Act No. 104

Public Acts of 1997

Approved by the Governor*

August 13, 1997

Filed with the Secretary of State

August 18, 1997

EFFECTIVE DATE: August 18, 1997

*Item Vetoes

Sec. 101.

DEPARTMENT OF MICHIGAN JOBS COMMISSION

DEPARTMENT GRANTS

State research fund $300,000 (Page 10)

Sec. 423.

Entire Section. (Page 24)

STATE OF MICHIGAN

89TH LEGISLATURE

REGULAR SESSION OF 1997

Introduced by Senators Steil, Geake, Conroy and McManus

ENROLLED SENATE BILL No. 166

AN ACT to make appropriations for the departments of consumer and industry services and Michigan jobs commission and certain other state purposes for the fiscal year ending September 30, 1998; 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:

Sec. 101. There is appropriated for the departments of consumer and industry services and Michigan jobs commission for the fiscal year ending September 30, 1998, from the following funds:

TOTAL REGULATORY

APPROPRIATION SUMMARY:

Full-time equated unclassified positions 73.5

Full-time equated classified positions 5,988.6

GROSS APPROPRIATION $ 976,657,800

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 3,467,900

ADJUSTED GROSS APPROPRIATION $ 973,189,900

Federal revenues:

Total federal revenues 570,650,200

Special revenue funds:

Total local revenues 12,561,400

Total private revenues 4,881,300

Total other state restricted revenues 197,310,400

State general fund/general purpose $ 187,786,600

DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

APPROPRIATION SUMMARY:

Full-time equated unclassified positions 64.5

Full-time equated classified positions 2,771.4

GROSS APPROPRIATION $ 374,401,800

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 893,200

ADJUSTED GROSS APPROPRIATION $ 373,508,600

Federal revenues:

Total federal revenues 112,620,400

Special revenue funds:

Total local revenues 0

Total private revenues 920,700

Total other state restricted revenues 184,113,600

State general fund/general purpose $ 75,853,900

EXECUTIVE DIRECTION

Full-time equated unclassified positions 64.5

Full-time equated classified positions 75.0

Unclassified salaries $ 4,720,800

Executive director programs--45.0 FTE positions 4,615,700

Policy development--9.0 FTE positions 1,308,500

Utility consumer representation 800,000

Regulatory efficiency improvements/backlog reduction initiative 750,000

MES board of review program--21.0 FTE positions 1,478,900


GROSS APPROPRIATION $ 13,673,900

Appropriated from:

Federal revenues:

DOL-ETA, unemployment insurance 1,865,500

DOL, multiple grants for safety and health 158,000

Special revenue funds:

Private - college work-study 25,000

Motor carrier fees 22,100

Public utility assessments 339,000

Corporation fees 107,900

Bank fees 204,900

Consumer finance fees 45,800

Health professions regulatory fund 2,099,900

Credit union fees 86,100

Insurance regulatory fees 303,900

Liquor purchase revolving fund 1,148,400

Michigan state housing development authority fees and charges 308,000

Mobile home commission fees 39,800

State fair revenue 65,600

Utility consumer representation fund 800,000

Licensing and regulation fees 971,100

Construction code fund 207,400

Elevator fees 1,400

Safety education and training fund 156,600

Workers' compensation administrative revolving fund 19,600

State general fund/general purpose $ 4,697,900

COUNCIL FOR ARTS AND CULTURAL AFFAIRS

Full-time equated classified positions 9.0

Administration--9.0 FTE positions $ 827,800

Arts and cultural grants 21,548,700


GROSS APPROPRIATION $ 22,376,500

Appropriated from:

Federal revenues:

NFAH-NEA, promotion of the arts, state and regional programs $ 700,000

State general fund/general purpose $ 21,676,500

MICHIGAN STATE FAIR

Full-time equated classified positions 22.0

State fair operations--22.0 FTE positions $ 6,340,000


GROSS APPROPRIATION $ 6,340,000

Appropriated from:

Interdepartmental grant revenues:

IDG, department of agriculture 78,800

Special revenue funds:

State fair revenue 6,261,200

State general fund/general purpose $ 0

FIRE SAFETY

Full-time equated classified positions 50.0

Office of fire safety--50.0 FTE positions $ 3,824,800


GROSS APPROPRIATION $ 3,824,800

Appropriated from:

Interdepartmental grant revenues:

IDG from department of community health, inspection contract 105,600

Federal revenues:

HHS-HCFA, medicare supplementary medical insurance 370,400

HHS-HCFA, state survey and certification of health care providers and suppliers, medicaid 924,900

Special revenue funds:

Fire alarm regulation fees 158,900

Fire services fees 1,126,200

State general fund/general purpose $ 1,138,800

MANAGEMENT SERVICES

Full-time equated classified positions 176.0

Administrative services--73.0 FTE positions $ 4,759,500

Technology support--103.0 FTE positions 12,194,100

Insurance automation 750,000

Health services information systems 750,000

Rent 4,932,400

Building occupancy charges - property development services 4,666,200

Worker's compensation 1,010,400

Special project advances 740,000


GROSS APPROPRIATION $ 29,802,600

Appropriated from:

Interdepartmental grant revenues:

IDT from insurance bureau 508,800

Federal revenues:

Federal funds 738,400

HHS, federal funds 707,100

DOL, multiple grants for safety and health 113,500

DOL-ETA, unemployment insurance 220,500

Special revenue funds:

Private - college work-study 25,100

Private - special project advances 740,000

Motor carrier fees 187,700

Public utility assessments 2,548,300

Corporation fees 1,977,000

Mobile home commission fees 132,400

Liquor purchase revolving fund 6,364,500

Michigan state housing development authority fees and charges $ 1,009,900

Credit union fees 249,300

Bank fees 449,800

Securities fees 12,100

Consumer finance fees 129,700

Insurance regulatory fees 1,557,100

Health professions regulatory fund 3,401,300

Licensing and regulation fees 1,814,600

Fees and collections 93,700

Boiler fee revenue 35,400

Construction code fund 834,400

Elevator fees 107,200

Safety education and training fund 160,400

Second injury fund 12,100

Self insurers' security fund 2,100

Silicosis and dust disease fund 4,900

Workers' compensation administrative revolving fund 963,000

State general fund/general purpose $ 4,702,300

FINANCIAL SERVICES AND CORPORATIONS

Full-time equated classified positions 416.0

Mobile home commission, per diem $50.00 $ 7,800

Mobile home and land resources program--17.0 FTE positions 1,551,000

Corporate services--46.0 FTE positions 2,721,900

Corporate certification and copying--28.0 FTE positions 2,120,400

Investment oversight--31.0 FTE positions 2,519,400

Local mobile home park inspections 250,000

Property development group--13.0 FTE positions 1,345,000

Remonumentation 4,500,000

Financial institutions administration--18.0 FTE positions 1,242,700

Bank regulation--54.0 FTE positions 5,001,200

Credit union regulation--37.0 FTE positions 2,808,100

Financial institutions consumer protection--21.0 FTE positions 1,449,500

Financial institutions research and consumer services--5.0 FTE positions 357,700

Federal regulatory projects 50,600

Financial institutions corporate regulatory services--9.0 FTE positions 710,500

Insurance bureau administration--23.0 FTE positions 2,105,200

Insurance financial standards--49.0 FTE positions 7,565,100

Insurance licensing and enforcement--30.0 FTE positions 2,442,100

Market standards and consumer services--35.0 FTE positions 2,410,300


GROSS APPROPRIATION $ 41,158,500

Appropriated from:

Federal revenues:

Federal regulatory project revenues 50,600

Special revenue funds:

Corporation fees 3,761,100

Mobile home commission fees 1,909,000

Securities fees 1,319,400

Land sales fees 50,600

Limited liability partnership revenue 10,000

Certification and copying fees 2,120,400

Property development fees 224,800

Remonumentation fees 5,063,600

Bank fees 6,474,500

Consumer finance fees 1,557,700

Credit union fees 3,537,500

Insurance licensing and regulation fees 3,011,600

Insurance regulatory fees 10,830,800

Insurance continuing education fees $ 532,400

Multiple employer welfare arrangement 131,900

Private - college work-study 10,100

Private - travel funds 5,900

State general fund/general purpose $ 556,600

PUBLIC SERVICE COMMISSION

Full-time equated classified positions 170.0

Administration, planning and regulation--170.0 FTE positions $ 18,268,000


GROSS APPROPRIATION $ 18,268,000

Appropriated from:

Interdepartmental grant revenues:

IDG from MDEQ 200,000

Federal revenues:

DOE-OEERE, multiple grants 2,477,900

DOT-RSPA, gas pipeline safety 208,200

Special revenue funds:

Motor carrier fees 1,730,000

Public utility assessments 13,605,900

Private - Great Lakes governors council 46,000

State general fund/general purpose $ 0

LIQUOR CONTROL COMMISSION

Full-time equated classified positions 207.0

Management support services--48.0 FTE positions $ 2,846,500

Liquor licensing and enforcement--159.0 FTE positions 9,930,300

Liquor law enforcement grants 6,000,000

Grant to department of agriculture, wine industry council 424,100


GROSS APPROPRIATION $ 19,200,900

Appropriated from:

Special revenue funds:

Liquor license revenue 10,599,000

Nonretail liquor license revenue 424,100

Liquor purchase revolving fund 8,177,800

State general fund/general purpose $ 0

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY

Full-time equated classified positions 249.0

Payments on behalf of tenants $ 66,000,000

Housing and rental assistance program--244.0 FTE positions 20,403,500

Automatic data processing--5.0 FTE positions 1,373,800

Homeless program 5,290,800


GROSS APPROPRIATION $ 93,068,100

Appropriated from:

Federal revenues:

HUD, lower income housing assistance program 78,771,100

Special revenue funds:

Michigan state housing development authority fees and charges 14,297,000

State general fund/general purpose $ 0

TAX TRIBUNAL

Full-time equated classified positions 15.0

Operations--15.0 FTE positions $ 1,593,100


GROSS APPROPRIATION $ 1,593,100

Appropriated from:

Special revenue funds:

Tax tribunal fees 592,800

State general fund/general purpose $ 1,000,300

GRANTS

Fire protection grants $ 6,375,000


GROSS APPROPRIATION $ 6,375,000

Appropriated from:

Special revenue funds:

Liquor purchase revolving fund 6,375,000

State general fund/general purpose $ 0

HEALTH REGULATORY SYSTEMS

Full-time equated classified positions 354.0

Health systems administration--178.0 FTE positions $ 13,469,900

Clinical laboratory improvement--6.0 FTE positions 1,003,300

Emergency medical services program state staff--11.0 FTE positions 1,058,500

Health facilities management information system 568,400

Radiological health administration and projects--24.0 FTE positions 1,810,200

Substance abuse program administration--6.0 FTE positions 399,400

Emergency medical services grants and contracts 962,100

Licensing, monitoring, and accreditation--24.0 FTE positions 1,569,600

Health services--105.0 FTE positions 11,350,300


GROSS APPROPRIATION $ 32,191,700

Appropriated from:

Federal revenues:

Federal funds 11,790,300

Special revenue funds:

Private - local northeast regional dentistry board review 18,100

Private - college work-study 25,500

Controlled substance license fees 1,270,200

Health professions regulatory fund 9,586,500

Nurse professional fund 450,000

Fees and collections 1,812,000

Other state restricted revenue 1,237,000

State general fund/general purpose $ 6,002,100

REGULATORY SERVICES

Full-time equated classified positions 280.0

AFC, children's welfare and day care licensure--280.0 FTE positions $ 19,611,100


GROSS APPROPRIATION $ 19,611,100

Appropriated from:

Federal revenues:

HHS, federal funds 1,761,500

Special revenue funds:

Licensing fees 442,300

State general fund/general purpose $ 17,407,300

OCCUPATIONAL REGULATION

Full-time equated classified positions 243.0

Commissions and boards $ 41,900

Code enforcement--88.0 FTE positions 6,069,000

Code enforcement flexibility 608,200

Barrier free design program--6.0 FTE positions 371,000

Administration--7.0 FTE positions 658,200

Boiler inspection program--20.0 FTE positions 1,383,800

Elevator inspection program--25.0 FTE positions 1,667,800

Commercial services--97.0 FTE positions 7,708,700


GROSS APPROPRIATION $ 18,508,600

Appropriated from:

Special revenue funds:

Private - college work-study 25,000

Real estate education fund 351,800

Real estate appraiser continuing education fund $ 45,000

Licensing and regulation fees 5,546,700

Homeowner construction lien recovery fund 1,528,900

Health professions regulatory fund 211,300

Construction code fund 7,517,900

Boiler fee revenue 1,516,600

Elevator fees 1,765,400

State general fund/general purpose $ 0

EMPLOYMENT RELATIONS

Full-time equated classified positions 29.0

Fact finding and arbitration $ 169,300

Employment and labor relations--29.0 FTE positions 2,739,700


GROSS APPROPRIATION $ 2,909,000

Appropriated from:

Special revenue funds:

Publication revenue 25,000

State general fund/general purpose $ 2,884,000

SAFETY AND REGULATION

Full-time equated classified positions 284.0

Commissions and boards $ 27,700

Employment standards enforcement--38.0 FTE positions 2,276,700

Subgrantees 1,026,900

Occupational safety and health--246.0 FTE positions 20,328,500


GROSS APPROPRIATION $ 23,659,800

Appropriated from:

Federal revenues:

DOL, multiple grants for safety and health 11,762,500

Special revenue funds:

Safety education and training fund 4,741,700

Fees and collections 668,900

State general fund/general purpose $ 6,486,700

WORKER'S DISABILITY COMPENSATION

Full-time equated classified positions 192.4

Administration--134.0 FTE positions $ 7,891,100

Board of magistrates administration--8.0 FTE positions 1,737,900

Appellate commission administration--11.4 FTE positions 785,300

Supplemental benefit fund 1,700,000

Insurance funds administration--39.0 FTE positions 10,051,400

Automatic data processing 506,000

Grant to the Michigan jobs commission, hire the handicapped program 50,000


GROSS APPROPRIATION $ 22,721,700

Appropriated from:

Special revenue funds:

Worker's compensation administrative revolving fund 1,931,400

Second injury fund 6,398,200

Self insurers' security fund 1,705,200

Silicosis and dust disease fund 2,504,000

State general fund/general purpose $ 10,182,900

EARLY RETIREMENT SAVINGS

Early retirement savings $ (881,500)


GROSS APPROPRIATION $ (881,500)

Appropriated from:

State general fund/general purpose $ (881,500)

DEPARTMENT OF MICHIGAN JOBS COMMISSION

APPROPRIATION SUMMARY:

Full-time equated unclassified positions 9.0

Full-time equated classified positions 3,217.2

GROSS APPROPRIATION $ 602,256,000

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 2,574,700

ADJUSTED GROSS APPROPRIATION $ 599,681,300

Federal revenues:

Total federal revenues 458,029,800

Special revenue funds:

Total local revenues 12,561,400

Total private revenues 3,960,600

Total other state restricted revenues 13,196,800

State general fund/general purpose $ 111,932,700

DEPARTMENTAL ADMINISTRATION

Full-time equated unclassified positions 9.0

Full-time equated classified positions 16.0

Unclassified salaries $ 759,300

Executive direction--16.0 FTE positions 1,234,100

K.I. Sawyer base conversion authority 346,700


GROSS APPROPRIATION $ 2,340,100

Appropriated from:

Interdepartmental grant revenues:

IDG-MDEQ, air quality fees 58,000

Federal revenues:

DOL-ETA, unemployment insurance 63,400

DOL-ETA, employment service 44,000

DOL, bureau of labor statistics 900

DOL-ETA 800

DOL-OVET 2,000

Special revenue funds:

Contingent fund, penalty and interest account 700

State general fund/general purpose $ 2,170,300

DEPARTMENT OPERATIONS

Full-time equated classified positions 74.0

Administrative services--74.0 FTE positions $ 5,422,600

Rent 1,549,300

Building occupancy charges - property development services 620,500

Worker's compensation 152,300

Special project advances 700,000


GROSS APPROPRIATION $ 8,444,700

Appropriated from:

Federal revenues:

DOL-ETA, job training partnership grants 513,700

DED, cooperative demonstration, school-to-work 150,000

DED-OSERS, rehabilitation services, vocational rehabilitation of state grants 1,075,400

DED-OSERS, client assistance for individuals with disabilities 11,300

HHS-SSA, supplemental security income 2,900

HHS, temporary assistance for needy families 253,000

Special revenue funds:

Private special project advances 700,000

State general fund/general purpose $ 5,738,400

ECONOMIC RETENTION AND EXPANSION

Full-time equated classified positions 239.0

International and national business development--33.0 FTE positions $ 4,172,200

Travel administration/travel commission--29.0 FTE positions 3,812,400

Welcome centers--56.0 FTE positions $ 3,489,400

Michigan promotion program 7,492,500

Job creation services--121.0 FTE positions 13,909,500


GROSS APPROPRIATION $ 32,876,000

Appropriated from:

Interdepartmental grant revenues:

IDG-MDEQ, air quality fees 42,000

Federal revenues:

DOL-NOICC 166,400

HUD-CPD, community development block grant 1,664,900

Special revenue funds:

Private - Michigan certified development corporation fees 127,500

Industry support fees 50,000

State general fund/general purpose $ 30,825,200

WORKFORCE DEVELOPMENT

Full-time equated classified positions 757.0

Employment training services--664.0 FTE positions $ 59,269,800

Michigan career and technical institute--93.0 FTE positions 9,506,600


GROSS APPROPRIATION $ 68,776,400

Appropriated from:

Interdepartmental grant revenues:

IDG-MDOC 31,400

Federal revenues:

DED, cooperative demonstration, school-to-work 1,680,900

DED-OPSE, multiple grants 999,500

DED-OSERS, client assistance for individuals with disabilities 343,400

DED-OSERS, special education, state grants 39,500

DED-OSERS, centers for independent living 56,500

DED-OSERS, rehabilitation long-term training 227,400

DED-OSERS, rehabilitation services, vocational rehabilitation of state grants 37,508,200

DED-OSERS, state grants for technical-related assistance 749,800

DOL-ETA, job training partnership act 5,800,500

HHS-SSA, supplemental security income 3,382,300

CNS 503,400

HHS-ACF, temporary assistance for needy families 1,945,700

Special revenue funds:

Local vocational rehabilitation match 3,152,200

Private gifts, bequests, and donations 1,351,400

Rehabilitation services fees 1,880,000

Risk management internal service fund 99,700

Second injury fund 50,000

Student fees 44,700

Training material fees 249,600

State general fund/general purpose $ 8,680,300

DEPARTMENT GRANTS

Job training programs subgrantees $ 114,996,200

Michigan community service commission subgrantees 5,300,000

Displaced homemakers 450,000

Supported employment grants 1,308,600

Technology assistance grants 278,300

Vocational rehabilitation client services/facilities 47,234,400

Vocational rehabilitation independent living 1,077,700

Personal care attendants 300,000

School-to-work subgrantees 10,500,000

Trade academy grants 344,700

Economic development job training grants 31,007,300

Work first grants 94,079,000

CDBG pass-through $ 45,000,000

Michigan transition initiative grants 454,500

Precollege programs in engineering and the sciences 452,900

State research fund 300,000


GROSS APPROPRIATION $ 353,083,600

Appropriated from:

Interdepartmental grant revenues:

IDG-MDOC 1,015,600

Federal revenues:

DED, cooperative demonstration, school-to-work 10,200,000

DED-OSERS, centers for independent living 525,000

DED-OSERS, rehabilitation services, vocational rehabilitation of state grants 33,345,200

DED-OSERS, rehabilitation services facilities 2,272,500

DED-OSERS, special education, state grants 454,500

DED-OSERS, supported employment 1,308,600

DED-OSERS, state grants for technical-related assistance 278,300

DOL-ETA, job training partnership act 113,980,600

HHS, temporary assistance for needy families 65,533,700

HHS-SSA, supplemental security income 1,750,000

HUD-CPD, community development block grant 45,000,000

CNS 3,900,000

Special revenue funds:

Local vocational rehabilitation match 6,130,900

Local vocational rehabilitation facilities match 1,278,300

Private gifts, bequests, and donations 800,000

State general fund/general purpose $ 65,310,400

MICHIGAN EMPLOYMENT SECURITY AGENCY

Full-time equated classified positions 2,131.2

Worker's compensation $ 509,300

Rent 3,879,900

Building occupancy charges - property development service 3,104,000

Executive direction--26.3 FTE positions 1,740,000

Advocacy assistance program 1,500,000

Customer services--1,476.3 FTE positions 70,898,700

Financial and management services--168.8 FTE positions 13,947,800

Human resources--22.1 FTE positions 1,460,700

Communications and external affairs--48.5 FTE positions 3,143,300

Audits and investigations--48.8 FTE positions 3,253,300

Special audit and collections program--46.2 FTE positions 1,979,000

Special fraud control program--19.5 FTE positions 1,217,000

Information services--165.1 FTE positions 21,262,100

Training program for commission staff--2.1 FTE positions 1,035,600

Fraud control and investigations program--16.7 FTE positions 1,079,800

Referee appeals program--51.5 FTE positions 3,686,300

Reemployment services for claimants 1,000,000

Targeted employment services--39.3 FTE positions 2,830,300


GROSS APPROPRIATION $ 137,527,100

Appropriated from:

Interdepartmental grant revenues:

IDG from family independence agency 1,427,700

Federal revenues:

DED-OSERS, rehabilitation services, vocational rehabilitation of state grants 1,300,000

DOL, unemployment insurance 73,622,600

DOL, employment service 26,655,900

DOL, bureau of labor statistics 2,319,900

DOL, employment and training administration 3,219,400

DOL, veterans' employment and training administration 6,569,800

DOL, miscellaneous funds 8,608,000

Special revenue funds:

Local revenues $ 2,000,000

Private - MESA 981,700

MESA sales revenue 100,000

Contingent fund, penalty and interest account 10,722,100

State general fund/general purpose $ 0

EARLY RETIREMENT SAVINGS

Early retirement savings $ (791,900)


GROSS APPROPRIATION $ (791,900)

Appropriated from:

State general fund/general purpose $ (791,900)

GENERAL SECTIONS


Sec. 201. (1) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources for fiscal year 1997-98 is estimated at $385,097,000.00 in this act and state spending from state sources paid to local units of government for fiscal year 1997-98 is estimated at $93,246,400.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:

DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

Arts and cultural grants $ 20,848,700

Fire protection grants 6,375,000

Liquor law enforcement 6,000,000

Local mobile home inspections 250,000


Total consumer and industry services $ 33,473,700

DEPARTMENT OF MICHIGAN JOBS COMMISSION

School-to-work subgrantees $ 300,000

Economic development job training grants 31,007,300

Work first grants 28,465,400


Total Michigan jobs commission $ 59,772,700

(2) If it appears to the principal executive officer of a department or branch that state spending to local units of government will be less than the amount that was projected to be expended under subsection (1), the principal executive officer shall immediately give notice of the approximate shortfall to the department of management and budget.

Sec. 202. As used in this appropriation act:

(a) "AFC" means adult foster care.

(b) "CDBG" means community development block grant.

(c) "CNS" means the corporation for national services.

(d) "DED" means the United States department of education.

(e) "DED-OPSE" means the DED office of postsecondary education.

(f) "DED-OSERS" means the DED office of special education rehabilitation services.

(g) "DOE" means the United States department of energy.

(h) "DOE-OEERE" means the DOE office of energy efficiency and renewable energy.

(i) "DOL" means the United States department of labor.

(j) "DOL-BLS" means the DOL bureau of labor statistics.

(k) "DOL-ETA" means the DOL employment and training act.

(l) "DOL-NOICC" means the DOL national occupational information coordinating committee.

(m) "DOL-OSHA" means the DOL occupational safety and health administration.

(n) "DOL-OVET" means the DOL office of veterans employment and training.

(o) "DOT" means the United States department of transportation.

(p) "DOT-RSPA" means the DOT research and special programs administration.

(q) "FTE" means full-time equated position.

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

(s) "HHS-HCFA" means the HHS health care financing administration.

(t) "HHS-SSA" means HHS social security administration.

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

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

(w) "IDG" means interdepartmental grant.

(x) "IDT" means interdepartmental transfer.

(y) "JTPA" means job training partnership act, Public Law 97-300, 96 Stat. 1322.

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

(aa) "MDOC" means the Michigan department of corrections.

(bb) "MES" means Michigan employment security.

(cc) "MESA" means the Michigan employment security agency.

(dd) "NFAH" means the national foundation of the arts and the humanities.

(ee) "NFAH-NEA" means the NFAH national endowment for the arts.

(ff) "SSI" means supplemental security income.

Sec. 203. The expenditures and funding sources authorized under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 204. Funds appropriated in this act shall not be used for the purchase of foreign goods or services when competitively priced American goods and services of comparable quality are available. By May 1, 1998, each department shall submit a report to the department of management and budget, the speaker and minority leader of the house of representatives, the majority and minority leaders of the senate, and the chairpersons of the house and senate appropriations committees on efforts to comply with this section.

Sec. 205. The department of civil service shall bill departments or agencies, or both, at the end of the first fiscal quarter for the 1% charges 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. 206. Of the funds appropriated in section 101 that are in units other than the grants unit, a department shall not provide grants to local government agencies, institutions of higher education, or nonprofit organizations unless the department provides notice of the grant to the regulatory subcommittees of the house and senate appropriations committees at least 10 days before the grant is issued or at least 72 hours before any announcement to local governmental units or the public.

Sec. 207. The departments of consumer and industry services and Michigan jobs commission shall not permit any other department, agency, or office of this state to use funds or FTE positions authorized for those departments or allow any funds or FTE positions from any other department, agency, or office to be used within those departments without a 30-day notice given to the regulatory subcommittees of the house and senate appropriations committees.

Sec. 208. (1) Beginning October 1, 1997, 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 or filling any vacant state classified civil service position. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department or to positions that are funded with 80% or more federal or restricted funds.

(2) The director of the department of management and budget shall grant exceptions to this hiring freeze when the director believes that the hiring freeze will result in the state department or agency being unable to deliver basic services. The director of the department of management and budget shall report by the fifteenth of each month to the chairpersons of the senate and house appropriations committees the number of exclusions to the hiring freeze approved during the previous month and the justification for the exclusion.

Sec. 209. The department shall receive and retain copies of all reports funded from section 101 appropriations.

Sec. 210. (1) The directors of the departments of consumer and industry services and Michigan jobs commission 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, for the departments.

(2) The directors shall strongly encourage firms with which the departments contract to subcontract with certified businesses in depressed and deprived communities for services or supplies, or both.

Sec. 211. (1) Departments and state agencies that receive funds under this act may receive and expend federal funds for purposes allowed by the federal government and these funds are appropriated if the funds are provided as block grants or other similar replacements for, or consolidations of, prior federal funding sources.

(2) The departments and state agencies described in subsection (1) may use the funds described in that subsection to continue existing programs and shall not establish new programs utilizing these funds unless the legislature has enacted modifications to the existing program or has enacted a new program.

Sec. 212. The departments of consumer and industry services and Michigan jobs commission shall establish and maintain affirmative action programs based on guidelines developed by the state equal opportunity workforce planning council which was created by Executive Order 1996-13 in order to receive general fund/general purpose dollars.

Sec. 213. The departments of consumer and industry services and Michigan jobs commission shall not implement an affirmative action plan unless it has been submitted to the Michigan civil rights commission for approval in accordance with section 210 of the Elliott-Larsen civil rights act, 1976 PA 453, MCL 37.2210, and the Michigan civil rights commission has approved the plan.

DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES


Sec. 301. The funds collected by the department of consumer and industry services, corporation and securities division, for furnishing copies of documents, reports, and papers required or permitted by law pursuant to section 1060(5) of the business corporation act, 1972 PA 284, MCL 450.2060, shall revert to the corporation and securities division. Collected funds shall be submitted to the department of treasury and shall be used only for operation and other costs relating to providing information, including copies of documents, pertaining to corporations and trademarks.

Sec. 302. (1) The department shall sell copies of the subdivision control manual, the state boundary commission operations manual, and other local government assistance manuals at a price not to exceed the cost of printing. The money received from the sale of these manuals shall revert to the department. The funds are available for expenditure when they are credited and may be used only for costs directly related to the continued updating and distribution of the manuals.

(2) The liquor control commission shall sell copies of the Michigan liquor control act, 1933 (Ex Sess) PA 8, MCL 436.1 to 436.58, with amendments at a price not to exceed the cost of distribution. The money received from the sale of the Michigan liquor control act with amendments shall revert to the liquor control commission. The funds are available for expenditure when they are credited and may be used only for costs directly related to the continued updating and distribution of the Michigan liquor control act.

Sec. 303. The appropriation in section 101 for grants to cities includes $6,375,000.00 from the liquor purchase revolving fund which shall be appropriated to cities, villages, and townships with state-owned facilities for fire services, instead of taxes, in accordance with 1977 PA 289, MCL 141.951 to 141.956.

Sec. 304. Funds received from federal agencies for reimbursement of examination and supervision services provided by the financial institutions bureau for banks, credit unions, and savings and loan associations shall revert to the financial institutions bureau. Reimbursed funds shall be submitted to the department of treasury and shall be used only for costs relating to examination and supervision of state chartered financial institutions.

Sec. 305. The corporation and securities bureau shall sell copies of the mobile home commission act, 1987 PA 96, MCL 125.2301 to 125.2349; the business corporation act, 1972 PA 284, MCL 450.1101 to 450.2098; the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192; and the uniform securities act, 1964 PA 265, MCL 451.501 to 451.818, at a price not to exceed the cost of printing. Money received from the sale of these manuals shall revert to the department of consumer and industry services. The funds are available for expenditure when they are received by the department of treasury and may only be used for costs directly related to the continued updating and distribution of the acts pursuant to this section.

Sec. 306. Revenue from corporate fees and securities fees as provided in section 101 for the department of consumer and industry services shall be considered as a single combined revenue source and may be used to satisfy deductions for both corporate fees and securities fees.

Sec. 307. The funds collected by the financial institutions bureau in connection with a conservatorship pursuant to section 32 of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1682, shall be appropriated for all expenses necessary to provide for the required services. Funds are available for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 308. The department of consumer and industry services shall accept revenue from the northeast regional board of dental examiners to pay per diem and travel expenses for individuals engaged in national dental board examinations.

Sec. 309. The funds collected by the department of consumer and industry services from corporations being liquidated pursuant to the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302, shall be appropriated for all expenses necessary to provide for the required services. Funds are available for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 310. The department of consumer and industry services may make available to interested entities otherwise unavailable customized listings of nonconfidential information in its possession, such as names and addresses of licensees, and charge for this information as follows: base fee for 1 to 1,000 records at the cost to the department; 1,001to 10,000 records at 2.5 cents per record; and 10,001 or more records at .5 cents per record. The revenue received from this service may be used to offset expenses of licensure and professional regulation and insurance bureau programs as appropriated in section 101. The balance of this revenue collected and unexpended at the end of the fiscal year shall revert to the general fund. The department shall submit a biannual report on or before December 1, 1997 and June 1, 1998 to the regulatory subcommittees of the house and senate appropriations committees that states the amount of revenue received from the sale of information.

Sec. 311. The appropriation in section 101 may be used for per diem payments to the members of commissions or boards for a full day of committee work at which a quorum is present or for performing official business as authorized by each respective commission or board. The per diem payments shall be at a rate as follows:

(a) Michigan board of chiropractic medicine $50.00 per day

(b) Michigan board of dentistry $50.00 per day

(c) Michigan board of medicine $50.00 per day

(d) Board of nursing $50.00 per day

(e) Michigan board of optometry $50.00 per day

(f) Michigan board of osteopathic medicine & surgery $50.00 per day

(g) Michigan board of pharmacy $50.00 per day

(h) Michigan board of podiatric medicine & surgery $50.00 per day

(i) Michigan board of psychology $50.00 per day

(j) Michigan board of physical therapy $50.00 per day

(k) Physicians' assistants task force $50.00 per day

(l) Michigan board of veterinary medicine $50.00 per day

(m) Michigan board of occupational therapists $50.00 per day

(n) Michigan board of professional counselors $50.00 per day

(o) Health occupations council $50.00 per day

(p) Board of accountancy $50.00 per day

(q) Board of architects $50.00 per day

(r) Athletic board of control $50.00 per day

(s) Board of barber examiners $50.00 per day

(t) Residential builders' and maintenance and alteration contractor's board $50.00 per day

(u) Carnival-amusement safety board $50.00 per day

(v) Collection practices board $50.00 per day

(w) Board of cosmetology $50.00 per day

(x) Employment agency board $50.00 per day

(y) Board of professional engineers $50.00 per day

(z) Board of land surveyors $50.00 per day

(aa) Board of landscape architects $50.00 per day

(bb) Board of marriage counselors $50.00 per day

(cc) Board of examiners in mortuary science $50.00 per day

(dd) Nursing home administrators' board $50.00 per day

(ee) Board of real estate brokers and salespersons $50.00 per day

(ff) Ski area safety board $50.00 per day

(gg) Board of examiners of social workers $50.00 per day

(hh) Commission on professional and occupational licensure $50.00 per day

(ii) Board of real estate appraisers $50.00 per day

(jj) Utility consumer participation board $100.00 per day

(kk) Construction code commission $50.00 per day

(ll) Plumbing board $50.00 per day

(mm) Electrical board $50.00 per day

(nn) Barrier free design board $50.00 per day

(oo) Mechanical board $50.00 per day

(pp) Boiler board $50.00 per day

(qq) Elevator board $50.00 per day

(rr) General industry safety standards commission $50.00 per day

(ss) General industry safety standards advisory committees $50.00 per day

(tt) Construction safety standards commission $50.00 per day

(uu) Construction safety standards advisory committees $50.00 per day

(vv) Board of health and safety compliance appeals $50.00 per day

(ww) Occupation health standards commission $50.00 per day

(xx) Fire safety board $50.00 per day

Sec. 312. Any funds appropriated to the department of consumer and industry services for fiscal year 1997-98 that are committed or encumbered in a contractual agreement may be available in the subsequent fiscal year until the project specified in the contractual agreement is completed. A listing of these contractual agreements shall be forwarded to the regulatory subcommittees of the house and senate appropriations committees not later than November 30, 1997.

Sec. 313. (1) The Michigan council for arts and cultural affairs in the department of consumer and industry services shall administer the arts and cultural grants appropriated in section 101. The council shall provide for fair and independent decisions on arts and cultural grant requests based upon published criteria to evaluate program quality. This criteria shall include a prohibition of art projects that include displays of human wastes on religious symbols, displays of sex acts, and depictions of flag desecration. The council shall seek to award grants on an equitable geographic basis to the extent possible given the quality of grant applications received. Priority shall be given to projects that serve multiple counties and that leverage significant additional public and private investment. Counties, cities, villages, townships, community foundations, and organizations may apply for the following categories of grants:

(a) State arts anchor organizations that serve a statewide audience.

(b) Arts education programs, also known as the arts and learning programs.

(c) Local arts programs.

(d) Arts organization development programs. These programs are designed to encourage self-sufficiency in organizations. Grant awards under this program are limited to 4 grant periods.

(e) Historical organizations and projects.

(f) Zoos.

(g) Publicly owned facilities, excluding stadiums used primarily for professional sports events.

(h) Cultural and community organizations and projects.

(i) Art institutions.

(j) Symphony orchestras.

(k) Multicounty regional arts regranting and programming councils.

(l) Music education camps.

(m) Capital outlay projects.

(2) Applications for arts and cultural grants shall be received by the department of consumer and industry services, Michigan council for arts and cultural affairs, not later than June 1, 1998.

(3) The appropriation for arts and cultural grants in section 101 and disbursed under this section shall, at a minimum, be matched on an equal dollar-for-dollar basis from local and private contributions paid and received by each awardee receiving grants under this section. The dollar-for-dollar match may include the reasonable value of services, materials, and equipment as allowed under the federal internal revenue code for charitable contributions subject also to the preapproval of such a match by the Michigan council for arts and cultural affairs. The Michigan council for arts and cultural affairs shall receive proof of the entire amount of the matching funds, services, materials, or equipment by the end of the award period. The Michigan council for arts and cultural affairs shall submit a report to the regulatory subcommittees of the senate and house appropriations committees regarding those counties, cities, villages, townships, community foundations, and organizations failing to meet their matching requirements by the end of the award period.

(4) Before any amount appropriated for arts and cultural grants in section 101 may be expended for a grant to eligible applicants for the purposes in this section, the department of consumer and industry services shall execute a grant agreement with each grantee. The grant agreement shall specify the criteria included in this section with which the application complies. The grant agreement shall include a list of the projects funded and the amount of funds each subgrantee, if applicable, will receive for those projects. A contract shall not be executed and dollars shall not be disbursed until 2 weeks after the regulatory subcommittees of the senate and house appropriations committees have received a copy of the proposed contract.

(5) By November 1, 1997, the department of consumer and industry services shall report to the regulatory subcommittees of the senate and house appropriations committees on how the council intends to implement the provisions of this section, including the process for evaluating organization quality and efforts to achieve an equitable geographic distribution of grants.

(6) By not later than 1 month after the grant application deadline, the department of consumer and industry services shall provide a list of all grant applications, by county, to the regulatory subcommittees of the senate and house appropriations committees. The department shall, at least 30 days before the award of any grant, provide the regulatory subcommittees of the senate and house appropriations committees a list of all proposed grant awardees.

(7) Counties, cities, villages, townships, community foundations, and organizations receiving funds under this section shall provide the following reports to the Michigan council for arts and cultural affairs and to the regulatory subcommittees of the senate and house appropriations committees:

(a) A final report covering the grant period and due within 30 days after the end of the grant period indicating at least the following:

(i) Revenues and expenditures, indicating whether revenues are from private donations or fees.

(ii) Number of employees.

(iii) Number of new hires.

(b) For awardees receiving grants greater than $100,000.00, a copy of the awardee's annual report and audit report for the fiscal year in which the majority of the grant took place due within 90 days after the end of the awardee's fiscal year. The audit report shall include an audit of grant funds. A representative sampling of grant agreements shall be audited by the state auditor general. The audit report shall be submitted to the regulatory subcommittees of the senate and house appropriations committees for review. These awardees shall also submit the information in subdivision (a) on a quarterly basis for the immediately preceding quarter due on January 7, 1998, April 7, 1998, July 7, 1998, and October7, 1998.

(8) The recipients of grant funds under this section shall be announced by the department by September 15, 1998.

(9) A grant awarded under this section and the matching funds which conferred eligibility for the grant award shall be used by the recipient of the grant award and shall not be redistributed by that recipient to any other entity unless specifically provided for in the grant agreement between the funded grant awardee and the council.

(10) The applicants for arts and cultural grant funds shall be charged a nonrefundable application fee of $100.00 or 1% of the grant, whichever is less. The application fee may be used by the department of consumer and industry services to recover direct and indirect costs as appropriated in section 101.

Sec. 315. The department of consumer and industry services may receive and expend contributions from public, private, and federal sources, except state agencies, for the purpose of acquiring or constructing art objects or promoting or preserving the arts in or on state properties. Expenditures of any funds received shall be consistent with the purposes of the Faxon-McNamee art in public places act, 1980 PA 105, MCL 18.71 to 18.81. Any funds received under this section are considered a work project account and may be carried forward into the succeeding fiscal year.

Sec. 316. The Michigan state housing development authority shall annually present a report to the regulatory subcommittees of the house and senate appropriations committees on the status of the authority's housing production goals under all financing programs established or administered by the authority. The report shall give special attention to efforts to raise affordable multifamily housing production goals.

Sec. 317. The department of consumer and industry services shall assess and collect fees in the licensing and regulation of child care organizations as defined in 1973 PA 116, MCL 722.111 to 722.128, and adult foster care facilities as defined in the adult foster care facility licensing act, 1979 PA 218, MCL 400.701 to 400.737. Fees collected by the department shall not exceed the deducts in section 101 and shall be used exclusively for the purpose of licensing and regulating child care organizations and adult foster care facilities.

Sec. 318. The department of consumer and industry services may utilize revenue in excess of the amount expended in section 101 for the safety education and training grant program in the immediately succeeding fiscal year for the purpose of honoring contracts negotiated before September 15, 1998. The amount of revenue made available from revenue in excess of the amount expended in section 101 for an individual program shall not exceed 30% of the appropriated funds. The director of the department of consumer and industry services shall report the amount and purpose of any funds made available in the succeeding fiscal year under this section to the regulatory subcommittees of the house and senate appropriations committees, the house and senate fiscal agencies and the department of management and budget on or before November 15, 1998.

Sec. 319. The appropriation in section 101 for the department of consumer and industry services, bureau of safety and regulation, safety education and training division, includes funding for on-site consultation and education and training programs. The appropriation in section 101 anticipates that 90% of the on-site consultation program costs and 50% of the education and training program costs will be supported by federal OSHA funds and the remaining 10% and 50% respectively will be supported by safety education and training funds. If federal OSHA funding does not become available to cover up to 90% of the program costs for on-site consultation and 50% for education and training, up to 50% of the program costs for on-site consultation and 90% of the program costs for education and training may be paid from the safety education and training fund as a match for available federal funds.

Sec. 320. The department of consumer and industry services shall sell copies of labor law books at a price not to exceed the cost of printing and distribution. The money received from the sale of these books shall revert to the department. The funds are available for expenditure when they are received and may be used only for costs directly related to the continued updating and distribution of the Michigan labor law books.

Sec. 321. The department of consumer and industry services shall sell copies of the worker's compensation health care services rules at a price not to exceed the cost of printing and distribution. The money received from the sale of the rules shall be credited to the state general fund for use by the department. The funds are available for expenditure when they are received and may be used only for costs directly related to the printing and distribution of the worker's compensation health care services rules.

Sec. 322. The funds collected by the department of consumer and industry services for licenses, permits, and other elevator regulation fees set forth in R408.8151 of the Michigan administrative code and as determined under section 8 of 1976 PA 333, MCL 338.2158, and section 16 of 1967 PA 227, MCL 408.816, that are unexpended at the end of the fiscal year shall not lapse to the state general fund. The department of consumer and industry services shall submit a report on a quarterly basis to the regulatory subcommittees of the house and senate appropriations committees on the amount of funds available under this section.

Sec. 323. If the revenue collected by the department for occupational health, health systems administration, or radiological health administration and projects from fees and collections exceeds the amount appropriated in section 101, the revenue may be carried forward into the subsequent fiscal year. The revenue carried forward under this section shall be used as the first source of funds in the subsequent fiscal year.

Sec. 324. (1) In addition to the funds appropriated for the department of consumer and industry services in section101, there is appropriated an amount not to exceed $15,500,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $10,700,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $180,800.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 325. The negative appropriation in section 101 for early retirement compensation savings represents savings from the state's 1997 early retirement program. Not later than October 15, 1997, the department of consumer and industry services and the state budget director shall request legislative transfers under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393, to apply the retirement costs and salary and fringe benefits savings to the appropriated line items affected by the early retirement of state employees.

Sec. 326. (1) The department shall submit to the department of management and budget, senate and house appropriations committees, senate and house fiscal agencies, and senate and house standing committees having jurisdiction over technology issues periodic reports on the department's efforts to change the department's computer software and hardware as necessary to perform properly in the year 2000 and beyond. These reports shall identify actual progress in comparison to the department's approved work plan for these efforts.

(2) The department may present progress billings to the department of management and budget for the costs incurred in changing computer software and hardware as necessary to perform properly in the year 2000 and beyond. At the time progress billings are presented for reimbursement, the department shall identify and forward as appropriate the funding sources that should support the work performed.

Sec. 327. Money appropriated under this act for fire safety programs shall not be expended unless, in accordance with section 2c of the fire prevention code, 1941 PA 207, MCL 29.2c, inspection and plan review fees will be charged according to the following schedule:

Operation and maintenance inspection fee

Facility type Facility size Fee

Hospitals Any $10.00 per bed

Plan review and construction inspection fees for hospitals and schools

Project cost range Fee

$85,000.00 or less minimum fee of $100.00

$85,001.00 to $1,500,000.00 $1.18 per $1,000.00

$1,500,001.00 to $10,000,000.00 $0.80 per $1,000.00

$10,000,001.00 or more $0.50 per $1,000.00

or a maximum fee of $50,000.00.

Sec. 328. The department shall furnish the clerk of the house, the secretary of the senate, and the members of the house and senate appropriations committees any evaluation reports and subsequent approvals or disapprovals of juvenile residential facilities operated by the family independence agency, as required by 1973 PA 116, MCL 722.116.

Sec. 329. By October 1, 1997 the insurance commissioner shall file a written report with the regulatory subcommittees of the house and senate appropriations committees and the standing committees of the house and senate that deal with insurance issues outlining the steps taken to insure that consumer protection issues have been addressed, including, but not limited to, the following:

(a) Consumer complaints against insurance companies.

(b) Rates and form filings.

(c) Efforts by the commissioner to comply with regulatory and oversight requirements imposed by law.

Sec. 330. The department of consumer and industry services, public service commission, shall submit a status report on the energy program to the regulatory subcommittees of the house and senate appropriations committees with copies to the house and senate fiscal agencies on or before March 1, 1998 and September 1, 1998. The report shall include, but not be limited to, a list of grants projects, a brief description of each project, and the amount expended on each project. Upon enactment of House Bill No. 4820 and House Bill No. 4821 of the 89th Legislature, up to $200,000.00 in the form of an interdepartmental grant from the department of environmental quality shall be expended by the public service commission for the purpose of establishing a uniform system of reporting oil and gas volumes and values for the purposes of establishing revenues for the department of treasury, department of environmental quality, and department of natural resources.

Sec. 331. Of the funds appropriated in section 101 for the Michigan state fair, state fair operations, $78,800.00 is allocated for the payment of up to 75% of cash premiums offered at a draft horse show to be held at the Michigan state fairgrounds. The funds shall be provided through an interdepartmental grant from the department of agriculture, agriculture equine industry development fund.

DEPARTMENT OF MICHIGAN JOBS COMMISSION


Sec. 401. Funds returned from JTPA grant recipients to the department of Michigan jobs commission may be redirected for expenditure by other JTPA grant recipients.

Sec. 402. (1) The department of Michigan jobs commission shall develop performance measures and monitoring techniques for each program and office and all revolving loan funds operated by the department.

(2) The performance measures and monitoring techniques required by subsection (1) shall be defined according to program strategy and results and shall show the impact of each program or office on the entire economic and promotional effort carried out by the department of Michigan jobs commission. The performance measures shall evaluate the efficiency and effectiveness of each program's operations as well as the attainment of expected program results and shall include data regarding the number of jobs created and jobs retained in Michigan by each program.

(3) The department of Michigan jobs commission shall report the results of all market studies, research, and surveys of business, economic development, tourism, and promotion issues conducted by the department or for the department by other public or private agencies, organizations, or consulting firms.

(4) The department of Michigan jobs commission shall report on its proposed performance measures, monitoring techniques, research, studies, and surveys to the regulatory subcommittees of the house and senate appropriations committees with copies to the house and senate fiscal agencies not later than December 1, 1997.

Sec. 403. The Michigan career and technical institute may receive equipment and in-kind contributions for the direct support of staff services through the Pine Lake fund, the Delton-Kellogg school district or other local or intermediate school district, or any combination of local or intermediate school districts in addition to those authorized in section 101.

Sec. 404. The Michigan rehabilitation service shall make every effort to ensure that all sources of matching funds in this state are used to obtain federal vocational rehabilitation funds. All sources include, but are not limited to, privately raised funds to support public nonprofit rehabilitation centers as permitted by the rehabilitation act of 1973, Public Law 93-112, 29 U.S.C. 701 to 717, 720 to 724, 730 to 732, 740 to 741, 750, 752, 760 to 762, 770 to 777b, 777d to 777f, 780, 781 to 785, 790 to 794d, 795 to 795q, and 796 to 796i.

Sec. 405. (1) In developing school-to-work programs, the department shall cooperate with the Michigan department of education in emphasizing the importance of apprenticeship opportunities for students who may choose to participate including, but not limited to, low-income students and students with disabilities.

(2) The school-to-work apprenticeship programs shall link employers, organized labor, educators, and community organizations for the purpose of providing necessary knowledge, skills, and labor market information to students.

(3) As participants in school-to-work apprenticeship programs, students will be expected to obtain any of the following:

(a) High school diploma, or its equivalent.

(b) Skill certificate.

(c) Possible further training, including a registered apprenticeship.

(d) Certificate or associate degree recognizing successful completion of 1 or 2 years of postsecondary education.

(e) Admission to a college or university, or a first job on a career pathway.

(4) The department shall submit a report to the regulatory subcommittees of the senate and house appropriations committees on April 30, 1998 a summary of school-to-work apprenticeship programs supported by the state of Michigan. This report shall include a list of programs supported by state or federal funds, or both, a geographic distribution of grants, the activities supported through each grant, and the expected outcomes for each grantee.

(5) In order for a public school to receive and spend school-to-work funds, it must receive approval of its implementation plan from its governing board or its intermediate school board and forward such approval to its local workforce development board. As used in this subsection, "public school" and "intermediate school board" mean that term as defined in the revised school code, 1976 PA 451, MCL 380.1 to 380.1852.

Sec. 406. (1) The appropriation in section 101 to the department of Michigan jobs commission for economic development job training shall be expended for competitive grants that provide economic development job training and may include social services/vocational job club training, job placement, or job retention services.

(2) Not more than 2% of the total grant, administration, and operating funds appropriated in section 101 for the Michigan jobs commission's economic development job training grants program may be expended for administrative costs.

(3) No funds appropriated in section 101 to the department of Michigan jobs commission for economic development job training grants may be expended for the training of permanent striker replacement workers.

(4) Seventy percent of the economic development job training grant funds shall be awarded to community colleges or a consortium of community colleges and other eligible applicants pursuant to the requirements of section 406.

(5) Training grants provided by the private sector trainers may reach or exceed 20% of total grants, but not less than 10%.

(6) An applicant may be a district, intermediate district, community college, public or private nonprofit college or university, nonprofit organization whose primary purpose is to provide education programs or employment and training services or vocational rehabilitation programs or school-to-work transition programs, local workforce development board, the headquarters of a federal and state sponsored manufacturing technology center, or a consortium consisting of any combination of districts, intermediate districts, community colleges, nonprofit organizations described in this subsection, or public or private nonprofit colleges or universities described in this subsection.

(7) On or before October 1, 1997, the department of Michigan jobs commission shall publish proposed application criteria, instructions, and forms for use by eligible applicants. The department of Michigan jobs commission shall provide at least a 2-week period for public comment prior to finalization of the application criteria, instructions, and forms.

(8) Applications for all grants shall be submitted to the department of Michigan jobs commission and each application shall contain at least all of the following:

(a) The name, address, and total number of employees of each business organization whose employees are receiving job training.

(b) A description of the specific job skills that will be taught.

(c) A clear statement of the project's scope of activities, number of participants to be involved, the number of participants who have been an employee of the business organization for at least 30 days before the date of application who are at risk of becoming unemployed unless trained in the program and the number of participants who are either a new employee within 30 days of the date of application or who will become a new employee of the business organization as a result of the individual's participation in the program.

(d) A management plan and description of staff responsibilities.

(e) A commitment to maintain participant records in a form and manner required by the department.

(f) A budget which relates to the proposed activities and various program components and which demonstrates whether the estimated costs are reasonable and justified. Costs shall include, but are not limited to, necessary child care, necessary transportation, job development, the cost of an annual audit performed by a certified public accountant, and the cost for any tests required to demonstrate successful completion of a program. Budgets shall include revenues from all sources of funding, total costs, and costs per participant.

(g) A demonstration of training commitment made by the business organization on employee training for the 5-year period immediately preceding application for state grant assistance and evidence that the training would not occur but for the state assistance.

(h) Evidence that the training will strengthen the state's economic base and provide participants with the skills necessary for long-term employment.

(i) Evidence that the grant will not supplant other available public or private job training funds.

(j) Evidence of collaboration with appropriate community and business organizations.

(9) Priority in the department's awarding of grants shall be based on the following criteria:

(a) Demonstrated need for the type of training offered and prospects for participant job placement or job retention and for strengthening the state's economic base.

(b) The average state unemployment rate for the 12-month period immediately preceding application for state grant assistance for the locality of the business organization.

(c) The number of persons who will become employed as a result of participation in the proposed program and the number of persons at risk of becoming unemployed to be trained in the program.

(d) Qualifications of the project director and key personnel who will be used in the program.

(e) Availability of appropriate classroom space, materials, and equipment.

(f) Cost per participant and participant contact hours of training.

(g) Strength of commitment to guaranteed job placement upon completion of training.

(h) Collaboration with appropriate community and business organizations.

(i) Inclusion of an evaluation plan that will provide an assessment of the impact of the training program on participant job placement and job retention and on strengthening the state's economic base.

(j) The extent to which the proposals maximize other federal, local, private, or in-kind financial contributions.

(k) The extent to which the proposal supports workforce development for small business organizations with 250 or fewer employees worldwide.

(l) Other criteria determined by the department of Michigan jobs commission to be important in achieving the objectives of the program.

(10) Not more than $5,000,000.00 of the amount appropriated in section 101 for economic development job training may be allocated to rapid response grants for employee training programs which maintain or attract permanent jobs for Michigan residents. A grant under this subsection shall be awarded to eligible applicants under subsection (1)(a) by the chief executive officer of the department of Michigan jobs commission.

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

(12) Not later than 60 days after the completion of the grant period, grant recipients shall provide an evaluation report on the educational and employment outcomes of the participants in the program in a form and manner prescribed by the department of Michigan jobs commission.

(13) A grant awarded under this section may extend beyond the end of the fiscal year in which the grant is awarded and the funds awarded for the grant may be carried over into the next fiscal year for payment in the next fiscal year. Unexpended and unencumbered amounts remaining in the fiscal year ending September 30, 1998, from economic development job training grants awarded prior to September 15, 1997, may be used to award additional economic development job training grants during the fiscal year ending September 30, 1998.

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

(15) If a participant in a program funded under this section is an employee of a business organization whose employees are receiving job training under the program and the participant was an employee of that business organization prior to 30 days before the date of the grant application, the business organization shall provide at least 25% of the program's costs, excluding the costs of participants' wages for the time participants are involved in program training. For purposes of meeting the 25% match requirement, small business organizations with 250 or fewer employees worldwide at the time of application may include the costs of pretraining needs assessments and wages paid to participants while enrolled in training. This subsection does not apply to an individual who becomes a new employee of a business organization as a result of the individual's participation in the program.

(16) A grant awarded to an economic development job training grant recipient that guarantees a predetermined number of specified jobs for new employees that are directly related to the participant's area of training or for existing employees shall be paid to the grant recipient according to the following schedule:

(a) 40% of the grant amount shall be paid within 30 days after the grant is awarded.

(b) 40% of the grant amount shall be paid at the completion of the training period, after the grant recipient submits to the department an interim report specifying actual costs of the training program and training outcomes of the students.

(c) 20% of the grant amount shall be paid at the conclusion of the grant period, as determined by the department.

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

(18) The department of Michigan jobs commission shall provide to the department of management and budget and the house and senate fiscal agencies within 10 days after the end of each quarter of the state fiscal year a report specifying all of the following:

(a) The amount and recipient of each grant or contract awarded during that quarter.

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

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

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

Sec. 407. (1) The appropriation in section 101 to the department of Michigan jobs commission for the work first program shall be expended for grants which provide employment and training services to public assistance recipients.

(2) An applicant may be a district, intermediate district, community college, public or private nonprofit college or university, nonprofit organization that provides school-to-work transition programs or that provides employment and training services or vocational rehabilitation programs or state licensed accredited vocational or technical education programs, proprietary school licensed by the state board, local workforce development board, or a consortium consisting of any combination of districts, intermediate districts, community colleges, nonprofit organizations described in this subdivision, licensed proprietary schools, or public or private nonprofit colleges or universities described in this subdivision.

(3) The department of Michigan jobs commission shall make every effort to place a minimum of 25% of clients who participate in the work first program in positions that provide wages of $5.00 per hour or more.

(4) When the work first job search requirements have been completed, if the participant has not found employment, the work first site shall provide a written summary to the family independence agency which identifies the barriers which may have prevented the participant from obtaining employment and the steps taken by the work first site to assist the client in removing those barriers. The work first site shall also identify appropriate education and job training programs which would be available to the participant.

(5) The department of Michigan jobs commission shall submit to the senate and house fiscal agencies and the department of management and budget by March 15, 1998 a report on the work first program, including the number of participants served under this section, the number of persons who located employment through work first, the average wage of participants who found employment, the number of persons who retained jobs for 90 days, the number of participants placed in employment training and education programs, the number of clients referred to work first who failed to report, and the number of participants referred back to the family independence agency with sanctions recommended by the family independence agency.

(6) Work first program participants shall be limited to recipients of the family independence program established under section 57a of the social welfare act, 1939 PA 280, MCL 400.57a, and such individuals referred to a job club program by a county family independence agency board or a county friend of the court as long as the participation in the job club is part of an application made under this section.

(7) Participants in the work first program shall not be enrolled and counted in membership in a school district or intermediate school district.

(8) A grant awarded under this section may extend beyond the end of the fiscal year in which the grant is awarded and the funds awarded for the grant may be available in the subsequent fiscal year for payment in the next fiscal year.

(9) The department of Michigan jobs commission shall provide to the department of management and budget and the house and senate fiscal agencies within 10 days after the end of each quarter of the state fiscal year a report specifying both of the following:

(a) The amount and recipient of each grant or contract awarded during that quarter.

(b) The number of participants in each service delivery area and the number of clients placed in employment in each service delivery area.

(10) The department of Michigan jobs commission will work with the family independence agency to coordinate support services to work first participants relating to special/emergency needs.

(11) Work first program participants must receive or be provided an explanation of the program including their benefits and responsibilities before the job interview phase of the program.

Sec. 408. The department of Michigan jobs commission shall continue to maintain all files, lists, resources, and computer information of the Michigan child care clearinghouse. All clearinghouse assets shall continue to be available to all Michigan citizens at a location designated by the executive branch of government.

Sec. 409. The travel administration may establish and collect a fee to cover the cost of materials and processing of photographic prints, slides, videotapes, and travel product data base information that are requested by the media and other segments of the public and private sectors. The fees collected shall be appropriated for all expenses necessary to purchase and distribute these photographic prints, slides, videotapes, and travel product data base information. The funds are available for expenditure when they are received by the department of treasury.

Sec. 410. (1) The department of Michigan jobs commission shall submit a semiannual status report on the operations of each foreign office and the office of international and business development to the regulatory subcommittees of the house and senate appropriations committees. The report shall include, but not be limited to, brochures and promotional material, information on the number of successful plant locations, name of company, original and new locations, type of investment, type of product, number employed, length of commitment of relocations, the currency rates at the time the investment is made, and any other information considered necessary for a competent evaluation of the program.

(2) The department of Michigan jobs commission shall inform the members of the regulatory subcommittees of the senate and house appropriations committees of any decisions to close any foreign outreach office. Tax dollars shall not be expended to ship automobiles for use by state officials.

Sec. 411. Funding provided to the development finance agency grant and loan program established in 1984 PA 236 shall be utilized to establish a revolving loan fund and shall carry forward until the purposes for which the sums were appropriated are completed. The department of Michigan jobs commission may loan, contract, or grant, or any combination thereof, the funds and earnings of this revolving loan fund for the express public purpose of helping to promote the formation of minority owned business development investment companies, with incentives to encourage the financing of minority owned businesses.

Sec. 412. The $452,900.00 appropriated in section 101 for precollege programs in engineering and the sciences shall be provided in the form of a grant to the Detroit precollege engineering programs, incorporated.

Sec. 413. Funds appropriated to the department of Michigan jobs commission, Michigan promotion program, shall not be expended for the purpose of nontourism-related promotional projects that would target the citizens of this state as its prime audience.

Sec. 414. (1) The appropriation in section 101 to the department of Michigan jobs commission includes funds for a university/business research development program. Before distribution of any grants under this program, the department of Michigan jobs commission shall submit to the chairpersons of the regulatory subcommittees of the house and senate appropriations committees a list of the grants recommended for distribution.

(2) The department of Michigan jobs commission shall submit not later than December 1, 1997 to the regulatory subcommittees of the house and senate appropriations committees, the fiscal agencies, and the department of management and budget an annual report for the immediately preceding fiscal year regarding the university/business research development program. The report shall include, but is not limited to, an accounting of each grant awarded through the program, specifying the grantee and the amount awarded, and a review of the performance and accomplishments of the program during the review period.

Sec. 415. (1) The department of Michigan jobs commission, K.I. Sawyer base conversion authority, may receive and expend federal, state restricted, and private revenue funds in accordance with 1993 PA 159, MCL 3.571 to 3.580.

(2) The department of Michigan jobs commission shall submit a semiannual report to the department of management and budget and the fiscal agencies of the house and senate concerning the following:

(a) Expenditures.

(b) Funds received but not appropriated by the state.

(3) The appropriation in section 101 may be used for per diem payments to the members of commissions or boards for a full day of committee work at which a quorum is present or for performing official business as authorized by each respective commission or board. The per diem payment shall be at a rate as follows:

K.I. Sawyer base conversion authority $50.00 per day

Sec. 416. (1) In addition to the amount appropriated to the department of Michigan jobs commission in section 101, there is appropriated an amount sufficient to meet state cost sharing requirements for federal technology reinvestment project grant awards.

(2) State cost sharing funds shall be made available only to those proposals selected to receive federal grant awards and that require state cost sharing as a condition to receiving a federal grant award.

(3) Each grant award recipient shall provide to the department of Michigan jobs commission verification and documentation that federal funding has been received before the release of required state cost sharing funds to the grant award recipient.

(4) The department of Michigan jobs commission shall notify the regulatory subcommittees of the house and senate appropriations committees and the house and senate fiscal agencies of the additional amount appropriated pursuant to subsection (1). The notification shall include, but is not limited to, the amount of the federal grant, the required state match, and the source of revenue for the state match. If the department of Michigan jobs commission receives no objections within 30 days after submitting notice, the department shall proceed with the terms of the grant. Funds may be dispersed in less than 30 days if a majority of members in both subcommittees indicate in writing their approval.

Sec. 417. The department of Michigan jobs commission shall submit a semiannual status report to the regulatory subcommittees of the senate and house appropriations committees on all activities, grants, and investment programs financed from the strategic fund. Each report shall provide a list of individual grants and loans made from the fund.

Sec. 418. The department of Michigan jobs commission shall submit a semiannual report to the regulatory subcommittees of the senate and house appropriations committees on all activities of the Michigan film office.

Sec. 419. The department of Michigan jobs commission may receive and expend contributions from the Michigan strategic fund to procure or acquire services, studies, and analyses on behalf of the fund which the fund determines are necessary to carry out its functions and duties.

Sec. 420. Any funds appropriated to the department of Michigan jobs commission for fiscal year 1997-98 that are committed or encumbered in a contractual agreement may be available in the subsequent fiscal year until the project specified in the contractual agreement is completed. A listing of the contractual agreements shall be forwarded to the regulatory subcommittees not later than November 30, 1998.

Sec. 421. (1) In addition to the funds appropriated for the department of Michigan jobs commission in section 101, there is appropriated an amount not to exceed $48,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $2,268,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $9,300,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $15,394,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 422. The local match requirements for vocational rehabilitation facilities establishment grants shall not exceed21.3%.

Sec. 423. As a condition of receiving a state research fund grant, the recipient shall enter into a royalty agreement with the department of Michigan jobs commission granting the department repayment of the sum equal to the grant as adjusted for inflation pursuant to the Detroit consumer price index. Repayment shall occur upon the realization of any profits on goods and services directly generated by the grant to an account designated by the department.

Sec. 424. Funds earned or authorized by the United States department of labor in excess of the gross appropriation in section 101 for the Michigan employment security agency from the United States department of labor are appropriated and may be expended for staffing and related expenses incurred in the operation of its programs. These funds may be spent after the department of Michigan jobs commission notifies the regulatory subcommittees of the house and senate appropriations committees of the purpose and amount of each grant award.

Sec. 425. The Michigan employment security agency shall report annually to the chairpersons of the regulatory subcommittees of the senate and house appropriations committees the amount of additional taxes collected by the special audit and collections program. If additional tax collections exceed $2,000,000.00, the Michigan employment security agency shall use an amount equivalent to 15% of the amount of additional taxes collected for additional audit and collections staff up to an additional $1,000,000.00.

Sec. 426. The negative appropriation in section 101 for early retirement compensation savings represents savings from the state's 1997 early retirement program. Not later than October 15, 1997, the department of Michigan jobs commission and the state budget director shall request legislative transfers under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393, to apply the retirement costs and salary and fringe benefits savings to the appropriated line items affected by the early retirement of state employees.

Sec. 427. (1) The department shall submit to the department of management and budget, senate and house appropriations committees, senate and house fiscal agencies, and senate and house standing committees having jurisdiction over technology issues periodic reports on the department's efforts to change the department's computer software and hardware as necessary to perform properly in the year 2000 and beyond. These reports shall identify actual progress in comparison to the department's approved work plan for these efforts.

(2) The department may present progress billings to the department of management and budget for the costs incurred in changing computer software and hardware as necessary to perform properly in the year 2000 and beyond. At the time progress billings are presented for reimbursement, the department shall identify and forward as appropriate the funding sources that should support the work performed.

Sec. 428. The department of Michigan jobs commission shall report to the regulatory subcommittees of the senate and house appropriations committees by September 30, 1998, on the distribution of the Michigan community service commission volunteer investment grants.

Sec. 429. The department of Michigan jobs commission shall submit to the chairpersons of the regulatory subcommittees of the house and senate appropriations committees by December 31, 1997 a report on the feasibility of contracting out services to support the Michigan welcome centers.

Sec. 430. Of the funds appropriated in section 101 for economic development job training grants, the department shall not use these funds to finance the startup or in any way subsidize any private distributor of liquor products in Michigan.

Sec. 431. State and federal funds allocated to local workforce development boards for disbursement shall not be appropriated unless the local workforce development boards maintain a partnership with governmental agencies, public school districts, and public colleges located within the local service delivery area. State and federal funds shall not be appropriated to any local workforce developmental board for disbursement if areas with a population base of 200,000 or more are not permitted to be designated as service delivery areas.

Sec. 432. Any funds received by interdepartmental grant, contract, or otherwise from the family independence agency for initiating an enhanced technical vocational program shall meet the criteria described in the family independence agency budget relative to that program.

Sec. 433. The department of Michigan jobs commission shall work cooperatively with the department of civil service to identify state employees who will lose their jobs as a result of an agency or program being reorganized, modified, or eliminated and shall develop training programs and provide training to these individuals that will provide them an opportunity and skills necessary to secure new employment within state government or the private sector. The department of Michigan jobs commission shall submit to the regulatory subcommittees of the senate and house appropriations committees semiannual reports on its activities and progress.

Sec. 434. Funds appropriated to the department of Michigan jobs commission for economic development job training grants shall not be expended to train employees above first level management in supervision hierarchy who are employed by a business organization whose gross annual revenues exceed $1,000,000.00.

Sec. 435. The $344,700.00 appropriated in section 101 for trade academy grants shall be expended to establish a precollege program in engineering and the sciences in Kent County.

This act is ordered to take immediate effect.

Secretary of the Senate.

Clerk of the House of Representatives.

Approved

Governor.