FY 2019-20 LICENSING AND REGULATORY AFFAIRS BUDGET H.B. 4239 (CR-1): CONFERENCE REPORT
*As of July 1, 2019
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|
Gross |
GF/GP |
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FY 2018-19 Year-to-Date Appropriation...................................................... |
$557,996,800 |
$140,845,300 |
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Items Included by the Senate and House |
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1. Marihuana Research. Governor included $20.0 million in funding to support research on the use of marihuana to treat veterans' health conditions, as required by Initiated Law (IL) 1 of 2018, the Michigan Regulation and Taxation of Marijuana Act. Senate and House concurred. |
20,000,000 |
0 |
|
2. Recreational Marihuana Regulation. Governor included an additional $1.0 million and 30.0 FTEs to support the implementation and administration of IL 1 of 2018 and shifted $5.0 million in funding from GF/GP to Restricted. Senate and House concurred. |
1,000,000 |
(5,000,000) |
|
3. Unaccompanied Refugee Minors. Governor included $3.8 million in Federal funds to enable MONA's support of service providers who assist unaccompanied refugee minors. Senate and House concurred. |
3,790,900 |
0 |
|
4. Child Care and Adult Foster Care Revenue. Governor included $500,000 in restricted funds to reflect the availability of revenues to be collected from Child Day Care Centers and Homes, and $410,000 in restricted funds to reflect the availability of revenues to be collected from Adult Foster Care facilities. Senate and House concurred. |
910,000 |
0 |
|
5. Medical Marihuana Regulation. Governor included $900,000 and eliminated 13.0 FTEs to reflect anticipated costs associated with the Medical Marihuana Facilities Licensing Act (Public Act 281 of 2016). Senate and House concurred. |
900,000 |
0 |
|
6. Bureau of Fire Services. Governor included $500,000 to allow for the receipt of Federal funds for firefighter training and fire prevention as well as $289,900 in State Restricted funds to support new testing requirements for fire services members. Senate and House concurred. |
789,900 |
0 |
|
7. One-Time Refugee Services Database Funding. Governor included $520,000 in Federal funds for the development of a database for the Refugee Services Program within the Michigan Office for New Americans. Senate and House concurred. |
520,000 |
0 |
|
8. Firefighter Training Grants. Governor included an additional $300,000 in restricted funds for Firefighter Training Grants. Senate and House concurred. |
300,000 |
0 |
|
9. Vehicle Supply Equipment Program. Governor included private funds to support the Light-Duty Zero Emission Vehicle Supply Equipment Program. This program is pursuant to the Volkswagen Settlement Beneficiary Mitigation Plan agreement. Senate and House concurred. |
140,000 |
0 |
|
10. MIDC Grants. Governor removed $5.9 million in one-time GF/GP costs for Fiscal Year 2019 indigent defense compliance plans but retained $2.8 million as ongoing funding. This included $200,000 in local indigent defense reimbursements. Senate and House concurred. |
(5,850,400) |
(5,850,400) |
|
11. Economic Adjustments. Includes $5,083,400 Gross and $443,000 GF/GP for total economic adjustments, of which an estimated negative $3,443,100 Gross and $375,600 GF/GP is for legacy retirement costs (pension and retiree health). |
5,083,400 |
443,000 |
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Conference Agreement on Items of Difference |
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|
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12. Indigent Defense Training Evaluation. Governor included funding for the Michigan Indigent Defense Commission (MIDC) for the implementation of a system to evaluate indigent defense training. Senate concurred. House did not include funding. Conference did not include funding. |
0 |
0 |
|
13. First Responder Presumed Coverage Fund Revenue. Governor removed $5.4 million in restricted funds for the First Responder Presumed Coverage Fund. The enactment of IL 1 of 2018 resulted in the elimination of the Medical Marihuana Excise Tax, the Fund's only ongoing, dedicated revenue stream. Senate concurred. House removed funding but included a $100 placeholder. Conference included $250,000 in GF/GP funding. |
(5,195,000) |
250,000 |
|
14. Reductions to Various Line Items. Senate reduced GF/GP funding for a number of line items by approximately 1.9%. Items affected included the Bureau of Community and Health Systems, the Bureau of Professional Licensing, and the Workers' Compensation Agency. These reductions totaled $747,660 GF/GP. House Made administrative reductions totaling $4.4 million. This 3% reduction affected GF/GP, restricted, Federal, and IDG funding. Conference made GF/GP reductions totaling $293,100 GF/GP. |
(293,100) |
(293,100) |
|
15. Marihuana Educational Materials. House included $10,000 in restricted funds from the Marihuana Regulation Fund for the creation and dissemination of youth-targeted educational materials regarding the health risks associated with marihuana use. Conference included. |
10,000 |
0 |
|
16. House IT Reduction. House reduced funding for information technology services and projects by $5.6 million. Conference reduced funding $96,700 GF/GP. |
(96,700) |
(96,700) |
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17. Urban Search and Rescue. Conference included $600,000 in restricted funds for Urban Search and Rescue. |
600,000 |
0 |
|
18. Fire Services Increase. Conference included an additional $20,000 GF/GP for the Bureau of Fire Services. |
20,000 |
20,000 |
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19. Executive Revision 2020-1. Governor issued Executive Revision 2020-1, which resulted in an overall funding decrease of $8.0 million from Year-to-Date, and increased GF/GP funding by $87,600. Conference incorporated this revision. |
(6,603,500) |
87,600 |
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20. Funding Adjustments. Governor reduced funding by $7.1 million Gross due to removal of FY 2018-19 supplemental appropriations and to reflect legislative transfers and fund shifts. Senate and Conference concurred, but Conference included separation of the Bureau of Community and Health Systems into five new lines. |
(7,728,300) |
(6,375,000) |
|
$8,297,200 |
($16,814,600) |
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FY 2019-20 Conference Report Appropriation.............................................. |
$566,294,000 |
$124,030,700 |
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Amount Over/(Under) GF/GP Target: |
$0 |
$0 |
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Boilerplate Changes from FY 2018-19 Year-to-Date: |
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Items Included by the Senate and House |
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1. Out-of-State Travel Report. Governor replaced this report with a less detailed version that is consistent with the report found in most other budget bills. The replacement section also removed restrictions on the circumstances for such travel. Senate and House retained. (Sec. 207) |
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2. Communication with the Legislature. Governor removed a prohibition against taking disciplinary action against Department employees who communicate with the Legislature. Senate and House retained. (Sec. 218) |
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3. Healthy Michigan Plan Accounting Structure. Governor removed a section requiring LARA and DHHS to maintain an accounting structure allowing for identification of expenditures related with the administration of the Health Michigan Plan. Senate and House retained. (Sec. 220) |
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4. Employee Performance Monitoring. Governor removed a section stating the intent of the Legislature that the Department establish an employee performance monitoring process in addition to what is required by the Civil Service Commission. Senate and House retained. (Sec. 227) |
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5. Fast Charging Stations Study. Governor removed a section requiring the Michigan Agency for Energy to complete a study assessing optimal siting locations for direct current fast charging stations. The study is expected to be complete by September 30, 2019. Senate and House concurred. (Sec. 302) |
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6. Medical Marihuana Registry Program Report. Governor deleted language specifying information to be included in the Department's annual report to the Legislature regarding the State's medical marihuana program. Senate and House retained. (Sec. 505) |
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7. Department Reporting for Suspended Facilities. Governor deleted a section requiring the Department to serve an order of suspension to a licensed adult foster care home, home for the aged, or nursing home and notify legislators representing the district where the facility is located. Senate and House retained. (Sec. 511) |
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8. Bureau of Services for Blind Persons (BSBP). Governor removed a requirement that BSBP work with service organizations to identify qualified Federal match dollars. Senate and House retained. (Sec. 702) |
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9. MIDC Performance Metrics. Governor deleted a section requiring the MIDC to develop and implement performance metrics. This language is included in Public Act 214 of 2018. Senate and House concurred. (Sec. 803) |
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Conference Agreement on Items of Difference |
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10. Contingency Funds. Senate removed language appropriating contingency funds. House retained. Conference retained but with reduced amounts of available contingency funds. (Sec. 210) |
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11. TV or Radio Productions. Governor and House removed a prohibition against the Department producing radio or TV productions. Senate retained. Conference included modified language prohibiting third-party vendors for these contracts. (Sec. 217)
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12. Regulatory Activities Report. Governor removed a report providing details on licensing/regulatory activities undertaken by each agency or bureau in the Department. The Senate retained. House added the Bureau of Marijuana Regulation reporting entity and revised reporting requirement from one to three previous fiscal years. Conference concurred with House. (Sec. 226) |
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13. Child Care and Adult Foster Care Fee Revenue. Governor deleted a section requiring the Department to assess, collect, and report fees for the licensing and regulation of certain child care organizations and adult foster care facilities. Senate retained. House deleted. Conference deleted. (Sec. 509) |
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14. Medical Marijuana Community Impact Statements. House included new language requiring the Department to assist local government units with three or more facilities licensed under the Medical Marihuana Facilities Licensing Act with preparing community impact statements. The Department also submit a report listing the addresses of facilities licensed under the Medical Marihuana Facilities Licensing Act. Conference included modified House language to specify that the Department could assist only upon request of the governing body of the local unit; and to require the Department to submit impact statements and responsibility plans to the relevant subcommittees and the fiscal agencies. (Sec. 513) |
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15. Medical Marijuana Facilities Construction: Local Labor Requirement. House included new language noting that it is the intent of the Legislature that the Department encourage the use of local construction workers in any construction or renovation projects for medical marihuana facilities. Conference did not include. (Sec. 514) |
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16. Occupational Regulation Complaint Reports. House included new language requiring several bureaus contained within the Occupational Regulation appropriation unit to submit reports containing specific information regarding complains received by that bureau. Conference included. (Sec. 514) |
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17. Substance Use Disorder Program Requirements. Conference included language requiring substance use disorder programs under state licensure must meet certain national standards. (Sec. 515) |
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18. First Responder Presumed Coverage Fund. Governor deleted a section appropriating excess funds for first responder presumed coverage claims. The ongoing dedicated revenue source for this Fund was eliminated by the passage of Initiated Law 1 of 2018. Senate concurred. House retained. Conference retained. (Sec. 704) |
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19. First Responder Presumed Coverage Fund: Work Project Funds Usage. House included new language stating that it is the intent of the Legislature that funds that have received work project status for First Responder Presumed Coverage Claims must be used to pay approved claims until additional funding is available. Conference did not include. (Sec. 705) |
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20. MONA Reports. House included new language requiring the Office for New Americans to report on its education and workforce training programs, talent attraction and retention activities, and the number of persons the Office has helped to navigate the immigration system. Conference included. (Sec. 803) |
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21. MIDC Grant Compliance. Governor deleted a section stating that an indigent criminal defense system's obligation to comply with MIDC standards is contingent on sufficient state grant funding, as appropriations for funds were addressed by Public Act 214 of 2018. Senate concurred. House retained. Conference retained. (Sec. 904) |
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22. Marijuana Education. House included new language requiring the Bureau of Marihuana Regulation to use funds appropriated in part 1 for marihuana education to produce and disseminate educational videos and pamphlets to inform children and young adults about risks associated with marihuana use. Conference included. (Sec. 1001) |
Date Completed: 9-23-19 Fiscal Analyst: Elizabeth Raczkowski
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.