the end of the fiscal year but shall continue to be available for expenditure until the projects for which the funds were reserved have been completed or are terminated. The purpose of these work projects is the identification, designation, and preservation of historic resources. The method used will be to solicit applications, score applications based upon established criteria, and award subgrants. The department shall execute a grant agreement with each recipient. The total cost is $200,000.00, and the tentative completion date is September 30, 2007.

Sec. 502. Funds collected by the department under sections 3, 6, 7, and 7a of 1913 PA 271, MCL 399.3, 399.6, 399.7, and 399.7a, are appropriated to the department for the purposes for which they were received, are allocated for expenditure upon receipt and may be carried forward for expenditure in subsequent fiscal years.

Sec. 503. For the purposes of administering the museum store as provided in section 7a of 1913 PA 271, MCL399.7a, the department is exempt from section 261 of the management and budget act, 1984 PA 431, MCL18.1261.

Sec. 505. From the funds appropriated in part 1 for historical administration and services, $25,000.00 shall be allocated to support the operations of the Michigan freedom trail commission as specified in section 4 of the Michigan freedom trail commission act, 1998 PA 409, MCL 399.84. These funds shall be used to reimburse commission members, to pay for necessary contractual services of the commission, and to hire not more than 1.0 FTE position in the department's Michigan historical center to support commission operations.

Sec. 506. Proceeds in excess of costs incurred in the conduct of auctions, sales, or transfers of artifacts no longer considered suitable for the collections of the state historical museum are appropriated to the department and may be expended upon receipt for additional material for the collection. The department shall notify the chairpersons, vice chairpersons, and minority vice chairpersons of the senate and house of representatives appropriations subcommittees on history, arts, and libraries 1 week prior to any auctions or sales.

Sec. 507. Unless prohibited by law, the department shall make available to the historical society of Michigan the use of the Michigan history magazine subscriber list, or a portion of the Michigan history magazine subscriber list, at a cost not to exceed the actual expense incurred for providing a single mailing.

LIBRARY OF MICHIGAN

Sec. 601. In order to receive subregional state aid as appropriated in part 1 to the library of Michigan, a subregional library's fiscal agency must agree to maintain local funding support at the same level in the current fiscal year as in the fiscal agency's preceding fiscal year. If a reduction in expenditures equally affects all agencies in a local unit of government that is the subregional library's fiscal agency, that reduction shall not be interpreted as a reduction in local support and shall not disqualify a subregional library from receiving state aid under part 1. If a reduction in income affects a library cooperative or district library that is a subregional library's fiscal agency or a reduction in expenditures for the subregional library's fiscal agency, a reduction in expenditures for the subregional library shall not be interpreted as a reduction in local support and shall not disqualify a subregional library from receiving state aid under part 1.

Sec. 602. The funds appropriated in part 1 for a subregional library shall not be released until a budget for that subregional library has been approved by the department for expenditures for library services directly serving the blind and persons with disabilities.

Sec. 607. The funds appropriated in part 1 for book distribution centers shall be equally distributed to the public enrichment foundation and the Michigan friends of education.

ARTICLE 10

HUMAN SERVICES

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this article, the amounts listed in this part are appropriated for the department of human services for the fiscal year ending September 30, 2007, from the funds indicated in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF HUMAN SERVICES

APPROPRIATION SUMMARY:

Full-time equated classified positions 10,338.4

Full-time equated unclassified positions 5.0

Total full-time equated positions 10,343.4

GROSS APPROPRIATION $ 4,468,155,300

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 3,102,700

ADJUSTED GROSS APPROPRIATION $ 4,465,052,600

Federal revenues:

Total federal revenues 3,135,487,200

Special revenue funds:

Total private revenues 8,876,100

Total local revenues 55,519,400

Total other state restricted revenues 67,702,000

State general fund/general purpose $ 1,197,467,900

Sec. 102. EXECUTIVE OPERATIONS (VULNERABLE)

Full-time equated unclassified positions 5.0

Full-time equated classified positions 455.3

Unclassified salaries--5.0 FTE positions $ 537,200

Salaries and wages--310.3 FTE positions 16,257,600

Contractual services, supplies, and materials 5,689,300

Demonstration projects--12.0 FTE positions 7,062,500

Inspector general salaries and wages--106.0 FTE positions 5,531,100

Electronic benefit transfer EBT 7,333,600

Office of professional development--12.0 FTE positions 2,340,400

Michigan community service commission--15.0 FTE positions 9,430,800

State office of administrative hearings and rules 3,414,300

GROSS APPROPRIATION $ 57,596,800

Appropriated from:

Federal revenues:

Total federal revenues 37,438,600

Special revenue funds:

Total private revenues 2,199,600

Total local revenues 175,000

Total other state restricted revenues 25,000

State general fund/general purpose $ 17,758,600

Sec. 103. CHILD SUPPORT ENFORCEMENT (VULNERABLE)

Full-time equated classified positions 213.7

Child support enforcement operations--207.7 FTE positions $ 22,980,200

Legal support contracts 140,753,600

Child support incentive payments 32,409,600

State disbursement unit--6.0 FTE positions 18,481,900

GROSS APPROPRIATION $ 214,625,300

Appropriated from:

Federal revenues:

Total federal revenues 197,714,500

Special revenue funds:

Total local revenues 340,000

Total other state restricted revenues 600,000

State general fund/general purpose $ 15,970,800

Sec. 104. COMMUNITY ACTION AND ECONOMIC OPPORTUNITY

(VULNERABLE)

Full-time equated classified positions 17.0

Bureau of community action and economic opportunity operations--17.0 FTE positions $ 1,854,700

Community services block grants 27,068,000

Weatherization assistance 18,418,700

GROSS APPROPRIATION $ 47,341,400

Appropriated from:

Federal revenues:

Total federal revenues 47,341,400

Special revenue funds:

State general fund/general purpose $ 0

Sec. 105. ADULT AND FAMILY SERVICES (VULNERABLE)

Full-time equated classified positions 47.2

Executive direction and support--6.0 FTE positions $ 505,900

Domestic violence prevention and treatment--5.5 FTE positions 14,704,000

Rape prevention and services 2,600,000

Guardian contract 600,000

Adult services policy and administration--6.0 FTE positions 609,300

Income support policy and administration--29.7 FTE positions 5,663,500

Employment and training support services 30,137,000

Wage employment verification reporting 848,700

Urban and rural empowerment/enterprise zones 100

Nutrition education 8,569,900

Marriage initiative 2,475,000

Fatherhood initiative 1,725,000

Crisis prevention and elder law of Michigan food for the elderly project 370,000

GROSS APPROPRIATION $ 68,808,400

Appropriated from:

Federal revenues:

Total federal revenues 49,985,000

Special revenue funds:

State general fund/general purpose $ 18,823,400

Sec. 106. CHILD AND FAMILY SERVICES (VULNERABLE)

Full-time equated classified positions 85.4

Salaries and wages--29.7 FTE positions $ 1,768,900

Contractual services, supplies, and materials 948,700

Refugee assistance program--2.9 FTE positions 12,700,300

Foster care payments 131,709,300

Wayne County foster care payments 56,488,300

Adoption subsidies 232,705,300

Adoption support services--7.7 FTE positions 14,354,700

Youth in transition--2.0 FTE positions 13,363,100

Interstate compact 231,600

Children's benefit fund donations 21,000

Teenage parent counseling--2.3 FTE positions 3,815,800

Families first 16,946,700

Child safety and permanency planning 16,286,700

Strong families/safe children 13,395,300

Child protection/community partners--18.3 FTE positions 5,539,400

Zero to three 3,843,800

Family group decision making 2,454,700

Family reunification program 3,977,100

Family preservation and prevention services administration--14.5 FTE positions 2,252,300

Black child and family institute 100,000

Children's trust fund administration--8.0 FTE positions 761,000

Children's trust fund grants 3,825,100

ECIC, early childhood investment corporation 100

Attorney general contract 3,209,200

Prosecuting attorney contracts 1,061,700

GROSS APPROPRIATION $ 541,760,100

Appropriated from:

Federal revenues:

Total federal revenues 331,148,200

Special revenue funds:

Private - children's benefit fund donations 21,000

Private - collections 2,802,600

Local funds - county chargeback 24,742,900

Children's trust fund 3,535,300

State general fund/general purpose $ 179,510,100

Sec. 107. JUVENILE JUSTICE SERVICES (SAFETY)

Full-time equated classified positions 714.5

High security juvenile services--311.0 FTE positions $ 28,286,000

Medium security juvenile services--254.0 FTE positions 19,607,400

Low security juvenile services--34.0 FTE positions 3,022,800

Community juvenile justice centers--37.0 FTE positions 3,408,700

Child care fund 195,000,000

Child care fund administration--5.8 FTE positions 748,300

County juvenile officers 3,765,600

Community support services--2.0 FTE positions 1,492,200

Juvenile justice field staff, administration and maintenance--50.0 FTE positions 8,033,500

Federally funded activities--13.7 FTE positions 1,816,200

W.J. Maxey memorial fund 45,000

Juvenile accountability incentive block grant--3.0 FTE positions 2,606,700

Committee on juvenile justice administration--4.0 FTE positions 496,500

Committee on juvenile justice grants 5,000,000

GROSS APPROPRIATION $ 273,328,900

Appropriated from:

Federal revenues:

Total federal revenues 98,553,100

Special revenue funds:

Total private revenues 645,000

Local funds - state share education funds 3,000,000

Local funds - county chargeback 26,742,800

State general fund/general purpose $ 144,388,000

Sec. 108. LOCAL OFFICE STAFF AND OPERATIONS (VULNERABLE)

Full-time equated classified positions 8,023.9

Field staff, salaries and wages--7,875.1 FTE positions $ 381,563,200

Contractual services, supplies, and materials 17,945,900

Medical/psychiatric evaluations 4,300,000

Donated funds positions--11.0 FTE positions 829,500

Training and program support--49.0 FTE positions 7,022,200

Food stamp reinvestment--78.8 FTE positions 11,315,300

Wayne County gifts and bequests 100,000

Volunteer services and reimbursement 1,544,900

SSI advocates--10.0 FTE positions 853,900

GROSS APPROPRIATION $ 425,474,900

Appropriated from:

Interdepartmental grant revenues:

IDG from DCH - medical services administration 1,389,400

ADJUSTED GROSS APPROPRIATION $ 424,085,500

Appropriated from:

Federal revenues:

Total federal revenues 252,381,400

Special revenue funds:

Local funds - donated funds 214,300

Private funds - donated funds 178,200

Private funds - Wayne County gifts 100,000

Private funds - hospital contributions 1,910,300

Supplemental security income recoveries 853,900

State general fund/general purpose $ 168,447,400

Sec. 109. DISABILITY DETERMINATION SERVICES (VULNERABLE)

Full-time equated classified positions 568.4

Disability determination operations--545.9 FTE positions $ 80,510,700

Medical consultation program--18.4 FTE positions 2,942,600

Retirement disability determination--4.1 FTE positions 813,700

GROSS APPROPRIATION $ 84,267,000

Appropriated from:

Interdepartmental grant revenues:

IDG from DMB - office of retirement systems 1,102,700

ADJUSTED GROSS APPROPRIATION $ 83,164,300

Appropriated from:

Federal revenues:

Total federal revenues 80,189,700

Special revenue funds:

State general fund/general purpose $ 2,974,600

Sec. 110. CENTRAL SUPPORT ACCOUNTS (VULNERABLE, EFFECTIVE

GOVERNMENT)

Rent $ 42,481,300

Occupancy charge 9,361,400

Travel 5,723,400

Equipment 277,300

Worker's compensation 4,231,000

Advisory commissions 17,900

Human resources optimization user charges 634,500

Payroll taxes and fringe benefits 244,029,900

GROSS APPROPRIATION $ 306,756,700

Appropriated from:

Interdepartmental grant revenues:

IDG from DCH - medical services administration 610,600

ADJUSTED GROSS APPROPRIATION $ 306,146,100

Appropriated from:

Federal revenues:

Total federal revenues 188,526,900

Special revenue funds:

Local funds - county chargeback 304,400

Private funds - hospital contributions 1,019,400

State general fund/general purpose $ 116,295,400

Sec. 111. OFFICE OF CHILDREN AND ADULT LICENSING (SAFETY)

Full-time equated classified positions 213.0

AFC, children's welfare and day care licensure--213.0 FTE positions $ 22,477,400

GROSS APPROPRIATION $ 22,477,400

Appropriated from:

Federal revenues:

Total federal revenues 11,813,900

Special revenue funds:

Licensing fees 646,400

Health systems fees and collections 115,900

State general fund/general purpose $ 9,901,200

Sec. 112. PUBLIC ASSISTANCE (VULNERABLE)

Family independence program $ 354,710,100

State disability assistance payments 32,810,300

Food assistance program benefits 1,221,340,900

State supplementation 58,801,300

State supplementation administration 2,477,100

Low-income home energy assistance program 116,451,600

Food bank funding 525,000

Homeless shelter contracts 11,646,700

Multicultural assimilation funding 1,715,500

Indigent burial 5,909,300

Emergency services local office allocations 21,865,500

Day care services 462,381,200

GROSS APPROPRIATION $ 2,290,634,500

Appropriated from:

Federal revenues:

Total federal revenues 1,743,163,500

Special revenue funds:

Child support collections 47,710,700

Supplemental security income recoveries 9,104,800

Public assistance recoupment revenue 5,110,000

State general fund/general purpose $ 485,545,500

Sec. 113. INFORMATION TECHNOLOGY (VULNERABLE, EFFECTIVE

GOVERNMENT)

Information technology services and projects $ 84,803,600

Child support automation 51,280,300

GROSS APPROPRIATION $ 136,083,900

Appropriated from:

Federal revenues:

Total federal revenues 97,231,000

Special revenue funds:

State general fund/general purpose $ 38,852,900

Sec. 114. BUDGETARY SAVINGS

Budgetary savings $ (1,000,000)

GROSS APPROPRIATION $ (1,000,000)

Appropriated from:

Special revenue funds:

State general fund/general purpose $ (1,000,000)

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 resources under part 1 for fiscal year 2006-2007 is $1,265,169,900.00 and state spending from state resources to be paid to local units of government for fiscal year 2006-2007 is $113,717,400.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF HUMAN SERVICES

PERMANENCY FOR CHILDREN

Child care fund $ 108,430,100

County juvenile officers 3,276,000

OPPORTUNITY FOR ADULTS TO LIVE AND WORK IN THE COMMUNITY

State disability program $ 2,011,300

TOTAL $ 113,717,400

Sec. 202. The appropriations authorized under this article are subject to the management and budget act, 1984 PA431, MCL 18.1101 to 18.1594.

Sec. 203. As used in this article:

(a) "AFC" means adult foster care.

(b) "Department" means the department of human services.

(d) "GED" means general educational development.

(e) "RSDI" means retirement survivors disability insurance.

(f) "SSI" means supplemental security income.

(g) "Temporary assistance for needy families" or "TANF" or "title IV-A" means part A of title IV of the social security act, 42 USC 601 to 604, 605 to 608, and 609 to 619.

(h) "Title IV-D" means part D of title IV of the social security act, 42 USC 651 to 655, and 656 to 669b.

(i) "Title IV-E" means part E of title IV of the social security act, 42 USC 670 to 673, 673b to 679, and 679b.

(j) "VA" means veterans affairs.

Sec. 204. The department of civil service shall bill the department 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.

(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 appropriations committees and the senate and house fiscal agencies and policy offices on the number of exceptions to the hiring freeze approved during the previous quarter and the reasons to justify the exception.

Sec. 207. At least 60 days before beginning any effort to privatize services, the department shall submit a complete project plan to the appropriate senate and house of representatives appropriations subcommittees and the senate and house fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. Sanctions, suspensions, conditions for provisional license status, and other penalties shall not be more stringent for private service providers than for public entities performing equivalent or similar services. Private service providers or licensees shall not be granted preferential treatment or deemed automatically in compliance with administrative rules based on whether they have collective bargaining agreements with direct care workers. Private service providers or licensees without collective bargaining agreements shall not be subjected to additional requirements or conditions of licensure based on their lack of such collective bargaining agreements. The evaluation shall be completed and submitted to the appropriate senate and house of representatives appropriations subcommittees and the senate and house fiscal agencies within 9 months.

Sec. 208. Unless otherwise specified, the department shall use the Internet to fulfill the reporting requirements of this article. This shall include transmission of reports via electronic mail, including a link to the Internet site, to the recipients identified for each reporting requirement, or it may include placement of reports on the Internet or Intranet site. On an annual basis, the department shall provide a cumulative listing of the reports to the house and senate appropriations subcommittees and the house and senate fiscal agencies and policy offices.

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 comparable quality American goods or services, or both, are available. Preference should be given to goods or services, or both, manufactured or provided by Michigan businesses if they are competitively priced and of comparable value.

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

Sec. 212. In addition to funds appropriated in part 1 for all programs and services, there is appropriated for write-offs of accounts receivable, deferrals, and for prior year obligations in excess of applicable prior year appropriations, an amount equal to total write-offs and prior year obligations, but not to exceed amounts available in prior year revenues or current year revenues that are in excess of the authorized amount.

Sec. 213. (1) The department may retain all of the state's share of food assistance overissuance collections as an offset to general fund/general purpose costs. Retained collections shall be applied against federal funds deductions in all appropriation units where department costs related to the investigation and recoupment of food assistance overissuances are incurred. Retained collections in excess of such costs shall be applied against the federal funds deducted in the executive operations appropriation unit.

(2) The department shall report to the legislature during the senate and house budget hearings on the status of the food stamp error rate. The report shall include at least all of the following:

(a) An update on federal sanctions and federal requirements for reinvestment due to the food stamp error rate.

(b) Review of the status of training for employees who administer the food assistance program.

(c) An outline of the past year's monthly status of worker to food stamp cases and monthly status of worker to food stamp applications.

(d) Information detailing the effect and change in staffing due to the early retirement option.

(e) Corrective action through policy, rules, and programming being taken to reduce the food stamp error rate.

(f) Any other information regarding the food stamp error rate, including information pertaining to technology and computer applications used for the food assistance program.

Sec. 214. (1) The department shall submit a report to the chairpersons of the senate and house appropriations subcommittees on the department budget, the senate and house fiscal agencies and policy offices, and the state budget director on the details of allocations within program budgeting line items and within the salaries and wages line items in all appropriation units. The report shall include a listing, by account, dollar amount, and fund source, of salaries and wages; longevity and insurance; retirement; contractual services, supplies, and materials; equipment; travel; and grants within each program line item appropriated for the fiscal year ending September 30, 2007.

(2) On a bimonthly basis, the department shall report on the number of FTEs in pay status by type of staff.

Sec. 215. (1) If a legislative objective of this article or the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, cannot be implemented without loss of federal financial participation because implementation would conflict with or violate federal regulations, the department shall notify the state budget director, the house and senate appropriations committees, and the house and senate fiscal agencies and policy offices of that fact.

(2) The department shall provide the senate and house appropriation subcommittees on the department budget, the senate and house fiscal agencies and policy offices, and the state budget director with the citation and a copy of any federal statute, regulation, policy, or directive that the department determines presents a conflict as described in subsection (1). The department shall apply for any available waiver or relief from federal requirements or sanctions that would allow it to comply with state law without federal penalty.

(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.

(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.

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

(f) A total of all out-of-state travel funded for the immediately preceding fiscal year.

Sec. 218. (1) The department shall prepare an annual report on the TANF federal block grant. The report shall include projected expenditures for the current fiscal year, an accounting of any previous year funds carried forward, and a summary of all interdepartmental or interagency agreements relating to the use of TANF funds. The report shall be forwarded to the state budget director and the house and senate appropriations subcommittees on the department budget and the house and senate fiscal agencies and policy offices within 10 days after presentation of the executive budget.

(2) The state budget director shall give prior written notice to the members of the house and senate appropriations subcommittees for the department and to the house and senate fiscal agencies and policy offices of any proposed changes in utilization or distribution of TANF funding or the distribution of TANF maintenance of effort spending relative to the amounts reflected in the annual appropriations acts of all state agencies where TANF funding is appropriated. The written notice shall be given not less than 30 days before any changes being made in the funding allocations. This prior notice requirement also applies to new plans submitted in response to federal TANF reauthorization or replacement by an equivalent federal law.

Sec. 220. (1) In contracting with faith-based organizations for mentoring or supportive services, and in all contracts for services, the department shall ensure that no funds provided directly to institutions or organizations to provide services and administer programs shall be used or expended for any sectarian activity, including sectarian worship, instruction, or proselytization.

(2) If an individual requests the service and has an objection to the religious character of the institution or organization from which the individual receives or would receive services or assistance, the department shall provide the individual within a reasonable time after the date of the objection with assistance or services and which are substantially the same as the service the individual would have received from the organization.

(3) The department shall ensure that faith-based organizations are able to apply and compete for services, programs, or contracts that they are qualified and suitable to fulfill. The department shall not disqualify faith-based organizations solely on the basis of the religious nature of their organization or their guiding principles or statements of faith.

(4) The department shall follow guidelines related to faith-based involvement established in 42 USC 604a.

Sec. 221. If the revenue collected by the department from private and local sources exceeds the amount spent from amounts appropriated in part 1, the revenue may be carried forward, with approval from the state budget director, into the subsequent fiscal year.

Sec. 223. The department shall make a determination of Medicaid eligibility not later than 60 days after all information to make the determination is received from the applicant when disability is an eligibility factor. For all other Medicaid applicants, the department shall make a determination of Medicaid eligibility not later than 45 days after all information to make the determination is received from the applicant.

Sec. 224. The department shall approve or deny a Medicaid application for a patient of a nursing home within 45days after the receipt of the necessary information.

Sec. 225. The department shall develop a rapid redetermination process for nursing home residents whose Medicaid stay is greater than 90 days. This process shall be implemented not later than January 1, 2007.

Sec. 227. The department, with the approval of the state budget director, is authorized to realign sources of financing authorizations in order to maximize temporary assistance for needy families' maintenance of effort countable expenditures. This realignment of financing shall not be made until 15 days after notifying the chairs of the house and senate appropriations subcommittees on the department budget and house and senate fiscal agencies, and shall not produce an increase or decrease in any line-item expenditure authorization.

Sec. 259. (1) From the funds appropriated in part 1 for information technology, the department shall pay user fees to the department of information technology for technology-related services and projects. The user fees shall be subject to provisions of an interagency agreement between the department and the department of information technology.

(2) During the annual budget presentation, the department shall report on the interagency agreement with the department of information technology to the senate and house appropriations subcommittees for the department budget, house and senate fiscal agencies, and policy offices. The report shall include the base service priorities in the agreement including, but not limited to, the following:

(a) Name and description of base service.

(b) Detail goals and objectives related to each base service.

(d) Time frame for implementation or completion of base service.

(e) Impact, if any, on caseload management by local office staff, and on service to individual or family clients in local offices.

Sec. 261. The department, in conjunction with the county department of human services boards of directors and the department of management and budget, shall continue to develop and implement a plan to restructure local offices. This plan shall include an emphasis on maximization of service while maintaining a reduction in administrative cost. Duplication of services shall be identified and solutions to remove the duplication shall be detailed in the plan. Any plan presented shall ensure that the department provides a presence and services in every county. The current plan shall be submitted to the senate and house appropriations subcommittees for the department budget by January 15, 2007. The savings resulting from this plan may be allocated to the counties generating the savings to fund additional frontline workers at the county office level and additional staff to reduce wait time for Medicaid eligibility determinations.

Sec. 262. The department, in conjunction with county department of human services boards of directors and the department of management and budget, shall continue to develop and implement a plan to assist local services delivery effectiveness and efficiency by maximizing use of state resources while responding to unique needs in geographic regions of the state. Savings resulting from the plan shall be allocated to county offices to fund additional frontline workers. The department shall submit the current consolidation plan to the house and senate appropriations subcommittees for the department budget by January 1, 2007.

Sec. 264. The department shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

Sec. 269. If title IV-D-related child support collections are escheated, the state budget director is authorized to adjust the sources of financing for the funds appropriated in part 1 for legal support contracts to reduce federal authorization by 66% of the escheated amount and increase general fund/general purpose authorization by the same amount. This budget adjustment is required to offset the loss of federal revenue due to the escheated amount being counted as titleIV-D program income in accordance with federal regulations at 45 CFR 304.50.

Sec. 270. (1) The department shall continue to implement a plan to provide client-centered results-oriented programs and services for each of the following programs:

(a) Day care assistance.

(b) Family independence program.

(d) Foster care.

(e) Juvenile justice services.

(f) Jobs, education, and training (JET) pilot program and other welfare reform activities.

(2) The plan shall include detailed information to be compiled on an annual basis by the department on the following for each program listed in subsection (1):

(a) The average cost per recipient served by the program.

(b) Measurable performance indicators for each program.

(c) Desired outcomes or results and goals for each program that can be measured on an annual basis, or desired results for a defined number of years.

(d) Monitored results for each program.

(e) Innovations for each program that may include savings or reductions in administrative costs.

(3) During the annual budget presentation, the department shall provide the senate and house appropriations subcommittees on the department budget the information listed in subsection (2).

Sec. 271. (1) The department shall report to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on human services, the senate and house fiscal agencies, the senate and house policy offices, and the state budget director on the progress of child and family services reviews (CFSR). The reviews, conducted in the state by the children's bureau of the United States department of health and human services, are intended to assess the department's compliance with the adoption and safe families act of 1997, Public Law 105-89, 111 Stat. 2115, with the ultimate goal of improving the state child welfare system and the safety, permanency, and child and family service outcomes to children and families. The report shall be submitted January 1 and July 1.

(2) The report required under subsection (1) shall include the findings and progress of all of the following:

(a) Changes made by the courts with respect to court forms and court rules to meet the statutory requirement.

(b) Department policy changes within the areas of foster care, juvenile justice, and adoption to meet the statutory requirements.

(d) A summary of the 7 systemic factors that determine the state's compliance with the adoption and safe families act of 1997, Public Law 105-89, 111 Stat. 2115.

(e) A summary of the 7 data outcome indicators used to determine the state's compliance with the adoption and safe families act of 1997, Public Law 105-89, 111 Stat. 2115, including the length of time required to achieve family reunification for foster care cases.

(f) Federal recommendations made to the state, including recommendations to the courts.

(g) Federal penalties assessed against the state for noncompliance.

(h) Status of the performance improvement plan submitted to the federal government.

Sec. 272. (1) The department shall report to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on human services, the senate and house fiscal agencies, the senate and house policy offices, and the state budget director on the result of the title IV-E foster care eligibility reviews. The reviews, conducted in the state by the United States department of health and human services, are intended to assess the department's compliance with the adoption and safe families act of 1997, Public Law 105-89, 111 Stat. 2115, ensuring the department's case files and payments records meet federal regulations, including standards on eligibility for placement reimbursement and the allowable payment rate. The report shall be submitted January 1 and July 1.

(2) The report required under subsection (1) shall include the findings and progress of all of the following:

(a) Training programs conducted by the department, the child welfare institute, the Michigan judicial institute, and any private agencies that have been authorized to provide training.

(b) Changes made by the courts on court forms and rules used in meeting the statutory requirements.

(c) Department policy changes that impact meeting the statutory requirements for foster care and adoption, including juvenile justice programs.

(d) Recommendations made by a department workgroup composed of representatives from the department and other departments and agencies.

(e) Federal recommendations submitted to the state, including recommendations to the courts.

(f) Federal penalties assessed against the state.

Sec. 273. (1) The department shall report no later than October 1, 2006 on each specific policy change made to implement enacted legislation to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on human services, and the senate and house fiscal agencies and policy offices.

(2) On an annual basis, the department shall provide a cumulative list of all policy changes in the following areas: child welfare services, child support, work first, work requirements, adult and child safety, local staff program responsibilities, and day care. The list shall be distributed to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees dealing with human services, and the senate and house fiscal agencies and policy offices.

(3) Not later than July 1, 2007, the department shall report to the senate and house appropriations subcommittees on the department budget, the senate and house fiscal agencies and policy offices, and the state budget director the annual regulatory plan submitted to the state office of administrative hearings and rules pursuant to section 53 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.253. The annual regulatory reform plan shall not include proposals for rule promulgation that exceed the statutory authority granted to the department.

(4) Funds for the preparation of the regulatory reform plan shall be provided solely in section 102 of the funds appropriated in part 1. Funds appropriated in part 1 shall not be used to prepare regulatory plans or promulgate rules that would exceed statutory authority granted to the department. If the department fails to provide statutory authority and additional information for its regulatory reform plan pursuant to section 39(1) of the administrative procedures act of 1969, 1969 PA 306, MCL 24.239, no funds shall be expended for the further preparation of that plan or the promulgation of rules in that plan.

(5) Funds appropriated in part 1 shall not be used to prepare regulatory plans or promulgate rules that fail to reduce the disproportionate economic impact on small businesses pursuant to section 40 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.240.

(6) Funds appropriated in part 1 shall not be used to prepare regulatory plans or promulgate rules that would grant preferences to private providers of services based on whether they had collective bargaining agreements with workers.

Sec. 274. The department shall report to the house and senate appropriations subcommittees on the department budget, the senate and house fiscal agencies, the senate and house policy offices, and the state budget director as part of the annual budget presentation on each federal grant this state was eligible to apply for, listing both grants applied for and not applied for. This report will cover grants exceeding $100,000.00, related to fatherhood and marriage initiatives, teen pregnancy prevention, kinship care, before- and after-school programs, family preservation and prevention, homeless prevention, and youth in transition.

Sec. 278. (1) The department shall contract with 1 or more private consulting firms for revenue maximization services for all caseload services currently provided by the department, including services expanded such as the SSI advocacy program. A contract under this section shall specify that the contractor locate waste, fraud, error, and abuse within the department's services and programs.

(2) A contractor shall not charge the department a fee for services provided under subsection (1). However, a contractor shall receive a negotiated percentage of the savings not to exceed 25% of the gross savings achieved from implementation of a recommendation made by the contractor under this section.

(3) The department shall retain up to $7,500,000.00 of savings achieved through the revenue maximization services contract as an offset to general fund/general purpose costs. Additional savings shall be allocated within the department for the following purposes:

(a) Technology programs that help maintain an effective and efficient computer system for caseworkers.

(b) Additional staff in order to reduce worker-to-case ratios.

(4) The department shall provide a report to the senate and house appropriations subcommittees on the department budget, senate and house standing committees on human services matters, senate and house fiscal agencies and policy offices, and state budget director by December 31, 2006 on the waste, fraud, error, and abuse located under subsection(1). By April 1, 2007, the department shall provide a progress report including the specific changes implemented to achieve savings under this section and the timetable for implementation of the remaining changes.

Sec. 279. All contracts relating to human services entered into or renewed by the department on or after October 1, 2006 shall be performance-based contracts that employ a client-centered results-oriented process that is based on measurable performance indicators and desired outcomes and includes the annual assessment of the quality of services provided. During the annual budget presentation, the department shall provide the senate and house appropriations subcommittees on the department budget with the measurable performance indicators, desired outcomes, and the assessment of the quality of services provided for each contract relating to human services entered into by the department during fiscal year 2006-2007.

Sec. 280. The department shall submit a report to the house and senate appropriations subcommittees for the department budget, the house and senate fiscal agencies, the house and senate policy offices, and the state budget director by February 1, 2007 on the status of the department's information technology improvement initiatives, including the "Bridges" integration project. The report shall include details on the following:

(a) The amounts expended during the previous fiscal year and the first quarter of the current fiscal year by project.

(b) The amounts of appropriations carried forward from previous fiscal years for information technology improvement projects.

(c) A narrative describing the projects and activities undertaken during the previous fiscal year and during the first quarter of the current fiscal year.

Sec. 281. (1) The department shall report to the legislature, fiscal agencies, and office of the auditor general quarterly, beginning January 1, 2007, with a summary of final decisions and recommendations rendered by the state office of administrative hearings and rules administrative law judges, administrative law managers, or hearing officers for cases under the jurisdiction of the department.

(2) The report shall be organized by case types.

(3) The report shall indicate whether the administrative law judge, administrative law manager, or hearing officer made a final decision or recommended a decision in favor of the department in whole or in part or if the parties negotiated a settlement. The report shall also delineate if the director agreed or disagreed with the recommendation of the administrative law judge, administrative law manager, or hearing officer.

(4) The report shall include how long each case took from the date of the original filing until the issuance of a decision or recommendation by the administrative law judge, administrative law manager, or hearing officer.

Sec. 282. (1) The negative appropriation for budgetary savings in part 1 shall be satisfied by savings identified by the department director and approved by the state budget director.

(2) Appropriation authorizations shall be adjusted after the approval of transfers by the legislature pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

EXECUTIVE OPERATIONS

Sec. 301. Not later than September 30 of each year, the department shall submit for public hearing to the chairpersonsof the house and senate appropriations subcommittees dealing with appropriations for the department budget the proposed use and distribution plan for community services block grant funds appropriated in part 1 for the succeeding fiscal year.

Sec. 302. The department shall develop a plan based on recommendations from the department of civil rights and from Native American organizations to assure that the community services block grant funds are equitably distributed. The plan must be developed by October 31, 2006, and the plan shall be delivered to the appropriations subcommittees on the department budget in the senate and house, the senate and house fiscal agencies, and the state budget director.

Sec. 303. (1) Of the funds appropriated in part 1 for community services block grants, $2,350,000.00 represents TANF funding earmarked for community action agencies.

(2) In addition to the money referred to in subsection (1), the department shall award up to $500,000.00 in competitive grants to organizations based on their education and outreach with the earned income tax credit (EITC). Organizations shall be given preference based on their emphasis on clients who have never filed for the EITC, clients with children, and clients for whom receipt of the EITC will make it easier for them to move off public assistance.

(3) In addition to the money referred to in subsection (1), the department shall award up to $250,000.00 in competitive grants to organizations that seek to provide programs combining education on the EITC with programs building skills for strong marriages, fatherhood, or parenting.

Sec. 304. From funds appropriated in part 1 for demonstration projects, the department shall expend up to $78,500.00 in TANF to fund a school-based crisis intervention demonstration project in Pontiac.

Sec. 305. The appropriation in part 1 for the weatherization program shall be expended so that at least 25% of the households weatherized under the program shall be households of families receiving 1 or more of the following:

(a) Family independence program assistance.

(b) State disability assistance.

(d) Supplemental security income.

Sec. 306. Of the funds appropriated in part 1 for demonstration projects, the department shall allocate $200,000.00 to support the kinship care resource center administered by the Michigan state university school of social work. Funding is contingent upon the center's reporting of necessary data to the department to demonstrate TANF or maintenance of effort eligibility. The center shall submit quarterly reports to the department detailing expenditures from this appropriation and reviewing program outcomes including the number of families served through counseling, respite care, and other services as well as the number provided with information on kinship care. The department shall submit each quarterly report to the house and senate appropriations subcommittees on the department budget by January 15, April 15, July 15, and October 15 of each year.

Sec. 307. (1) Of the money appropriated in part 1 for demonstration projects, $100,000.00 shall be distributed as provided in subsection (2). The amount distributed under this subsection shall not exceed 50% of the total operating expenses of the program described in subsection (2), with the remaining 50% paid by local United Way organizations and other nonprofit organizations and foundations.

(2) Money distributed under subsection (1) shall be distributed to Michigan 2-1-1, a nonprofit corporation organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code, 26 USC 501(c)(3), and whose mission is to coordinate and support a statewide 2-1-1 system. Michigan 2-1-1 shall use the money only to fulfill the Michigan 2-1-1 business plan adopted by Michigan 2-1-1 in January 2005.

(3) Michigan 2-1-1 shall report annually to the department and the house and senate standing committees with primary jurisdiction over matters relating to human services and telecommunications on 2-1-1 system performance, including, but not limited to, call volume by community health and human service needs and unmet needs identified through caller data and customer satisfaction metrics.

ADULT AND FAMILY SERVICES

Sec. 415. (1) In expending money appropriated in part 1 for the fatherhood initiative, the department may contract with independent contractors from various counties, including, but not limited to, faith-based and nonprofit organizations. The independent contractors shall provide at least 10% in matching funds, through any combination of local, state, or federal funds or in-kind or other donations. An independent contractor that cannot secure matching funds shall not be excluded from consideration for the fatherhood program.

(2) The department may choose providers that will work with counties to help eligible fathers under TANF guidelines to acquire skills that will enable them to increase their responsible behavior toward their children and the mothers of their children. An increase of financial support for their children should be a very high priority as well as emotional support.

(3) A fatherhood initiative program established under this section shall minimally include at least 3 of the following components: promoting responsible, caring, and effective parenting through counseling; mentoring and parental education; enhancing the abilities and commitment of unemployed or low-income fathers to provide material support for their families and to avoid or leave welfare programs by assisting them to take advantage of job search programs, job training, and education to improve their work habits and work skills; improving fathers' ability to effectively manage family business affairs by means such as education, counseling, and mentoring in household matters; infant care; effective communication and respect; anger management; children's financial support; and drug-free lifestyle.

(4) The department is authorized to make allocations of TANF funds, of not more than 20% per county, under this section only to agencies that report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements.

(5) Upon receipt of the promotion of responsible fatherhood funds from the United States department of health and human services, the department shall use the program criteria set forth in subsection (3) to implement the program with the federal funds.

Sec. 416. (1) In expending money appropriated in part 1 for the marriage initiative, the department may contract with independent contractors from various counties, including, but not limited to, faith-based and nonprofit organizations. The independent contractors shall provide at least 10% in matching funds, through any combination of local, state, or federal funds or in-kind or other donations. An independent contractor that cannot secure matching funds shall not be excluded from consideration for a marriage initiative program.

(2) The department may choose providers to work with counties that will work to support and strengthen marriages of those eligible under the TANF guidelines. The areas of work may include, but are not limited to, marital counseling, domestic violence counseling, family counseling, effective communication, and anger management as well as parenting skills to improve the family structure.

(3) A marriage initiative program established under this section may include, but is not limited to, 1 or more of the following: public advertising campaigns on the value of marriage and the skills needed to increase marital stability and health; education in high schools on the value of marriage, relationship skills, and budgeting; premarital, marital, family, and domestic violence counseling; effective communication; marriage mentoring programs which use married couples as role models and mentors in at-risk communities; anger management; and parenting skills to improve the family structure.

(5) Upon receipt of the healthy marriage promotion grant from the United States department of health and human services, the department shall use the program criteria set forth in subsection (3) to implement the program with the federal funds.

Sec. 418. From the funds appropriated in part 1 for employment and training support services, the department may expand the availability of individual development accounts (IDAs) with $200,000.00 for allocation to qualified IDA programs established through the Michigan IDA partnership to serve TANF eligible households in Michigan. The Michigan IDA partnership shall encourage each TANF eligible household served to claim the federal earned income tax credit (EITC) and to incorporate all or part of any tax credit received in the household's IDA savings plan, and shall provide the household with information concerning available free tax assistance resources. In addition, the Michigan IDA partnership and its program sites shall participate in community EITC coalitions established under the plan to increase the EITC participation of TANF families referenced in section 666. The same amount shall be appropriated annually to further expand IDA opportunities to low-income families to become more financially self-sufficient through financial education, saving, wise investment in home ownership, postsecondary education, small business development, or a combination of those programs.

Sec. 419. The department in collaboration with the Michigan state university center for urban affairs and its partner organizations, the Michigan credit union league and the national federation of community development credit unions, shall further the work begun in fiscal year 1999-2000 that implemented the individual development accounts programs in the growing number of low-income designated credit unions, i.e., community development credit unions (CDCUs) located in this state's poorest communities. This further work will extend capacity-building and technical assistance services to existing and emerging CDCUs serving low-income populations and will include:

(a) Creation of a Michigan-based support system for the capacity-building of existing and emerging CDCUs serving low-income individuals and families, including development and testing of training, technical assistance, and professional development initiatives and related materials, and other capacity-building services to Michigan CDCUs.

(b) Other related support to assist existing and emerging CDCUs in becoming self-supporting institutions to assist impoverished Michigan residents in becoming economically independent.

(c) Training and technical assistance to CDCUs in the development of support services, such as economic literacy, credit counseling, budget counseling, and asset management programs for low-income individuals and families.

Sec. 420. From the funds appropriated in part 1 for employment and training support services, the department may allocate $40,000.00 in TANF for welfare to career innovation grants to replicate the Kent County model with Cascade engineering.

Sec. 421. The department shall allow private nationally accredited foster care and adoption agencies to conduct their own staff training, based on current department policies and procedures provided that the agency trainer and training materials are accredited by the department, and that the agency documents to the department that the training was provided. The department shall provide access to any training materials requested by the private agencies to facilitate this training. The intent of the legislature is to reduce training and travel costs for both the department and the private agencies.

Sec. 423. (1) From the money appropriated in part 1 for crisis prevention and senior food aid projects, the department shall allocate $75,000.00 to support ongoing efforts in Barry County to provide programs to women or children, or both, facing crisis situations as a result of domestic violence or abuse.

(2) From the money appropriated in part 1 for crisis prevention and senior food aid projects, the department shall allocate not less than $70,000.00 to assist this state's elderly population to participate in the food assistance program. The money may be used as state matching funds to acquire available United States department of agriculture funding to provide outreach program activities, such as eligibility screen and information services, as part of a statewide food stamp hotline.

(3) Of the funds appropriated in part 1 for crisis prevention and senior food aid projects, the department shall allocate $25,000.00 for a food aid outreach project in Muskegon County and $25,000.00 for a food aid outreach project in Kent County.

(4) From the money appropriated in part 1 for crisis prevention and senior food aid projects, the department shall allocate $50,000.00 for the city of Lansing and $50,000.00 for the county of Washtenaw for homeless prevention programs.

Sec. 424. Of the funds appropriated in part 1 for employment and training, $200,000.00 in TANF funds may be used for the effective family formation program by the child and family resource council in Kent County for the purpose of instructing unwed parents in developing family formation and sustaining behaviors.

CHILD AND FAMILY SERVICES

Sec. 501. The following goal is established by state law. During fiscal year 2006-2007, not more than 3,000 children supervised by the department shall remain in foster care longer than 24 months. The department shall give priority to reducing the number of children under 1 year of age in foster care. During the annual budget presentation, the department shall report on the number of children supervised by the department and by private agencies who remain in foster care between 12 and 24 months, and those who remain in foster care longer than 24 months.

Sec. 502. From the funds appropriated in part 1 for foster care, the department shall provide 50% reimbursement to Indian tribal governments for foster care expenditures for children who are under the jurisdiction of Indian tribal courts and who are not otherwise eligible for federal foster care cost sharing.

Sec. 503. The department shall continue adoption subsidy payments to families after the eighteenth birthday of an adoptee who meets the following criteria:

(a) Has not yet graduated from high school or passed a high school equivalency examination.

(b) Is making progress toward completing high school.

(d) Is not eligible for federal supplemental security income (SSI) payments.

Sec. 504. The department's ability to satisfy appropriation deducts in part 1 for foster care private collections shall not be limited to collections and accruals pertaining to services provided only in the current fiscal year but shall include revenues collected during the fiscal year in excess of the amount specified in part 1.

Sec. 508. (1) In addition to the amount appropriated in part 1 for children's trust fund grants, money granted or money received as gifts or donations to the children's trust fund created by 1982 PA 249, MCL 21.171 to 21.172, is appropriated for expenditure in an amount not to exceed $800,000.00.

(2) The state child abuse and neglect prevention board may initiate a joint project with another state agency to the extent that the project supports the programmatic goals of both the state child abuse and neglect prevention board and the state agency. The department may invoice the state agency for shared costs of a joint project in an amount authorized by the state agency, and the state child abuse and neglect prevention board may receive and expend funds for shared costs of a joint project in addition to those authorized by part 1.

(3) From the funds appropriated in part 1 for the children's trust fund, the department may utilize interest and investment revenue from the current fiscal year only for programs, administration, services, or all sanctioned by the child abuse and neglect prevention board.

Sec. 509. (1) From the funds appropriated in part 1, the department shall not expend funds to preserve or reunite a family, unless there is a court order requiring the preservation or reuniting of the family or the court denies the petition, if either of the following would result:

(a) A child would be living in the same household with a parent or other adult who has been convicted of criminal sexual conduct against a child.

(b) A child would be living in the same household with a parent or other adult against whom there is a substantiated charge of sexual abuse against a child.

(2) Notwithstanding subsection (1), this section shall not prohibit counseling or other services provided by the department, if the service is not directed toward influencing the child to remain in an abusive environment, justifying the actions of the abuser, or reuniting the family.

Sec. 510. The department shall not be required to put up for bids contracts with service providers if currently only 1 provider in the service area exists.

Sec. 513. (1) The department shall not expend funds appropriated in part 1 to pay for the placement of a child in an out-of-state facility unless all of the following conditions are met:

(a) There is no appropriate placement available in this state, while an out-of-state placement does exist within 100 miles of the child's home.

(b) The out-of-state facility meets all of the licensing standards of this state for a comparable facility.

(d) The department has done an on-site visit to the out-of-state facility, reviewed the facility records, and reviewed licensing records and reports on the facility and believes that the facility is an appropriate placement for the child.

(2) The department shall submit a report by February 1 of each year on the number of children who were newly placed in out-of-state facilities during the previous fiscal year, the number of Michigan children residing in such facilities at the time of the report, and the total cost and average per diem cost of these out-of-state placements to the state.

Sec. 514. The department shall make a comprehensive report concerning children's protective services (CPS) to the legislature, including the senate and house policy offices and the state budget director, by January 1, 2007, that shall include all of the following:

(a) Statistical information including, at a minimum, all of the following:

(i) The total number of reports of abuse or neglect investigated under the child protection law, 1975 PA 238, MCL722.621 to 722.638, and the number of cases classified under category I or category II and the number of cases classified under category III, category IV, or category V.

(ii) Characteristics of perpetrators of abuse or neglect and the child victims, such as age, relationship, socioeconomic status, race, and ethnicity and whether the perpetrator exposed the child victim to criminal drug activity, including the manufacture of illicit drugs, that exposed the child victim to significant health and environmental hazards.

(iii) The mandatory reporter category in which the individual who made the report fits, or other categorization if the individual is not within a group required to report under the child protection law, 1975 PA 238, MCL 722.621 to 722.638.

(b) New policies related to children's protective services including, but not limited to, major policy changes and court decisions affecting the children's protective services system during the immediately preceding 12-month period.

(i) Transfer to foster care.

(ii) Risk of further child abuse or neglect has been reduced to an acceptable level.

(iii) The perpetrator no longer has access to the child victim.

(iv) Unsatisfactory family response - referral to court not feasible.

(v) Child protective services not needed - family is receiving services from another program.

(vi) Client unavailable for services, location of client unknown.

(vii) Other.

(d) The department policy, or changes to the department policy, regarding termination of parental rights or foster placement for children who have been exposed to the production of illicit drugs in their dwelling place or a place frequented by the children.

(e) The department policy, or changes to the department policy, regarding children who have been exposed to the production or manufacture of methamphetamines.

Sec. 515. From the funds appropriated in part 1 for foster care payments and Wayne County foster care payments and related administrative costs, the department shall implement a performance based managed care approach to contracting for foster care services with private, nonprofit agencies. The goal of these contracts shall be to provide incentives for agencies to improve the process of placing children in permanent placements and reducing the time children spend in foster care. The department shall report to the senate and house appropriations subcommittees on the department budget, the senate and house fiscal agencies and policy offices, and the state budget office on this foster care permanency program and make recommendations for program expansion to all the counties of this state no later than August 30, 2007. The department shall develop these recommendations with sufficient detail that permanency programs may be implemented as soon as possible after September 30, 2007.

Sec. 517. (1) From the funds appropriated in part 1, the department is authorized to allocate funds to multipurpose collaborative bodies. Priority for activities and services will be given to at-risk children and families and cases classified by the department as category III or category IV under sections 8 and 8d of the child protection law, 1975 PA 238, MCL 722.628 and 722.628d.

(2) Funds appropriated in part 1 for zero to three may be used to fund community-based collaborative prevention services designed to do any of the following:

(a) Foster positive parenting skills especially for parents of children under 3 years of age.

(b) Improve parent/child interaction.

(d) Increase local capacity to serve families at risk.

(e) Improve school readiness.

(f) Support healthy family environments that discourage alcohol, tobacco, and other drug use.

(3) The appropriation provided for in subsection (2) is to fund secondary prevention programs as defined in the children's trust fund's preapplication materials for fiscal year 2006-2007 direct services grants.

(4) Projects funded through the appropriation provided for in subsection (2) shall meet all of the following criteria:

(a) Be awarded through a joint request for proposal process established by the department in conjunction with the children's trust fund and the state human services directors.

(b) Be secondary prevention initiatives. Funds are not intended to be expended in cases in which neglect or abuse has been substantiated.

(c) Demonstrate that the planned services are part of a community's integrated comprehensive family support strategy endorsed by the local multipurpose collaborative body.

(d) Provide a 25% local match of which not more than 10% is in-kind goods or services unless the maximum percentage is waived by the state human services directors.

(5) As used in this section, "state human services directors" means the director of the department of community health, the director of the department of education, and the director of the department.

Sec. 523. (1) From the funds appropriated in part 1 for youth in transition, domestic violence prevention and treatment, and teenage parent counseling, the department is authorized to make allocations of TANF funds only to the agencies that report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements.

(2) The agencies receiving teenage parent counseling TANF funds shall report to the department on both of the following:

(a) Whether program services have impacted the following issue areas:

(i) The number of teen participants having fewer repeat pregnancies.

(ii) The completion rate for high school diplomas or GEDs.

(iii) The teen participants' rate of self-sufficiency.

(iv) The number of father participants.

(b) How many teens participate in the programs and have access to any or all of the following services:

(i) Adult supervised, supportive living arrangements.

(ii) Pregnancy prevention services or referrals.

(iii) Required completion of high school or receipt of GED, including child care to assist young mothers to focus on achievement.

(iv) Support services, including, but not limited to, health care, transportation, and counseling.

(v) Parenting and life-skills training.

(vi) Education, job training, and employment services.

(vii) Transition services in order to achieve self-sufficiency.

(viii) Instruction on self-protection.

(3) Agencies receiving teenage parent counseling funds shall provide at least 10% in matching funds, through any combination of local, state, or federal funds or in-kind or other donations.

Sec. 524. The department shall report on prevention programs for which funds are appropriated in part 1 to the senate and house appropriations subcommittees on the department budget during the annual budget presentation. The report shall contain all of the following for each program:

(a) The average cost per recipient served.

(b) Measurable performance indicators.

(c) Desired outcomes or results and goals that can be measured on an annual basis, or desired results for a defined number of years.

(d) Monitored results.

(e) Innovations that may include savings or reductions in administrative costs.

Sec. 531. (1) From the funds appropriated in part 1, the department shall make claims for and pay to local units of government a portion of federal title IV-E revenues earned as a result of eligible costs incurred by local units of government.

(2) The department shall make payments under subsection (1) only to local units of government that have entered into formal agreements with the department. The agreement must include all of the following:

(a) Provide for the department to retain 50% of the federal revenues earned.

(b) Provide for department review and approval of the local unit's plan for allocating costs to title IV-E.

(d) Specify that the local unit of government is responsible for meeting all federal title IV-E regulation requirements, including reporting requirements, with regard to the activities and costs being billed to title IV-E.

(e) Provide for the local unit of government to pay the state for the amount of any federal revenues paid to the local unit that may subsequently be disallowed by the federal government.

(f) Be signed by the director of the department, the chief executive officer of the local government agency providing the title IV-E services, the chair of the county board of commissioners, and the chief executive officer of the county.

Sec. 532. (1) The department, in collaboration with representatives of private child and family agencies, shall continue to review policies, practices, and procedures involving the annual licensing review and the annual contract compliance review conducted by the department regarding child placing agencies and child caring institutions. The review shall include efforts to identify duplication of staff activities and information sought from child placing agencies and child caring institutions in the annual review process.

(2) The department shall develop a streamlined licensing contract compliance review process where possible, including potential for utilizing deeming status for nationally accredited agencies. The department shall report to the senate and house appropriations subcommittees on the department budget, the senate and house fiscal agencies and policy offices, and the state budget director on or before January 15, 2007 on the implementation of the licensing and contract compliance review process.

Sec. 533. (1) The department shall make payments to private nonprofit child placing facilities for title IV-E out-of-home care services within 30 days of receiving all necessary documentation from those agencies.

(2) The department shall explore various types of automated payments to private nonprofit child placing facilities to improve speed and accuracy of payments.

Sec. 536. The department shall not implement a geographically based assignment system for foster care unless determined to be in the best interests of the foster children.

Sec. 537. (1) The department shall offer private nonprofit licensed agencies the first opportunity to provide foster care services for new foster children entering the system in a county when the department's direct care caseload for foster care is greater than 20 cases per foster care worker. This section only applies if the private nonprofit licensed agency has an available placement at the time the child needs to be placed, the placement is not contrary to the best interests of the child or the child's siblings, and the private nonprofit licensed agency has a direct care caseload for foster care that is no greater than 20 cases per foster care caseworker.

(2) The department, in conjunction with private child placing agencies, shall develop a methodology for measuring goals, objectives, and performance standards for the delivery of foster care and adoption services. These goals, objectives, and performance standards shall apply to both public and private delivery of child welfare services, and data shall be collected from both private and public child welfare programs that can be used to evaluate performance achievements, including, but not limited to, the following:

(a) Average caseload per foster care worker.

(b) Average cost per case to the department and any other governmental agency.

(d) Program outcomes, including the average length of stay in residential treatment and foster care.

(3) The department shall submit a quarterly report to the legislature outlining the progress of the development of the goals, objectives, and performance standards, as well as the information collected through the implementation of the measurement program.

(4) The department, in collaboration with child placing agencies, shall develop a strategy for implementing the requirements of MCL 400.115o. As part of the implementation strategy, the department caseworkers responsible for the preparation of recommendations to the court for juvenile placements shall provide, as part of the placement recommendation, information regarding the requirements.

Sec. 539. The department shall work in collaboration with representatives from private nonprofit child placing agencies to ensure appropriate placement for children who have been adjudicated abused, neglected, or delinquent and for whom residential treatment is required. The department and the representatives from the private nonprofit child placing agencies shall focus on statewide placement criteria to address the best interest of the child in need of services. The placement criteria shall include a continuum of care settings and options as appropriate for each child and his or her needs at specific times, including home placements, relative placements, shelter placements, and other options.

Sec. 544. The department shall implement pilot projects with applications pending for accelerated residential treatment.

Sec. 545. (1) The department shall continue to implement a new specialized foster care system based upon the report and recommendations required in section 545(2) of 2004 PA 344.

(2) The department shall report to the senate and house appropriations subcommittees for the department budget on the number of new specialized foster care programs required under section 545(3) of 2004 PA 344 not later than January 15, 2007. If no new specialized foster care programs have been authorized, the department shall provide an explanation, a list of all applicants who applied but were denied, and a strategic plan to provide for new specialized foster care programs.

(3) The department shall use money appropriated in part 1 for foster care payments and Wayne County foster care payments to reduce rate disparities between providers of similar services in different geographic areas and to serve as demonstration projects for further efforts in reducing these disparities in future years.

Sec. 546. Of the funds appropriated in part 1 for foster care and Wayne County foster care payments, the legislature intends the increase in funding above the appropriated amounts in fiscal year 2005-2006 to increase the general foster care daily rate to $19.40.

Sec. 548. During the annual budget presentation to the house and senate appropriations subcommittees on the department budget, the department shall report on progress in implementing the recommendations of the task force that studied the disproportionate representation of African-American and other children of color in the child welfare and juvenile justice systems as required under former section 548 of the fiscal year 2005-2006 budget act for the department.

Sec. 549. The department shall meet with personnel employed by the office of the children's ombudsman and the state court administrative office's foster care review board to investigate streamlining the oversight process for child welfare services. The intent of the legislature is to ensure appropriate and adequate oversight while reducing duplication and redundancy between government offices.

Sec. 550. (1) The department shall develop, in cooperation with the department of community health or other appropriate medical or health experts, materials for distribution to foster care parents and families on the health risks to children from use of tobacco and secondhand smoke.

(2) The department, using public and private resources, shall implement a pilot program to offer foster care parents nicotine patches or other smoking cessation products to reduce the health risk to foster children.

(3) The department shall report to the senate and house appropriations subcommittees for the department budget on the results of the pilot program implemented under subsection (2) not later than September 30, 2007.

Sec. 551. The department shall submit a report not later than September 30, 2007 to the senate and house appropriations subcommittees on the department budget that includes the number of children in foster homes where parents smoke, the subsequent health costs incurred, and what the impact would be on foster care recruitment if being a nonsmoker was a requirement for foster parenting.

Sec. 552. (1) The director of the department shall convene a task force to be known as the interdepartmental task force on services to at-risk youth transitioning to adulthood. The task force shall perform all of the following with respect to services to at-risk youth:

(a) Assess currently available services.

(b) Determine the extent of coordination and cooperation among currently available programs and services administered by the department and by other departments and agencies of this state.

(d) Identify potential available public and private resources and services.

(e) Develop a plan to ensure that all current public and private resources and services are effectively organized and available.

(f) Recommend actions to enhance services.

(2) The director of the department shall seek participation on the task force created under subsection (1) from all of the following:

(a) The director of the department of community health or the director's designee.

(b) The director of the department of labor and economic growth or the director's designee.

(d) The state court administrator or his or her designee.

(e) The association for children's mental health.

(f) The children's chapter of the courts of Michigan.

(g) The Michigan probate judges association.

(h) The Michigan community mental health boards.

(i) Fight crime: invest in kids - Michigan.

(j) The Michigan association of school administrators.

(k) The Michigan association of united ways.

(l) The Michigan council on crime and delinquency.

(m) The Michigan federation for children and families.

(n) The Michigan network for youth and families.

(o) Michigan's children.

(p) The school-community health alliance of Michigan.

(q) The student advocacy center of Michigan.

(r) The Skillman foundation.

(s) The W.K. Kellogg foundation.

(t) The C.S. Mott foundation.

(u) The Frey foundation.

(v) The Annie E. Casey foundation.

(w) Youth and adults who are currently or were formerly served by 1 or more services provided by the department to at-risk youth.

(x) Representatives of faith-based organizations.

(3) By June 30, 2007, the task force created under subsection (1) shall report to the department. The report shall include the task force findings, assessments, plan, and recommendations under subsection (2).

(4) By September 30, 2007, the department shall provide to the senate and house of representatives standing committees with primary jurisdiction over human service matters, the senate and house of representatives appropriations subcommittees for the department budget, the senate and house fiscal agencies and policy offices, and the state budget office the task force's report under subsection (3) and identify any actions the department has taken or intends to take as a result of the report.

Sec. 556. The department shall submit a report to the chairpersons of the senate and house of representatives appropriations committees and the senate and house fiscal agencies and policy offices that includes all of the following:

(a) A description of how the department is complying with federal requirements to notify prospective adoptive parents about adoption subsidies for which those prospective adoptive parents may qualify.

(b) The number of requests received by the department from adoptive parents for funds or reimbursement of costs to attend conferences that include training or discussion of significant adoption issues.

(d) The number of the requests described in subdivision (b) that were denied by the department.

(e) The total amount of money expended on the requests described in subdivision (b) that were approved.

(f) The number of fair hearing requests from adoptive parents received by the department challenging the amount of the adoption subsidy.

(g) The number of challenges described in subdivision (f) alleging that a means test or similar test was used to determine the amount of the adoption subsidy.

(h) The number of challenges described in subdivision (f) alleging that an adoption subsidy amount was reduced without the consent of the adoptive parent.

(i) The number of challenges described in subdivision (f) alleging that a request for an increase in an adoption subsidy amount was denied based on a means test or similar test.

(j) The number of adoption subsidy payments suspended when the child is still in the custody of the adoptive parent, but no longer in the physical care of that adoptive parent.

Sec. 559. If a conflict arises between the provisions of state law, department rules, or department policy, and the provisions of title IV-E, the provisions of title IV-E prevail.

Sec. 560. Of the amount appropriated in section 108 of part 1 for contractual services, supplies, and materials, the department shall expend $350,000.00 to equip current and new child protective services workers with digital audio/video recorders. All district offices shall have at least 1 digital audio/video recorder. All current and future child protective services workers shall be trained in the use of the digital audio/video recorders. Child protective services workers shall use digital audio/video recorders during their investigations if a public safety officer is not present. It is the intent of the legislature that the use of these recorders will safeguard the information discovered during an investigation for future use in judicial procedures, documentation of child abuse and neglect, and removal of children from a home.

Sec. 561. In making expenditures from the appropriations in part 1, the department shall give preference to children's advocacy agencies that provide a coordinated investigation and comprehensive response to child abuse when granting contracts for child abuse services. These agencies shall provide a multidisciplinary team approach for responding to child abuse allegations. The multidisciplinary team should include representation from the children's advocacy agency, law enforcement, child protective services, prosecuting attorneys, mental health agencies, medical professionals, and victim advocacy.

Sec. 562. The department shall consider allowing a county or counties to submit claims for federal title IV-E foster care funding for placements in secure residential facilities when a county or counties can demonstrate that the reason for the secure placement is a diagnosed medical necessity and not public protection.

Sec. 563. From the funds appropriated in part 1 for foster care payments and related administrative costs, the department may implement the federally approved title IV-E demonstration project waiver.

Sec. 564. Of the funds appropriated in part 1 for youth in transition, the legislature intends the increase in funding above the appropriated amounts in fiscal year 2005-2006 to increase the runaway and homeless youth providers contract rate by 3% beginning April 1, 2007.

Sec. 565. (1) From the funds appropriated in part 1 for federally-funded family preservation programs, the department shall allocate up to $2,000,000.00 to Wayne County to provide home-based programs as part of the county expansion of community-based services to serve the county's adjudicated delinquent and abused and neglected youth.

(2) One-half of the total amount allocated to Wayne County shall be used to serve adjudicated delinquent youth, and 1/2 shall be used to serve abused and neglected youth.

(3) Federal revenues shall be paid to Wayne County as reimbursement for actual costs incurred, consistent with established federal requirements.

(4) As a condition of receipt of federal funds pursuant to subsection (1), Wayne County shall provide the department with a plan for the use of allocated funds in a format to be specified by the department. The county shall also provide the department with all information required to demonstrate the appropriateness and allowability of expenditures and to meet federal financial and programmatic reporting requirements.

PUBLIC ASSISTANCE

Sec. 601. (1) The department may terminate a vendor payment for shelter upon written notice from the appropriate local unit of government that a recipient's rental unit is not in compliance with applicable local housing codes or when the landlord is delinquent on property tax payments. A landlord shall be considered to be in compliance with local housing codes when the department receives from the landlord a signed statement stating that the rental unit is in compliance with local housing codes and that statement is not contradicted by the recipient and the local housing authority. The department shall terminate vendor payments if a taxing authority notifies the department that taxes are delinquent.

(2) Whenever a client agrees to the release of his or her name and address to the local housing authority, the department shall request from the local housing authority information regarding whether the housing unit for which vendoring has been requested meets applicable local housing codes. Vendoring shall be terminated for those units that the local authority indicates in writing do not meet local housing codes until such time as the local authority indicates in writing that local housing codes have been met.

(3) In order to participate in the rent vendoring programs of the department, a landlord shall cooperate in weatherization and conservation efforts directed by the department or by an energy provider participating in an agreement with the department when the landlord's property has been identified as needing services.

Sec. 603. (1) The department, as it determines is appropriate, shall enter into agreements with energy providers by which cash assistance recipients and the energy providers agree to permit the department to make direct payments to the energy providers on behalf of the recipient. The payments may include heat and electric payment requirements from recipient grants and amounts in excess of the payment requirements.

(2) The department shall establish caps for natural gas, wood, electric heat service, deliverable fuel heat services, and for electric service based on available federal funds.

(3) The department shall review and adjust the standard utility allowance for the state food assistance program to ensure that it reflects current energy costs in the state.

Sec. 604. (1) The department shall operate a state disability assistance program. Except as provided in subsection(3), persons eligible for this program shall include needy citizens of the United States or aliens exempted from the supplemental security income citizenship requirement who are at least 18 years of age or emancipated minors meeting 1 or more of the following requirements:

(a) A recipient of supplemental security income, social security, or medical assistance due to disability or 65 years of age or older.

(b) A person with a physical or mental impairment which meets federal supplemental security income disability standards, except that the minimum duration of the disability shall be 90 days. Substance abuse alone is not defined as a basis for eligibility.

(c) A resident of an adult foster care facility, a home for the aged, a county infirmary, or a substance abuse treatment center.

(d) A person receiving 30-day postresidential substance abuse treatment.

(e) A person diagnosed as having acquired immunodeficiency syndrome.

(f) A person receiving special education services through the local intermediate school district.

(g) A caretaker of a disabled person as defined in subdivision (a), (b), (e), or (f) above.

(2) Applicants for and recipients of the state disability assistance program shall be considered needy if they:

(a) Meet the same asset test as is applied to applicants for the family independence program.

(b) Have a monthly budgetable income that is less than the payment standards.

(3) Except for a person described in subsection (1)(c) or (d), a person is not disabled for purposes of this section if his or her drug addiction or alcoholism is a contributing factor material to the determination of disability. "Material to the determination of disability" means that, if the person stopped using drugs or alcohol, his or her remaining physical or mental limitations would not be disabling. If his or her remaining physical or mental limitations would be disabling, then the drug addiction or alcoholism is not material to the determination of disability and the person may receive state disability assistance. Such a person must actively participate in a substance abuse treatment program, and the assistance must be paid to a third party or through vendor payments. For purposes of this section, substance abuse treatment includes receipt of inpatient or outpatient services or participation in alcoholics anonymous or a similar program.

(4) A refugee or asylee who loses his or her eligibility for the federal supplemental security income program by virtue of exceeding the maximum time limit for eligibility as delineated in 8 USC 1612 and who otherwise meets the eligibility criteria under this section shall be eligible to receive benefits under the state disability assistance program.

Sec. 605. The level of reimbursement provided to state disability assistance recipients in licensed adult foster care facilities shall be the same as the prevailing supplemental security income rate under the personal care category.

Sec. 606. County department offices shall require each recipient of state disability assistance who has applied with the social security administration for supplemental security income to sign a contract to repay any assistance rendered through the state disability assistance program upon receipt of retroactive supplemental security income benefits.

Sec. 607. The department's ability to satisfy appropriation deductions in part 1 for state disability assistance/
supplemental security income recoveries and public assistance recoupment revenues shall not be limited to recoveries and accruals pertaining to state disability assistance, or family independence assistance grant payments provided only in the current fiscal year, but shall include all related net recoveries received during the current fiscal year.

Sec. 608. Adult foster care facilities providing domiciliary care or personal care to residents receiving supplemental security income or homes for the aged serving residents receiving supplemental security income shall not require those residents to reimburse the home or facility for care at rates in excess of those legislatively authorized. To the extent permitted by federal law, adult foster care facilities and homes for the aged serving residents receiving supplemental security income shall not be prohibited from accepting third-party payments in addition to supplemental security income provided that the payments are not for food, clothing, shelter, or result in a reduction in the recipient's supplemental security income payment.

Sec. 609. The state supplementation level under the supplemental security income program for the personal care/adult foster care and home for the aged categories shall not be reduced during the fiscal year beginning October1, 2006 and ending September 30, 2007. The legislature shall be notified not less than 30 days before any proposed reduction in the state supplementation level.

Sec. 610. In developing good cause criteria for the state emergency relief program, the department shall grant exemptions if the emergency resulted from unexpected expenses related to maintaining or securing employment.

Sec. 611. (1) A provider of indigent burial services may collect additional payment from relatives or other persons on behalf of the deceased if the total additional payment does not exceed $2,600.00.

(2) Any additional payment collected pursuant to subsection (1) shall not increase the maximum charge limit for state payment as established by law.

(3) A provider of indigent burial services under the indigent burial services pilot project begun in fiscal year 2005-2006 shall not request or accept payment from a relative of the deceased or from another individual, other than payment under the pilot project.

Sec. 612. For purposes of determining housing affordability eligibility for state emergency relief, a group is considered to have sufficient income to meet ongoing housing expenses if their total housing obligation does not exceed 75% of their total net income.

Sec. 613. (1) Beginning January 1, 2007, the department shall begin statewide implementation of the indigent burial services pilot project begun in fiscal year 2005-2006.

(2) If the department, in consultation with representatives of funeral establishments, determines on or before December 31, 2006 that continued implementation of the indigent burial services pilot program will lead to excessive demands upon appropriated funds for the program, the department shall notify the senate and house subcommittees with jurisdiction over the department's budget that it is suspending the program.

(3) If the program is suspended pursuant to subsection (2), the department shall immediately implement payments for services according to the payment standards used in fiscal year 2005-2006.

(4) Providers of burial services shall be responsible for expenses in excess of appropriated amounts for the period of the indigent burial services project's implementation, but the department shall not increase those expenses by untimely delays in acting upon a request from representatives of funeral establishments that the program be suspended and notice sent to the legislative subcommittees referred to in subsection (2).

Sec. 614. Until January 1, 2007, the funds available in part 1 for burial services shall be available if the deceased was an eligible recipient and an application for emergency relief funds was made within 10 days of the burial or cremation of the deceased person. Each provider of burial services shall be paid directly by the department.

Sec. 615. Except as required by federal law or regulations, funds appropriated in part 1 shall not be used to provide public assistance to a person who is an illegal alien. This section shall not prohibit the department from entering into contracts with food banks or emergency shelter providers who may, as a normal part of doing business, provide food or emergency shelter to individuals.

Sec. 617. In operating the family independence program with funds appropriated in part 1, the department shall not approve as a minor parent's adult supervised household a living arrangement in which the minor parent lives with his or her partner as the supervising adult.

Sec. 618. The department may only reduce, terminate, or suspend assistance provided under the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, without prior notice in 1 or more of the following situations:

(a) The only eligible recipient has died.

(b) A recipient member of a program group or family independence assistance group has died.

(d) A recipient requests in writing that his or her assistance be reduced, terminated, or suspended.

(e) A recipient has been approved to receive assistance in another state.

(f) A change in either state or federal law that requires automatic grant adjustments for classes of recipients.

(g) The only eligible recipient in the household has been incarcerated.

(h) A recipient is no longer a Michigan resident.

(i) A recipient is closed on 1 case to be activated on another.

(j) Federal payments (other than RSDI, railroad retirement, or VA) to the group have begun or increased.

(k) A recipient is disqualified for intentional program violation.

(l) When the department's negative action is upheld in an administrative hearing.

Sec. 619. The department shall exempt from the denial of title IV-A assistance and food assistance benefits, contained in 21 USC 862a, any individual who has been convicted of a felony that included the possession, use, or distribution of a controlled substance, after August 22, 1996, provided that the individual is not in violation of his or her probation or parole requirements. Benefits shall be provided to such individuals as follows:

(a) A third-party payee or vendor shall be required for any cash benefits provided.

(b) An authorized representative shall be required for food assistance receipt.

Sec. 620. The department with the approval of the state budget director is authorized to increase federal spending authority for food assistance program benefits if projected caseload spending will exceed the spending authority in part1. This authorization adjustment shall be made 15 days after notifying the chairs of the house and senate appropriations subcommittees on the department budget and house and senate fiscal agencies.

Sec. 621. Funds appropriated in part 1 may be used to support multicultural assimilation and support services. The department shall distribute all of the funds described in this section based on assessed community needs.

Sec. 627. (1) From the funds appropriated in part 1 for day care services, the department shall contract to administer an amount not to exceed $1,350,000.00 for the "enhance quality improvement program" (EQUIP) grants. A priority for the expenditure of EQUIP funds shall be given to providers to expand access to child care, specifically 24-hour care, care for children of parents working evening or night shifts, and weekend care. A child care program shall not be eligible for an EQUIP grant unless 25% or more of its clients receive day care payments from the department.

(2) From the funds appropriated in part 1 for day care services, the department shall establish an additional fund of at least $350,000.00 for a grant pool for an "enhance quality improvement program" (EQUIP) specifically to establish new family and group home day care providers.

Sec. 631. The department shall maintain policies and procedures to achieve all of the following:

(a) The identification of individuals on entry into the system who have a history of domestic violence, while maintaining the confidentiality of that information.

(b) Referral of persons so identified to counseling and supportive services.

(c) In accordance with a determination of good cause, the waiving of certain requirements of family independence programs where compliance with those requirements would make it more difficult for the individual to escape domestic violence or would unfairly penalize individuals who have been victims of domestic violence or who are at risk of further domestic violence.

Sec. 635. Within 24 hours of receiving all information necessary to process an application for payments for child day care, the department shall determine whether the child day care provider to whom the payments, if approved, would be made, is listed on the child abuse and neglect central registry. If the provider is listed on the central registry, the department shall immediately send written notice denying the applicant's request for child day care payments.

Sec. 640. (1) From the funds appropriated in part 1 for day care services, the department may continue to provide infant and toddler incentive payments to child day care providers serving children from 0 to 2-1/2 years of age who meet licensing or training requirements.

(2) The use of the funds under this section should not be considered an ongoing commitment of funding.

Sec. 641. In collaboration with Central Michigan University, the department shall develop and disseminate read, educate, and develop youth (R.E.A.D.Y.) kits to parents of preschool and kindergarten children to provide these parents with information about how they can prepare their children for reading success.

Sec. 643. As a condition of receipt of federal TANF funds, homeless shelters shall collaborate with the department to obtain necessary TANF eligibility information on families as soon as possible after admitting a family to the homeless shelter. From the funds appropriated in part 1 for homeless shelter contracts, the department is authorized to make allocations of TANF funds only to the agencies that report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements. Homeless shelters that do not report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements will not receive reimbursements which exceed the per diem amount they received in fiscal year 2000. The use of TANF funds under this section should not be considered an ongoing commitment of funding.

Sec. 645. An individual or family is considered homeless, for purposes of eligibility for state emergency relief, if living temporarily with others in order to escape domestic violence. For purposes of this section, domestic violence is defined and verified in the same manner as in the department's policies on good cause for not cooperating with child support and paternity requirements.

Sec. 653. From the funds appropriated in part 1 for food assistance, an individual who is the victim of domestic violence and does not qualify for any other exemption may be exempt from the 3-month in 36-month limit on receiving food assistance under 7 USC 2015. This exemption can be extended an additional 3 months upon demonstration of continuing need.

Sec. 657. (1) The department shall fund a statewide before- or after-school program to provide youth with a safe, engaging environment to motivate and inspire learning outside the traditional classroom setting. Before- or after-school program eligibility is limited to geographic areas near school buildings that do not meet federal no child left behind annual yearly progress (AYP) requirements and that include the before- or after-school programs in the AYP plans as a means to improve outcomes. Before-school programs are limited to elementary school-aged children. Effective before- or after-school programs combine academic, enrichment, and recreation activities to guide learning and inspire children and youth in various activities. The before- or after-school programs can meet the needs of the communities served by the programs.

(2) The department shall work in collaboration with independent contractors to put into practice a program establishing quality before- or after-school programs for children in kindergarten to ninth grades. In order for an independent contractor to receive TANF funds, a child served must be a member of a family with an income that does not exceed 200% of the federal poverty guidelines published by the United States department of health and human services.

(3) The department shall, through a competitive bid process, provide grants or contracts up to $5,000,000.00 in TANF funds for the program based on community needs. A county shall receive no more than 20% of the funds appropriated in part 1 for this program. From the funds appropriated in part 1 for before- or after-school programs within day care services, the department is authorized to make allocations of funds only to the agencies that report necessary data to the department for the purpose of meeting TANF and maintenance of effort eligibility reporting requirements. The use of funds under this section should not be considered an ongoing commitment of funding.

(4) The before- or after-school programs shall include academic assistance, including assistance with reading and writing, and at least 3 of the following topics:

(a) Abstinence-based pregnancy prevention.

(b) Chemical abuse and dependency including nonmedical services.

(d) Preparation toward future self-sufficiency.

(e) Leadership development.

(f) Case management or mentoring.

(g) Parental involvement.

(h) Anger management.

(5) The department may enter into grants or contracts with independent contractors including, but not limited to, faith-based organizations, boys or girls clubs, schools, or nonprofit organizations. The department shall grant priority in funding independent contractors who secure at least 25% in matching funds. The matching funds may either be fulfilled through local, state, or federal funds, and/or through in-kind or other donations.

(6) A referral to a program may be made by, but is not limited to, any of the following: a teacher, counselor, parent, police officer, judge, or social worker.

(7) By January 30, 2007, the department before- or after-school program expenditures shall be audited and the department shall work in collaboration with independent contractors to provide a report on the before- or after-school program to the senate and house standing committees dealing with human services, the senate and house appropriations subcommittees for the department budget, the senate and house fiscal agencies, and the senate and house policy offices. The report shall include the number of participants and the average cost per participant, as well as changes noted in program participants in any of the following categories:

(a) Juvenile crime.

(b) Aggressive behavior.

(d) Development of new skills and interests.

(e) School attendance and dropout rates.

(f) Behavioral changes in school.

Sec. 658. From the funds appropriated in part 1 for day care services, $126,500.00 in TANF funds shall be allocated to Grand Rapids youth commonwealth to support after-school and summer programs at camp O'Malley. As a condition for receiving funds, Grand Rapids youth commonwealth shall comply with all policies and reporting requirements placed on recipients of before- and after-school grants awarded under section 657.

Sec. 660. From the funds appropriated in part 1 for food bank funding, the department is authorized to make allocations of TANF funds only to the agencies that report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements. The agencies that do not report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements will not receive allocations in excess of those received in fiscal year 2000. The use of TANF funds under this section should not be considered an ongoing commitment of funding.

Sec. 665. The department shall partner with the department of transportation and may partner with other entities to use TANF and other sources of available funding to support public transportation needs of TANF-eligible individuals. This partnership shall place a priority on transportation needs for employment or seeking employment or medical or health-related transportation.

Sec. 666. The department shall continue efforts to increase the participation of eligible family independence program recipients in the federal earned income tax credit.

Sec. 668. (1) In coordination with the Michigan alliance of boys and girls clubs, the department shall expend $250,000.00 to make allocations for a statewide collaborative project to develop a community-based program available to children ages 6 to 15.

(2) The department shall make allocations of TANF funds under this section only to agencies that report necessary data to the department for the purpose of meeting the TANF eligibility reporting requirements. The use of TANF funds under this section should not be considered an ongoing commitment.

(3) The department shall grant priority in funding to programs that provide at least 10% in matching funds. The matching funds requirement shall be fulfilled through any combination of local, state, or federal funds or in-kind or other donations. A program that cannot meet the matching requirement shall not be excluded from applying for a contract.

Sec. 669. (1) The department shall distribute cash and food assistance to recipients electronically by using debit cards.

(2) The department shall allocate up to $7,167,500.00 for the annual clothing allowance. The allowance shall be granted to all eligible children as defined by the department.

Sec. 670. The funds appropriated in part 1 for kinship care in the fiscal year ending September 30, 2007 reflect the legislature's commitment to reduce the benefit discrepancy between kinship care and a similar family size within the family independence agency program (FIP). The legislature recognizes the commitment of relatives to provide family continuity, nurturance, and care for this special population of children who can no longer remain in their parents' care due to abuse, neglect, or other social problems.

Sec. 673. The department shall immediately send notification to a client participating in the state child day care program and his or her child day care provider if the client's eligibility is reduced or eliminated.

Sec. 674. The department shall develop and implement a plan to reduce waste, fraud, and abuse within the child day care program, including feasibility for expanding wage match and employer verification, unannounced home call verification at day care sites, compliance with recommendations of the auditor general in the May 2005 performance audit of the child day care and child welfare licensing divisions, and other process changes. Beginning December 31, 2006, the department shall report annually to the senate and house appropriations subcommittees for the department budget, the senate and house fiscal agencies and policy offices, and the state budget director on plan details and implementation status, including, at least, the following measurable performance indicators:

(a) The success or failure of the expansion of wage match and employer verification.

(b) The success or failure of unannounced home call verification at day care sites.

(c) The success or failure of complying with the recommendations of the auditor general in the May 2005 performance audit of the child day care and child welfare licensing divisions.

(d) The amount of money recovered as a result of the plan for the preceding fiscal year.

(e) The amount of money saved as a result of the plan for the preceding fiscal year.

(f) The number of day care case closures as a result of the plan.

(g) The number of criminal convictions as a result of the plan.

(h) Any policy changes related to the plan.

Sec. 675. (1) The department shall continue to explore policy options and the potential costs of implementing a child day care rate structure that more accurately reflects the market cost and availability of care by vicinity.

(2) The department shall work with family independence program recipients, employers, and day care or kinship providers to identify barriers to day care services for custodial parents working nontraditional work schedules or engaged in education and training programs with nontraditional times and shall report recommendations to the legislature during the annual budget presentation to the senate and house subcommittees with jurisdiction over the department's budget. These recommendations shall include measures to increase awareness and access to day care for those recipients.

Sec. 676. (1) The department shall collaborate with the state board of education to extend the duration of the Michigan after-school partnership and oversee its efforts to implement the policy recommendations and strategic next steps identified in the Michigan after-school initiative's report of December 15, 2003.

(2) From the funds appropriated in part 1, $25,000.00 may be used to support the Michigan after-school partnership and shall be used to leverage other private and public funding to engage the public and private sectors in building and sustaining high-quality out-of-school-time programs and resources. The co-chairs shall name a fiduciary agent and may authorize the fiduciary to expend funds and hire people to accomplish the work of the Michigan after-school partnership.

(3) Each year, on or before December 31, the Michigan after-school partnership shall report its progress in reaching the recommendations set forth in the Michigan after-school initiative's report to the senate and house committees on appropriations, the senate and house fiscal agencies and policy offices, and the state budget director.

Sec. 677. The department shall establish a state goal for the percentage of family independence program (FIP) cases involved in employment activities. The percentage established shall not be less than 50%. On a monthly basis, the department shall report to the senate and house appropriations subcommittees on the department budget, the senate and house fiscal agencies and policy offices, and the state budget director on the current percentage of FIP cases involved in employment activities and the current percentage of JET pilot program cases involved in employment activities. If the FIP case percentage is below the goal for more than 2 consecutive quarters, the department shall develop a plan to increase the percentage of FIP cases involved in employment-related activities. The department shall deliver the plan during the next annual budget presentation to the senate and house appropriations subcommittees on the department budget.

Sec. 678. (1) The department shall provide the house and senate appropriations subcommittees on the department budget with an annual report on the activities of the early childhood investment corporation (ECIC). The report is due by February 1 of each year and shall contain at least the following information:

(a) Expenditures for the prior fiscal year and planned expenditures for the current fiscal year for ECIC administration and for each program administered by the ECIC.

(b) The projected funding sources for the ECIC expenditures in subdivision (a).

(2) All contracts shall be bid out through a statewide request-for-proposal process, and the department shall send a report to the house and senate appropriations subcommittees on the department budget covering the selection criteria for establishing contracts at least 30 days before the issuance of any request for proposals.

Sec. 681. By December 1, 2006, the department shall implement policy changes in the distribution of food assistance program benefits to address concerns expressed by grocers, food providers, and the Michigan food policy council. The distribution change shall seek to achieve a more uniform flow of food assistance expenditures in any given month and also consider the needs of recipients. A report on the implemented policy changes shall be provided to the house and senate appropriations committees, the house and senate fiscal agencies, and the house and senate policy offices by December 1, 2006.

JUVENILE JUSTICE SERVICES

Sec. 702. Expansion of facilities funded under part 1 for juvenile justice services shall not be authorized by the joint capital outlay subcommittee of the appropriations committees until the department has held a public hearing in the community where the facility proposed to be expanded is located.

Sec. 705. (1) The department, in conjunction with private juvenile justice residential programs, shall develop a methodology for measuring goals, objectives, and performance standards for the delivery of juvenile justice residential programs based on national standards and best practices. These goals, objectives, and performance standards shall apply to both public and private delivery of juvenile justice residential programs, and data shall be collected from both private and public juvenile justice residential programs that can be used to evaluate performance achievements, including, but not limited to, the following:

(a) Admission and release data and other information related to demographics of population served.

(b) Program descriptions and information related to treatment, educational services, and conditions of confinement.

(2) The department during the annual budget presentation shall outline the progress of the development of the goals, objectives, and performance standards, as well as the information collected through the implementation of the performance measurement program. The presentation shall include all of the following:

(a) Trends in census and population demographics.

(b) Program outcomes.

(d) Facility profile.

(e) Fiscal information necessary for qualitative understanding of program operations and comparative costs of public and private facilities.

Sec. 706. Counties shall be subject to 50% charge-back for the use of alternative regional detention services, if those detention services do not fall under the basic provision of section 117e of the social welfare act, 1939 PA 280, MCL400.117e, or if a county operates those detention services programs primarily with professional rather than volunteer staff.

Sec. 707. In order to be reimbursed for child care fund expenditures, counties are required to submit department-developed reports to enable the department to document potential federally claimable expenditures. This requirement is in accordance with the reporting requirements specified in section 117a(7) of the social welfare act, 1939 PA 280, MCL 400.117a.

Sec. 708. As a condition of receiving funds appropriated in part 1 for the child care fund, by February 15, 2007, counties shall have an approved service spending plan for the fiscal year ending September 30, 2007. Counties must submit the service spending plan to the department by December 15, 2006 for approval.

Sec. 714. (1) The department shall provide technical assistance for counties to develop information networks including, but not limited to, serious habitual offenders comprehensive action program (SHOCAP), juvenile justice on-line technology (JJOLT), and juvenile violent reporting system (JVRS).

(2) The department shall assist counties in identifying funding sources for the networks, including, but not limited to, the child care fund and the juvenile accountability incentive block grant.

(3) The local units of government shall report to the department on expenditures of their juvenile justice information networks in concert with their requests for reimbursement from the child care fund.

(4) The department shall report to the senate and house appropriations subcommittees for the department budget, the senate and house fiscal agencies and policy offices, and the state budget director by January 15, 2007 on department efforts to encourage county information networks development described in subsection (1).

Sec. 715. (1) It is the intent of the legislature that the primary function of the juvenile justice system shall be to promote the protection of individuals and communities through the reduction of juvenile crime.

(2) The department shall report to the senate and house appropriations subcommittees for the department budget, the senate and house fiscal agencies and policy offices, and the state budget director by October 30, 2006 on the status of implementing recommendations of the 2001 joint house and senate task force on juvenile justice, including, but not limited to, the following:

(a) Mentoring programs that focus on improving communication and collaboration, encourage quality mentoring programs, recruitment of mentors, and increasing public awareness of and participation in programs for at-risk youth.

(b) Discussion of programs relating to juvenile information networks as an Internet-based communication tool that assists with case management of juvenile offenders in the area.

(c) Discussion of the possibility of implementing a program modeled after the "Wisconsin citizenship initiative" to collaborate with the before- or after-school programs offered under the authority of this article.

(d) Exploration of the option of a summit conducted via the Internet to discuss measures relating to the prevention and intervention of at-risk youth.

(e) Discussion of California's "8% early intervention" program that focuses on aggressive early intervention and treatment of young, high at-risk juvenile offenders and their families.

(f) Multisystem therapy.

(g) Youth service projects.

(h) Community services projects.

Sec. 719. The department shall notify the legislature at least 30 days before closing or making any change in the status of a state juvenile justice facility.

Sec. 720. (1) The goal of high security juvenile services funded in part 1 shall be to protect the general public from dangerous juvenile offenders while providing rehabilitation services to those offenders to safely prepare them for entry into society.

(2) The department shall take into consideration the recommendations on a methodology for measuring goals, objectives, and performance standards developed in conjunction with private providers of juvenile justice residential programs required in section 705 of 2004 PA 344.

(3) The department shall allocate money to public and private providers of high security juvenile services based on their ability to demonstrate results in all of the following:

(a) Lower recidivism rates.

(b) Higher school completion rates or GED completion rates.

(d) Lower average cost per resident.

(e) Availability of appropriate services to residents.

(4) The department shall comply with section 115o of the social welfare act, 1939 PA 280, MCL 400.115o, regarding placement of juvenile offenders, and shall refer to that statutory requirement in making referral recommendations to courts for secure residential programs.

(5) The department shall require, if possible and practical, that aftercare services for a juvenile offender be provided by the same organization or provider that provided residential care for that juvenile.

Sec. 721. (1) The goal of medium or low security juvenile services shall be effective treatment of juvenile offenders to safely prepare them for entry into society.

(2) The department shall allocate money to public and private providers of medium or low security juvenile services based on their ability to demonstrate results in all of the following:

(a) Reduced rates of recidivism.

(b) Higher rates of high school or GED completion.

(d) Availability of appropriate services to residents.

(3) The department shall comply with section 115o of the social welfare act, 1939 PA 280, MCL 400.115o, regarding the placement of juvenile offenders, and shall refer to that statutory requirement in making referral recommendations to courts for residential treatment programs.

(4) The department shall require, if possible and practical, that aftercare services for a juvenile offender be provided by the same program or provider that provided treatment for the juvenile in residential care.

Sec. 722. (1) The goal of community juvenile justice centers shall be the effective treatment and rehabilitation of juvenile offenders in appropriate community settings.

(2) The department shall allocate money to public and private providers of juvenile justice day programs based on their ability to demonstrate results in all of the following:

(a) Reduced rates of recidivism.

(b) Higher rates of high school or GED completion.

Sec. 723. A provider of juvenile services may receive funding for services of different security levels if the provider has appropriate services for each security level and adequate measures to separate residents of each security level.

LOCAL OFFICE SERVICES

Sec. 750. The department shall maintain out-stationed eligibility specialists in community-based organizations and hospitals in the same locations as in fiscal year 2003-2004.

Sec. 751. (1) From the funds appropriated in part 1, the department shall implement school-based family resource centers based on the following guidelines:

(a) The center is supported by the local school district.

(b) The programs and information provided at the center do not conflict with sections 1169, 1507, and 1507b of the revised school code, 1976 PA 451, MCL 380.1169, 380.1507, and 380.1507b.

(c) Notwithstanding subdivision (b), the center shall provide information regarding crisis pregnancy centers or adoption service providers in the area.

(2) The department shall notify the senate and house subcommittees on the department budget, the senate and house fiscal agencies and policy offices, and the state budget office of family resource center expansion efforts and shall provide all of the following at the beginning of the selection process or no later than 5 days after eligible schools receive opportunity notification:

(a) A list of eligible schools.

(b) The selection criteria to be used.

(d) The financial implications for expansion, including funding sources.

Sec. 753. The department shall implement the recommendations of the 2004 public private partnership initiative's training committee to define, design, and implement a train-the-trainer program to certify private agency staff to deliver child welfare staff training, explore the use of e-learning technologies, and include consumers in the design and implementation of training. The intent of the legislature is to reduce training and travel costs for both the department and the private agencies. The department shall report no later than December 1, 2006 on each specific policy change made to implement enacted legislation and the plans to implement the recommendations, including time lines, to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on human services matters, the senate and house fiscal agencies and policy offices, and the state budget director.

DISABILITY DETERMINATION SERVICES

Sec. 801. The department disability determination services in agreement with the department of management and budget office of retirement systems will develop the medical information and make recommendations for medical disability retirement for state employees, state police, judges, and school teachers.

CHILD SUPPORT ENFORCEMENT

Sec. 901. (1) The appropriations in part 1 assume a total federal child support incentive payment of $26,500,000.00.

(2) From the federal money received for child support incentive payments, $12,000,000.00 shall be retained by the state and expended for child support program expenses.

(3) From the federal money received for child support incentive payments, $14,500,000.00 shall be paid to the counties based on each county's performance level for each of the federal performance measures as established in the code of federal regulations, CFR 45.305.2.

(4) If the child support incentive payment to the state from the federal government is greater than $26,500,000.00, then 100% of the excess shall be retained by the state and is appropriated until the total retained by the state reaches $15,397,400.00.

(5) If the child support incentive payment to the state from the federal government is greater than the amount needed to satisfy the provisions identified in subsections (1), (2), (3), and (4), the additional funds shall be subject to appropriation by the legislature.

(6) If the child support incentive payment to the state from the federal government is less than $26,500,000.00, then the state and county share shall each be reduced by 50% of the shortfall.

Sec. 902. (1) The department shall continue its work to fix and improve the child support computer system using the funding carried forward from fiscal year 2005-2006 appropriations.

(2) The department shall consult with the department of treasury and any outside consultant with collections expertise under contract with the department of treasury to develop a plan to maximize the collection of child support and child support arrearage settlement for the purposes of this section.

(3) The department, through the child support leadership group, shall provide quarterly reports to the legislature concerning money expended and improvements made as a result of this section.

Sec. 903. The department may facilitate with the department of community health a program under which the departments independently or jointly contract with local friend of the court offices to update and maintain the child support statewide database with health insurance information in cases in which the court has ordered a party to the case to maintain health insurance coverage for the minor child or children involved in the case and to assist in the recovery of money paid by the state for health care costs that are otherwise recoverable from a party to the case. The program shall be in addition to a program or programs under existing contract between either or both of the departments with a private entity on September 1, 2005. The program shall be entirely funded with state and federal funds from money first recovered or through costs that are avoided by charging the insurance coverage for minor children from state programs to private insurance.

Sec. 904. The department is prohibited from charging back to the counties any of the fees paid that are charged by the internal revenue service or the department of treasury related to the tax intercept and offset programs. The state share of those fees shall be paid from money otherwise provided for office of child support programs.

Sec. 905. Of the funds appropriated in part 1 for child support collections, $1,000,000.00 shall be allocated to counties for the local match for friend of the court services legal support contracts and to payments to county prosecutors for related legal services.

Sec. 906. From the funds appropriated in part 1 for legal support contracts, $1,000,000.00 shall be allocated and paid pursuant to section 18a of the social welfare act, 1939 PA 280, MCL 400.18a.

Sec. 907. The office of child support in cooperation with the state court administrative office shall establish a pilot program to examine the effectiveness of contracting with a public or private collection agency as authorized under section 10 of the office of child support act, 1971 PA 174, MCL 400.240. The pilot program shall be implemented during fiscal year 2006-2007. Any restricted revenue collected pursuant to this section shall not be expended until the department and representatives from counties and the friends of the court meet and agree upon recommendations for use of the revenue. The revenue is subject to appropriation by the legislature.

OFFICE OF CHILDREN AND ADULT LICENSING

Sec. 1001. The department shall assess fees in the licensing and regulation of child care organizations as defined in 1973 PA 116, MCL 722.111 to 722.128, and adult foster care facilities as defined in the adult foster care facility licensing act, 1979 PA 218, MCL 400.701 to 400.737. Fees collected by the department shall be used exclusively for the purpose of licensing and regulating child care organizations and adult foster care facilities.

Sec. 1002. The department shall furnish the clerk of the house, the secretary of the senate, the senate and house fiscal agencies and policy offices, the state budget office, and all members of the house and senate appropriations committees with a summary of any evaluation reports and subsequent approvals or disapprovals of juvenile residential facilities operated by the department, as required by section 6 of 1973 PA 116, MCL 722.116. If no evaluations are conducted during the fiscal year, the department shall notify the fiscal agencies and all members of the appropriate subcommittees of the house and senate appropriations committees.

Sec. 1003. If federal funds become available to support a lead testing program, the department shall, before issuing a license for a day care facility and as part of licensing review and facility inspection, require documentation verifying that the facility has been inspected for lead hazards and that any lead hazards identified have been remediated.

Sec. 1004. From the funds appropriated in part 1 for AFC, children's welfare, and day care licensure, $358,800.00 shall be used to hire 5 additional licensing investigators. At least 50% of the investigators hired shall specifically investigate those allegations classified by the department as high risk. An investigation would be in the high risk category if it involves the following: death or serious injury; alleged physical, sexual, or emotional abuse, neglect, endangerment, or exploitation; or any situation that threatens the life of a child in care.

Sec. 1005. The department shall develop a plan for a performance-based licensing system. The plan shall include an approach that emphasizes site visits for new licensees and licensees with violations or filed complaints and random, but not required, site visits for licensees who have been in business for 5 years or more with no violations or filed complaints. The plan shall direct the licensing staff and field consultants to prioritize resources and site reviews on new licensees and those with documented complaints. The plan activities shall also be based on risk to the vulnerable children and adults receiving services from licensees. The plan shall include an implementation date for fiscal year 2006-2007 and be submitted, by January 31, 2007, to the senate and house appropriations subcommittees on the department budget, the senate and house fiscal agencies and policy offices, and the state budget director.

ARTICLE 11

JUDICIARY

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this article, the amounts listed in this part are appropriated for the judicial branch for the fiscal year ending September 30, 2007, from the funds indicated in this part. The following is a summary of the appropriations in this part:

JUDICIARY

APPROPRIATION SUMMARY:

Full-time equated exempted positions 509.0

GROSS APPROPRIATION $ 259,428,100

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 2,563,500

ADJUSTED GROSS APPROPRIATION $ 256,864,600

Federal revenues:

Total federal revenues 4,626,400

Special revenue funds:

Total local revenues 3,612,400

Total private revenues 842,500

Total other state restricted revenues 87,178,500

State general fund/general purpose $ 160,604,800

Sec. 102. SUPREME COURT (SAFETY)

Full-time equated exempted positions 235.0

Supreme court administration--97.0 FTE positions $ 11,361,800

Judicial institute--16.0 FTE positions 2,756,500

State court administrative office--62.0 FTE positions 10,562,100

Judicial information systems--18.0 FTE positions 3,291,100

Direct trial court automation support--26.0 FTE positions 3,612,400

Foster care review board--12.0 FTE positions 1,277,800

Community dispute resolution--4.0 FTE positions 2,277,300

Other federal grants 275,000

Drug treatment courts 4,729,000

GROSS APPROPRIATION $ 40,143,000

Appropriated from:

Interdepartmental grant revenues:

IDG from department of community health 1,800,000

IDG from department of labor and economic growth 40,000

IDG from state police - Michigan justice training fund 300,000

Federal revenues:

DOJ, victims assistance programs 50,000

DOJ, drug court training and evaluation 300,000

DOT, national highway traffic safety administration 800,000

HHS, access and visitation grant 387,000

HHS, children's justice grant 206,300

HHS, court improvement project 1,160,000

HHS, title IV-D child support program 907,700

HHS, title IV-E foster care program 540,400

Other federal grant revenues 275,000

Special revenue funds:

Local - user fees 3,612,400

Private 169,000

Private - interest on lawyers trust accounts 232,700

Private - state justice institute 370,800

Community dispute resolution fund 2,277,300

Law exam fees 482,100

Drug court fund 1,920,500

Miscellaneous revenue 227,900

Justice system fund 700,000

State court fund 339,000

State general fund/general purpose $ 23,044,900

Sec. 103. COURT OF APPEALS (SAFETY)

Full-time equated exempted positions 212.0

Court of appeals operations--212.0 FTE positions $ 19,615,700

GROSS APPROPRIATION $ 19,615,700

Appropriated from:

Special revenue funds:

Court filing/motion fees 1,958,500

Miscellaneous revenue 77,800

State general fund/general purpose $ 17,579,400

Sec. 104. BRANCHWIDE APPROPRIATIONS (SAFETY)

Full-time equated exempted positions 4.0

Branchwide appropriations--4.0 FTE positions $ 8,200,000

GROSS APPROPRIATION $ 8,200,000

Appropriated from:

State general fund/general purpose $ 8,200,000

Sec. 105. JUSTICES' AND JUDGES' COMPENSATION (SAFETY)

Full-time judges positions 617.0

Supreme court justices' salaries--7.0 judges $ 1,152,300

Court of appeals judges' salaries--28.0 judges 4,240,300

District court judges' state base salaries--258.0 judges 23,877,200

District court judicial salary standardization 11,796,800

Probate court judges' state base salaries--103.0 judges 9,498,100

Probate court judicial salary standardization 4,599,700

Circuit court judges' state base salaries--221.0 judges 20,723,000

Circuit court judicial salary standardization 10,059,300

Judges' retirement system defined contributions 3,094,600

OASI, social security 4,978,900

GROSS APPROPRIATION $ 94,020,200

Appropriated from:

Special revenue funds:

Court fee fund 7,090,200

State general fund/general purpose $ 86,930,000

Sec. 106. JUDICIAL AGENCIES (SAFETY)

Full-time equated exempted positions 8.0

Judicial tenure commission--8.0 FTE positions $ 1,023,500

GROSS APPROPRIATION $ 1,023,500

Appropriated from:

State general fund/general purpose $ 1,023,500

Sec. 107. INDIGENT DEFENSE - CRIMINAL (SAFETY)

Full-time equated exempted positions 50.0

Appellate public defender program--42.0 FTE positions $ 4,903,500

Appellate assigned counsel administration--8.0 FTE positions 894,200

GROSS APPROPRIATION $ 5,797,700

Appropriated from:

Interdepartmental grant revenues:

IDG from state police - Michigan justice training fund 423,500

Special revenue funds:

Private - interest on lawyers trust accounts 70,000

Miscellaneous revenue 113,100

State general fund/general purpose $ 5,191,100

Sec. 108. INDIGENT CIVIL LEGAL ASSISTANCE (SAFETY)

Indigent civil legal assistance $ 7,937,000

GROSS APPROPRIATION $ 7,937,000

Appropriated from:

Special revenue funds:

State court fund 7,937,000

State general fund/general purpose $ 0

Sec. 109. TRIAL COURT OPERATIONS (SAFETY)

Court equity fund reimbursements $ 69,075,900

Judicial technology improvement 4,465,000

GROSS APPROPRIATION $ 73,540,900

Appropriated from:

Special revenue funds:

Court equity fund 50,440,000

Judicial technology improvement fund 4,465,000

State general fund/general purpose $ 18,635,900

Sec. 110. GRANTS AND REIMBURSEMENTS TO LOCAL GOVERNMENT

(SAFETY)

Drug case-flow program $ 250,000

Drunk driving case-flow program 2,300,000

Juror compensation reimbursement 6,600,000

Transcript fee reimbursement 100

GROSS APPROPRIATION $ 9,150,100

Appropriated from:

Special revenue funds:

Drug fund 250,000

Drunk driving fund 2,300,000

Juror compensation fund 6,600,000

Transcript fee fund 100

State general fund/general purpose $ 0

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 2006-2007 is $247,783,300.00 and state spending from state resources to be paid to local units of government for fiscal year 2006-2007 is estimated at $124,419,000.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

JUDICIARY

SUPREME COURT

State court administrative office $ 511,900

Drug treatment courts 4,429,000

TRIAL COURT OPERATIONS

Court equity fund reimbursements $ 69,075,900

Judicial technology improvement fund 4,465,000

JUSTICES' AND JUDGES' COMPENSATION

District court judicial salary standardization $ 11,796,800

Probate court judges' state base salaries 9,498,100

Probate court judicial salary standardization 4,599,700

Circuit court judicial salary standardization 10,059,300

Grant to OASI contribution fund, employers share, social security 833,200

GRANTS AND REIMBURSEMENTS TO LOCAL GOVERNMENT

Drunk driving case-flow program $ 2,300,000

Drug case-flow program 250,000

Juror compensation reimbursement 6,600,000

Transcript fee reimbursement 100

TOTAL $ 124,419,000

Sec. 202. (1) The appropriations authorized under this article are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

(2) Funds appropriated in part 1 to an entity within the judicial branch shall not be expended or transferred to another account without written approval of the authorized agent of the judicial entity. If the authorized agent of the judicial entity notifies the state budget director of its approval of an expenditure or transfer, the state budget director shall immediately make the expenditure or transfer. The authorized judicial entity agent shall be designated by the chief justice of the supreme court.

Sec. 203. As used in this article:

(a) "DOJ" means the United States department of justice.

(b) "DOT" means the United States department of transportation.

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

(e) "IDG" means interdepartmental grant.

(f) "OASI" means old age survivor's insurance.

Sec. 204. The judicial branch shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

Sec. 208. The reporting requirements of this article shall be completed with the approval of, and at the direction of, the supreme court. Unless otherwise specified, the judicial branch shall use the Internet to fulfill the reporting requirements of this article. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on an Internet or Intranet site.

Sec. 212. As a condition of expending appropriations made under part 1, the judicial branch shall receive and retain copies of all reports funded from appropriations in part 1 and shall follow federal and state guidelines for short-term and long-term retention of such reports and records.

Sec. 214. Funds appropriated in part 1 shall not be used for the purchase of foreign goods or services, or both, if competitively priced and 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. 215. (1) Due to the current budgetary problems in this state, out-of-state travel for the fiscal year ending September 30, 2007 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 chief justice or his or her designee may grant an exception to allow the travel. Any exceptions granted by the chief justice or his or her designee shall be reported on a monthly basis to the house and senate appropriations committees.

(3) Not later than January 1 of each year, the state court administrative office shall prepare a travel report listing all travel by judicial branch employees outside this state in the immediately preceding fiscal year that was funded in whole or in part with funds appropriated in the budget for the judicial branch. The report shall be submitted to the chairs and members of the house and senate appropriations committees, the fiscal agencies, and the state budget director. The report shall include the following information:

(a) The name of each person receiving reimbursement for travel outside this state or whose travel costs were paid by this state.

(b) The destination of each travel occurrence.

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

(f) A total of all out-of-state travel funded for the immediately preceding fiscal year.

JUDICIAL BRANCH

Sec. 301. (1) The direct trial court automation support program of the state court administrative office shall recover direct and overhead costs from trial courts by charging for services rendered. The fee shall cover the actual costs incurred to the direct trial court automation support program in providing the service, including development of future versions of case management systems. A report of amounts collected in excess of funds identified as user service charges in part 1 shall be submitted to the state budget director and to the house and senate appropriations subcommittees on judiciary 30 days before expenditure by the direct trial court automation support program.

(2) From funds appropriated in part 1, the direct trial court automation support program of the state court administrative office shall provide to the state budget director, the senate and house appropriations committees, and the senate and house fiscal agencies before January 1 of each year, a detailed list of user service charges collected during the immediately preceding state fiscal year.

Sec. 302. Funds appropriated within the judicial branch shall not be expended by any component within the judicial branch without the approval of the supreme court.

Sec. 303. Of the amount appropriated in part 1 for the judicial branch, $325,000.00 is allocated for circuit court reimbursement under section 3 of 1978 PA 16, MCL 800.453, and $186,900.00 is allocated for court of claims reimbursement under section 6413 of the revised judicature act of 1961, 1961 PA 236, MCL 600.6413.

Sec. 304. As a condition of expending appropriations made under part 1, the judicial branch shall cooperate with the auditor general regarding audits of the judicial branch conducted under section 53 of article IV of the state constitution of 1963.

Sec. 305. As a condition of expending appropriations made under part 1, and to avoid the overexpenditure of funds appropriated under this article, the supreme court shall report quarterly to members of the senate and house appropriations subcommittees on the judiciary, the senate and house fiscal agencies, and the state budget director on the status of accounts set forth in part 1. The report required by this section shall include quarterly, year-to-date, and projected expenditures by funding source for each line item, and beginning balances and quarterly, year-to-date, and projected revenues for each source of revenue other than general fund/general purpose revenues.

Sec. 306. The supreme court and the state court administrative office shall continue to maintain, as a priority, the assisting of local trial courts in improving the collection of judgments.

Sec. 307. It is the intent of the legislature that from the funds appropriated in part 1 for court of appeals operations, the judiciary shall use the following revenue amounts for the purpose of delay reduction:

(a) $225,000.00 of additional filing fee revenue raised from the increase from $250.00 to $375.00 in court of appeals filing fees under section 321(1)(a) of the revised judicature act of 1961, 1961 PA 236, MCL 600.321.

(b) $87,500.00 of additional fee revenue raised from the increase in court of appeals motion fees from $75.00 to $100.00 and from the increase from $150.00 to $200.00 in fees for motions for immediate consideration or expedited appeal under section 321(1)(b) and (c) of the revised judicature act of 1961, 1961 PA 236, MCL 600.321.

Sec. 308. If sufficient funds are not available from the court fee fund to pay judges' compensation, the difference between the appropriated amount from that fund for judges' compensation and the actual amount available after the amount appropriated for trial court reimbursement is made shall be appropriated from the state general fund for judges' compensation.

Sec. 310. From the funds appropriated in part 1 for drug treatment court programs, under the direction of the supreme court, the state court administrative office shall contract with 1 or more independent third parties for evaluation and monitoring of drug court programs funded by the judiciary. The evaluation shall include measures of the impact of drug court programs in changing offender criminal involvement (recidivism) and substance abuse and in reducing prison admissions. The evaluation of a program funded with federal Byrne funds shall be consistent with any requirements contained in the federal Byrne grant for that program. Evaluations required by this section shall to the extent feasible compare offenders treated under the programs with other offenders of similar characteristics. Not later than April 1 of each year, the state court administrative office shall provide a progress report regarding the status and findings of the evaluation to the senate and house appropriations subcommittees on the judiciary, the senate and house fiscal agencies, and the state budget director.

Sec. 311. (1) The funds appropriated in part 1 for drug treatment courts shall be administered by the state court administrative office to operate drug treatment court programs. A drug treatment court program shall not receive funds for more than 5 years. A drug treatment court shall be responsible for handling cases involving substance abusing nonviolent offenders through comprehensive supervision, testing, treatment services, and immediate sanctions and incentives. A drug treatment court shall use all available county and state personnel involved in the disposition of cases including, but not limited to, parole and probation agents, prosecuting attorneys, defense attorneys, and community corrections providers. The funds may be used in connection with other federal, state, and local funding sources.

(2) Local units of government are encouraged to refer to federal drug treatment court guidelines to prepare proposals. However, federal agency approvals are not required for funding under this section.

(3) From the funds appropriated in part 1, the chief justice shall allocate sufficient funds for the judicial institute to provide in-state training for those identified in subsection (1), including training for new drug treatment court judges.

(4) For drug treatment court grants, consideration for priority may be given to those courts where higher instances of substance abuse cases are filed.

(5) The judiciary shall receive $1,800,000.00 in Byrne formula grant funding as an interdepartmental grant from the department of community health to be used for expansion of drug treatment courts, to assist in avoiding prison bed space growth for nonviolent offenders in collaboration with the department of corrections.

Sec. 312. From the funds appropriated in part 1, the state court administrator shall produce a statistical report regarding the implementation of the parental rights restoration act, 1990 PA 211, MCL 722.901 to 722.908, as it pertains to minors seeking a court-issued waiver of parental consent. The state court administrative office shall report the total number of petitions filed and the total number of petitions granted in accordance with section 208.

Sec. 313. It is the intent of the legislature that from the funds appropriated in part 1 for the judicial institute, training shall be provided to judges on judicial responsibilities under Michigan rules of evidence pertaining to expert witnesses. Training shall include, but not be limited to, instruction on the responsibility of the courts to guard against and exclude unreliable expert testimony, including whether the manner in which an expert witness extrapolates and interprets data is science-based with sufficient facts to support the data.

Sec. 317. From the funds appropriated in part 1 for transcript fee reimbursement, the judiciary shall reimburse counties for additional costs incurred in the event of a statutory increase in transcript fees under section 2543 of the revised judicature act of 1961, 1961 PA 236, MCL 600.2543.

ARTICLE 12

LABOR AND ECONOMIC GROWTH

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. The amounts listed in this part are appropriated for the department of labor and economic growth, subject to the conditions set forth in this article, for the fiscal year ending September 30, 2007, 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 4,238.5

GROSS APPROPRIATION $ 1,231,476,200

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 23,485,800

ADJUSTED GROSS APPROPRIATION $ 1,207,990,400

Federal revenues:

Total federal revenues 795,345,800

Special revenue funds:

Total local revenues 15,824,300

Total private revenues 2,314,300

Total other state restricted revenues 347,069,300

State general fund/general purpose $ 47,436,700

Sec. 102. DEPARTMENTAL ADMINISTRATION

Full-time equated unclassified positions 58.5

Full-time equated classified positions 180.0

Unclassified salaries $ 5,349,400

Executive director programs--53.0 FTE positions 6,190,600

Regulatory efficiency improvements/backlog reduction initiative 665,600

Property management 11,071,100

Rent 17,215,600

Worker's compensation 2,396,000

Special project advances 940,000

HR optimization charges 252,800

Administrative services--127.0 FTE positions 12,952,200

GROSS APPROPRIATION $ 57,033,300

Appropriated from:

Interdepartmental grant revenues:

IDG from department of community health 300,000

Federal revenues:

DED-OEERE, multiple grants 9,100

DED-OSERS, rehabilitation services, vocational rehabilitation of state grants 4,904,500

DOL-ETA, unemployment insurance 14,434,400

DOL-ETA, workforce investment act 861,500

DOL, federal funds 2,330,100

DOL, multiple grants for safety and health 733,900

Federal revenues 850,300

HHS, temporary assistance for needy families 347,000

HHS, titles XVIII and XIX 34,700

Special revenue funds:

Private - special project advances 940,000

Local revenues 134,100

Bank fees 527,500

Boiler fees 244,000

Construction code fund 1,124,800

Consumer finance fees 180,900

Contingent fund, penalty and interest account 885,300

Contingent fund, regular penalty and interest 3,900

Corporation fees 5,224,100

Credit union fees 358,000

Elevator fees 268,600

Fees and collections/asbestos 78,400

Fire service fees 615,300

Insurance licensing and regulation fees 2,031,100

Insurance regulatory fees 1,071,800

Licensing and regulation fees 790,400

Liquor license revenue 100,000

Liquor purchase revolving fund 6,219,400

Manufactured housing commission fees 279,700

Michigan state housing development authority fees and charges 3,644,700

Motor carrier fees 185,200

Public utility assessments 2,223,200

Private occupational school license fees 14,000

Rehabilitation services fees 90,300

Safety education and training fund 560,300

Second injury fund 253,500

Securities fees 2,414,400

Self-insurers security fund 83,300

Silicosis and dust disease fund 101,300

Tax tribunal fees 199,200

State general fund/general purpose $ 1,381,100

Sec. 103. OFFICE OF FINANCIAL AND INSURANCE SERVICES

Full-time equated classified positions 284.0

Administration--9.0 FTE positions $ 2,730,100

Policy conduct and consumer assistance--123.0 FTE positions 18,379,200

Financial evaluation--152.0 FTE positions 21,991,600

GROSS APPROPRIATION $ 43,100,900

Appropriated from:

Federal revenues:

Federal regulatory project revenue 50,400

Special revenue funds:

Bank fees 7,704,500

Consumer finance fees 4,215,600

Credit union fees 5,066,400

Deferred presentment service transaction fees 725,700

Insurance continuing education fees 829,600

Insurance licensing and regulation fees 3,289,600

Insurance regulatory fees 18,936,600

Multiple employer welfare arrangement 67,500

Securities fees 2,215,000

State general fund/general purpose $ 0

Sec. 104. MICHIGAN BROADBAND DEVELOPMENT AUTHORITY

Full-time equated classified positions 2.0

Administration $ 501,800

GROSS APPROPRIATION $ 501,800

Appropriated from:

Special revenue funds:

Michigan broadband authority fees and charges 501,800

State general fund/general purpose $ 0

Sec. 105. PUBLIC SERVICE COMMISSION

Full-time equated classified positions 166.0

Administration, planning and regulation--155.0 FTE positions $ 20,128,800

Energy office--9.0 FTE positions 5,307,300

Children's protection registry administration--2.0 FTE positions 264,700

GROSS APPROPRIATION $ 25,700,800

Appropriated from:

Federal revenues:

DOE-OEERE, multiple grants 4,828,100

DOT-RSPA, gas pipeline safety 984,900

Special revenue funds:

Private - oil overcharge 30,000

Children's protection registry fund 264,700

Motor carrier fees 2,144,600

Public utility assessments 17,448,500

State general fund/general purpose $ 0

Sec. 106. LIQUOR CONTROL COMMISSION

Full-time equated classified positions 152.0

Management support services--28.0 FTE positions $ 3,211,100

Liquor licensing and enforcement--124.0 FTE positions 11,756,900

GROSS APPROPRIATION $ 14,968,000

Appropriated from:

Special revenue funds:

Liquor license revenue 6,143,500

Liquor purchase revolving fund 8,824,500

State general fund/general purpose $ 0

Sec. 107. MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY

Full-time equated classified positions 266.0

Payments on behalf of tenants $ 135,000,000

Housing and rental assistance program--266.0 FTE positions 33,984,400

GROSS APPROPRIATION $ 168,984,400

Appropriated from:

Federal revenues:

HUD, lower income housing assistance program 135,000,000

Special revenue funds:

Michigan state housing development authority fees and charges 33,984,400

State general fund/general purpose $ 0

Sec. 108. TAX TRIBUNAL

Full-time equated classified positions 15.0

Operations--15.0 FTE positions $ 1,804,000

GROSS APPROPRIATION $ 1,804,000

Appropriated from:

Special revenue funds:

Corporation fees 195,100

Securities fees 265,100

Tax tribunal fees 1,343,800

State general fund/general purpose $ 0

Sec. 109. OCCUPATIONAL REGULATION

Full-time equated classified positions 420.0

Boiler inspection program--25.0 FTE positions $ 2,679,700

Fire fighters training council 1,710,400

Fire marshal program 432,600

Fire safety program funding--57.0 FTE positions 4,190,100

Code enforcement--120.0 FTE positions 12,650,300

Commercial services--155.0 FTE positions 20,069,200

Elevator inspection program--30.0 FTE positions 2,842,300

Local manufactured housing communities inspections 250,000

Manufactured housing and land resources program--22.0 FTE positions 2,935,700

Property development group--11.0 FTE positions 1,528,600

GROSS APPROPRIATION $ 49,288,900

Appropriated from:

Interdepartmental grant revenues:

IDG from department of community health, inspection contract 68,500

IDG from department of state police, homeland security 754,300

Federal revenues:

FEMA 28,000

DOT 47,000

HHS, titles XVIII and XIX 700,000

Special revenue funds:

Boiler fee revenue 3,069,600

Construction code fund 12,567,400

Corporation fees 10,285,700

Elevator fees 3,205,300

Fire alarm fees 95,000

Fire service fees 1,640,300

Homeowner construction lien recovery fund 1,532,800

Licensing and regulation fees 9,486,100

Manufactured housing commission fees 2,515,700

Michigan boxing fund 206,200

Property development fees 275,500

Real estate appraiser continuing education fund 45,000

Real estate education fund 267,500

Remonumentation fees 691,100

Securities fees 1,499,900

Security business fund 308,000

State general fund/general purpose $ 0

Sec. 110. EMPLOYMENT RELATIONS

Full-time equated classified positions 21.0

Employment and labor relations--21.0 FTE positions $ 3,121,200

GROSS APPROPRIATION $ 3,121,200

Appropriated from:

Federal revenues:

EEOC, federal funds 10,000

Special revenue funds:

Securities fees 3,056,700

State general fund/general purpose $ 54,500

Sec. 111. MICHIGAN OCCUPATIONAL SAFETY AND HEALTH

ADMINISTRATION

Full-time equated classified positions 229.0

Occupational safety and health--229.0 FTE positions $ 25,846,300

GROSS APPROPRIATION $ 25,846,300

Appropriated from:

Federal revenues:

DOL, multiple grants for safety and health 12,281,800

Special revenue funds:

Corporation fees 2,202,000

Fees and collections/asbestos 833,900

Licensing and regulation fees 1,174,800

Safety education and training fund 7,581,500

Securities fees 1,772,300

State general fund/general purpose $ 0

Sec. 112. BUREAU OF WORKER'S AND UNEMPLOYMENT COMPENSATION

Full-time equated classified positions 1,251.0

Administration--96.6 FTE positions $ 9,584,200

Board of magistrates and appellate commission--19.4 FTE positions 2,887,900

Wage and hour division--35.0 FTE positions 2,983,100

Insurance funds administration--28.0 FTE positions 4,485,400

Supplemental benefit fund 1,300,000

Unemployment programs--1,002.7 FTE positions 87,519,600

Advocacy assistance program 1,500,000

Special audit and collections program--34.0 FTE positions 2,772,100

Training program for agency staff--2.1 FTE positions 1,799,500

Expanded fraud control program--33.2 FTE positions 3,081,900

GROSS APPROPRIATION $ 117,913,700

Appropriated from:

Federal revenues:

DOL-ETA, employment and training administration 646,200

DOL-ETA, unemployment insurance 90,164,200

Federal Reed act funds 4,362,700

Special revenue funds:

Corporation fees 2,472,100

Contingent fund, penalty and interest account 10,259,000

Licensing and regulation fees 789,700

Second injury fund 2,414,800

Securities fees 2,472,600

Self-insurers security fund 1,141,600

Silicosis and dust disease fund 929,000

Worker's compensation administrative revolving fund 2,261,800

State general fund/general purpose $ 0

Sec. 113. STATE OFFICE OF ADMINISTRATIVE HEARINGS AND RULES

Full-time equated classified positions 163.0

Administrative hearings and rules--163.0 FTE positions $ 21,019,600

GROSS APPROPRIATION $ 21,019,600

Appropriated from:

Interdepartmental grant revenues:

IDG from department of community health 1,641,200

IDG from department of corrections 3,660,400

IDG from department of education 1,025,000

IDG from department of environmental quality 502,800

IDG from department of human services 3,214,300

IDG from department of management and budget 40,500

Federal revenues:

DOL-ETA, unemployment insurance 6,101,600

DOL, multiple grants for safety and health 195,000

Special revenue funds:

Construction code fund 282,100

Corporation fees 351,900

Insurance regulatory fees 333,900

Licensing and regulation fees 1,074,000

Liquor purchase revolving fund 115,200

Manufactured housing commission fees 137,900

Public utility assessments 1,225,900

Safety education and training fund 188,700

Securities fees 855,600

Tax tribunal fees 73,600

State general fund/general purpose $ 0

Sec. 114. INFORMATION TECHNOLOGY

Information technology services and projects $ 43,188,500

GROSS APPROPRIATION $ 43,188,500

Appropriated from:

Federal revenues:

DOL-ETA, unemployment insurance 20,754,300

DOL, multiple grants for safety and health 268,400

Federal revenues 5,852,700

HHS, temporary assistance for needy families 176,300

Special revenue funds:

Bank fees 477,300

Boiler fee revenue 321,000

Construction code fund 925,900

Consumer finance fees 194,200

Corporation fees 1,760,900

Credit union fees 269,300

Elevator fees 254,400

Fees and collections/asbestos 11,000

Fire service fees 510,000

Insurance regulatory fees 697,200

Licensing and regulation fees 1,143,900

Liquor purchase revolving fund 4,414,700

Manufactured housing commission fees 72,400

Michigan state housing development authority fees and charges 1,997,000

Motor carrier fees 115,900

Public utility assessments 873,100

Safety education and training fund 345,600

Second injury fund 146,500

Securities fees 1,478,900

Self-insurers security fund 68,300

Silicosis and dust disease fund 59,300

State general fund/general purpose $ 0

Sec. 115. WORKFORCE DEVELOPMENT

Full-time equated classified positions 903.5

Employment services--246.0 FTE positions $ 47,821,400

Jobs education training pilot--31.0 FTE positions 12,278,800

Labor market information--52.0 FTE positions 6,184,800

Michigan rehabilitation services--513.5 FTE positions 68,875,900

Office of workforce development--61.0 FTE positions 30,796,200

GROSS APPROPRIATION $ 165,957,100

Appropriated from:

Interdepartmental grant revenues:

IDG from department of human services 12,278,800

Federal revenues:

DAG, employment and training 178,700

DED-OPSE, multiple grants 1,185,700

DED-OSERS, centers for independent living 58,200

DED-OSERS, rehabilitation long-term training 316,900

DED-OSERS, rehabilitation services, vocational rehabilitation of state grants 51,774,100

DED-OSERS, state grants for technical related assistance 56,000

DED, Perkins act 281,300

DOL-ETA, workforce investment act 7,334,100

DOL, federal funds 65,513,300

DOL, ODEP 225,000

HHS-SSA, supplemental security income 3,633,000

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

Special revenue funds:

Private - gifts, bequests, and donations 816,000

Local revenue 4,206,400

Local vocational rehabilitation match 3,054,000

Contingent fund, penalty and interest account 1,781,800

Rehabilitation services fees 1,309,700

Second injury fund 51,500

Student fees 308,000

Training materials fees 256,400

State general fund/general purpose $ 8,018,000

Sec. 116. CAREER EDUCATION PROGRAMS

Full-time equated classified positions 55.0

Career and technical education--25.0 FTE positions $ 3,502,700

Postsecondary education--14.0 FTE positions 2,626,900

Adult education--16.0 FTE positions 2,439,100

GROSS APPROPRIATION $ 8,568,700

Appropriated from:

Federal revenues:

Federal revenues 6,544,300

Special revenue funds:

Private occupational school license fees 422,100

Defaulted loan collection fees 100,000

State general fund/general purpose $ 1,502,300

Sec. 117. 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 118,952,700

Personal assistance services 459,500

Vocational rehabilitation client services/facilities 55,549,500

Vocational rehabilitation independent living 3,079,700

Welfare-to-work programs 113,798,600

Fire protection grants 10,910,500

Low-income energy efficiency assistance 60,000,000

Liquor law enforcement grants 6,000,000

Remonumentation grants 14,000,000

GROSS APPROPRIATION $ 459,110,700

Appropriated from:

Federal revenues:

DAG, employment and training 13,000,000

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

DED-OSERS, centers for independent living 450,200

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

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

HHS-SSA, supplemental security income 3,480,600

Special revenue funds:

Private - gifts, bequests, and donations 400,000

Local vocational rehabilitation match 6,630,500

Local vocational rehabilitation facilities match 1,278,300

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

Low-income energy efficiency fund 60,000,000

Fire protection fund 3,500,000

Liquor purchase revolving fund 3,710,500

Liquor license revenue 6,000,000

Remonumentation fees 14,000,000

State general fund/general purpose $ 31,406,400

Sec. 118. BOARDS, AUTHORITIES AND COMMISSIONS

Full-time equated classified positions 131.0

MES board of review program--18.0 FTE positions $ 2,134,200

Rights-of-way oversight authority--5.0 FTE positions 539,400

Land bank fast track authority--5.0 FTE positions 812,100

Commission on Spanish-speaking affairs--2.0 FTE positions 242,900

Commission on disability concerns--7.0 FTE positions 1,041,900

Commission for the blind--94.0 FTE positions 19,406,000

Utility consumer representation 950,000

Youth low vision program 241,800

GROSS APPROPRIATION $ 25,368,300

Appropriated from:

Federal revenues:

Federal revenues 14,648,700

DOL-ETA, unemployment insurance 2,134,200

Special revenue funds:

Private revenues 128,300

Local revenues 521,000

Land bank fast track funds 812,100

METRO authority fund 539,400

State restricted revenues 560,200

Utility consumer representation fund 950,000

State general fund/general purpose $ 5,074,400

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 2006-2007 is $394,506,100.00 and state spending from state resources to be paid to local units of government for fiscal year 2006-2007 is $51,370,500.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:

DEPARTMENT OF LABOR AND ECONOMIC GROWTH

Fire protection grants $ 10,910,500

Liquor law enforcement 6,000,000

Local manufactured housing inspections 250,000

Remonumentation grants 14,000,000

Fire fighters training council 1,710,400

Welfare to work 18,499,600

Total department of labor and economic growth $ 51,370,500

Sec. 202. The appropriations authorized under this article are subject to the management and budget act, 1984 PA431, MCL 18.1101 to 18.1594.

Sec. 203. As used in this article:

(a) "CEO" means chief executive officer of the Michigan economic development corporation.

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

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

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

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

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

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

(i) "Department" means the department of labor and economic growth, including the Michigan strategic fund.

(j) "Director" means the director of the department of labor and economic growth.

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

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

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

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

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

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

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

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

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

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

(u) "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) "MES" means Michigan employment security.

(dd) "SOAHR" means the state office of administrative hearings and rules.

(ee) "Subcommittees" means all members of the subcommittees of the house and senate appropriations committees with jurisdiction over the budget for the department.

Sec. 208. Unless otherwise specified, the department shall use the Internet to fulfill the reporting requirements of this article. 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. 211. The department shall establish and maintain affirmative action programs based on the guidelines developed by the state equal opportunity workforce planning council which was created by Executive Order No. 1996-13 in order to receive general fund/general purpose dollars.

Sec. 212. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state guidelines for short-term and long-term retention of these reports and records.

Sec. 216. It is the intent of the legislature that all revenue sources for funds appropriated in part 1 shall not be aggregated into general categories and shall be specifically identified and detailed as much as possible.

(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.

(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.

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

(f) A total of all out-of-state travel funded for the immediately preceding fiscal year.

Sec. 219. The department shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

REGULATORY

Sec. 301. The appropriation in part 1 for fire protection grants from the liquor purchase revolving fund and the fire protection fund shall be appropriated to cities, villages, and townships with state-owned facilities for fire services, instead of taxes, in accordance with 1977 PA 289, MCL 141.951 to 141.956.

Sec. 302. The funds collected by the office of financial and insurance services in connection with a conservatorship pursuant to section 32 of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1682, shall be appropriated for all expenses necessary to provide for the required services. Funds are available for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 303. The funds collected by the department from corporations being liquidated pursuant to the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302, shall be appropriated for all expenses necessary to provide for the required services. Funds are available for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 304. The department may make available to interested entities otherwise unavailable customized listings of nonconfidential information in its possession, such as names and addresses of licensees, and charge for this information as follows: base fee for 1 to 1,000 records at the cost to the department; 1,001 to 10,000 records at 2.5cents per record; and 10,001 or more records at .5 cents per record. The revenue received from this service may be used to offset expenses of programs as appropriated in part 1. The balance of this revenue collected and unexpended at the end of the fiscal year shall revert to the appropriate restricted revenue account or fund or, in absence of such an account or fund, to the general fund. The department shall submit an annual report on or before December 1 of each year to the state budget office and the subcommittees that states the amount of revenue received from the sale of information.

Sec. 306. The Michigan state housing development authority shall annually present a report to the state budget office and the subcommittees on the status of the authority's housing production goals under all financing programs established or administered by the authority. The report shall give special attention to efforts to raise affordable multifamily housing production goals.

Sec. 308. The funds collected by the department for licenses, permits, and other elevator regulation fees set forth in R 408.8151 of the Michigan administrative code and as determined under section 8 of 1976 PA 333, MCL 338.2158, and section 16 of 1967 PA 227, MCL 408.816, that are unexpended at the end of the fiscal year shall carry forward to the subsequent fiscal year. The department shall submit a report on an annual basis to the state budget office and the subcommittees on the amount of funds available under this section.

Sec. 309. If the revenue collected by the department for occupational safety and health from fees and collections exceeds the amount appropriated in part 1, the revenue may be carried forward into the subsequent fiscal year. The revenue carried forward under this section shall be used as the first source of funds in the subsequent fiscal year.

Sec. 310. Money appropriated under this article for the bureau of fire services 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 typeFacility sizeFee

Hospitals Any $8.00 per bed

Plan review and construction inspection fees for hospitals and schools

Project cost rangeFee

$101,000.00 or less minimum fee of $155.00

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

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

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

or a maximum fee of $60,000.00.

Sec. 313. If the revenue collected by the department from licensing and regulation fees collected by the office of commercial services 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.

(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. 319. (1) Of the funds appropriated in part 1, no funds shall be used to support the development and enforcement of, or activities that promote the development and enforcement of, guidelines, standards, protocols, audit procedures, or other similar mandates that place additional measures on professional employment organizations than currently prescribed by statute.

(2) From the funds appropriated in part 1 for the bureau of worker's and unemployment compensation, the department shall allocate funds to administer the current section 22b of the Michigan employment security act, 1939 (Ex Sess) PA1, MCL 421.22b.

(3) As used in this section, a professional employer organization is defined as an organization that provides the management and administration of the human resources and employer risk of another entity by contractually assuming substantial employer rights, responsibilities, and risk through a professional employer agreement that establishes an employer relationship with the leased officers or employees assigned to the other entity by doing all of the following:

(a) Maintaining the right of direction and control of the employees' work, although this responsibility may be shared with the other entity.

(b) Paying wages and employment taxes of the employees out of its own accounts.

(d) Retaining the right to hire and fire employees.

Sec. 326. (1) The appropriation in part 1 for the Michigan commission for the blind includes funds for case services. These funds may be used for tuition payments for blind clients for the school year beginning September 2004.

(2) Revenue collected by the Michigan commission for the blind and from private and local sources that is unexpended at the end of the fiscal year may carry forward to the subsequent fiscal year.

Sec. 332. It is the intent of the legislature that the department make every effort to hold administrative law hearings on actions initiated by the department against regulated businesses or against individuals in regulated occupations in locations that are within 150 miles of the regulated business or of the office of the individual in a regulated occupation. In addition, it is the intent of the legislature that the department make every effort to hold administrative law hearings on actions initiated by an individual outside the department in locations within 150 miles of the home of the individual bringing the action if that individual wishes to testify at the hearing.

Sec. 335. The public service commission shall report by June 1 of each year to the subcommittees, the state budget office, and the fiscal agencies on the distribution of funds appropriated in part 1 for the low-income/energy efficiency assistance program.

Sec. 336. The department shall provide the subcommittees, fiscal agencies, and state budget director with a report on or before December 1 outlining actual expenditures for the last completed fiscal year for each division within the office of financial and insurance services.

Sec. 337. The department shall not expend funds from the appropriations in part 1 for the office of financial and insurance services for the purpose of implementing prohibitions on the use of credit scoring in establishing insurance premiums by insurance companies until the legislature has, by statute, authorized such a prohibition.

Sec. 340. The office of financial and insurance services shall provide copies of the quarterly and annual financial filings of health maintenance organizations to the fiscal agencies on a timely basis.

Sec. 341. For the fiscal year ending September 30, 2007, surplus consumer finance fee revenues of $7,000,000.00 are hereby appropriated to the state general fund.

Sec. 349. The department and the Michigan state housing development authority shall work collaboratively with other state departments and agencies to maximize the use of available Michigan state housing development authority fund equity to provide senior assisted living that offers a continuum of care from independent apartments to assisted living to nursing care and Alzheimer programs.

Sec. 350. (1) The department shall allocate funds to promote awareness of the right of a policyholder, subscriber, member, enrollee, or other individual participating in a health benefit plan, after the covered person has exhausted the health carrier's internal grievance process provided for by law, to request an external review for an adverse determination.

(2) As used in this section, "covered person" means that term as defined in section 3 of the patient's right to independent review act, 2000 PA 251, MCL 550.1903.

Sec. 351. (1) The department shall issue a report to the subcommittees for each calendar year, but not later than February 15 of the following year, showing the date each real estate continuing education course was submitted for approval and the date of final disposition, approval, or denial.

(2) The department shall post on its website the approved real estate continuing education courses, as well as the dates, times, instructors, locations, course title, and credit hours of the courses.

(3) The department shall have available to the public on-line the prelicensure and continuing education course approvals.

(4) It is the intent of the legislature that sponsors of continuing education be able to report an applicant's or licensee's completion of courses to the department via electronic methods.

Sec. 352. From the funds appropriated in part 1 for unclassified salaries, the department shall provide funding for 5worker's compensation appellate commissioners and 26 worker's compensation board of magistrates. Expenditures shall be made so that the 2 bodies shall decide worker's compensation cases in a timely manner.

Sec. 355. (1) Of the funds appropriated in part 1, no funds shall be used to support the development of, staffing of, or activities promoting the development of guidelines, rules, standards, protocols, or other similar mandates that are more stringent than federal voluntary ergonomics guidelines. This section does not prohibit any person from adopting, or working with the state to develop, voluntary ergonomics standards.

(2) On March 1, 2007 and September 1, 2007, the department shall provide a report to the fiscal agencies and appropriations subcommittees of any staffing time or activities regarding the development of a voluntary or mandatory, or both, ergonomic standard, whether contained in rules, guidelines, policy directives, or bulletins.

Sec. 356. The Michigan commission for the blind shall work collaboratively with service organizations to identify qualified match dollars to maximize use of available federal funds.

Sec. 357. From the funds appropriated in part 1 for commercial services, the department shall allocate $50,000.00 for the resumption of printing the real estate law and rules book (red book). The red book shall include, but is not limited to, real estate laws and regulations and related statutes. The red book will be provided at no charge to actively licensed real estate brokers, associate brokers, and salespersons. Any other party seeking a copy of the red book may purchase the book from the bureau of commercial services at the bureau's cost to produce the book or they may print the bureau's internet version of the red book at no cost.

Sec. 358. The real estate education fund created in section 37 of the state license fee act, 1979 PA 152, MCL338.2237,and administered by the department shall allow prelicensure and postlicensure education to be delivered through on-line courses by a community college, university, or private school, after licensure and approval by the department. Expenditures from this fund may also be made to support department grants for educational providers to establish on-line courses that would be made available to students throughout the year.

Sec. 361. In addition to the amounts appropriated in part 1 for the administration of the land bank fast track authority, the authority may expend revenues received under the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774, for the purposes authorized by the act including, but not limited to, the acquisition, lease, management, demolition, maintenance, or rehabilitation of real or personal property, payment of debt service for notes or bonds issued by the authority, and other expenses to clear or quiet title property held by the authority.

Sec. 362. Of the funds appropriated in part 1 for the department, $200,000.00 may be used for administration and enforcement of boxing regulation in Michigan.

Sec. 364. The department shall provide a report to the chairs of the appropriation subcommittees on labor and economic growth by January 1 on the total administrative costs allocated for the broadband development authority. These costs should include all staffing and other related costs associated with contracts. The report shall also include any payments to date for reimbursement to the Michigan state housing development authority. If no payments have been made, then the report shall include a detailed plan outlining the reimbursement schedule.

Sec. 365. From the funds appropriated in part 1 for occupational safety, not less than $40,000.00 shall be allocated to nonprofit organizations representing the aggregate industry in Michigan in a grant for an industrial-related comprehensive training and technical assistance program. Such funds shall be subject to the conditions established by the Michigan occupational safety and health administration.

Sec. 366. It is the intent of the legislature to fund the workers' compensation administration with general fund money.

Sec. 368. Funds collected by the department under sections 55, 57, 58, and 59 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.255, 24.257, 24.258, and 24.259, and section 203 of the legislative council act, 1986 PA 268, MCL 4.1203, are appropriated for all expenses necessary to provide for the cost of publication and distribution. The funds appropriated under this section are allotted for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 372. (1) The office of financial and insurance services shall report to the legislature, fiscal agencies, and office of the auditor general quarterly, beginning January 1, 2007, with a summary of final decisions or recommendations, or both, rendered by SOAHR administrative law judges, SOAHR administrative law managers, and hearing officers for cases under the jurisdiction of the office of financial and insurance services.

(2) The report shall be organized by case types.

(3) The report shall indicate whether the SOAHR administrative law judge, SOAHR administrative law manager, or hearing officer made a final decision or recommended a decision in favor of the office of financial and insurance services in whole or in part, or if the parties negotiated a settlement. The report shall also delineate if the director agreed or disagreed with the recommendation of the SOAHR administrative law judges, SOAHR administrative law manager, or hearing officer.

(4) The report shall include how long each case took from the date of the original filing until the issuance of a decision or recommendation by the SOAHR administrative law judge, SOAHR administrative law manager, or hearing officer.

Sec. 373. The department shall report by November 1 to the appropriation subcommittees, the fiscal agencies, and the state budget director on the number of employer and employee inquiries by quarter for the fiscal year 2005-2006 concerning changes in the minimum wage as a result of 2006 PA 81. The same report shall be prepared and submitted quarterly for the fiscal year 2006-2007.

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 Law93-112, 29 USC 701 to 718, 720 to 751, 760 to 765, 771 to 776, 780 to 785, 791 to 794e, 795 to 795n, and 796 to 796l.

Sec. 403. The local match requirements for vocational rehabilitation facilities establishment grants shall not exceed 21.3% for the fiscal year ending September 30.

Sec. 404. (1) Of the funds appropriated in part 1 for vocational rehabilitation independent living, all general fund/
general purpose revenue not used to match federal funds shall be used for the support of centers for independent living which are in compliance with federal standards for such centers, for the development of new centers in areas presently unserved or underserved, for technical assistance to centers, and for projects to build capacity of centers to deliver independent living services. Applications for such funds shall be reviewed in accordance with criteria and procedures established by the statewide independent living council, the Michigan rehabilitation services unit within the department, and the Michigan commission for the blind. Funds must be used in a manner consistent with the priorities established in the state plan for independent living. The department is directed to work with the Michigan association of centers for independent living and the local workforce development boards to identify other competitive sources of funding.

(2) As a condition of receipt of 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, education, community service, volunteerism options, and training services to department of human services applicants and recipients and may be expended for grants that provide employment, education, community service, volunteerism options, 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 shall be limited to a Michigan works! agency, 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 department and the department of human services shall develop a process, set of procedures, and an instrument for providing confidential screening of individuals during the eligibility determination. Only those individuals identified as ready for employment and training services shall be referred to the work first program. Barriers to employment shall be reported to facilitate further assessment and referral. 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 recipients of the department of human services program established under section 57a of the social welfare act, 1939 PA 280, MCL 400.57a, and such individuals referred to a job club program by a county department of human services board or a county friend of the court as long as the participation in the job club is part of an application submitted under this section.

(5) Participants in the work first program shall not be enrolled and counted in membership in a school district or intermediate school district.

(6) The department will work with the department of human services to coordinate support services to work first participants relating to special/emergency needs.

(7) Work first program participants must receive or be provided an explanation of the program including their benefits and responsibilities before the job interview phase of the program. This explanation shall include clear guidelines with regard to an individual's eligibility for postemployment training support and for applying hours in training toward work requirements.

(8) The department shall make every effort to place a minimum of 50% of clients who participate in the work first program in positions that provide wages of $8.00 per hour or more. The department, the department of human services, and the Michigan works! agencies shall develop and implement a shared assessment process and evaluation tool to identify barriers that may prevent the participant from obtaining employment in an occupationally relevant and demand-driven occupation and assistance that may be needed to remove the barriers, including transportation, education, and job training.

(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 6 months, the number of participants placed in employment training and education programs, the number of clients referred to work first who failed to report, a compilation of barriers to employment by incidence and type experienced by participants, and the number of participants referred back to the department of human services.

(10) The department shall provide to the state budget director and the fiscal agencies by May 15 and November 15 of each year a report on the work first grants. The report due by May 15 shall provide the information described in this subsection for each grant or contract awarded during the preceding 2 quarters of the state fiscal year. The report due by November 15 shall provide this information for each grant or contract awarded during the preceding full fiscal year. The report shall contain both of the following:

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

(b) The number of participants in each service delivery area and all of the following:

(i) The number of clients placed in employment for at least 6 consecutive months in each service delivery area.

(ii) The number of clients obtaining a postsecondary education in each service delivery area.

(iii) The number of clients placed in community service in each service delivery area.

(iv) The number of clients obtaining other education and training credentials.

(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 department of human services and the department contracted staff in accordance with department policy issuances and department of human services program bulletins. These guidelines presented by the department and the department of human services shall balance the ability of participants to obtain training and subsequent long-term high-wage employment with the need to connect participants with the workplace. Any and all training/education and community service, with the exception of high school completion and GED preparation, must be occupationally relevant and in demand in the labor market as determined by the workforce development board. Participants must make satisfactory progress to continue in a training/education component.

(12) The work participation requirement is up to 40 hours per week. However, work first participants may meet the work participation requirement by participating in comprehensive basic skills education for the minimum time determined by the assessment and evaluation provided in subsection (8). A combination of basic skills training, occupational training, and community service up to the maximum determined by the assessment and evaluation provided in subsection (8) may be used to satisfy the work participation requirements. Training/education and community service may last up to 36 months and the calculated hours may include actual classroom seat time up to 15hours per week plus up to 1 hour of study time for each hour of classroom seat time. Work first participants may enroll in additional hours of classroom seat time beyond 15 hours. However, these hours and the related study time will not count toward the work participation requirement. Assistance may be provided for up to 24 months.

(13) Work first participants may meet the work participation requirement through enrollment in a short-term vocational program requiring 30 hours of classroom seat time per week for a period not to exceed 6 months, or by enrollment in full-time internships, practicums, or clinicals required by an academic or training institution for licensure, professional certification, or degree completion, without an additional work requirement. In cases where a short-term vocational program lasts less than 6 months, the participant shall be eligible to enroll in 1 additional short-term vocational program for a combined period not to exceed a total of 12 months.

(14) Work first participants who lack a high school diploma or GED and who enroll in high school completion or classes to obtain a GED may count up to 10 hours of classroom seat time, combined with a minimum number of hours of work per week, to meet their work participation requirement. There shall be no time limit on high school completion. GED preparation shall be limited to 12 months.

(15) The department shall convene a work group to review and recommend available options for providing increased flexibility regarding the education requirements as outlined in this act.

(16) Work first participants that are assessed at a reading and/or math skill level of below ninth grade on a standardized assessment will participate in an appropriate comprehensive basic skills education program to address these deficiencies as determined to be appropriate by the assessment and evaluation provided in subsection (8) and the Michigan works! agency identifies local resources to provide the services. The department will work with the department of human services to develop appropriate programs and incentives to increase participation in and successful completion of these programs.

(17) In order to achieve more efficient and effective use of funds for public assistance, to reduce dependency, or to improve the living conditions and increase the incomes of individuals receiving public assistance, the department may establish and conduct pilot projects in 1 or more Michigan works! areas. The department may apply different policies in the pilot programs than it applies in the rest of the Michigan works! area, and may conduct the pilot projects as long as is necessary to provide a reasonable test of the policy being evaluated. Pilot projects shall be consistent with principles and goals set forth in this act.

(18) As used in this section, "work first program" means the jobs, education, and training program.

Sec. 406. (1) Using all relevant state data sources, the department shall conduct a 3-year longitudinal study of all former work first participants, whose department of human services program cases closed due to earnings during fiscal year 1999 and in succeeding fiscal years. The data will include the following:

(a) The number and percentage employed.

(b) The average hourly wage of those employed.

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

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

(f) The number and percentage receiving health care benefits from their employer.

(g) The number and percentage receiving tuition reimbursement from their employer.

(h) The number and percentage receiving training benefits from their employer.

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

(j) The length of time former participants have retained their jobs, or if participants have had more than 1 job, the length of time employed at each job.

(k) The number and percentage continuing to receive any type of public assistance.

(l) If the former recipient has children, whether the children are enrolled in and attending school.

(m) The extent to which the former participant feels that they and their family are better off now than when they were on cash assistance with regard to household income, housing, food and nutritional needs, child health care, and access to health insurance coverage.

(2) The department shall notify the subcommittees, fiscal agencies, and state budget director electronically by March15 of the location of the Internet site where the report containing the identified data is located.

(3) The department shall cooperate with the department of human services in formulating and acquiring the identified data.

(4) The department may retain a third party to conduct the studies to obtain the data identified under this section.

Sec. 407. State and federal funds allocated to local workforce development boards for disbursement shall not be expended unless the local workforce development boards maintain a partnership with governmental agencies, public school districts, and public colleges located within the local service delivery area. Each board shall appoint an education advisory group made up of high-level administrators within local educational institutions, workforce development board members, other employers, labor, academic educators, and parents of public school pupils.

Sec. 410. (1) The department shall have at least 1 disabled veterans outreach program specialist or local veterans employment representative assigned to each Michigan works! service center on a full- or part-time basis during hours of operation.

(2) The department shall ensure that each Michigan works! service center shall have the necessary equipment to allow the disabled veterans outreach specialist or local veterans employment representative to perform his or her duties.

(3) The department shall require each Michigan works! service center to have an employee available to ask each individual who requires intensive services whether that individual is a veteran and to refer each veteran to the disabled veterans outreach program specialist or local veterans employment representative on duty at the time.

(4) The department shall require that each Michigan works! service center shall have posted in a conspicuous place within the office a notice advising veterans that a disabled veterans outreach program specialist or a local veterans employment representative is available to assist him or her.

(5) The department shall require each Michigan works! service center to provide free mediated services to employers wishing to hire a veteran.

(6) The department shall continue to make the appropriate placement of veterans and disabled veterans a priority.

Sec. 414. The department may carry into the succeeding fiscal year unexpended federal pass-through funds to local institutions and governments that do not require additional state matching funds. Federal pass-through funds to local institutions and governments that are received in amounts in addition to those included in part 1 and that do not require additional state matching funds are appropriated for the purposes intended.

Sec. 415. Of the amounts appropriated in part 1 for postsecondary education, private occupational school license fees shall fund related administrative costs of the proprietary schools oversight unit within the department.

Sec. 417. The department is appropriated an amount not to exceed $100,000.00 from collection of defaulted loans under the future faculty program in the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks programs to offset costs of administering the loan collections.

Sec. 418. From the funds appropriated in part 1 for postsecondary education, the department shall compile data from each university that receives funding for the future faculty program within the King-Chavez-Parks initiative on employment outcomes for program participants. The report shall be distributed to the house and senate appropriations committees, the fiscal agencies, and the state budget office by February 1 of each year. The report shall include data from each participating university covering the most recently completed fiscal year. The data shall include all of the following:

(a) The number of participants receiving support under the program.

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

(d) The number of participants obtaining full-time employment in college faculty positions within the university through which they received future faculty program support for graduate studies.

Sec. 421. The King-Chavez-Parks initiative shall be marketed by the department to Michigan parents and high school and college students, to promote the benefits and the availability of the college day, select student support services, college/university partnership, visiting professors, Morris Hood, Jr. educator development, and future faculty programs. The department shall provide electronic notification of the location of the report on the Internet to the subcommittees by December 30 of each year, identifying all efforts taken to market these programs, including, but not limited to, the amount of funding allocated for this purpose, the fund source, and any expenditures or encumbrances relating to this marketing effort.

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 workforce 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.

ARTICLE 13

MICHIGAN STRATEGIC FUND

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. There is appropriated for the Michigan strategic fund for the fiscal year ending September 30, 2007, from the funds indicated in this part, the following:

MICHIGAN STRATEGIC FUND

APPROPRIATION SUMMARY:

Full-time equated classified positions 152.0

GROSS APPROPRIATION $ 80,479,800

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 78,600

ADJUSTED GROSS APPROPRIATION $ 80,401,200

Federal revenues:

Total federal revenues 47,687,000

Special revenue funds:

Total local revenues 0

Total private revenues 700,000

Total local and private revenues 700,000

Total other state restricted revenues 5,000

State general fund/general purpose $ 32,009,200

Sec. 102. MICHIGAN STRATEGIC FUND

Full-time equated classified positions 152.0

Administration--22.0 FTE positions $ 2,451,000

HR optimization user charges 17,300

Job creation services--130.0 FTE positions 17,496,000

Michigan promotion program 5,717,500

Economic development job training grants 9,798,000

Community development block grants 45,000,000

GROSS APPROPRIATION $ 80,479,800

Appropriated from:

Interdepartmental grant revenues:

IDG-MDEQ, air quality fees 78,600

Federal revenues:

DOL-ETA, employment service 300,000

HUD-CPD, community development block grant 47,387,000

Special revenue funds:

Private - special project advances 700,000

Industry support fees 5,000

State general fund/general purpose $ 32,009,200

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 203. As used in this article:

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

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

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

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

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

(g) "IDG" means interdepartmental grant.

(h) "MDEQ" means the Michigan department of environmental quality.

(i) "MDLEG" means the Michigan department of labor and economic growth.

(k) "PA" means public act.

(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.

(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.

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

(f) A total of all out-of-state travel funded for the immediately preceding fiscal year.

Sec. 219. The fund shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

MICHIGAN STRATEGIC FUND

Sec. 1001. (1) The appropriation in part 1 to the fund for economic development job training shall be expended in 2categories: the business response program for employee training grants that maintain or attract permanent jobs for Michigan residents and the manufacturing competitiveness program for grants to fund collaborative efforts that increase the competitiveness of multiple companies within a grant. The business response program is allocated up to $6,532,000.00, and the manufacturing competitiveness program is allocated up to $3,266,000.00 not to exceed the part1 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.