No. 75

STATE OF MICHIGAN

Journal of the Senate

95th Legislature

REGULAR SESSION OF 2009

Senate Chamber, Lansing, Thursday, September 24, 2009.

10:00 a.m.

The Senate was called to order by the President, Lieutenant Governor John D. Cherry, Jr.

The roll was called by the Secretary of the Senate, who announced that a quorum was present.

Allen—present Garcia—present Olshove—present

Anderson—present George—present Pappageorge—present

Barcia—present Gilbert—present Patterson—present

Basham—present Gleason—present Prusi—present

Birkholz—present Hardiman—present Richardville—present

Bishop—present Hunter—present Sanborn—present

Brater—present Jacobs—present Scott—present

Brown—present Jansen—present Stamas—present

Cassis—present Jelinek—present Switalski—present

Cherry—present Kahn—present Thomas—present

Clark-Coleman—present Kuipers—present Van Woerkom—present

Clarke—present McManus—present Whitmer—present

Cropsey—present

Senator John J. Gleason of the 27th District offered the following invocation:

Today we gather once again in these hallowed halls to do the work that You have led us to on behalf of the many and in regard to the few. We ask that all the deliberations reflect Your thoughts to the greatest gift You have given us all—the gift of human life and the responsibility to look to the highest degree.

We ask that our decisions today fully understand that when You have given our great state drought, it has been followed with renewal. We ask that when we have been given doubt that You have renewed our faith.

Today we reflect on the words of the Psalms that rightly state in Your words and from human voices: “Awake my God; decree justice. Let the assembled peoples gather around you. Rule over them from on high; let the Lord judge the peoples. Judge me, O Lord, according to my righteousness, according to my integrity, O Most High. O righteous God, who searches minds and hearts, bring to an end the violence of the wicked and make the righteous secure.”

As we deliberate, Lord, in the next few days in regard to how we intend to offer the services to our fellow citizens across this great state, let us consider the words of integrity and righteousness, so that all men and women are created in Your mind, Your heart, and Your way; and that we make the decisions fully based on the gifts You have given us—the great gift to secure righteousness over all the citizens of this great state.

We ask this in Your holy name, adding the voices of peace and justice. Amen.

The President, Lieutenant Governor Cherry, led the members of the Senate in recital of the Pledge of Allegiance.

Motions and Communications

Senators Clarke and Garcia entered the Senate Chamber.

Senator Cropsey moved that rule 2.106 be suspended to allow committees to meet during Senate session.

The motion prevailed, a majority of the members serving voting therefor.

Senator Thomas moved that Senator Hunter be temporarily excused from today’s session.

The motion prevailed.

The following communication was received:

Office of Financial and Insurance Regulation

September 23, 2009

Pursuant to MCL 500.2213b(7), the Commissioner of the Office of Financial and Insurance Regulation is required to issue an annual report compiling the gross written premium for short-term or one-time limited duration policies or certificates issued in Michigan during the preceding calendar year. Be advised that the annual report required by MCL 500.2213b(7) is attached to this correspondence.

If you have any questions or concerns, please feel free to contact Jenita Moore, Deputy Commissioner for Policy at (517) 373-1866.

Thanks,

Angela M. Shipp, Executive Secretary

Policy Division

The communication was referred to the Secretary for record.

The Secretary announced that the following House bill was received in the Senate and filed on Wednesday, September 23:

House Bill No. 4182

The Secretary announced the enrollment printing and presentation to the Governor on Wednesday, September 23, for her approval the following bill:

Enrolled Senate Bill No. 164 at 3:08 p.m.

The Secretary announced that the following official bills were printed on Wednesday, September 23, and are available at the legislative website:

Senate Bill Nos. 854 855 856 857 858 859

House Bill Nos. 5423 5424 5425 5426 5427 5428 5429 5430 5431 5432 5433 5434 5435 5436

5437 5438 5439 5440 5441 5442 5443 5444 5445 5446 5447 5449 5450 5451

Recess

Senator Cropsey moved that the Senate recess subject to the call of the Chair.

The motion prevailed, the time being 10:05 a.m.

11:22 a.m.

The Senate was called to order by the President, Lieutenant Governor Cherry.

During the recess, Senators Bishop, Kahn, Kuipers, Stamas and Hunter entered the Senate Chamber.

By unanimous consent the Senate proceeded to the order of

General Orders

Senator Cropsey moved that the Senate resolve itself into the Committee of the Whole for consideration of the General Orders calendar.

The motion prevailed, and the President, Lieutenant Governor Cherry, designated Senator George as Chairperson.

After some time spent therein, the Committee arose; and, the President, Lieutenant Governor Cherry, having resumed the Chair, the Committee reported back to the Senate, favorably and with a substitute therefor, the following bill:

Senate Bill No. 785, entitled

A bill to amend 1994 PA 451, entitled “Natural resources and environmental protection act,” by amending sections 5202, 8807, 30105, 30301, 30305, 30306, 30306b, 30311, 30312, 30317, 32501, 32512, 32512a, and 32513 (MCL 324.5202, 324.8807, 324.30105, 324.30301, 324.30305, 324.30306, 324.30306b, 324.30311, 324.30312, 324.30317, 324.32501, 324.32512, 324.32512a, and 324.32513), section 5202 as added by 2002 PA 397, section 8807 as added by 1998 PA 287, section 30105 as amended by 2006 PA 531, sections 30301, 30305, 30306, 30312, 32501, and 32512 as amended and section 32512a as added by 2003 PA 14, section 30306b as added by 2006 PA 435, section 30311 as added by 1995 PA 59, section 30317 as amended by 1998 PA 228, and section 32513 as amended by 2008 PA 276, and by adding sections 30303b, 30303d, 30304b, 30305b, 30311b, 30311d, 30312b, 30312d, 30325, 30327, and 30329; and to repeal acts and parts of acts.

Substitute (S-3).

The Senate agreed to the substitute recommended by the Committee of the Whole, and the bill as substituted was placed on the order of Third Reading of Bills.

By unanimous consent the Senate returned to the order of

Third Reading of Bills

Senator Cropsey moved that the rules be suspended and that the following bill, now on the order of Third Reading of Bills, be placed on its immediate passage:

Senate Bill No. 785

The motion prevailed, a majority of the members serving voting therefor.

Senator Cropsey moved that the following bills be placed at the head of the Third Reading of Bills calendar:

Senate Bill No. 785

Senate Bill No. 641

Senate Bill No. 671

The motion prevailed.

The following bill was read a third time:

Senate Bill No. 785, entitled

A bill to amend 1994 PA 451, entitled “Natural resources and environmental protection act,” by amending sections 1301, 8807, 30105, 30301, 30303, 30306, 30306b, 30311, 30312, 30317, 32512a, and 32513 (MCL 324.1301, 324.8807, 324.30105, 324.30301, 324.30303, 324.30306, 324.30306b, 324.30311, 324.30312, 324.30317, 324.32512a, and 324.32513), section 1301 as amended by 2008 PA 18, section 8807 as added by 1998 PA 287, section 30105 as amended by 2006 PA 531, sections 30301, 30306, and 30312 as amended and section 32512a as added by 2003 PA 14, sections 30303 and 30311 as added by 1995 PA 59, section 30306b as added by 2006 PA 435, section 30317 as amended by 1998 PA 228, and section 32513 as amended by 2008 PA 276, and by adding sections 30303b, 30303d, 30304b, 30305b, 30311b, 30311d, 30312b, 30312d, 30325, 30327, and 30329; and to repeal acts and parts of acts.

The question being on the passage of the bill,

The bill was passed, a majority of the members serving voting therefor, as follows:

Roll Call No. 467 Yeas—21

Allen Garcia Jelinek Patterson

Birkholz George Kahn Richardville

Bishop Gilbert Kuipers Sanborn

Brown Hardiman McManus Stamas

Cassis Jansen Pappageorge Van Woerkom

Cropsey

Nays—16

Anderson Cherry Hunter Scott

Barcia Clark-Coleman Jacobs Switalski

Basham Clarke Olshove Thomas

Brater Gleason Prusi Whitmer

Excused—0

Not Voting—0

In The Chair: President

The Senate agreed to the title of the bill.

Protests

Senators Brater, Jacobs and Basham, under their constitutional right of protest (Art. 4, Sec. 18), protested against the passage of Senate Bill No. 785.

Senators Brater and Basham moved that the statements they made during the discussion of the bill be printed as their reasons for voting “no.”

The motion prevailed.

Senator Brater’s statement, in which Senator Jacobs concurred, is as follows:

I would like to reiterate my thanks and appreciation for the good chair of the natural resources committee. I know that she cares deeply about the resources of this state and protecting them from degradation. Sometimes we disagree about the means, but always agreeing on the ends of protecting natural resources and, in this case, the water quality in this state.

I would like to repeat a couple of things I said on General Orders so that I can get this on the record. I think that this version of the bill goes much further than the version that came out of committee in creating some rather drastic changes to this program. The idea of adopting the federal process for delineation of wetlands for general permits will not work here in the state of Michigan.

We have a very specific hydrogeology in this state. We have an abundance of groundwater and wetlands. Michigan was one of the last territories to be settled among the Northern states that originated in the Northwest Territory because of the abundance of wetlands in this state. Many of them have been drained for agricultural and other settlement purposes, but we need to maintain the balance that we have left. It is a very delicate balance.

There are funding issues that have not been resolved. I think that specifically regarding the federal standard, the limiting, feasible, and prudent alternative definition according to the federal standard does not necessarily protect the waters of the state of Michigan. It may not go far enough. What is considered prudent on the federal level may not protect the specific wetlands that we have here in the state of Michigan, which include not only the wetlands that are inland, but the ones that border on the Great Lakes. Protecting these wetlands result in protecting the Great Lakes and their tributaries. What we are trying to do is protect the function of the habitat of the aquatic and animal life that live in these waters. They also function as flood storage. We need to look at the whole watershed context when we are protecting these wetlands.

I also have a concern about the language in this substitute regarding mitigation banking. First of all, I have my personal doubts based on some things that I have read about the value of mitigation to begin with. It is very difficult to maintain a mitigated wetland. What we mean by that is an artificial wetland that is provided when a natural wetland is removed. The old system that we had required the person who was given the benefit of the mitigation, in order to use an area that was a wetland for construction or road building, that they would have to maintain the benefits of that mitigated wetland. Under this language, all the person has to do is protect the site and not necessarily the function, and make sure that the wetland continues to function as it was intended to bring about the environmental benefits. We need to protect the ongoing function of these wetlands whether mitigated or natural.

For these reasons and many others, besides my ongoing concern that we have not yet resolved the funding issues to make sure that we have the money to run this program at the state level. Many people in the regulated community—homebuilders, Realtors, and road builders—benefit directly from the use of this program from the issuance of permits and the monitoring and enforcement. It seems to be logical that user fees be a part of the funding. Whatever the funding is going to be, we still don’t have that resolved in this budget process that we are in now. I am very concerned about the chicken-and-egg nature of passing this bill right now without any funding identified.

I appreciate all of the hard work that has gone in at the committee level. I look forward to continuing to work with my colleagues to resolve these issues.

Senator Basham’s statement is as follows:

I appreciate the good work of the chair of the committee, but I would also like to echo my colleague’s comments from the 18th Senate District. Essentially, what we are doing here is weakening what we already have with no way to pay for it. There is some conversation about paying for it with the Clean Michigan Initiative bonding that went before the voters. That was not the intent of the CMI monies.

I also believe that the way this bill is before us today drifts away from the legislative intent of the law. The DEQ cannot promulgate or interpret rules more stringent than federal guidelines when evaluating the existence of feasible or prudent alternatives. This is troubling to a number of folks, including myself.

I still think there has been good work done on this legislation. I think there is more good work to be done on this legislation. We need to make sure that if we want to keep a program, then we should step up and fund it, and find a continuing revenue stream to fund a program that everyone says is vital to the state of Michigan.

I would encourage colleagues to oppose this piece of legislation as it stands.

Senator Birkholz asked and was granted unanimous consent to make a statement and moved that the statement be printed in the Journal.

The motion prevailed.

Senator Birkholz’s statement is as follows:

After about eight months of continued conversations and workgroup meetings with many, many of the interested parties, we are going to adopt legislation that has two significant goals that I think we need to keep in front of us all the time. First of all, we will retain authority over our state’s wetland program to provide more certainty of environmental protection and implement reforms. Secondly, we will give our regulated community more economic certainty.

We have made many changes in what is happening with the wetlands issues before us. We think that these are good and major reforms. We created a new set of minor and general permits consistent with the federal program to streamline permitting decisions and reduces the DEQ workload.

We have adopted the federal delineation manual of what constitutes a wetland and has a more rigorous and science-based approach to identifying wetlands. We are creating opportunities for cranberry farming in Michigan—a multimillion-dollar industry that sees Michigan as fertile ground for investment. We have talked with companies that want to locate here. We have talked with cranberry farmers who are already operational with small farms and want to expand their operations.

We create a program to use conservation districts and local units of government in assisting the DEQ if they decide they want to participate. We create a program to test new proposals to stimulate wetland mitigation banks—a very important part of wetlands conservation.

We continue with the integration of permits for floodplain, submerged lands, and inland lakes and streams. Now a person can go to one department and apply for all three of those permits which are often part of a wetlands permit. You can get multiple permits with one request, one form, and one application. We require the DEQ to work with the Army Corps of Engineers to avoid duplication of permits for our Great Lakes shoreline.

This legislation will help us maintain our sovereign rights over our property, our wetland resource here in Michigan. We can control our own destiny. We can make reforms if they need to be made because in this we have an advisory council much as we did with the Great Lakes Compact and the water withdrawal legislation. We can decide how we want to protect our wetlands. We can control our own spending. If we decide we don’t want to continue doing this after two and a half years, we can relinquish it to the federal government.

I just would like to remind the members, if you think federal control is a good thing, how many of you in this body have helped me work on ballast water legislation over 12 years? Michigan has its own ballast water law. We have a law on our books, and we enforce invasive species prohibitions in our Great Lakes water. But guess what? The feds have yet to move a bill in Congress to get ballast water under control. We can do this ourselves. We can do it better, more efficiently, and more effectively. I urge your support of this legislation.

The following bill was read a third time:

Senate Bill No. 641, entitled

A bill to amend 2008 PA 456, entitled “An act to amend 1966 PA 346, entitled “An act to create a state housing development authority; to define the powers and duties of the authority; to establish a housing development revolving fund; to establish a land acquisition and development fund; to establish a rehabilitation fund; to establish a conversion condominium fund; to create certain other funds and provide for the expenditure of certain funds; to authorize the making and purchase of loans, deferred payment loans, and grants to qualified developers, sponsors, individuals, mortgage lenders, and municipalities; to establish and provide acceleration and foreclosure procedures; to provide tax exemption; to authorize payments instead of taxes by nonprofit housing corporations, consumer housing cooperatives, limited dividend housing corporations, mobile home park corporations, and mobile home park associations; and to prescribe criminal penalties for violations of this act,” (MCL 125.1401 to 125.1499c) by adding chapter 3B,” by repealing enacting section 1.

The question being on the passage of the bill,

The bill was passed, a majority of the members serving voting therefor, as follows:

Roll Call No. 468 Yeas—37

Allen Clark-Coleman Jacobs Prusi

Anderson Clarke Jansen Richardville

Barcia Cropsey Jelinek Sanborn

Basham Garcia Kahn Scott

Birkholz George Kuipers Stamas

Bishop Gilbert McManus Switalski

Brater Gleason Olshove Thomas

Brown Hardiman Pappageorge Van Woerkom

Cassis Hunter Patterson Whitmer

Cherry

Nays—0

Excused—0

Not Voting—0

In The Chair: President

The Senate agreed to the title of the bill.

The following bill was read a third time:

Senate Bill No. 671, entitled

A bill to amend 2007 PA 36, entitled “Michigan business tax act,” by amending section 267 (MCL 208.1267).

The question being on the passage of the bill,

The bill was passed, a majority of the members serving voting therefor, as follows:

Roll Call No. 469 Yeas—37

Allen Clark-Coleman Jacobs Prusi

Anderson Clarke Jansen Richardville

Barcia Cropsey Jelinek Sanborn

Basham Garcia Kahn Scott

Birkholz George Kuipers Stamas

Bishop Gilbert McManus Switalski

Brater Gleason Olshove Thomas

Brown Hardiman Pappageorge Van Woerkom

Cassis Hunter Patterson Whitmer

Cherry

Nays—0

Excused—0

Not Voting—0

In The Chair: President

The Senate agreed to the title of the bill.

The President pro tempore, Senator Richardville, assumed the Chair.

By unanimous consent the Senate proceeded to the order of

Introduction and Referral of Bills

Senators Brater, Jacobs, Clark-Coleman, Clarke, Scott, Cherry, Olshove, Anderson, Switalski and Basham introduced

Senate Bill No. 864, entitled

A bill to amend 1974 PA 258, entitled “Mental health code,” by amending sections 755, 774, 776, 780, 784, and 786 (MCL 330.1755, 330.1774, 330.1776, 330.1780, 330.1784, and 330.1786), as added by 1995 PA 290; and to repeal acts and parts of acts.

The bill was read a first and second time by title and referred to the Committee on Health Policy.

Senators Brater, Jacobs, Clark-Coleman, Clarke, Scott, Cherry, Olshove, Anderson, Basham, Switalski and Thomas introduced

Senate Bill No. 865, entitled

A bill to amend 1974 PA 258, entitled “Mental health code,” by amending sections 116 and 208 (MCL 330.1116 and 330.1208), section 116 as amended by 1998 PA 67 and section 208 as amended by 1995 PA 290.

The bill was read a first and second time by title and referred to the Committee on Health Policy.

Senators Brater, Jacobs, Clark-Coleman, Clarke, Scott, Cherry, Olshove, Anderson, Basham, Switalski and Thomas introduced

Senate Bill No. 866, entitled

A bill to amend 1974 PA 258, entitled “Mental health code,” by amending sections 116, 232a, and 232b (MCL 330.1116, 330.1232a, and 330.1232b), section 116 as amended by 1998 PA 67, section 232a as added by 1995 PA 290, and section 232b as added by 2002 PA 597.

The bill was read a first and second time by title and referred to the Committee on Health Policy.

Senators Brater, Jacobs, Clark-Coleman, Clarke, Scott, Cherry, Olshove, Anderson, Basham, Switalski and Thomas introduced

Senate Bill No. 867, entitled

A bill to amend 1974 PA 258, entitled “Mental health code,” by amending sections 754 and 755 (MCL 330.1754 and 330.1755), section 754 as amended by 2006 PA 604 and section 755 as added by 1995 PA 290.

The bill was read a first and second time by title and referred to the Committee on Health Policy.

Senators Brater, Jacobs, Clark-Coleman, Clarke, Scott, Cherry, Olshove, Anderson, Switalski, Basham and Thomas introduced

Senate Bill No. 868, entitled

A bill to amend 1974 PA 258, entitled “Mental health code,” (MCL 330.1001 to 330.2106) by adding section 721.

The bill was read a first and second time by title and referred to the Committee on Health Policy.

Senators Brater, Jacobs, Clark-Coleman, Clarke, Scott, Cherry, Olshove, Anderson, Switalski, Basham and Thomas introduced

Senate Bill No. 869, entitled

A bill to amend 1998 PA 386, entitled “Estates and protected individuals code,” by amending section 5314 (MCL 700.5314), as amended by 2000 PA 469.

The bill was read a first and second time by title and referred to the Committee on Health Policy.

Senators Scott, Brater, Gleason, Jacobs, Clark-Coleman, Clarke, Cherry, Olshove, Anderson, Basham, Switalski and Thomas introduced

Senate Bill No. 870, entitled

A bill to amend 1974 PA 258, entitled “Mental health code,” by amending sections 720, 754, and 755 (MCL 330.1720, 330.1754, and 330.1755), sections 720 and 755 as added by 1995 PA 290 and section 754 as amended by 2006 PA 604, and by adding section 142a.

The bill was read a first and second time by title and referred to the Committee on Health Policy.

Senators Cherry, Brater, Jacobs, Clark-Coleman, Scott, Olshove, Anderson, Switalski, Basham and Thomas introduced

Senate Bill No. 871, entitled

A bill to amend 1974 PA 258, entitled “Mental health code,” by amending section 401 (MCL 330.1401), as amended by 2004 PA 496.

The bill was read a first and second time by title and referred to the Committee on Health Policy.

Senators Thomas, Brater, Jacobs, Clark-Coleman, Scott, Cherry, Olshove, Anderson, Basham and Switalski introduced

Senate Bill No. 872, entitled

A bill to amend 1974 PA 258, entitled “Mental health code,” (MCL 330.1001 to 330.2106) by adding section 709.

The bill was read a first and second time by title and referred to the Committee on Health Policy.

Senators Thomas, Brater, Jacobs, Anderson, Scott, Cherry, Olshove, Switalski and Basham introduced

Senate Bill No. 873, entitled

A bill to amend 1974 PA 258, entitled “Mental health code,” by amending sections 415, 416, and 419 (MCL 330.1415, 330.1416, and 330.1419), section 415 as amended by 2004 PA 557, section 416 as amended by 1995 PA 290, and section 419 as amended by 1984 PA 186.

The bill was read a first and second time by title and referred to the Committee on Health Policy.

Senators Gleason, Brater, Jacobs, Clark-Coleman, Clarke, Scott, Cherry, Anderson, Switalski, Basham and Thomas introduced

Senate Bill No. 874, entitled

A bill to amend 1974 PA 258, entitled “Mental health code,” by amending sections 100b, 116, and 206 (MCL 330.1100b, 330.1116, and 330.1206), section 100b as amended by 2004 PA 499, section 116 as amended by 1998 PA 67, and section 206 as amended by 1995 PA 290, and by adding section 206a.

The bill was read a first and second time by title and referred to the Committee on Health Policy.

Senator Switalski introduced

Senate Bill No. 875, entitled

A bill to provide for a registry to notify Michigan residents who want to honor Michigan soldiers who have died in combat; and to provide for certain duties of certain state agencies.

The bill was read a first and second time by title and referred to the Committee on Senior Citizens and Veterans Affairs.

Senators Gilbert, Kuipers and Cassis introduced

Senate Bill No. 876, entitled

A bill to amend 1951 PA 51, entitled “An act to provide for the classification of all public roads, streets, and highways in this state, and for the revision of that classification and for additions to and deletions from each classification; to set up and establish the Michigan transportation fund; to provide for the deposits in the Michigan transportation fund of specific taxes on motor vehicles and motor vehicle fuels; to provide for the allocation of funds from the Michigan transportation fund and the use and administration of the fund for transportation purposes; to set up and establish the truck safety fund; to provide for the allocation of funds from the truck safety fund and administration of the fund for truck safety purposes; to set up and establish the Michigan truck safety commission; to establish certain standards for road contracts for certain businesses; to provide for the continuing review of transportation needs within the state; to authorize the state transportation commission, counties, cities, and villages to borrow money, issue bonds, and make pledges of funds for transportation purposes; to authorize counties to advance funds for the payment of deficiencies necessary for the payment of bonds issued under this act; to provide for the limitations, payment, retirement, and security of the bonds and pledges; to provide for appropriations and tax levies by counties and townships for county roads; to authorize contributions by townships for county roads; to provide for the establishment and administration of the state trunk line fund, local bridge fund, comprehensive transportation fund, and certain other funds; to provide for the deposits in the state trunk line fund, critical bridge fund, comprehensive transportation fund, and certain other funds of money raised by specific taxes and fees; to provide for definitions of public transportation functions and criteria; to define the purposes for which Michigan transportation funds may be allocated; to provide for Michigan transportation fund grants; to provide for review and approval of transportation programs; to provide for submission of annual legislative requests and reports; to provide for the establishment and functions of certain advisory entities; to provide for conditions for grants; to provide for the issuance of bonds and notes for transportation purposes; to provide for the powers and duties of certain state and local agencies and officials; to provide for the making of loans for transportation purposes by the state transportation department and for the receipt and repayment by local units and agencies of those loans from certain specified sources; and to repeal acts and parts of acts,” (MCL 247.651 to 247.675) by adding section 10p.

The bill was read a first and second time by title and referred to the Committee on Transportation.

Statements

Senators Stamas and Scott asked and were granted unanimous consent to make statements and moved that the statements be printed in the Journal.

The motion prevailed.

Senator Stamas’ statement is as follows:

I’d like to take a moment to thank one of my staff as he prepares to depart from my office. Michael DeRyder of Bellevue has been a member of my staff since February 2008, serving as my special projects coordinator. He is a graduate of Michigan State University and will soon be graduating from Cooley Law School.

An avid sportsman, Mike has really done a great job working on conservation-based issues for my office. His knowledge of conservation issues has been a great help for the 36th Senate District. He is the epitome of a business entrepreneur. He owns his own landscaping business, DeRyder Land Development, and hosts a hunting show for “Midwest Whitetail.”

As I said, he will be graduating with his law degree soon, and I understand he is thinking about running for public office sometime in the near future. After all this, you think he would know better, but he would do an outstanding job, and I have no doubt about his success. He is kind enough to continue to help out as a volunteer in my office on special projects.

With that, I would like to ask my Senate colleagues to join me in thanking Mike for all the great work he has done for my office, the residents of the 36th District, and the state of Michigan.

Senator Scott’s statement is as follows:

Next week, I will once again hold a rally on the steps of the State Capitol to call for action on auto insurance reform. I fully expect to be joined by even more people than attended my 2007 rally. Our economy has changed since then, and many more people are feeling the sting of unfair auto insurance rates.

If you read the Detroit Free Press opinion page recently, then you saw Jeff Gerritt’s editorial on unfair auto insurance rates. He wrote about the Detroit residents who are forced to drive without insurance because they are charged exorbitant rates: “$4,000 a year or more is not uncommon,” he writes. Mr. Gerritt goes on to say, “The problem goes beyond Detroit, Flint, Benton Harbor and other urban centers. Statewide, 17 percent of all motorists drive uninsured, up from 11 percent in 1989, says the Insurance Research Council. Michigan’s economic slump will make matters even worse. Nationally, a percentage-point jump in the jobless rate corresponds to a similar increase in the rate of uninsured drivers.”

It is high time that we listen to the people and do something about auto insurance rates. If we act now, we could even do it in time for my rally. It could please a lot of people and generate a lot of goodwill from our constituents, if you will work with me and help the people of Michigan by approving legislation to create reasonable auto insurance rates.

Also, Mr. President, I hope you have 100 percent on your side. I have 100 percent over here for the Children’s Trust Fund. I want to thank everyone for doing that. Thank you for nudging some of mine. We have 100 percent over here, so maybe I better come over there and nudge a few. I want everyone to attend the function on September 30 at the Lansing Center. Hopefully, we will be through with the budget by then.

By unanimous consent the Senate returned to the order of

Motions and Communications

Senator Cropsey moved that when the Senate adjourns today, it stand adjourned until Friday, September 25, at 9:00 a.m.

The motion prevailed.

By unanimous consent the Senate proceeded to the order of

Conference Reports

Recess

Senator Cropsey moved that the Senate recess until 3:00 p.m.

The motion prevailed, the time being 12:08 p.m.

The Senate reconvened at the expiration of the recess and pursuant to rule 1.101, in the absence of the Presiding Officers, the Senate was called to order by the Secretary of the Senate.

Recess

Senator Cropsey moved that the Senate recess until 5:00 p.m.

The motion prevailed, the time being 3:01 p.m.

The Senate reconvened at the expiration of the recess and was called to order by the President pro tempore, Senator Richardville.

Recess

Senator Cropsey moved that the Senate recess subject to the call of the Chair.

The motion prevailed, the time being 5:02 p.m.

5:50 p.m.

The Senate was called to order by the President pro tempore, Senator Richardville.

Senator Cropsey submitted the following:

FIRST CONFERENCE REPORT

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

Senate Bill No. 249, entitled

A bill to make appropriations for the judicial branch for the fiscal year ending September 30, 2010; to provide for the expenditure of these appropriations; to place certain restrictions on the expenditure of these appropriations; to prescribe the powers and duties of certain state and local departments, officials, and employees; to require certain reports; and to provide for the disposition of fees and other income received by the judicial branch.

Recommends:

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

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

A bill to make appropriations for the judicial branch for the fiscal year ending September 30, 2010; to provide for the expenditure of these appropriations; to place certain restrictions on the expenditure of these appropriations; to prescribe the powers and duties of certain state and local departments, officials, and employees; to require certain reports; and to provide for the disposition of fees and other income received by the judicial branch.

The People of the State of Michigan enact:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for the judicial branch for the fiscal year ending September 30, 2010, 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.............................................................................491.0

GROSS APPROPRIATION.......................................................................................................... $ 258,762,300

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 3,553,500

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 255,208,800

Federal revenues:

Total federal revenues................................................................................................................... 5,126,500

Special revenue funds:

Total local revenues...................................................................................................................... 6,149,300

Total private revenues................................................................................................................... 842,500

Total other state restricted revenues............................................................................................. 89,957,700

State general fund/general purpose.............................................................................................. $ 153,132,800

Sec. 102. SUPREME COURT

Full-time equated exempted positions.............................................................................243.0

Supreme court administration—97.0 FTE positions.................................................................... $ 10,548,400

Judicial institute—13.0 FTE positions......................................................................................... 2,554,500

State court administrative office—60.0 FTE positions................................................................ 11,009,200

Judicial information systems—22.0 FTE positions...................................................................... 3,092,100

Direct trial court automation support—36.0 FTE positions......................................................... 6,149,300

Foster care review board—12.0 FTE positions............................................................................ 1,235,000

Community dispute resolution—3.0 FTE positions..................................................................... 2,300,400

Other federal grants...................................................................................................................... 275,000

Drug treatment courts................................................................................................................... 5,132,900

Juvenile training pilot project....................................................................................................... 100

GROSS APPROPRIATION.......................................................................................................... $ 42,296,900

Appropriated from:

Interdepartmental grant revenues:

IDG from department of community health................................................................................. 1,800,000

IDG from department of corrections............................................................................................ $ 1,030,000

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................................................................... 1,300,000

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........................................................................................................ 275,100

Special revenue funds:

Local - user fees........................................................................................................................... 6,149,300

Private........................................................................................................................................... 169,000

Private - interest on lawyers trust accounts.................................................................................. 232,700

Private - state justice institute...................................................................................................... 370,800

Community dispute resolution fund............................................................................................. 2,300,400

Law exam fees.............................................................................................................................. 536,200

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.............................................................................................. $ 21,094,600

Sec. 103. COURT OF APPEALS

Full-time equated exempted positions.............................................................................190.0

Court of appeals operations—190.0 FTE positions..................................................................... $ 18,414,300

GROSS APPROPRIATION.......................................................................................................... $ 18,414,300

Appropriated from:

Special revenue funds:

Court filing/motion fees............................................................................................................... 1,958,500

Miscellaneous revenue.................................................................................................................. 77,800

State general fund/general purpose.............................................................................................. $ 16,378,000

Sec. 104. BRANCHWIDE APPROPRIATIONS

Full-time equated exempted positions.................................................................................4.0

Branchwide appropriations—4.0 FTE positions........................................................................... $ 8,039,400

GROSS APPROPRIATION.......................................................................................................... $ 8,039,400

Appropriated from:

State general fund/general purpose.............................................................................................. $ 8,039,400

Sec. 105. JUSTICES’ AND JUDGES’ COMPENSATION

Full-time judges positions...............................................................................................617.0

Supreme court justices’ salaries—7.0 justices............................................................................. $ 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.............................................................. 9,627,900

Probate court judicial salary standardization................................................................................ 4,669,700

Circuit court judges’ state base salaries—221.0 judges............................................................... 20,817,200

Circuit court judicial salary standardization................................................................................. 10,105,000

Judges’ retirement system defined contributions......................................................................... 3,781,000

OASI, social security.................................................................................................................... 5,468,400

GROSS APPROPRIATION.......................................................................................................... $ 95,535,800

Appropriated from:

Special revenue funds:

Court fee fund.............................................................................................................................. 7,090,200

State general fund/general purpose.............................................................................................. $ 88,445,600

Sec. 106. JUDICIAL AGENCIES

Full-time equated exempted positions.................................................................................7.0

Judicial tenure commission—7.0 FTE positions.......................................................................... $ 969,700

GROSS APPROPRIATION.......................................................................................................... $ 969,700

Appropriated from:

State general fund/general purpose.............................................................................................. $ 969,700

Sec. 107. INDIGENT DEFENSE - CRIMINAL

Full-time equated exempted positions...............................................................................47.0

Appellate public defender program—39.0 FTE positions............................................................ $ 4,900,500

Appellate assigned counsel administration—8.0 FTE positions.................................................. 908,800

GROSS APPROPRIATION.......................................................................................................... $ 5,809,300

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.............................................................................................. $ 5,202,700

Sec. 108. INDIGENT CIVIL LEGAL ASSISTANCE

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

Court equity fund reimbursements............................................................................................... $ 64,794,900

Judicial technology improvement fund........................................................................................ 4,815,000

GROSS APPROPRIATION.......................................................................................................... $ 69,609,900

Appropriated from:

Special revenue funds:

Court equity fund......................................................................................................................... 50,440,000

Judicial technology improvement fund........................................................................................ 4,815,000

State general fund/general purpose.............................................................................................. $ 14,354,900

Sec. 110. GRANTS AND REIMBURSEMENTS TO LOCAL GOVERNMENT

Drug case-flow program............................................................................................................... $ 250,000

Drunk driving case-flow program................................................................................................ 3,300,000

Juror compensation fund transfer to general fund....................................................................... 0

Juror compensation reimbursement.............................................................................................. 6,600,000

GROSS APPROPRIATION.......................................................................................................... $ 10,150,000

Appropriated from:

Special revenue funds:

Drug fund..................................................................................................................................... 250,000

Drunk driving fund....................................................................................................................... 3,300,000

Juror compensation fund.............................................................................................................. 7,952,100

State general fund/general purpose.............................................................................................. $ (1,352,100)

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 2009-2010 is $243,090,500.00 and state spending from state resources to be paid to local units of government for fiscal year 2009-2010 is $122,213,500.00. 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................................................................................................................... 4,832,900

TRIAL COURT OPERATIONS

Court equity fund reimbursements............................................................................................... $ 64,794,800

Judicial technology improvement fund........................................................................................ 4,815,000

JUSTICES’ AND JUDGES’ COMPENSATION

District court judicial salary standardization................................................................................ $ 11,796,800

Probate court judges’ state base salaries...................................................................................... 9,627,900

Probate court judicial salary standardization................................................................................ 4,669,700

Circuit court judicial salary standardization................................................................................. 10,105,000

Grant to OASI contribution fund, employers share, social security............................................ 909,500

GRANTS AND REIMBURSEMENTS TO LOCAL GOVERNMENT

Drunk driving case-flow program................................................................................................ $ 3,300,000

Drug case-flow program............................................................................................................... 250,000

Juror compensation reimbursement.............................................................................................. 6,600,000

TOTAL.......................................................................................................................................... $ 122,213,500

Sec. 202. (1) The appropriations authorized under this act 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 act:

(a) “DOJ” means the United States department of justice.

(b) “DOT” means the United States department of transportation.

(c) “FTE” means full-time equated.

(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 act shall be completed with the approval of, and at the direction of, the supreme court. The judicial branch shall use the Internet to fulfill the reporting requirements of this act. 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 of comparable quality American goods or services, or both, are available. Preference shall be given to goods or services, or both, manufactured or provided by Michigan businesses, if they are competitively priced and of comparable quality. In addition, preference shall be given to goods or services, or both, that are manufactured or provided by Michigan businesses owned and operated by veterans, 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, 2009 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 senate and house of representatives standing committees on appropriations.

(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 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.

(c) The dates of each travel occurrence.

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

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

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

Sec. 216. (1) The judicial branch shall report no later than April 1, 2010 on each specific policy change made to implement a public act affecting the judicial branch that took effect during the prior calendar year to the house and senate appropriations subcommittees on the judicial branch budget, the joint committee on administrative rules, and the senate and house fiscal agencies.

(2) Funds appropriated in part 1 shall not be used by the judicial branch to adopt a rule that will apply to a small business and that will have a disproportionate economic impact on small businesses because of the size of those businesses if the judicial branch fails to reduce the disproportionate economic impact of the rule on small businesses as provided under section 40 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.240.

(3) As used in this section:

(a) “Rule” means that term as defined under section 7 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.207.

(b) “Small business” means that term as defined under section 7a of the administrative procedures act of 1969, 1969 PA 306, MCL 24.207a.

Sec. 218. The judicial branch shall not approve the travel of more than 1 judicial employee to a specific professional development conference or training seminar that is located outside of this state unless a professional development conference or training seminar is funded by a federal or private funding source and requires more than 1 person from the judicial branch to attend, or the conference or training seminar includes multiple issues in which 1 employee from the judicial branch does not have expertise.

Sec. 219. Not later than September 30, 2010, the judiciary shall prepare and transmit a report that provides for estimates of the total general fund/general purpose appropriation lapses at the close of the fiscal year. This report shall summarize the projected year-end general fund/general purpose appropriation lapses by major program or program areas. The report shall be transmitted to the office of the state budget, the chairpersons of the senate and house appropriations committees, and the senate and house fiscal agencies.

Sec. 220. It is the intent of the legislature that the supreme court retain its satellite offices.

Sec. 221. From the funds appropriated in part 1, the judicial branch shall use an amount not to exceed $10,000.00 to develop, post, and maintain, on a publicly accessible Internet site, all expenditures made by the judicial branch within a fiscal year. The posting must include the purpose for which each expenditure is made. The judicial branch shall not be required to hire additional employees to comply with this section.

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 act, 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. 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. 309. By April 1, 2010, the state court administrative office shall provide an update on the status of the pilot mental health courts to the state budget director, the senate and house appropriations subcommittees on the judiciary, and the senate and house fiscal agencies.

Sec. 310. From the funds appropriated in part 1 for drug treatment court programs, with the approval of and at the discretion of the supreme court, the state court administrative office shall evaluate and collect data on the performance of drug treatment court programs. The state court administrative office shall provide an annual review of the performance of drug courts as prescribed in section 1078(6) of the revised judicature act of 1961, 1961 PA 236, MCL 600.1078. All of the following apply to that annual review:

(a) It shall include measures of the impact of drug court programs in changing offender criminal involvement (recidivism) and substance abuse and in reducing prison admissions.

(b) It shall be completed no later than April 1 of each year and shall also be provided to the senate and house appropriations subcommittees on the judiciary, the senate and house fiscal agencies, and the state budget director.

(c) The evaluation of a program funded with federal Byrne funds shall be consistent with the requirements contained in the federal Byrne grant for that program.

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 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) 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.

(3) For drug treatment court grants, consideration for priority may be given to those courts where higher instances of substance abuse cases are filed.

(4) 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. 314. The legislature requests that the state court administrative office conduct a survey of trial courts in order to determine best practices for standardized risk assessment and submit a report to the state budget director, the senate and house appropriations subcommittees on the judiciary, and the senate and house fiscal agencies by April 1. The state court administrative office is encouraged to explore existing tools and established benchmarks that could be utilized in addressing the criminogenic needs of the local community.

Sec. 317. Funds appropriated in part 1 shall not be used for the permanent assignment of state-owned vehicles to justices or judges or any other judicial branch employee. This section does not preclude the use of state-owned motor pool vehicles for state business in accordance with approved guidelines.

Sec. 318. (1) The judiciary shall receive $980,000.00 as an interdepartmental grant from the department of corrections. The funds shall be utilized by the state court administrative office to administer a pilot program to target high-risk offenders through assessment, treatment, and accountability, with the goal of reducing future criminal behavior. All funds shall be spent on fulfilling the requirements of this section and treatment, monitoring, and testing of offenders in the pilot program administered by the state court administrative office.

(2) The pilot program shall adhere to the following criteria:

(a) A minimum of 3 pilot sites shall be selected by the state court administrative office, at least 1 to be located in a major metropolitan area.

(b) The pilot programs shall incorporate the principles and practices of problem-solving courts developed by the national association of drug court professionals, and they shall operate pursuant to a written memorandum of understanding developed by the stakeholders in the jurisdiction.

(c) Each pilot court team shall include, at a minimum, a district and circuit judge, prosecutor, defense lawyer, treatment provider, circuit court probation officer, district court probation officer, community corrections representative, community mental health representative, court administration, and community representative.

(d) Before being enrolled in the pilot program, each participant shall be administered a comprehensive and valid risk and needs assessment. The assessment shall measure criminogenic and psychosocial factors to determine which participants are at significant risk of/for committing further crimes and are in need of services.

(e) The pilot projects shall employ evidence-based practices to develop a treatment plan in response to the assessment results.

(f) Each pilot project shall employ a case manager whose duties shall include referral and linkage to community resources, monitoring treatment plan requirements, data reporting, and other responsibilities as assigned.

(3) The Michigan judicial institute shall provide appropriate training for all personnel involved in the pilot program.

(4) The state court administrative office shall conduct a process and outcome evaluation and a cost-benefit analysis of the pilot programs and shall submit that analysis to the senate and house appropriations subcommittees on the judiciary, the senate and house fiscal agencies, and the state budget director by September 30, 2010.

Sec. 319. (1) The funds appropriated in part 1 for the juvenile training pilot project shall be used for the purpose of training criminal defense attorneys who accept court-appointed cases concerning juvenile delinquency, abuse, neglect, and protective services. The judiciary shall contract with the state appellate defender office’s criminal defense resource center, which provides training to court-assigned criminal defense attorneys at trial and appellate levels.

(2) Training shall include, but not be limited to, identification of potential trainees, collection of information about the services they provide to court-assigned clients, collection of resources for web access, hosting of direct training events, creation of new resources including practice manuals, and creation of a training network.

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

A bill to make appropriations for the judicial branch for the fiscal year ending September 30, 2010; to provide for the expenditure of these appropriations; to place certain restrictions on the expenditure of these appropriations; to prescribe the powers and duties of certain state and local departments, officials, and employees; to require certain reports; and to provide for the disposition of fees and other income received by the judicial branch.

Alan L. Cropsey

Roger Kahn

Liz Brater

Conferees for the Senate

Rashida Tlaib

Terry Brown

Tonya Schuitmaker

Conferees for the House

Pending the order that, under joint rule 9, the conference report be laid over one day,

Senator Cropsey moved that the rule be suspended.

The motion prevailed, a majority of the members serving voting therefor.

The question being on the adoption of the conference report,

The first conference report was adopted, a majority of the members serving voting therefor, as follows:

Roll Call No. 470 Yeas—24

Allen Cassis Jansen Patterson

Barcia Cropsey Jelinek Richardville

Birkholz Garcia Kahn Sanborn

Bishop George Kuipers Stamas

Brater Gilbert McManus Switalski

Brown Hardiman Pappageorge Van Woerkom

Nays—13

Anderson Clarke Jacobs Scott

Basham Gleason Olshove Thomas

Cherry Hunter Prusi Whitmer

Clark-Coleman

Excused—0

Not Voting—0

In The Chair: Richardville

Senator Garcia submitted the following:

FIRST CONFERENCE REPORT

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

Senate Bill No. 250, entitled

A bill to make appropriations for the department of military and veterans affairs for the fiscal year ending September 30, 2010; to provide for the expenditure of the appropriations; to provide for certain powers and duties of the department of military and veterans affairs, other state agencies, and local units of government related to the appropriations; and to provide for the preparation of certain reports related to the appropriations.

Recommends:

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

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

A bill to make appropriations for the department of military and veterans affairs for the fiscal year ending September 30, 2010; to provide for the expenditure of the appropriations; to provide for certain powers and duties of the department of military and veterans affairs, other state agencies, and local units of government related to the appropriations; and to provide for the preparation of certain reports related to the appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for the department of military and veterans affairs for the fiscal year ending September 30, 2010, from the funds indicated in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

APPROPRIATION SUMMARY:

Full-time equated unclassified positions.............................................................................7.0

Full-time equated classified positions.............................................................................985.0

GROSS APPROPRIATION.......................................................................................................... $ 146,149,800

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 1,686,500

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 144,463,300

Federal revenues:

Total federal revenues................................................................................................................... 77,347,300

Special revenue funds:

Total local revenues...................................................................................................................... 1,295,100

Total private revenues................................................................................................................... 1,471,200

Total other state restricted revenues............................................................................................. 27,924,200

State general fund/general purpose.............................................................................................. $ 36,425,500

Sec. 102. HEADQUARTERS AND ARMORIES

Full-time equated unclassified positions.............................................................................7.0

Full-time equated classified positions.............................................................................125.0

Headquarters and armories—85.0 FTE positions......................................................................... $ 10,959,700

Unclassified military personnel.................................................................................................... 665,000

Military appeals tribunal.............................................................................................................. 900

Michigan emergency volunteers................................................................................................... 5,000

State active duty........................................................................................................................... 100,100

Challenge program—40.0 FTE positions..................................................................................... 4,737,000

Homeland security........................................................................................................................ 1,000,000

Military family relief fund........................................................................................................... 600,000

GROSS APPROPRIATION.......................................................................................................... $ 18,067,700

Appropriated from:

IDG, challenge grant.................................................................................................................... 262,100

IDG, community health................................................................................................................ 100,000

IDG, state police.......................................................................................................................... 900,000

IDG, human services.................................................................................................................... 424,400

Federal revenues:

DOD-DOA-NGB.......................................................................................................................... 5,747,200

Special revenue funds:

Local-school aid fund................................................................................................................... 1,295,100

Rental fees.................................................................................................................................... 346,400

Mackinac Bridge authority........................................................................................................... 70,000

Private donations.......................................................................................................................... 826,800

Military family relief fund........................................................................................................... 600,000

Private-parent pay revenue........................................................................................................... 104,400

State general fund/general purpose.............................................................................................. $ 7,391,300

Sec. 103. MILITARY TRAINING SITES AND SUPPORT FACILITIES

Full-time equated classified positions.............................................................................181.0

Military training sites and support facilities—181.0 FTE positions............................................ $ 24,482,600

Military training sites and support facilities test projects............................................................ 100,000

GROSS APPROPRIATION.......................................................................................................... $ 24,582,600

Appropriated from:

Federal revenues:

DOD-DOA-NGB.......................................................................................................................... 23,139,400

Special revenue funds:

Test project fees........................................................................................................................... 100,000

State general fund/general purpose.............................................................................................. $ 1,343,200

Sec. 104. DEPARTMENTWIDE APPROPRIATIONS

Departmentwide accounts............................................................................................................. $ 1,946,500

Special maintenance - state.......................................................................................................... 651,200

Special maintenance - federal...................................................................................................... 5,300,000

Military retirement....................................................................................................................... 3,407,800

Counter narcotic operations.......................................................................................................... 50,000

Starbase grant............................................................................................................................... 2,322,000

GROSS APPROPRIATION.......................................................................................................... $ 13,677,500

Appropriated from:

Federal revenues:

DOD-DOA-NGB.......................................................................................................................... 9,288,100

Federal counternarcotic revenues................................................................................................. 50,000

State general fund/general purpose.............................................................................................. $ 4,339,400

Sec. 105. VETERANS ADVICE, ADVOCACY AND ASSISTANCE

American legion........................................................................................................................... $ 339,800

Disabled American veterans......................................................................................................... 280,800

Marine corps league..................................................................................................................... 129,000

American veterans of World War II and Korea............................................................................ 178,100

Veterans of foreign wars............................................................................................................... 339,800

Michigan paralyzed veterans of America..................................................................................... 63,500

Purple heart.................................................................................................................................. 60,500

Polish legion of American veterans............................................................................................. $ 15,800

Jewish veterans of America.......................................................................................................... 15,800

State of Michigan council - Vietnam veterans of America.......................................................... 61,100

Catholic war veterans................................................................................................................... 15,800

Veterans advice, advocacy and assistance grants for 4-1-10 to 9-30-10...................................... 1,529,600

GROSS APPROPRIATION.......................................................................................................... $ 3,029,600

Appropriated from:

State general fund/general purpose.............................................................................................. $ 3,029,600

Sec. 106. GRAND RAPIDS VETERANS’ HOME

Full-time equated classified positions.............................................................................513.0

Grand Rapids veterans’ home—513.0 FTE positions.................................................................. $ 48,767,300

Board of managers....................................................................................................................... 665,000

GROSS APPROPRIATION.......................................................................................................... $ 49,432,300

Appropriated from:

Federal revenues:

DVA-VHA.................................................................................................................................... 15,862,600

HHS, Medicaid............................................................................................................................. 157,300

HHS, Medicare............................................................................................................................. 2,452,700

Special revenue funds:

Private - veterans’ home post and posthumous funds.................................................................. 415,000

Income and assessments............................................................................................................... 15,304,700

Military family relief fund........................................................................................................... 250,000

Lease revenue............................................................................................................................... 12,200

State general fund/general purpose.............................................................................................. $ 14,977,800

Sec. 107. D.J. JACOBETTI VETERANS’ HOME

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

D.J. Jacobetti veterans’ home—158.0 FTE positions.................................................................. $ 15,656,100

Board of managers....................................................................................................................... 275,000

GROSS APPROPRIATION.......................................................................................................... $ 15,931,100

Appropriated from:

Federal revenues:

DVA-VHA.................................................................................................................................... 4,604,400

HHS, Medicare............................................................................................................................. 562,400

HHS, Medicaid............................................................................................................................. 10,300

Special revenue funds:

Private - veterans’ home post and posthumous funds.................................................................. 125,000

Military family relief fund........................................................................................................... 150,000

Income and assessments............................................................................................................... 5,741,100

State general fund/general purpose.............................................................................................. $ 4,737,900

Sec. 108. VETERANS’ AFFAIRS DIRECTORATE

Full-time equated classified positions.................................................................................8.0

Veterans’ affairs directorate administration—2.0 FTE positions................................................. $ 276,700

Veterans’ trust fund administration—6.0 FTE positions.............................................................. 1,251,500

Veterans’ trust fund grants........................................................................................................... 3,746,500

GROSS APPROPRIATION.......................................................................................................... $ 5,274,700

Appropriated from:

Special revenue funds:

Michigan veterans’ trust fund...................................................................................................... 4,998,000

State general fund/general purpose.............................................................................................. $ 276,700

Sec. 109. INFORMATION TECHNOLOGY

Information technology services and projects.............................................................................. $ 1,154,300

GROSS APPROPRIATION.......................................................................................................... $ 1,154,300

Appropriated from:

Federal revenues:

DOD-DOA-NGB.......................................................................................................................... 123,900

DVA-VHA.................................................................................................................................... 339,000

HHS, Medicare............................................................................................................................. 10,000

Special revenue funds:

Income and assessments............................................................................................................... $ 351,800

State general fund/general purpose.............................................................................................. $ 329,600

Sec. 110. CAPITAL OUTLAY

Special maintenance, remodeling and additions........................................................................... $ 15,000,000

GROSS APPROPRIATION.......................................................................................................... $ 15,000,000

Appropriated from:

Federal revenues:

DOD-DOA-NGB.......................................................................................................................... 15,000,000

Special revenue funds:

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 2009-2010 is $64,349,700.00 and state spending from state resources to be paid to local units of government for fiscal year 2009-2010 is $120,000.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

MILITARY TRAINING SITES AND SUPPORT FACILITIES

Payments in lieu of taxes............................................................................................................. $ 70,000

MICHIGAN VETERANS’ TRUST FUND

County counselor education and training expenses...................................................................... $ 50,000

TOTAL............................................................................................................................................. $ 120,000

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

Sec. 203. As used in this act:

(a) “Department” means the department of military and veterans affairs.

(b) “Director” means the director of the department of military and veterans affairs.

(c) “DOD” means the United States department of defense.

(d) “DOD-DOA-NGB” means the DOD department of the army, national guard bureau.

(e) “DVA” means the United States department of veterans’ affairs.

(f) “DVA-VHA” means the DVA veterans’ health administration.

(g) “FTE” means full-time equated.

(h) “HHS” means the United States department of health and human services.

(i) “IDG” means interdepartmental grant.

(j) “Large veterans service organization” means a VSO that can certify that its membership exceeds 30,000 individuals.

(k) “Medium veterans service organization” means a VSO that can certify that its membership is between 2,500 and 30,000 individuals.

(l) “Small veterans service organization” means a VSO that can certify that its membership is between 1,000 and 2,499 individuals.

(m) “VSO” means veterans service organization.

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

(2) The state budget director may grant exceptions to this hiring freeze when the state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services, 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 quarterly to the chairpersons of the senate and house of representatives standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous quarter and the reasons to justify the exception.

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

Sec. 209. Funds appropriated in part 1 shall not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods or services, or both, are available. 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. In addition, preference should be given to goods or services, or both, that are manufactured or provided by Michigan businesses owned and operated by veterans, if they are competitively priced and of comparable quality.

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

Sec. 211. The departments and agencies receiving appropriations in part 1 shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow all federal guidelines and state laws regarding short-term and long-term retention of records.

Sec. 213. The department shall consult with the house and senate appropriations subcommittees on military and veterans affairs regarding the projected closing or consolidation of any national guard armories.

Sec. 214. It is the intent of the legislature that, should the necessary legislation be enacted and funding become available, funds be appropriated for state military cemeteries in Crawford and Dickinson counties.

Sec. 221. 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. These user fees shall be subject to provisions of an interagency agreement between the departments and agencies and the department of information technology.

Sec. 223. 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. 225. (1) Due to the current budgetary problems in this state, out-of-state travel for the fiscal year ending September 30, 2010 shall be limited to situations in which 1 or more of the following conditions apply:

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

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

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

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

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

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

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

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

(c) The dates of each travel occurrence.

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

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

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

Sec. 226. The department shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

Sec. 227. Sixty days prior to the public announcement of the intention to sell any department property, the department shall submit notification of that intent to the appropriate senate and house appropriations subcommittees and the senate and house fiscal agencies.

Sec. 228. Funds appropriated in part 1 shall not be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. This prohibition does not apply to legal services for bonding activities and for those activities that the attorney general authorizes.

Sec. 232. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $10,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $2,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $100,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $100,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 233. Not later than September 30, 2010, the department shall prepare and transmit a report that provides for estimates of the total general fund/general purpose appropriation lapses at the close of the fiscal year. This report shall summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The report shall be transmitted to the office of the state budget, the chairpersons of the senate and house appropriations committees, and the senate and house fiscal agencies.

Sec. 234. Any fiscal year 2009-2010 unused general fund/general purpose funds identified by the department of military and veterans affairs as lapsed funds shall be transferred to the appropriation for special maintenance-state in part 1 and shall be used for the repair and maintenance of state-owned armories.

Sec. 235. The department of military and veterans affairs shall seek partnerships with United States armed forces reserve units for the colocation of activities, including sharing in the acquisition and costs for facilities.

HEADQUARTERS AND ARMORIES

Sec. 301. The department may charge reasonable rental and equipment usage fees for renting an armory or using the distance learning network. The fee shall include the cost of overtime compensation, insurance coverage, and any maintenance required.

Sec. 302. (1) The funds appropriated in this act for private donations to the challenge program shall be considered state restricted revenue, and unexpended funds remaining at the close of the fiscal year shall not lapse to the general fund but shall be carried forward to the subsequent fiscal year.

(2) The department may charge a parent or guardian of a participant in the challenge program a fee for participating in the program if the participant is a member of a family with an income that exceeds 200% of the federal poverty guidelines as published by the United States department of health and human services. The amount charged the parent or guardian shall not exceed the per-student state share cost of administering the program. The parent or guardian shall be notified of any charge to be assessed under this subsection prior to enrollment of the child in the program.

(3) The department shall take steps to recruit candidates to the challenge program from economically disadvantaged areas, including those with low-income and high-unemployment backgrounds.

Sec. 304. The department will partner with the department of human services to identify youth who may be eligible for the challenge program from those youth served by department of human services programs. These eligible youth shall be given priority for enrollment in the program.

VETERANS ADVICE, ADVOCACY, AND ASSISTANCE

Sec. 501. (1) The department shall develop and operate a program which will provide benefits counseling and representation to veterans of this state for the purpose of assisting veterans to obtain United States department of veterans affairs health, financial, and memorial benefits for which they are eligible. The department shall work to maximize the coordination between veterans service organizations and any other organization which assists veterans.

(2) The department shall create a 5-member veterans’ advisory board to assist in matters pertaining to veterans advice, advocacy, and assistance, including recommendations concerning disbursement of any grant money. The department shall request that the state commanders group name candidates serving as president/commander from 2 large veterans service organizations, 2 medium veterans service organizations, and 1 small veterans service organization to serve on the advisory board. The veterans advisory board shall meet no less than twice a year, without reimbursement by the department.

(3) The duties of the veterans advisory board shall include, but are not limited to, the following:

(a) Serving as a liaison between grant recipients, the department, and the legislature.

(b) Assisting in recognizing any deficiencies in the grant process and performance.

(c) Providing a forum regarding veterans issues.

(d) Suggesting changes in department programs that would help keep pace with changing veterans needs.

(e) Providing a direct contact with the veterans administration regarding updates on procedures.

(f) Creating an awareness to make sure that grant recipients are performing the services intended.

(g) Representing a voice for veterans service organizations.

(h) Providing for a sounding board for grant recipients.

(i) Assisting the department in establishing criteria for grant awards.

(j) Assisting the department in developing plans, reviewing service delivery, and identifying goals to better assist veterans in applying for and receiving benefits from the federal, state, and local governments.

(k) Providing testimony, if requested, to legislative committees.

(4) The funds appropriated in part 1 for veterans advice, advocacy, and assistance shall be distributed to the following organizations in the amounts listed for the period of October 1, 2009 through March 31, 2010: American legion, $339,800.00; disabled American veterans, $280,800.00; marine corps league, $129,000.00; American veterans of World War II and Korea, $178,100.00; veterans of foreign wars, $339,800.00; Michigan paralyzed veterans of America, $63,500.00; purple heart, $60,500.00; Polish legion of American veterans, $15,800.00; Jewish veterans of America, $15,800.00; state of Michigan council - Vietnam veterans of America, $61,100.00; and Catholic war veterans, $15,800.00.

(5) Of the appropriations in part 1 for veterans advice, advocacy, and assistance grants for the period of April 1, 2010 to September 30, 2010, $1,529,600.00 shall be distributed by the department in the form of 5 grants: 2 large, 2 small, and 1 specialized grant for the 6-month period beginning April 1, 2010. The specialized grant shall be awarded to a group specializing in advocacy for paralyzed veterans. The department, while utilizing advice provided by the veterans advisory board establishing grant criteria, is solely responsible for determination of the amounts and recipients of these grants.

(6) Money used for grants to veterans service organizations shall be used only for salaries, wages, related personnel costs, in-state training, and equipment for accredited veteran service advocacy officers and necessary support and managerial staff. Training shall be provided for service advocacy officers and shall be conducted by accredited advocacy officers.

(7) To receive a grant from the money appropriated in part 1, a veterans service organization or a veterans service organization which is part of a combination of organizations receiving a grant shall meet the following eligibility requirements:

(a) Be congressionally chartered by the United States congress.

(b) Be an active participating member of the Michigan veterans organizations’ rehabilitation and veterans service committee and abide by its rules, guidelines, and programs.

(c) Demonstrate the receipt of monetary or service support from its own organization.

(d) Comply with the department’s and the legislature’s requirements of accounting audits, service work activity, accounting of recoveries, listing of volunteer hours, budget requests, and other requirements specified in subsection (3). Each veterans service organization receiving a grant from the money appropriated in part 1 shall provide a copy of the most recent audit report to the department not later than May 1, 2010.

(e) For a veterans service organization founded after September 30, 1989, be in operation and providing service to Michigan veterans for not less than 2 years before receiving an initial state grant. During this 2-year period of time, the organization shall file a listing of service work activity and an accounting of recoveries with the department, the senate and house fiscal agencies, the senate and house of representatives appropriations subcommittees on military affairs, and the state budget office on forms as prescribed by the department.

(8) A veterans service organization receiving a grant from the money appropriated in part 1 shall file with the department an accounting of its expenditures, audited and certified by a certified public accountant, within 120 days after the organization’s fiscal year end. Each veterans service organization shall provide 5 copies of a listing of all service activity, an accounting of recoveries, and a listing of volunteer hours for the fiscal year ending September 30, 2009 to the department by January 31, 2010. Each organization shall include a listing of expenditures by spending category, including a listing of individual salaries of each officer and administrative staff. The listing of volunteer hours shall include the hours, services, and donations provided to residents of the Grand Rapids veterans’ home and the D.J. Jacobetti veterans’ home. Each veterans service organization shall provide a copy of the most recent and completed internal revenue service form 990 to the department at the end of the fiscal year ending September 30, 2009. A veterans service organization receiving a grant from the money appropriated in part 1 shall use the forms recommended by the Michigan veterans organizations rehabilitation and veterans service committee for filing reports required by this act. The department shall provide a report not later than June 1, 2010 to the senate and house fiscal agencies, the senate and house appropriations subcommittees on state police and military and veterans affairs, and the state budget office detailing the most recent expenditure information provided by the veterans service organizations. The department shall also provide within that report specific notification whether any veterans service organization receiving a grant from the money appropriated in part 1 failed to comply with the reporting requirements of this section.

(9) The veterans service directors committee and the department shall take steps to improve the coordination of veterans benefits counseling in the state to maximize the effective and efficient use of taxpayer dollars in this goal and to ensure that every veteran is served.

(10) To accomplish the goal of subsection (9), the veterans service directors committee and the department shall take steps to increase their responsibility in the administration, management, oversight, and outreach of the delivery of services to veterans. The veterans service directors committee and the department shall involve county veterans counselors and representatives from the Michigan veterans trust fund to work in concert to identify, implement, and evaluate steps to do all of the following:

(a) Increase the veterans service directors committee and the department’s role in working directly with the United States department of veterans’ affairs to enhance the delivery of services to Michigan veterans.

(b) Increase the number of initial claims filed with the United States department of veterans’ affairs on behalf of veterans for service-connected disability or pension benefits. The veterans service directors committee and the department may work toward either an absolute increase of approved claims or an increase in the percentage of Michigan veterans with approved claims.

(c) Develop methods to increase rates of recovery paid by the United States department of veterans’ affairs to Michigan veterans either by an increase in compensation paid per approved claim or an increase in compensation paid on a per capita basis.

(d) Expand training opportunities for veterans service organization service officers.

(e) Increase either the number or percentage of Michigan veterans enrolled in the veterans affairs health care system.

(f) Publicize the availability, benefit, and value of burial in the Fort Custer and Great Lakes national cemeteries.

(g) Review each grant recipient’s performance under the program and require that performance be a major consideration in the future funding of each grant recipient.

(h) Identify areas of redundancy which may exist among services provided by veterans service organizations grantees, Michigan veterans trust fund county committees, and county veterans counselors and provide a proposal on how any redundancies may be minimized and identify specific cost savings which could result.

(11) Each veterans service organization receiving a grant from the money appropriated in part 1 shall file a report with the department not later than May 1, 2010 detailing the following information:

(a) Training completed by each veterans service officer employed by or working on behalf of the veterans service organization.

(b) A report of the cases that each veterans service organization is serving or processing, including if those cases have been completed or are still pending, whether those cases have been initiated and completed by the veterans service organization, and which cases have been referred to and by county veterans counselors, congressional or senate offices, or any other organizations that serve veterans.

(12) The veterans advisory board, the Michigan association of county veterans counselors, and the department shall create a report of the efforts to complete the goals outlined in this section and shall provide suggestions on how a more effective and efficient veterans benefit counseling program may best be designed for implementation for fiscal year 2010‑2011. This report shall be delivered to the house and senate appropriations subcommittees no later than March 1, 2010.

(13) The department shall record any additional administrative costs for collecting and compiling the information from subsections (8) and (11) and also provide this information with the reports required under subsection (8).

(14) The veterans affairs directorate shall design and operate an advocacy program to coordinate with other organizations which assist veterans, including county counselors and other groups, to ensure referrals between groups occur when warranted and to provide the veterans of the state with the most cost-effective and comprehensive counseling services possible. The department shall also take steps to become certified with the United States department of veterans affairs to assist in this task.

(15) The veterans affairs directorate shall deliver progress reports regarding the activities of the advocacy program to the senate and house appropriations subcommittees on state police and military and veterans affairs, with the first report due not later than April 1, 2010 and the second report due not later than October 1, 2010.

(16) The department shall issue performance standards to each veterans service organization grant recipient. It is the intent of the legislature that compliance with these performance standards shall be the basis for funding for future years. Failure to meet any or all of the performance standards may result in that organization losing funding in future years, and the department shall forward to the senate and house of representatives appropriations subcommittees on state police and military and veterans affairs corrective action and penalty recommendations.

VETERANS’ HOMES

Sec. 601. Appropriations in this act for the Grand Rapids veterans’ home and the D.J. Jacobetti veterans’ home shall not be used for any purpose other than for veterans and veterans’ families.

Sec. 602. The Grand Rapids veterans’ home and the D.J. Jacobetti veterans’ home, together with the department and the department of management and budget, shall produce and deliver to the senate and house of representatives appropriations subcommittees on state police and military affairs an annual written report. The report shall include an accounting of member populations and bed space available; a description and accounting of services and activities provided to members; financial information; current state nursing home licensure status; the steps required for Medicaid certification, including a listing of any personnel, equipment, supplies, or budgetary increases required; and whether or not steps are being taken toward Medicaid certification. The annual report shall be submitted to the senate and house of representatives appropriations subcommittees on military affairs no later than February 1, 2010.

Sec. 603. The money appropriated in this act for the boards of managers may be expended for facility improvements, the purchase and repair of equipment and furnishings, member services, and other purposes that benefit the Grand Rapids veterans’ home and the D.J. Jacobetti veterans’ home.

Sec. 605. The department shall, prior to altering the spending plan by the board of managers of post and posthumous funds, report to the appropriate senate and house appropriations subcommittees 30 days prior to that action and shall indicate the rationale for that decision.

Sec. 606. The department shall conduct a feasibility study to determine at least 3 means by which to increase operational efficiencies at the Grand Rapids veterans’ home. The department shall submit this study to the senate and house of representatives appropriations committees no later than April 1, 2010.

VETERANS’ AFFAIRS DIRECTORATE

Sec. 703. By April 1, 2010, the department shall submit to the senate and house of representatives appropriations subcommittees on military affairs and the state budget office a detailed annual report of the Michigan veterans’ trust fund for fiscal year 2008-2009. The report shall include information on grants provided from the emergency grant program, including details concerning the methodology of allocations, the selection of emergency grant program authorized agents, and a detailed breakdown of trust fund expenditures for that year. The report shall also provide an update on the department’s efforts to reduce program administrative costs and restore the Michigan veterans’ trust fund corpus to its original amount of $50,000,000.00.

Sec. 704. The Michigan veterans affairs directorate administration and the Michigan veterans’ trust fund administration shall take steps to assist the county veterans counselors of the state to obtain training necessary for the execution of their duties.

Sec. 705. It is the intent of the legislature that the department create incentives for all counties in the state to fund at least 1 full-time county veteran’s counselor for the purpose of assisting veterans with obtaining federal veterans benefits that they may be eligible to receive. The incentives could include, but not be limited to, matching funds or sharing IT resources from the department for counties to use in maximizing benefits received by Michigan veterans.

CAPITAL OUTLAY

Sec. 801. The appropriations in part 1 for the department of military and veterans affairs design and construction projects are contingent upon the availability of federal and state restricted funds for financing.

Sec. 802. (1) The director shall allocate lump-sum appropriations made in this bill consistent with statutory provisions and the purposes for which funds were appropriated. Lump-sum allocations shall address priority program or facility needs and may include, but are not limited to, design, construction, remodeling and addition, special maintenance, major special maintenance, energy conservation, and demolition.

(2) The state budget director may authorize that funds appropriated for lump-sum appropriations shall be available for no more than 3 fiscal years following the fiscal year in which the original appropriation was made. Any remaining balance from allocations made in this section shall lapse to the fund from which it was appropriated pursuant to the lapsing of funds as provided in the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 803. The appropriations in part 1 for capital outlay shall be carried forward at the end of the fiscal year consistent with section 248 of the management and budget act, 1984 PA 431, MCL 18.1248.

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

A bill to make appropriations for the department of military and veterans affairs for the fiscal year ending September 30, 2010; to provide for the expenditure of the appropriations; to provide for certain powers and duties of the department of military and veterans affairs, other state agencies, and local units of government related to the appropriations; and to provide for the preparation of certain reports related to the appropriations.

Valde Garcia

Alan L. Cropsey

Jim Barcia

Conferees for the Senate

Richard LeBlanc

John Espinoza

Bob Genetski

Conferees for the House

Pending the order that, under joint rule 9, the conference report be laid over one day,

Senator Cropsey moved that the rule be suspended.

The motion prevailed, a majority of the members serving voting therefor.

The question being on the adoption of the conference report,

The first conference report was adopted, a majority of the members serving voting therefor, as follows:

Roll Call No. 471 Yeas—24

Allen Cherry Jansen Patterson

Barcia Cropsey Jelinek Richardville

Birkholz Garcia Kahn Sanborn

Bishop George Kuipers Stamas

Brown Gilbert McManus Switalski

Cassis Hardiman Pappageorge Van Woerkom

Nays—13

Anderson Clarke Jacobs Scott

Basham Gleason Olshove Thomas

Brater Hunter Prusi Whitmer

Clark-Coleman

Excused—0

Not Voting—0

In The Chair: Richardville

Senator Jansen submitted the following:

FIRST CONFERENCE REPORT

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

Senate Bill No. 243, entitled

A bill to make appropriations for the department of energy, labor, and economic growth and certain other state purposes for the fiscal year ending September 30, 2010; to provide for the expenditure of those appropriations; to provide for the imposition of certain fees; to provide for the disposition of fees and other income received by the state agencies; to provide for reports to certain persons; and to prescribe powers and duties of certain state departments and certain state and local agencies and officers.

Recommends:

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

A bill to make appropriations for the department of energy, labor, and economic growth and certain other state purposes for the fiscal year ending September 30, 2010; to provide for the expenditure of those appropriations; to provide for the imposition of certain fees; to provide for the disposition of fees and other income received by the state agencies; to provide for reports to certain persons; and to prescribe powers and duties of certain state departments and certain state and local agencies and officers.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. The amounts listed in this part are appropriated for the department of energy, labor, and economic growth, subject to the conditions set forth in this act, for the fiscal year ending September 30, 2010, from the funds identified in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF ENERGY, LABOR, AND ECONOMIC GROWTH

APPROPRIATION SUMMARY

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

Full-time equated classified positions..........................................................................4,680.5

GROSS APPROPRIATION.......................................................................................................... $ 1,424,391,200

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 29,465,100

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 1,394,926,100

Federal revenues:

Total federal revenues................................................................................................................... 918,286,200

Special revenue funds:

Total local revenues...................................................................................................................... $ 15,921,000

Total private revenues................................................................................................................... 5,314,300

Total other state restricted revenues............................................................................................. 400,261,500

State general fund/general purpose.............................................................................................. $ 55,143,100

Sec. 102. DEPARTMENTAL ADMINISTRATION

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

Full-time equated classified positions.............................................................................153.0

Unclassified salaries..................................................................................................................... $ 4,590,200

Executive director programs—49.0 FTE positions...................................................................... 5,852,700

Regulatory efficiency improvements/backlog reduction initiative............................................... 475,600

Property management................................................................................................................... 11,694,600

Rent.............................................................................................................................................. 15,199,300

Worker’s compensation................................................................................................................. 844,600

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

Administrative services—104.0 FTE positions............................................................................ 10,923,300

GROSS APPROPRIATION.......................................................................................................... $ 50,520,300

Appropriated from:

Interdepartmental grant revenues:

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

Federal revenues:

DED-OSERS, rehabilitation services, vocational rehabilitation of state grants........................... 4,688,900

DOL-ETA, unemployment insurance........................................................................................... 11,220,300

DOL-ETA, workforce investment act........................................................................................... 830,500

DOL, federal funds....................................................................................................................... 1,999,100

DOL, multiple grants for safety and health................................................................................. 753,900

Federal revenues........................................................................................................................... 511,600

HHS, temporary assistance for needy families............................................................................ 333,400

HHS, titles XVIII and XIX.......................................................................................................... 43,000

Special revenue funds:

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

Local revenues.............................................................................................................................. 131,300

Bank fees...................................................................................................................................... 387,200

Boiler fee revenue........................................................................................................................ 249,800

Construction code fund................................................................................................................ 1,088,100

Consumer finance fees................................................................................................................. 116,200

Contingent fund, penalty and interest account............................................................................. 842,500

Corporation fees........................................................................................................................... 4,499,800

Credit union fees.......................................................................................................................... 267,900

Deferred presentment service transaction fees............................................................................. 2,900

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

Fees and collections/asbestos....................................................................................................... 100,200

Fire service fees........................................................................................................................... 748,700

Insurance continuing education fees............................................................................................ 28,000

Insurance licensing and regulation fees....................................................................................... 1,521,700

Insurance bureau fund.................................................................................................................. 828,200

Licensing and regulation fees....................................................................................................... 794,200

Liquor license revenue................................................................................................................. 100,000

Liquor purchase revolving fund................................................................................................... 4,492,200

MBLSLA fund.............................................................................................................................. 116,400

Mobile home code fund............................................................................................................... 257,700

Michigan state housing development authority fees and charges................................................ 3,999,200

Motor carrier fees......................................................................................................................... 206,400

Public utility assessments............................................................................................................. 2,170,300

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

Retired engineers technical assistance program fund................................................................... 343,000

Safety education and training fund.............................................................................................. 601,100

Second injury fund....................................................................................................................... $ 261,800

Securities fees............................................................................................................................... 2,392,600

Self-insurers security fund............................................................................................................ 92,100

Silicosis and dust disease fund..................................................................................................... 114,800

Tax tribunal fund.......................................................................................................................... 177,600

State general fund/general purpose.............................................................................................. $ 1,689,700

Sec. 103. OFFICE OF FINANCIAL AND INSURANCE REGULATION

Full-time equated classified positions.............................................................................349.0

Administration—35.0 FTE positions............................................................................................ $ 7,007,800

Regulatory compliance and consumer assistance—99.0 FTE positions....................................... 15,743,400

Financial evaluation—215.0 FTE positions................................................................................. 30,952,200

GROSS APPROPRIATION.......................................................................................................... $ 53,703,400

Appropriated from:

Federal revenues:

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

Special revenue funds:

Bank fees...................................................................................................................................... 7,997,700

Captive insurance regulatory and supervision fund..................................................................... 236,900

Consumer finance fees................................................................................................................. 4,264,500

Credit union fees.......................................................................................................................... 5,886,000

Deferred presentment service transaction fees............................................................................. 2,161,700

Insurance bureau fund.................................................................................................................. 19,526,500

Insurance continuing education fees............................................................................................ 974,200

Insurance licensing and regulation fees....................................................................................... 4,519,200

MBLSLA fund.............................................................................................................................. 4,793,400

Multiple employer welfare arrangement...................................................................................... 73,700

Securities fees............................................................................................................................... 3,219,200

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

Sec. 104. PUBLIC SERVICE COMMISSION AND ENERGY SYSTEMS

Full-time equated classified positions.............................................................................209.0

Public service commission—186.0 FTE positions....................................................................... $ 25,291,900

Bureau of energy systems—18.0 FTE positions.......................................................................... 6,972,200

Metro authority—5.0 FTE positions............................................................................................ 325,000

GROSS APPROPRIATION.......................................................................................................... $ 32,589,100

Appropriated from:

Federal revenues:

DOE-OEERE, multiple grants...................................................................................................... 4,688,100

DOT-RSPA, gas pipeline safety.................................................................................................... 430,000

Special revenue funds:

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

Children’s protection registry fund............................................................................................... 272,600

Motor carrier fees......................................................................................................................... 1,689,100

Public utility assessments............................................................................................................. 23,474,300

Retired engineers technical assistance program fund................................................................... 1,605,000

Video franchise assessments......................................................................................................... 400,000

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

Sec. 105. LIQUOR CONTROL COMMISSION

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

Management support services—28.0 FTE positions.................................................................... $ 3,570,800

Liquor licensing and enforcement—124.0 FTE positions............................................................ 12,609,200

GROSS APPROPRIATION.......................................................................................................... $ 16,180,000

Appropriated from:

Special revenue funds:

Direct shipper enhancement revolving fund................................................................................. 120,000

Liquor license revenue................................................................................................................. 6,526,500

Liquor purchase revolving fund................................................................................................... 9,533,500

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

Sec. 106. MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY

Full-time equated classified positions.............................................................................289.0

Payments on behalf of tenants..................................................................................................... $ 156,000,000

Housing and rental assistance program—266.0 FTE positions.................................................... 37,997,700

Michigan housing and community development fund................................................................. 59,000

State historic preservation programs—22.0 FTE positions.......................................................... 2,079,000

Lighthouse preservation program—1.0 FTE position.................................................................. 251,000

GROSS APPROPRIATION.......................................................................................................... $ 196,386,700

Appropriated from:

Federal revenues:

DOI-NPS, historic preservation grants-in-aid.............................................................................. 950,000

HUD, lower income housing assistance program........................................................................ 156,000,000

Special revenue funds:

Michigan lighthouse preservation fund........................................................................................ 251,000

Michigan state housing development authority fees and charges................................................ 39,126,700

State general fund/general purpose.............................................................................................. $ 59,000

Sec. 107. OCCUPATIONAL REGULATION

Full-time equated classified positions.............................................................................435.0

Boiler inspection program—25.0 FTE positions.......................................................................... $ 2,803,800

Bureau of fire services—57.0 FTE positions............................................................................... 6,052,700

Code enforcement—120.0 FTE positions.................................................................................... 13,373,900

Commercial services—170.0 FTE positions................................................................................ 19,662,600

Elevator inspection program—30.0 FTE positions...................................................................... 2,984,500

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

Manufactured housing and land resources program—22.0 FTE positions.................................. 3,248,900

Property development group—11.0 FTE positions...................................................................... 1,599,500

GROSS APPROPRIATION.......................................................................................................... $ 49,975,900

Appropriated from:

Interdepartmental grant revenues:

IDG from department of community health, inspection contract................................................ 100,000

IDG from department of state police, homeland security............................................................ 709,800

Federal revenues:

DOT.............................................................................................................................................. 60,000

FEMA........................................................................................................................................... 28,000

HHS, titles XVIII and XIX.......................................................................................................... 700,000

Special revenue funds:

Accountancy enforcement fund.................................................................................................... 403,600

Boiler fee revenue........................................................................................................................ 3,216,100

Builder enforcement fund............................................................................................................. 400,000

Construction code fund................................................................................................................ 13,247,600

Corporation fees........................................................................................................................... 5,957,700

Elevator fees................................................................................................................................. 3,368,500

Fire alarm fees.............................................................................................................................. 101,700

Fire service fees........................................................................................................................... 1,753,200

Homeowner construction lien recovery fund............................................................................... 1,846,500

Land sales fees............................................................................................................................. 40,000

Licensing and regulation fees....................................................................................................... 10,569,500

Mobile home code fund............................................................................................................... 2,828,900

Property development fees........................................................................................................... 288,300

Real estate appraiser continuing education fund.......................................................................... 47,000