Act No. 306
Public Acts of 1998
Approved by the Governor
July 27, 1998
Filed with the Secretary of State
July 29, 1998
EFFECTIVE DATE: July 29, 1998
STATE OF MICHIGAN
89TH LEGISLATURE
REGULAR SESSION OF 1998
Introduced by Reps. Gilmer, Johnson, McBryde, Llewellyn, Geiger, Oxender, Godchaux, Jansen, Jellema and Bobier
ENROLLED HOUSE BILL No. 5592
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, 1999; to provide for the expenditure of those appropriations; to provide for the imposition of certain fees; to provide for the disposition of fees and other income received by the state agencies; to provide for reports to certain persons; and to prescribe powers and duties of certain state departments and certain state and local agencies and officers.
The People of the State of Michigan enact:
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. The amounts listed in this part are appropriated for the departments of consumer and industry services and Michigan jobs commission, subject to the conditions set forth in this act, for the fiscal year ending September 30, 1999, from the funds identified in this part. The following is a summary of the appropriations in this part:
TOTAL REGULATORY
APPROPRIATION SUMMARY:
Full-time equated unclassified positions 73.5
Full-time equated classified positions 5,437.4
GROSS APPROPRIATION $ 1,032,597,700
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers 5,822,300
ADJUSTED GROSS APPROPRIATION $ 1,026,775,400
Federal revenues:
Total federal revenues 640,521,100
Special revenue funds:
Total local revenues 10,867,900
Total private revenues 3,922,700
Total other state restricted revenues 191,443,900
State general fund/general purpose $ 180,019,800
Sec. 102. DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES
(1) APPROPRIATION SUMMARY:
Full-time equated unclassified positions 64.5
Full-time equated classified positions 4,130.4
GROSS APPROPRIATION $ 467,564,300
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers 4,675,300
ADJUSTED GROSS APPROPRIATION $ 462,889,000
Federal revenues:
Total federal revenues 203,933,500
Special revenue funds:
Total private revenues 920,700
Total other state restricted revenues 186,534,800
State general fund/general purpose $ 71,500,000
(2) EXECUTIVE DIRECTION
Full-time equated unclassified positions 64.5
Full-time equated classified positions 73.0
Unclassified salaries $ 4,875,000
Executive director programs--43.0 FTE positions 4,526,700
Policy development--9.0 FTE positions 1,309,600
Utility consumer representation 800,000
Regulatory efficiency improvements/backlog reduction initiative 750,000
MES board of review program--21.0 FTE positions 1,480,000
GROSS APPROPRIATION $ 13,741,300
Appropriated from:
Federal revenues:
DOL-ETA, unemployment insurance 1,965,200
DOL, multiple grants for safety and health 142,900
Special revenue funds:
Private - college work-study 25,000
Bank fees 151,000
Boiler fee revenue 51,400
Construction code fund 445,700
Consumer finance fees 30,500
Corporations and securities fees 82,600
Credit union fees 67,300
Elevator fees 59,900
Fees and collections 61,200
Health professions regulatory fund 2,065,600
Insurance regulatory fees 246,900
Licensing and regulation fees 920,000
Liquor purchase revolving fund 958,900
Michigan state housing development authority fees and charges 225,900
Manufactured housing commission fees 25,700
Motor carrier fees 19,300
Public utility assessments 455,500
Safety education and training fund 142,400
Second injury fund 24,300
Self-insurers security fund 6,400
Silicosis and dust disease fund 9,400
Utility consumer representation fund 800,000
Worker's compensation administrative revolving fund 20,200
Other state restricted revenue 21,800
State general fund/general purpose $ 4,716,300
(3) COUNCIL FOR ARTS AND CULTURAL AFFAIRS
Full-time equated classified positions 9.0
Administration--9.0 FTE positions $ 829,100
Arts and cultural grants $ 21,548,700
GROSS APPROPRIATION $ 22,377,800
Appropriated from:
Federal revenues:
NFAH-NEA, promotion of the arts, state and regional programs 700,000
State general fund/general purpose $ 21,677,800
(4) FIRE SAFETY
Full-time equated classified positions 50.0
Office of fire safety--50.0 FTE positions $ 3,840,400
GROSS APPROPRIATION $ 3,840,400
Appropriated from:
Interdepartmental grant revenues:
IDG, department of community health - inspection contract 106,000
Federal revenues:
HHS-HCFA, Medicare supplementary medical insurance 550,300
HHS-HCFA, state survey and certification of health care providers, Medicaid 550,300
Special revenue funds:
Fire alarm regulation fees 159,500
Fire service fees 1,330,800
State general fund/general purpose $ 1,143,500
(5) MANAGEMENT SERVICES
Full-time equated classified positions 173.0
Administrative services--70.0 FTE positions $ 4,760,600
Technology support--103.0 FTE positions 12,205,700
Insurance automation 750,000
Health services information systems 750,000
Rent 5,363,000
Building occupancy charges - property development services 4,581,700
Worker's compensation 1,018,600
Special project advances 740,000
GROSS APPROPRIATION $ 30,169,600
Appropriated from:
Interdepartmental grant revenues:
IDT, insurance bureau 509,300
Federal revenues:
DOL-ETA, unemployment insurance 251,600
DOL, multiple grants for safety and health 636,800
Federal funds 772,000
HHS, federal funds 199,000
Special revenue funds:
Private - college work-study 25,100
Private - special project advances 740,000
Bank fees 326,300
Boiler fee revenue 149,100
Construction code fund 1,007,200
Consumer finance fees 124,000
Corporations and securities fees 1,698,000
Credit union fees 220,200
Elevator fees 250,500
Fees and collections 174,500
Health professions regulatory fund 3,523,200
Insurance regulatory fees 1,617,400
Licensing and regulation fees 1,776,200
Liquor purchase revolving fund 5,772,500
Michigan state housing development authority fees and charges 994,700
Manufactured housing commission fees 82,000
Motor carrier fees 195,200
Public utility assessments 2,541,500
Safety education and training fund $ 296,400
Second injury fund 43,100
Self-insurers security fund 11,400
Silicosis and dust disease fund 16,600
Worker's compensation administrative revolving fund 936,100
Other state restricted revenue 50,400
State general fund/general purpose $ 5,229,300
(6) FINANCIAL SERVICES AND CORPORATIONS
Full-time equated classified positions 385.0
Manufactured housing commission, per diem $50.00 $ 7,800
Manufactured housing and land resources program--16.0 FTE positions 1,553,200
Corporate services--64.0 FTE positions 4,910,500
Investment oversight--31.0 FTE positions 2,524,000
Local manufactured housing communities inspections 250,000
Property development group--13.0 FTE positions 1,347,300
Remonumentation grants 4,500,000
Financial institutions administration--18.0 FTE positions 1,243,000
Bank regulation--50.0 FTE positions 5,012,700
Credit union regulation--41.0 FTE positions 3,313,000
Financial institutions consumer protection--19.0 FTE positions 1,663,500
Financial institutions research and consumer services--5.0 FTE positions 358,800
Federal regulatory projects 50,600
Insurance bureau administration--22.0 FTE positions 2,104,200
Insurance financial standards--49.0 FTE positions 7,571,100
Insurance licensing and enforcement--30.0 FTE positions 2,447,000
Insurance market standards and consumer services--27.0 FTE positions 2,412,400
GROSS APPROPRIATION $ 41,269,100
Appropriated from:
Federal revenues:
Federal regulatory project revenues 50,600
Special revenue funds:
Private - college work-study 10,100
Private - travel funds 5,900
Bank fees 5,805,400
Certification and copying fees 2,127,500
Consumer finance fees 1,905,500
Corporations and securities fees 5,145,900
Credit union fees 3,880,100
Insurance regulatory fees 10,838,900
Insurance continuing education fees 532,400
Land sales fees 50,600
Insurance licensing and regulation fees 3,015,500
Limited liability partnership revenue 10,000
Manufactured housing commission fees 1,911,500
Multiple employer welfare arrangement 131,900
Property development fees 225,200
Remonumentation fees 5,064,500
State general fund/general purpose $ 557,600
(7) PUBLIC SERVICE COMMISSION
Full-time equated classified positions 161.0
Administration, planning and regulation--161.0 FTE positions $ 18,277,200
GROSS APPROPRIATION $ 18,277,200
Appropriated from:
Interdepartmental grant revenues:
IDG-MDEQ 200,000
Federal revenues:
DOE-OEERE, multiple grants 2,477,900
DOT-RSPA, gas pipeline safety 208,200
Special revenue funds:
Private - Great Lakes governors council $ 46,000
Motor carrier fees 1,730,900
Public utility assessments 13,614,200
State general fund/general purpose $ 0
(8) LIQUOR CONTROL COMMISSION
Full-time equated classified positions 183.0
Management support services--43.0 FTE positions $ 2,840,300
Liquor licensing and enforcement--140.0 FTE positions 9,956,700
Liquor law enforcement grants 6,000,000
Grant to department of agriculture for wine industry council 424,100
GROSS APPROPRIATION $ 19,221,100
Appropriated from:
Special revenue funds:
Liquor license revenue 10,609,800
Liquor purchase revolving fund 8,187,200
Nonretail liquor license revenue 424,100
State general fund/general purpose $ 0
(9) MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY
Full-time equated classified positions 234.0
Payments on behalf of tenants $ 66,000,000
Housing and rental assistance program--228.0 FTE positions 20,366,200
Automatic data processing--6.0 FTE positions 843,700
Homeless program 5,290,800
GROSS APPROPRIATION $ 92,500,700
Appropriated from:
Federal revenues:
HUD, lower income housing assistance program 78,790,200
Special revenue funds:
Michigan state housing development authority fees and charges 13,710,500
State general fund/general purpose $ 0
(10) TAX TRIBUNAL
Full-time equated classified positions 14.0
Operations--14.0 FTE positions $ 1,526,400
GROSS APPROPRIATION $ 1,526,400
Appropriated from:
Special revenue funds:
Tax tribunal fees 586,300
State general fund/general purpose $ 940,100
(11) GRANTS
Fire protection grants $ 6,675,000
GROSS APPROPRIATION $ 6,675,000
Appropriated from:
Special revenue funds:
Liquor purchase revolving fund 6,675,000
State general fund/general purpose $ 0
(12) HEALTH REGULATORY SYSTEMS
Full-time equated classified positions 344.0
Health systems administration--203.0 FTE positions $ 16,519,200
Emergency medical services program state staff--10.0 FTE positions 1,060,700
Health facilities management information system 568,400
Radiological health administration and projects--24.0 FTE positions 1,813,300
Substance abuse program administration--4.0 FTE positions 374,900
Emergency medical services grants and contracts 962,100
Health services--103.0 FTE positions 11,367,200
GROSS APPROPRIATION $ 32,665,800
Appropriated from:
Federal revenues:
Federal funds 11,275,300
Special revenue funds:
Private - local northeast regional dentistry board $ 18,100
Private - college work-study 25,500
Controlled substance license fees 1,271,900
Health professions regulatory fund 9,601,700
Nurse professional fund 450,000
Fees and collections 2,266,300
Other state restricted revenue 1,314,100
State general fund/general purpose $ 6,442,900
(13) REGULATORY SERVICES
Full-time equated classified positions 271.0
AFC, children's welfare and day care licensure--271.0 FTE positions $ 19,881,200
GROSS APPROPRIATION $ 19,881,200
Appropriated from:
Federal revenues:
HHS, federal funds 7,864,100
Special revenue funds:
Licensing fees 443,000
State general fund/general purpose $ 11,574,100
(14) OCCUPATIONAL REGULATION
Full-time equated classified positions 235.0
Commissions and boards $ 41,900
Code enforcement--99.0 FTE positions 7,144,400
Code enforcement flexibility 610,800
Boiler inspection program--18.0 FTE positions 1,393,000
Elevator inspection program--23.0 FTE positions 1,674,100
Commercial services--95.0 FTE positions 7,731,900
GROSS APPROPRIATION $ 18,596,100
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 5,569,100
Homeowner construction lien recovery fund 1,528,900
Health professions regulatory fund 212,100
Boiler fee revenue 1,526,500
Construction code fund 7,565,500
Elevator fees 1,772,200
State general fund/general purpose $ 0
(15) EMPLOYMENT RELATIONS
Full-time equated classified positions 28.0
Fact finding and arbitration $ 169,300
Employment and labor relations--28.0 FTE positions 2,686,700
GROSS APPROPRIATION $ 2,856,000
Appropriated from:
Special revenue funds:
Publication revenue 25,000
State general fund/general purpose $ 2,831,000
(16) SAFETY AND REGULATION
Full-time equated classified positions 274.0
Commissions and boards $ 27,700
Employment standards enforcement--38.0 FTE positions 2,287,000
Subgrantees 1,026,900
Occupational safety and health--236.0 FTE positions 20,353,900
GROSS APPROPRIATION $ 23,695,500
Appropriated from:
Federal revenues:
DOL, multiple grants for safety and health $ 11,804,600
Special revenue funds:
Fees and collections 671,300
Safety education and training fund 4,755,600
State general fund/general purpose $ 6,464,000
(17) WORKER'S DISABILITY COMPENSATION
Full-time equated classified positions 172.4
Administration--119.0 FTE positions $ 7,727,300
Board of magistrates administration--8.0 FTE positions 1,665,600
Appellate commission administration--11.4 FTE positions 768,500
Supplemental benefit fund 1,700,000
Insurance funds administration--34.0 FTE positions 10,061,600
Automatic data processing 506,000
Grant to Michigan jobs commission, hire the handicapped program 50,000
GROSS APPROPRIATION $ 22,479,000
Appropriated from:
Special revenue funds:
Second injury fund 6,404,900
Self-insurers security fund 1,706,600
Silicosis and dust disease fund 2,506,100
Worker's compensation administrative revolving fund 1,938,000
State general fund/general purpose $ 9,923,400
(18) UNEMPLOYMENT AGENCY
Full-time equated classified positions 1,524.0
Worker's compensation $ 453,700
Rent 4,232,000
Building occupancy charges - property development service 1,656,300
Unemployment program--1,441.7 FTE positions 84,594,800
Advocacy assistance program--4.0 FTE positions 1,500,000
Special audit and collections program--43.0 FTE positions 2,016,500
Special fraud control program--18.0 FTE positions 1,217,300
Training program for agency staff--2.1 FTE positions 1,038,500
Fraud control and investigations program--15.2 FTE positions 1,083,000
GROSS APPROPRIATION $ 97,792,100
Appropriated from:
Interdepartmental grant revenues:
IDG from family independence agency 3,860,000
Federal revenues:
DOL, unemployment insurance 85,194,500
DOL-ETA 500,000
Special revenue funds:
Contingent fund, penalty and interest account 8,237,600
State general fund/general purpose $ 0
Sec. 103. DEPARTMENT OF MICHIGAN JOBS COMMISSION
(1) APPROPRIATION SUMMARY:
Full-time equated unclassified positions 9.0
Full-time equated classified positions 1,307.0
GROSS APPROPRIATION $ 565,033,400
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers 1,147,000
ADJUSTED GROSS APPROPRIATION $ 563,886,400
Federal revenues:
Total federal revenues 436,587,600
Special revenue funds:
Total local revenues 10,867,900
Total private revenues $ 3,002,000
Total other state restricted revenues 4,909,100
State general fund/general purpose $ 108,519,800
(2) DEPARTMENTAL ADMINISTRATION
Full-time equated unclassified positions 9.0
Full-time equated classified positions 16.0
Unclassified salaries $ 702,600
Executive direction--16.0 FTE positions 1,180,700
GROSS APPROPRIATION $ 1,883,300
Appropriated from:
Interdepartmental grant revenues:
IDG-MDEQ, air quality fees 58,000
State general fund/general purpose $ 1,825,300
(3) DEPARTMENT OPERATIONS
Full-time equated classified positions 80.0
Administrative services--80.0 FTE positions $ 5,401,100
Rent 1,649,300
Building occupancy charges - property development services 562,600
Worker's compensation 259,900
Special project advances 700,000
GROSS APPROPRIATION $ 8,572,900
Appropriated from:
Federal revenues:
DED-OSERS, client assistance for individuals with disabilities 11,300
DED-OSERS, rehabilitation services, vocational rehabilitation, state grants 1,269,800
DOL-ETA, job training partnership grants 417,700
DED, cooperative demonstration, school-to-work 150,500
HHS, temporary assistance for needy families 253,000
Special revenue funds:
Private - special project advances 700,000
State general fund/general purpose $ 5,770,600
(4) ECONOMIC RETENTION AND EXPANSION
Full-time equated classified positions 178.0
International and national business development--30.0 FTE positions $ 4,174,800
Travel administration/travel commission--27.0 FTE positions 3,641,300
Michigan promotion program 8,042,500
Job creation services--121.0 FTE positions 14,024,600
GROSS APPROPRIATION $ 29,883,200
Appropriated from:
Interdepartmental grant revenues:
IDG-MDEQ, air quality fees 42,000
Federal revenues:
DOL-NOICC 166,800
HUD-CPD, community development block grant 1,868,000
Special revenue funds:
Private - Michigan certified development corporation fees 151,200
Industry support fees 50,000
State general fund/general purpose $ 27,605,200
(5) WORKFORCE DEVELOPMENT
Full-time equated classified positions 686.0
Employment training services--591.0 FTE positions $ 61,647,600
Michigan career and technical institute--95.0 FTE positions 9,792,500
GROSS APPROPRIATION $ 71,440,100
Appropriated from:
Interdepartmental grant revenues:
IDG-MDOC 31,400
Federal revenues:
CNS 505,000
DAG, employment and training $ 248,700
DED-OPSE, multiple grants 999,500
DED-OSERS, centers for independent living 56,500
DED-OSERS, rehabilitation long-term training 320,200
DED-OSERS, rehabilitation services, vocational rehabilitation, state grants 39,546,600
DED-OSERS, state grants for technology-related assistance to individuals with disabilities 54,000
DED, cooperative demonstration, school-to-work 1,202,400
DOL-ETA, job training partnership act 5,818,100
DOL-ETA, welfare-to-work 600,000
DOL-ETA, multiple grants 570,000
HHS-SSA, supplemental security income 4,061,700
HHS, temporary assistance for needy families 2,245,700
Special revenue funds:
Local vocational rehabilitation match 3,152,200
Private - gifts, bequests, and donations 1,350,800
Rehabilitation services fees 1,884,800
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 $ 8,348,500
(6) DEPARTMENTAL GRANTS
Job training programs subgrantees $ 119,426,200
Michigan community service commission subgrantees 5,900,000
Displaced homemakers 470,000
Supported employment grants 1,308,600
Technology assistance grants 1,026,600
Vocational rehabilitation client services/facilities 50,164,000
Vocational rehabilitation independent living 2,077,700
Personal assistance services 400,000
School-to-work subgrantees 10,780,900
Economic development job training grants 30,000,000
Welfare-to-work programs 135,220,300
CDBG pass-through 45,000,000
Precollege programs in engineering and the sciences 844,700
Grant to department of natural resources, Michigan civilian conservation corps 1,000,000
GROSS APPROPRIATION $ 403,619,000
Appropriated from:
Interdepartmental grant revenues:
IDG-MDOC 1,015,600
Federal revenues:
CNS 4,500,000
DAG, employment and training 8,041,300
DED-OSERS, centers for independent living 525,000
DED-OSERS, client assistance for individuals with disabilities 360,600
DED-OSERS, rehabilitation services facilities 2,272,500
DED-OSERS, rehabilitation services, vocational rehabilitation, state grants 34,995,200
DED-OSERS, supported employment 1,308,600
DED-OSERS, state grants for technology-related assistance to individuals with disabilities 1,026,600
DED, cooperative demonstration, school-to-work 10,680,900
DOL-ETA, job training partnership act 113,980,600
DOL-ETA, welfare-to-work 19,400,000
DOL-ETA, multiple grants 4,430,000
HHS-SSA, supplemental security income 2,362,500
HHS, temporary assistance for needy families 79,233,700
HUD-CPD, community development block grant 45,000,000
Special revenue funds:
Local vocational rehabilitation facilities match 1,278,300
Local vocational rehabilitation match $ 6,437,400
Private - gifts, bequests, and donations 800,000
Contingent fund, penalty and interest account 1,000,000
State general fund/general purpose $ 64,970,200
(7) EMPLOYMENT SERVICE AGENCY
Full-time equated classified positions 347.0
Worker's compensation $ 92,900
Rent 418,000
Building occupancy charges - property development service 184,000
Employment service--291.0 FTE positions 44,945,000
Labor market information--56.0 FTE positions 3,995,000
GROSS APPROPRIATION $ 49,634,900
Appropriated from:
Federal revenues:
DOL-ETA, employment service 26,603,900
DOL-ETA, bureau of labor statistics 2,394,600
DOL-ETA 1,593,600
DOL-ETA, veterans' employment and training administration 6,311,900
DOL-ETA, miscellaneous funds 11,200,600
Special revenue funds:
Contingent fund, penalty and interest account 1,530,300
State general fund/general purpose $ 0
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. (1) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources for fiscal year 1998-99 is estimated at $371,463,700.00 in this act and state spending from state sources paid to local units of government for fiscal year 1998-99 is estimated at $92,419,000.00. 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 6,675,000
Liquor law enforcement 6,000,000
Local mobile home inspections 250,000
Total consumer and industry services $ 33,773,700
DEPARTMENT OF MICHIGAN JOBS COMMISSION
Economic development job training grants $ 30,000,000
Welfare-to-work programs 28,545,300
School-to-work subgrantees 100,000
Total Michigan jobs commission $ 58,645,300
(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 state budget director.
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) "DAG" means the United States department of agriculture.
(e) "DED" means the United States department of education.
(f) "DED-OPSE" means the DED office of postsecondary education.
(g) "DED-OSERS" means the DED office of special education rehabilitation services.
(h) "DOE" means the United States department of energy.
(i) "DOE-OEERE" means the DOE office of energy efficiency and renewable energy.
(j) "DOL" means the United States department of labor.
(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) "DOT" means the United States department of transportation.
(o) "DOT-RSPA" means the DOT research and special programs administration.
(p) "FTE" means full-time equated.
(q) "HHS" means the United States department of health and human services.
(r) "HHS-HCFA" means the HHS health care financing administration.
(s) "HHS-SSA" means HHS social security administration.
(t) "HUD" means the United States department of housing and urban development.
(u) "HUD-CPD" means HUD community planning and development.
(v) "IDG" means interdepartmental grant.
(w) "IDT" means interdepartmental transfer.
(x) "JTPA" means job training partnership act, Public Law 97-300, 96 Stat. 1322.
(y) "MDEQ" means the Michigan department of environmental quality.
(z) "MDOC" means the Michigan department of corrections.
(aa) "MDOT" means the Michigan department of transportation.
(bb) "MES" means Michigan employment security.
(cc) "MIOSHA" means the Michigan occupational safety and health administration.
(dd) "NFAH" means the national foundation of the arts and the humanities.
(ee) "NFAH-NEA" means the NFAH national endowment for the arts.
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. 205. The department of civil service shall bill departments and/or agencies 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 part 1 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, 1998, 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 state budget director 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 state budget director shall report by the fifteenth of each month to the chairpersons of the house and senate appropriations committees the number of exclusions to the hiring freeze approved during the previous month and the justification for the exclusion.
Sec. 209. The departments shall receive and retain copies of all reports funded from part 1 appropriations.
Sec. 210. (1) In the expenditure of funds appropriated under this act, the directors of the departments of consumer and industry services and Michigan jobs commission shall take all reasonable steps to ensure that businesses in deprived and depressed communities are given the opportunity to 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 businesses in depressed and deprived communities for services or supplies, or both.
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. 217. (1) The departments of consumer and industry services and Michigan jobs commission shall submit, on or before January 10, 1999, to the department of management and budget, house and senate appropriations committees, house and senate fiscal agencies, and house and senate standing committees having jurisdiction over technology issues an annual report on the departments' efforts to change the departments' computer software and hardware as necessary to perform properly in the year 2000 and beyond. This report shall identify actual progress in comparison to the departments' approved work plan for these efforts. This report shall also identify and forward as appropriate the funding sources that should support the work performed.
(2) The departments 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 departments shall identify and forward as appropriate the funding sources that should support the work performed.
Sec. 218. Money appropriated in part 1 shall not be used for the purchase of foreign goods or services when competitively priced and of comparable quality American goods or services are available. By May 1, 1999, the 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. 219. (1) The department of management and budget and each principal executive department and agency shall provide to the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies a monthly report on all personal service contracts awarded without competitive bidding, pricing, or rate setting. The notification shall include all of the following:
(a) The total dollar amount of the contract.
(b) The duration of the contract.
(c) The name of the vendor.
(d) The type of service to be provided.
(2) For personal service contracts of $100,000.00 or more, the department of management and budget shall provide a monthly report on all of the following:
(a) The total dollar amount of the contract.
(b) The duration of the contract.
(c) The name of the vendor.
(d) The type of service to be provided.
(3) The department of management and budget shall provide a monthly listing of all bid requests or requests for proposal that were issued.
(4) Each principal executive department and agency shall provide a monthly summary listing of information that identifies any authorizations for personal service contracts that are provided to the department of civil service pursuant to delegated authority granted to each principal executive department and agency related to personal service contracts.
Sec. 220. Sixty days before beginning any effort to privatize, the departments shall submit a complete project plan to the appropriate house and senate appropriations subcommittees and the house and senate fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the appropriate house and senate appropriations subcommittees and the house and senate fiscal agencies within 30 months.
Sec. 221. If a department enters into a personal services contract with any temporary service agency or similar contractor that hires or subcontracts with a person who retired from employment in the department under the early retirement program under section 19f of the state employees' retirement act, 1943 PA 240, MCL 38.19f, the retired state employee shall be limited to 500 hours for professional, technical, or clerical services and 250 hours for management services. This limitation does not apply to computer technology services. This provision only applies during a 24-month period after the date of retirement. This section applies to each principal executive department and agency.
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 code of 1998, 1998 PA 58, with amendments at a price not to exceed the cost of distribution. The money received from the sale of the Michigan liquor control code of 1998 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 code of 1998.
Sec. 303. (1) The appropriation in part 1 for grants to cities includes $6,675,000.00 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.
(2) It is the intent of the legislature that this formula be reviewed and modified before October 1, 1999. The formula shall be adjusted to fully fund fire protection services rendered by local governments for state-owned facilities.
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. 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. 307. 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. 308. 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 programs as appropriated in part 1. The balance of this revenue collected and unexpended at the end of the fiscal year shall revert to the appropriate restricted revenue account or fund or, in absence of such an account or fund, to the general fund. The department shall submit an annual report on or before June 1, 1999 to the regulatory subcommittees of the house and senate appropriations committees that states the amount of revenue received from the sale of information.
Sec. 309. The appropriation in part 1 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 and surgery $50.00 per day
(g) Michigan board of pharmacy $50.00 per day
(h) Michigan board of podiatric medicine and 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 $50.00 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
(yy) Occupational health standards advisory committee $50.00 per day
Sec. 310. Any funds appropriated to the department of consumer and industry services for fiscal year 1998-99 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, 1998.
Sec. 311. (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 part 1. 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, 1999.
(3) The appropriation for arts and cultural grants in part 1 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 council shall receive proof of the entire amount of the matching funds, services, materials, or equipment by the end of the award period. The council shall submit a report to the regulatory subcommittees of the house and senate 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 part 1 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 house and senate appropriations committees have received a copy of the proposed contract.
(5) By November 1, 1998, the department of consumer and industry services shall report to the regulatory subcommittees of the house and senate 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 house and senate appropriations committees. The department shall, at least 30 days before the award of any grant, provide the regulatory subcommittees of the house and senate 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 house and senate 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 house and senate 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, 1999, April 7, 1999, July 7, 1999, and October 7, 1999.
(8) The recipients of grant funds under this section shall be announced by the department by September 15, 1999.
(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 Michigan council for arts and cultural affairs.
(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 part 1.
Sec. 312. 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. 313. 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. 314. 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 part 1 and shall be used exclusively for the purpose of licensing and regulating child care organizations and adult foster care facilities.
Sec. 315. The department of consumer and industry services may utilize revenue in excess of the amount expended in part 1 for the safety education and training grant program in the immediately succeeding fiscal year for the purpose of honoring contracts negotiated before September 15, 1999. The amount of revenue made available from revenue in excess of the amount expended in part 1 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, 1999.
Sec. 316. The appropriation in part 1 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 part 1 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. 317. 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. 318. 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. 319. 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 carry forward to the subsequent fiscal year. The department of consumer and industry services shall submit a report on an annual basis to the regulatory subcommittees of the house and senate appropriations committees on the amount of funds available under this section.
Sec. 320. If the revenue collected by the department for occupational safety and health, health systems administration, or radiological health administration and projects from fees and collections exceeds the amount appropriated in part 1, the revenue may be carried forward into the subsequent fiscal year. The revenue carried forward under this section shall be used as the first source of funds in the subsequent fiscal year.
Sec. 323. 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 rangeFee
$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. 324. The department shall furnish the clerk of the house, the secretary of the senate, and the members of the house and senate appropriations committees with 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. 325. By October 1, 1998, 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. 326. 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 September 1, 1999. 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. 5294 and House Bill No. 5399 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. 327. (1) From the amount appropriated to health systems administration, the department of consumer and industry services shall utilize not less than 97 inspectors, provided adequate funding is available, to annually survey and investigate the care and services delivered in nursing homes, county medical care facilities, and hospital long-term care units in accordance with provisions of the public health code, 1978 PA 368, MCL 333.1101 to 333.25211, and federal Medicare and Medicaid certification standards.
(2) In instances of complaints alleging poor care and services occurring on nights or weekends, the department of consumer and industry services shall investigate such complaints by conducting on-site investigations on nights or weekends in keeping with the severity of the allegations.
Sec. 328. If the revenue collected by the department of consumer and industry services from licensing and regulation fees exceeds the amount appropriated in part 1, the revenue may be carried forward into the subsequent fiscal year. The revenue carried forward under this section shall be used as the first source of funds in the subsequent fiscal year.
Sec. 329. In addition to the amounts appropriated in part 1 for the Michigan unemployment agency, there shall be appropriated an amount not to exceed $8,900,000.00 from the contingent fund penalty and interest account for the fiscal year ending September 30, 1999. The appropriation shall only be expended for the costs incurred in changing the Michigan unemployment agency's computer software and hardware as necessary to perform properly in the year 2000 and beyond.
Sec. 330. Funds earned or authorized by the United States department of labor in excess of the gross appropriation in part 1 for the Michigan unemployment 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 consumer and industry services notifies the regulatory subcommittees of the house and senate appropriations committees of the purpose and amount of each grant award.
Sec. 331. If revenues collected by the special audit and collections program within the Michigan unemployment agency are more than $2,000,000.00 greater than appropriated levels, the unemployment agency shall use 15% of the amount exceeding appropriations for additional audit and collections staff, up to an additional $1,000,000.00. The unemployment agency shall report annually to the chairpersons of the regulatory subcommittees of the house and senate appropriations committees on the revenue generated through the program.
Sec. 334. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $23,500,000.00 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 part 1, there is appropriated an amount not to exceed $12,200,000.00 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 part 1, 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.
(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $50,000.00 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. 335. Of the appropriation in part 1 for occupational safety and health, at least $62,400.00 in general fund/general purpose revenue and 3.0 FTE positions shall be used to support 1 position for MIOSHA compliance activities, 1 position for the development and analysis of MIOSHA program-related data, and 1 position for MIOSHA consultation, education, and training. Both the funding and positions shall be in addition to FTE positions and funding allocated for this purpose in fiscal year 1997-98.
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. 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) 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 those terms as defined in the revised school code, 1976 PA 451, MCL 380.1 to 380.1852.
Sec. 406. (1) The appropriation in part 1 to the department of Michigan jobs commission for economic development job training shall be expended for competitive grants that ensure employers have the trained workers they need to compete in the global economy. The department of Michigan jobs commission shall expedite grant awards for employers locating or expanding in Michigan and thereby creating significant numbers of new jobs in the state.
(2) Not more than 2% of the total grant, administration, and operating funds appropriated in part 1 for the department of Michigan jobs commission's economic development job training grants program may be expended for administrative costs.
(3) No funds appropriated in part 1 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 this section.
(5) Training grants provided by 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, 1998, 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 commitment to maintain participant records in a form and manner required by the department.
(e) A budget which relates to the proposed activities and various program components and which demonstrates whether the estimated costs are reasonable and justified.
(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) Cost per participant and participant contact hours of training.
(f) Strength of commitment to guaranteed job placement upon completion of training.
(g) Other criteria determined by the department of Michigan jobs commission to be important.
(10) Not more than $5,000,000.00 of the amount appropriated in part 1 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) 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, 1999, from economic development job training grants awarded prior to September 15, 1998, may be used to award additional economic development job training grants during the fiscal year ending September 30, 1999.
(13) 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.
(14) 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.
(15) 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.
(16) 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.
(17) The department of Michigan jobs commission shall provide to the state budget director and the house and senate fiscal agencies by April 15 and November 1 of each year a report on the economic development job training grants. The report due by April 15 shall provide the information described in this subsection for each grant or contract awarded during the preceding 2 quarters of the state fiscal year. The report due by November 1 shall provide this information for each grant or contract awarded during the preceding full fiscal year. The report shall contain all of the following:
(a) The amount and recipient of each grant or contract.
(b) The number of participants under each grant or contract and the number of new hires who are in training under the grant.
(c) The names, addresses, and total number of employees of all business organizations for whom training is or will be provided.
(d) The matching funds, if any, to be provided by a business organization.
Sec. 407. (1) The appropriation in part 1 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 subsection, licensed proprietary schools, or public or private nonprofit colleges or universities described in this subsection.
(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 house and senate fiscal agencies and the state budget director by March 15, 1999 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 state budget director and the house and senate fiscal agencies by April 15 and November 1 of each year a report on the work first grants. The report due by April 15 shall provide the information described in this subsection for each grant or contract awarded during the preceding 2quarters of the state fiscal year. The report due by November 1 shall provide this information for each grant or contract awarded during the preceding full fiscal year. The report shall contain both of the following:
(a) The amount and recipient of each grant or contract.
(b) The number of participants in each service delivery area and 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 database information that are requested by the media and other segments of the public and private sectors. The fees collected shall be appropriated for all expenses necessary to purchase and distribute these photographic prints, slides, videotapes, and travel product database information. The funds are available for expenditure when they are received by the department of treasury.
Sec. 410. (1) The department of Michigan jobs commission shall submit an annual 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 house and senate 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. 411a. Of the funds appropriated in part 1 for precollege programs in engineering and the sciences, $500,000.00 shall be provided in the form of a grant to the Detroit precollege engineering program, incorporated and $344,700.00 shall be provided in the form of a grant to the Grand Rapids area precollege engineering program.
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 part 1 to the department of Michigan jobs commission includes funds for the Michigan business roundtable 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, 1998 to the regulatory subcommittees of the house and senate appropriations committees, the house and senate fiscal agencies, and the state budget director an annual report for the immediately preceding fiscal year regarding the Michigan business roundtable 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. 416. The department of Michigan jobs commission shall submit an annual status report to the regulatory subcommittees of the house and senate appropriations committees on all activities, grants, and investment programs financed from the strategic fund/renaissance fund. The report shall provide a list of individual grants and loans made from the fund.
Sec. 417. The department of Michigan jobs commission shall submit an annual report to the regulatory subcommittees of the house and senate appropriations committees on all activities of the Michigan film office.
Sec. 418. The department of Michigan jobs commission may receive and expend contributions from the Michigan strategic fund/renaissance 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. 419. Any funds appropriated to the department of Michigan jobs commission for fiscal year 1998-99 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, 1999.
Sec. 419a. (1) In addition to the funds appropriated for the department of Michigan jobs commission in part 1, 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 part 1, there is appropriated an amount not to exceed $2,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act 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 part 1, there is appropriated an amount not to exceed $1,000,000.00 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 part 1, there is appropriated an amount not to exceed $1,000,000.00 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. 420. The local match requirements for vocational rehabilitation facilities establishment grants shall not exceed 21.3%.
Sec. 421. Funds earned or authorized by the United States department of labor in excess of the gross appropriation in part 1 for the employment service agency from the United States department of labor are appropriated and may be expended for staffing and related expenses incurred in the operation of its programs. These funds may be spent after the department 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. 424. The department of Michigan jobs commission shall report to the regulatory subcommittees of the house and senate appropriations committees by September 30, 1999, on the distribution of the Michigan community service commission volunteer investment grants.
Sec. 426. Of the funds appropriated in part 1 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. 427. 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. 429. 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 house and senate appropriations committees an annual report on its activities and progress.
Sec. 432. Of the funds appropriated in part 1 for the department of Michigan jobs commission employment service, not more than 15% of the funds allocated to Michigan works! agencies for employment service delivery may be expended for Michigan works! agency administrative costs.
Sec. 433. Of the funds appropriated in part 1 for the department of Michigan jobs commission employment service, if DOL-ETA, employment service funds are withheld by the United States department of labor, the department of Michigan jobs commission shall use economic development job training grant funds and other funds to fund employment service allocations.
Sec. 434. On or before October 1, 1998, each Michigan works! agency shall hold a public hearing on its employment service plan for fiscal year 1998-99. The plan shall include what services are to be delivered, how services are to be delivered, the anticipated number of individuals to be registered for work, and the anticipated number of registrants who will be placed in jobs. The department of Michigan jobs commission shall submit a status report on the employment service program to the regulatory subcommittees of the house and senate appropriations committees and the house and senate fiscal agencies on or before March 1, 1999 and September 1, 1999. The report shall include the number of individuals who registered for work, the number of job openings listed by employers, the number of registrants placed in jobs, and the cost per placement.
Sec. 435. The grant appropriated in section 103(6) to the Michigan department of natural resources shall be used for the operation of the civilian conservation corps camp at Alberta and to recruit program enrollees.
Sec. 435a. Of the funds appropriated in section 103(6) for vocational rehabilitation independent living, not less than $1,000,000.00 shall be used for the support of centers for independent living which are in compliance with federal standards for such centers, for the development of new centers in areas presently unserved or underserved, for technical assistance to centers, and for projects to build capacity of centers to deliver independent living services. Applications for such funds shall be reviewed in accordance with criteria and procedures established by the statewide independent living council, the Michigan rehabilitation services unit within the department of Michigan jobs commission, and the Michigan commission for the blind. Funds must be used in a manner consistent with the priorities established in the state plan for independent living.
Sec. 436. From the funds appropriated in section 103(6) for vocational rehabilitation independent living, a portion of the funds shall be distributed to the superior alliance for independent living in Marquette County.
Sec. 439. The family independence agency, in conjunction with the department of Michigan jobs commission, shall study the outcomes for recipients who have participated in work first and shall submit semiannual reports on the progress and findings of the study to the house and senate subcommittees dealing with appropriations for the family independence agency and for regulatory services and to the standing committees dealing with human services beginning November 1, 1998. The study shall examine whether the former participants have:
(a) Obtained jobs.
(b) The kind of jobs they have obtained.
(c) How long they have retained those jobs.
(d) Current hourly wages.
(e) Whether they are receiving basic health care benefits, tuition reimbursement, or training from their employers.
(f) Whether they continue to receive other types of public assistance.
(g) Any other information the departments consider relevant.
Sec. 440. (1) From the funds appropriated in section 103, the department of Michigan jobs commission in conjunction with the family independence agency shall conduct a study of the effect of the enhanced vocational-technical training program and report the results of the study to the house and senate appropriations regulatory subcommittees not later than March 1, 1999. The study shall examine all of the following about the participants and former participants in the programs:
(a) Whether they have obtained jobs.
(b) What kind of jobs they have obtained.
(c) How long they have retained those jobs and if they have had more than 1 job, how long were they at each job.
(d) Current hourly wages.
(e) Whether they are receiving basic health care benefits, tuition reimbursement, or training from their employers.
(f) Whether they continue to receive any type of public assistance.
(g) Any other information the departments consider relevant.
(2) The departments shall acquire data on the factors listed above for all program participants if there are less than 100 overall participants in the program. If there are 100 or more program participants, the departments shall acquire this data from a representative sample of 10% of the overall number of participants.
Sec. 441. From the funds appropriated in section 103(6) for the enhanced technical vocational training program, the Michigan jobs commission may use up to $12,500,000.00, but not less than $4,000,000.00, to administer a program that meets all of the following criteria:
(a) The training program shall be available statewide.
(b) Eligible participants shall include family independence program recipients and work first clients referred by the family independence agency.
(c) Training shall be limited to not longer than 12 months in duration.
(d) Training shall be directed to achieving or gaining skills that will lead to a career for the participant.
(e) Training shall be reasonably calculated to lead to full-time, skilled employment.
(f) Participants may receive any additional support needed to facilitate participation in the training program within reasonable parameters established by the Michigan jobs commission including, but not limited to, all of the following:
(i) Child care, including evening or nighttime care if appropriate.
(ii) Transportation.
(g) Eligible family independence program recipients and work first clients that commence training will be allowed to complete training.
Sec. 442. (1) The department of Michigan jobs commission shall have at least 1 disabled veterans outreach program specialist or local veterans employment representative present at each Michigan works! employment services office on a full- or part-time basis during hours of operation.
(2) The department of Michigan jobs commission shall ensure that each Michigan works! employment services office shall have the necessary equipment to allow the disabled veterans outreach specialist or local veterans employment representative to perform his or her duties in the same manner they were performed prior to February 1, 1998.
(3) The department of Michigan jobs commission shall require each Michigan works! employment services office to have an employee available to ask each individual who enters the office for service whether that individual is a veteran and to refer each veteran to the disabled veterans outreach program specialist or local veterans employment representative on duty at the time.
(4) The department of Michigan jobs commission shall require that each Michigan works! employment services office shall have posted in a conspicuous place within the office a notice advising veterans that a disabled veterans outreach program specialist or a local veterans employment representative is available to assist him or her.
(5) The department of Michigan jobs commission shall require each Michigan works! employment services office to provide free mediated services to employers wishing to hire a veteran.
Sec. 448. (1) The department of Michigan jobs commission shall determine the feasibility of an alternative approach to reporting data on participants in the work first program. Alternatives may include but are not limited to:
(a) Reporting data by county for those counties with a population of 15,000 or greater.
(b) Number of participants retaining jobs for more than 12 months.
(c) Number of requests for supportive services.
(d) Number of participants enrolled in job training or secondary and postsecondary education classes as an assignment for work first.
(2) If the department determines that a report similar to the one outlined in this section is feasible, the department shall submit this report on an annual basis to the house and senate appropriations subcommittees on regulatory and the house and senate fiscal agencies and shall make it available to the public.
Sec. 450. As a condition of receiving funds under part 1 of this act, the department of Michigan jobs commission shall not expend any of the economic development job training grant funds to train any employee who is an officer of a corporation in a corporation employing more than 250 employees.
This act is ordered to take immediate effect.
Clerk of the House of Representatives.
Secretary of the Senate.
Approved
Governor.