Act No. 292
Public Acts of 2000
Approved by the Governor*
July 14, 2000
Filed with the Secretary of State
July 14, 2000
EFFECTIVE DATE: July 14, 2000
*Item Vetoes
Sec. 103. MICHIGAN STRATEGIC FUND (2)
Small business development center network $250,000 (Page 4)
Sec. 411.
Entire Section. (Page 14-15)
STATE OF MICHIGAN
90TH LEGISLATURE
REGULAR SESSION OF 2000
Introduced by Reps. Kukuk, Godchaux, Pappageorge, Mortimer, Jellema, Byl, Mead, Geiger, Pumford, Cameron Brown, Caul, LaSata, Jelinek, Scranton, Stamas and Jansen
ENROLLED HOUSE BILL No. 5274
AN ACT to make appropriations for the department of career development and the Michigan strategic fund and certain other state purposes for the fiscal year ending September 30, 2001; to provide for the expenditure of the appropriations; and to provide for the disposition of fees and other income received by the state agencies.
The People of the State of Michigan enact:
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of career development and the Michigan strategic fund for the fiscal year ending September 30, 2001, from the funds indicated in this part, the following:
TOTAL APPROPRIATIONS
Full-time equated unclassified positions 6.0
Full-time equated classified positions 1,374.0
GROSS APPROPRIATION $ 692,787,200
Total interdepartmental grants and intradepartmental transfers $ 1,148,000
ADJUSTED GROSS APPROPRIATION $ 691,639,200
Federal revenues:
Total federal revenues 521,492,000
Special revenue funds:
Total local revenues 14,962,800
Total private revenues 3,327,100
Total other state restricted revenues 60,545,800
State general fund/general purpose $ 91,311,500
Sec. 102. DEPARTMENT OF CAREER DEVELOPMENT
(1) APPROPRIATION SUMMARY:
Full-time equated unclassified positions 6.0
Full-time equated classified positions 1,139.0
GROSS APPROPRIATION $ 523,454,400
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers 1,048,000
ADJUSTED GROSS APPROPRIATION $ 522,406,400
Federal revenues:
Total federal revenues 468,818,800
Special revenue funds:
Total local revenues 14,962,800
Total private revenues 2,670,400
Total other state restricted revenues 10,495,800
State general fund/general purpose $ 25,458,600
(2) DEPARTMENTAL ADMINISTRATION
Full-time equated unclassified positions 6.0
Unclassified salaries $ 546,900
GROSS APPROPRIATION $ 546,900
Appropriated from:
State general fund/general purpose $ 546,900
(3) DEPARTMENT OPERATIONS
Full-time equated classified positions 103.0
Administration--103.0 FTE positions $ 11,562,800
Building occupancy charges - property development services 479,000
Special project advances 200,000
Worker's compensation 213,900
GROSS APPROPRIATION $ 12,455,700
Appropriated from:
Federal revenues:
CNS 102,000
DED-OSERS, rehabilitation services, vocational rehabilitation of state grants 4,180,700
DOL-ETA, workforce investment act 645,900
DOL, federal funds 3,279,000
HHS, temporary assistance for needy families 1,514,200
Special revenue funds:
Private - special project advances 200,000
Contingent fund, penalty and interest account 397,900
State general fund/general purpose $ 2,136,000
(4) WORKFORCE DEVELOPMENT
Full-time equated classified positions 669.0
Employment training services--574.0 FTE positions $ 60,743,100
Michigan career and technical institute--95.0 FTE positions 10,163,200
GROSS APPROPRIATION $ 70,906,300
Appropriated from:
Interdepartmental grant revenues:
IDG-MDOC 32,400
Federal revenues:
CNS 532,400
DAG, employment and training 258,300
DED, cooperative demonstration, school-to-work 700,000
DED-OPSE, multiple grants 615,500
DED-OSERS, centers for independent living 58,200
DED-OSERS, rehabilitation long-term training 566,900
DED-OSERS, rehabilitation services, vocational rehabilitation of state grants 41,327,200
DED-OSERS, state grants for technical related assistance 55,700
DOL-ETA, multiple grants 596,300
DOL-ETA, workforce investment act 3,172,400
DOL-NOICC 171,900
HHS, temporary assistance for needy families $ 3,725,100
HHS-SSA, supplemental security income 4,185,500
Special revenue funds:
Private - gifts, bequests, and donations 1,396,300
Local vocational rehabilitation match 3,247,100
Rehabilitation services fees 1,236,900
Second injury fund 51,500
Student fees 308,000
Training material fees 256,300
State general fund/general purpose $ 8,412,400
(5) CAREER EDUCATION PROGRAMS
Full-time equated classified positions 64.0
Career and technical education--30.0 FTE positions $ 2,969,700
Postsecondary education--22.0 FTE positions 2,359,900
Adult education--12.0 FTE positions 1,753,100
GROSS APPROPRIATION $ 7,082,700
Appropriated from:
Federal revenues:
Federal revenues 5,192,300
Special revenue funds:
Private - occupational school license fees 274,100
Defaulted loan collection fees 102,200
State general fund/general purpose $ 1,514,100
(6) DEPARTMENT GRANTS
Council of Michigan foundations $ 6,000,000
Adult basic education 11,004,700
Gear-up program grants 2,000,000
Job training programs subgrantees 111,248,300
Michigan community service commission subgrantees 5,900,000
Personal assistance services 462,000
Pre-college programs in engineering and the sciences 1,044,700
Supported employment grants 1,308,600
Technology assistance grants 1,150,000
Vocational education act of 1963 39,500,000
Vocational rehabilitation client services/facilities 50,143,400
Vocational rehabilitation independent living 3,115,700
Welfare-to-work programs 140,499,000
Focus: HOPE 5,494,300
GROSS APPROPRIATION $ 378,870,700
Appropriated from:
Interdepartmental grant revenues:
IDG-MDOC 1,015,600
Federal revenues:
CNS 4,500,000
DAG, employment and training 13,000,000
DED-OESE, gear up 2,000,000
DED-OSERS, centers for independent living 525,000
DED-OSERS, client assistance for individuals with disabilities 400,000
DED-OSERS, rehabilitation services, vocational rehabilitation of state grants 34,935,200
DED-OSERS, rehabilitation services facilities 2,272,500
DED-OSERS, supported employment 1,308,600
DED-OSERS, state grants for technical related assistance 1,150,000
DED-OVAE, adult education 11,004,700
DED-OVAE, basic grants to states 39,500,000
DOL-ETA, workforce investment act 104,602,700
DOL-ETA, multiple grants 4,430,000
HHS, temporary assistance for needy families 127,499,000
HHS-SSA, supplemental security income 2,362,500
Special revenue funds:
Private - gifts, bequests, and donations $ 800,000
Contingent fund, penalty and interest account 1,000,000
Local vocational rehabilitation match 6,437,400
Local vocational rehabilitation facilities match 1,278,300
Tobacco settlement revenue 6,000,000
State general fund/general purpose $ 12,849,200
(7) EMPLOYMENT SERVICE AGENCY
Full-time equated classified positions 303.0
Building occupancy charges - property development service $ 376,400
Rent 373,500
Worker's compensation 141,300
Employment services--251.0 FTE positions 48,326,600
Labor market information--52.0 FTE positions 4,374,300
GROSS APPROPRIATION $ 53,592,100
Appropriated from:
Federal revenues:
DED-OSERS, rehabilitation services, vocational rehabilitation of state grants 1,300,000
DOL, federal funds 47,149,100
Special revenue funds:
Contingent fund, penalty and interest account 1,143,000
Local revenue 4,000,000
State general fund/general purpose $ 0
Sec. 103. MICHIGAN STRATEGIC FUND
(1) APPROPRIATION SUMMARY:
Full-time equated classified positions 235.0
GROSS APPROPRIATION $ 169,332,800
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers 100,000
ADJUSTED GROSS APPROPRIATION $ 169,232,800
Federal revenues:
Total federal revenues 52,673,200
Special revenue funds:
Total private revenues 656,700
Total other state restricted revenues 50,050,000
State general fund/general purpose $ 65,852,900
(2) MICHIGAN STRATEGIC FUND
Full-time equated classified positions 235.0
Administration--40.0 FTE positions $ 5,483,300
Job creation services--195.0 FTE positions 24,557,000
Michigan promotion program 8,042,500
Economic development job training grants 31,000,000
Community development block grants 50,000,000
Health and aging research and development strategies 50,000,000
Small business development center network 250,000
GROSS APPROPRIATION $ 169,332,800
Appropriated from:
Interdepartmental grant revenues:
IDG-MDEQ, air quality fees 100,000
Federal revenues:
DOL-ETA, employment service 770,000
HUD-CPD, community development block grant 51,903,200
Special revenue funds:
Private - Michigan certified development corporations fees 156,700
Private - special project advances 500,000
Industry support fees 50,000
Tobacco settlement revenue 50,000,000
State general fund/general purpose $ 65,852,900
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2000-2001 is $151,857,300.00 and state spending from state resources to be paid to local units of government for fiscal year 2000-2001 is $0.00.
Sec. 202. The appropriations authorized under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 203. As used in this appropriation act:
(a) "CDBG" means community development block grant.
(b) "CNS" means the corporation for national services.
(c) "DAG" means the United States department of agriculture.
(d) "DED" means the United States department of education.
(e) "DED-OESE" means the DED office of elementary and secondary education.
(f) "DED-OPSE" means the DED office of postsecondary education.
(g) "DED-OSERS" means the DED office of special education rehabilitation services.
(h) "DED-OVAE" means the DED office of vocational and adult education.
(i) "Department" means the department of career development.
(j) "Director" means the director of the department of career development.
(k) "DOL" means the United States department of labor.
(l) "DOL-ETA" means the DOL employment and training act.
(m) "DOL-NOICC" means the DOL national occupational information coordinating committee.
(n) "Fiscal agencies" means the Michigan house fiscal agency and the Michigan senate fiscal agency.
(o) "FTE" means full-time equated.
(p) "Fund" means the Michigan strategic fund.
(q) "HHS" means the United States department of health and human services.
(r) "HHS-SSA" means HHS social security administration.
(s) "HUD-CPD" means HUD community planning and development.
(t) "IDG" means interdepartmental grant.
(u) "MDEQ" means the Michigan department of environmental quality.
(v) "MDOC" means the Michigan department of corrections.
(w) "President" means the president of the Michigan strategic fund.
(x) "U.S.C." means the United States Code.
(y) "WIA" means workforce investment act.
Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.
Sec. 205. (1) Beginning October 1, a hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department or 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 state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services. The state budget director shall report by the thirtieth of each month to the chairpersons of the senate and house of representatives standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous month and the justification for the exception.
Sec. 206. (1) In addition to the funds appropriated for the department and the fund in part 1, there is appropriated an amount not to exceed $41,000,000.00 for the department and $7,000,000.00 for the fund 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 the department and $1,000,000.00 for the fund 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 $8,000,000.00 for the department 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 the department and $500,000.00 for the fund 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. 207. At least 60 days before beginning any effort to privatize, the department and fund shall submit a complete project plan to the appropriate senate and house of representatives appropriations subcommittees and the fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the appropriate senate and house of representatives appropriations subcommittees and the fiscal agencies within 30 months.
Sec. 208. The department and fund shall continue to pilot the use of the Internet to fulfill the reporting requirements of this act. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on the Internet or legislative Intranet site. The senate and house of representatives appropriations subcommittees and fiscal agencies shall be notified in writing of the Internet or Intranet site of any such report. Quarterly, the department shall provide a cumulative listing of the reports submitted during the most recent 3-month period along with the Internet or Intranet site of each report, and a list of those reports expected to be transmitted during the fourth quarter. The department shall continue to distribute all of these reports to the legislature in the current printed format.
Sec. 209. Funds appropriated in part 1 shall not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods or services, or both, are available.
Sec. 210. The director of the department and president of the fund receiving appropriations in part 1 shall take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies, or both. Each director or president shall strongly encourage firms with which the department contracts to subcontract with certified businesses in depressed and deprived communities for services, supplies, or both.
Sec. 211. Of the funds appropriated in part 1 that are in units other than the grants unit, the department and the fund shall not provide grants to local government agencies, institutions of higher education, or nonprofit organizations unless the department or the fund provides notice of the grant to the appropriations subcommittees of the house and senate 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. 212. The department and the fund shall provide a report prepared by the department's and the fund's internal auditor on the activities of the internal auditor for the prior fiscal year. This report shall include a listing of each audit or investigation performed by the internal auditor pursuant to sections 486(4) and 487 of the management and budget act, 1984 PA 431, MCL 18.1486 and 18.1487. The report shall identify the proportion of time spent on each of the statutory responsibilities listed in sections 485(4), 486(4), and 487 of the management and budget act, 1984 PA 431, MCL 18.1485, 18.1486, and 18.1487, and the time spent on all other activities performed in the internal audit function. The first report shall be due March 1, 2001 and biennially thereafter beginning on May 1 and shall be submitted to the governor, auditor general, the senate and house appropriations committees, the fiscal agencies, and the director and the president.
Sec. 213. The department and the fund shall establish and maintain affirmative action programs based on guidelines developed by the state equal opportunity workforce planning council which was created by Executive Order No.1996-13 in order to receive general fund/general purpose dollars.
DEPARTMENT OF CAREER DEVELOPMENT
Sec. 301. The Michigan career and technical institute may receive equipment and in-kind contributions for the direct support of staff services through the Pine Lake fund, the Delton-Kellogg school district or other local or intermediate school district, or any combination of local or intermediate school districts in addition to those authorized in part 1.
Sec. 302. 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. 303. The local match requirements for vocational rehabilitation facilities establishment grants shall not exceed 21.3% for the fiscal year ending September 30, 2001.
Sec. 304. (1) Of the funds appropriated in part 1 for vocational rehabilitation independent living, all general fund/general purpose revenue not used to match federal funds shall be used for the support of centers for independent living which are in compliance with federal standards for such centers, for the development of new centers in areas presently unserved or underserved, for technical assistance to centers, and for projects to build capacity of centers to deliver independent living services. Applications for such funds shall be reviewed in accordance with criteria and procedures established by the statewide independent living council, the Michigan rehabilitation services unit within the department, and the Michigan commission for the blind. Funds must be used in a manner consistent with the priorities established in the state plan for independent living. The department is directed to work with the Michigan association of centers for independent living and the local workforce development boards to identify other competitive sources of funding.
(2) The statewide independent living council and the Michigan association of centers for independent living shall jointly produce a report providing the following information:
(a) Results in terms of enhanced statewide access to independent living services to individuals who do not have access to such services through other existing public agencies, including measures by which these results can be monitored over time. These measures shall include:
(i) Total number of persons assisted by the centers and a comparison to the number assisted in the previous year.
(ii) Number of persons moved out of nursing homes into independent living situations and a comparison to the number assisted in the previous year.
(iii) Number of persons for whom accommodations were provided to enable independent living or access to employment and a comparison to the number assisted in the previous year.
(iv) The total number of disabled individuals served by personal care attendants and the number of personal care attendants provided through the use of any funds appropriated in part 1 administered by a center for independent living and a comparison to the number served in the previous year.
(b) Information from each center for independent living receiving funding through appropriations in part 1 detailing their total budget for their most recently completed fiscal year as well as the amount within that budget funded through the vocational rehabilitation independent living grant program referenced in part 1, the total amount funded through other state agencies, the amount funded through federal sources, and the amount funded through local and private sources.
(c) Savings to state taxpayers in other specific areas that can be shown to be the direct result of activities funded from the vocational rehabilitation independent living grant program during the most recently completed state fiscal year.
(3) The report required in subsection (2) shall be submitted to the appropriate appropriations subcommittees, the fiscal agencies, and the state budget director on or before January 15, 2001.
Sec. 305. (1) The appropriation in part 1 to the department for the work first program shall be expended for grants which provide employment and training services to family independence program applicants and recipients and may be expended for grants which provide employment and training services to former family independence program recipients, as well as to recipients of noncash public assistance, specifically child day care, Medicaid, or food stamp benefits. The work first program, however, shall not be construed to be an entitlement to services.
(2) An applicant 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 of education, 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) When the work first job search requirements have been completed, if the participant has not found employment, the work first site shall identify the barriers which may have prevented the participant from obtaining employment and 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.
(4) Work first program participants shall include applicants and 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. Additionally, the department and the family independence agency shall work together to develop a program to provide employment services to former family independence program recipients and to recipients of noncash public assistance benefits such as child day care, Medicaid, or food stamp benefits. This program shall not be construed to be an entitlement to services.
(5) Participants in the work first program shall not be enrolled and counted in membership in a school district or intermediate school district.
(6) The department will work with the family independence agency to coordinate support services to work first participants relating to special/emergency needs.
(7) Work first program participants must receive or be provided an explanation of the program including their benefits and responsibilities before the job interview phase of the program. This explanation shall include clear guidelines with regard to an individual's eligibility for postemployment training support and for applying hours in training toward federal work requirements.
(8) The department 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 $6.00 per hour or more.
(9) The department shall submit to the fiscal agencies and the state budget director by March 15, 2001, 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, a compilation of barriers to employment by incidence and type experienced by participants, and the number of participants referred back to the family independence agency.
(10) 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 the next fiscal year.
(11) The department shall provide to the state budget director and the fiscal agencies by May 15 and November 15 of each year a report on the work first grants. The report due by May 15 shall provide the information described in this subsection for each grant or contract awarded during the preceding 2 quarters of the state fiscal year. The report due by November 15 shall provide this information for each grant or contract awarded during the preceding full fiscal year. The report shall contain both of the following:
(a) The amount and recipient of each grant or contract.
(b) The number of participants in each service delivery area and the number of clients placed in employment in each service delivery area.
(12) The department and the family independence agency shall continue to collaborate on refining and making available to work first participants clear joint guidelines on the eligibility of work first participants for postemployment training support and on how training/education hours can be applied toward federal work participation requirements. These guidelines shall balance the ability of participants to obtain training and subsequent long-term, high-wage employment with the need to connect participants with the workplace. Any and all training/education, with the exception of high school completion and GED preparation, must be occupationally relevant and in demand in the labor market as determined by the workforce development board. Participants must make satisfactory progress while in training/education. The department shall submit a progress report on these continuing efforts to the house and senate appropriations subcommittees with jurisdiction over the department and the family independence agency and to the fiscal agencies by October 1, 2000.
(13) Work first participants may meet the work participation requirement by combining a minimum of 10 hours per week of work with training/education. Training/education may last up to 12 months and the calculated hours may include actual classroom seat time up to 10 hours per week plus up to 1 hour of study time for each hour of classroom seat time. The combined work and training/education hours must equal the minimum number of hours required to meet the federal work participation requirements, 30 hours per week for a single parent, 35 hours per week for 2-parent families, 55 hours if utilizing federally funded day care, and 20 hours per week for single parents with a child under the age of 6. Work first participants may enroll in additional hours of classroom seat time beyond 10 hours. However, these hours and the related study time will not count toward the work participation requirement. The training may be no longer than a 1-year program, or the final year of a 2- or 4-year undergraduate program which is designed to lead to immediate labor force attachment.
(14) Work first participants may meet the federal work participation requirement through enrollment in a short-term vocational program requiring 30 hours of classroom seat time per week for a period not to exceed 6 months, or by enrollment in full-time internships, practicums, or clinicals required by an academic or training institution for licensure, professional certification, or degree completion, without an additional work requirement. Two-parent families who receive federally funded day care must work an additional 25 hours per week to meet the federal work participation requirement. In cases where a short-term vocational program lasts less than 6 months, the participant shall be eligible to enroll in 1 additional short-term vocational program for a combined period not to exceed a total of 6 months.
(15) Work first participants who lack a high school diploma or GED and who enroll in high school completion or classes to obtain a GED may count up to 10 hours of classroom seat time, combined with a minimum number of hours of work per week, to meet their federal work participation requirement. There shall be no time limit on high school completion. GED preparation shall be limited to 6 months.
Sec. 306. (1) Using all relevant state data sources, the department shall acquire data on former work first participants, whose family independence program cases closed due to earnings during fiscal year 1999, for the second year in the continuing longitudinal study started in fiscal year 2000. In addition, first-year data will also be compiled on former work first participants whose family independence program cases were closed due to earnings during fiscal year 2000. The data will include the following:
(a) The number and percentage employed.
(b) The average hourly wage of those employed.
(c) The current hourly wage of those employed.
(d) The range of wages earned by those employed.
(e) The number of individuals that earned each wage amount.
(f) The number and percentage receiving health care benefits from their employer.
(g) The number and percentage receiving tuition reimbursement from their employer.
(h) The number and percentage receiving training benefits from their employer.
(i) The type of jobs obtained by former participants in general categories.
(j) The length of time former participants have retained their jobs, or if participants have had more than 1 job, the length of time employed at each job.
(k) The number and percentage continuing to receive any type of public assistance.
(l) If the former recipient has children, whether the children are enrolled in and attending school.
(m) The extent to which the former participant feels that they and their family are better off now than when they were on cash assistance with regard to household income, housing, food and nutritional needs, child health care, and access to health insurance coverage.
(2) The department shall file a report containing the identified data with the appropriate house and senate appropriation subcommittees and fiscal agencies by March 15, 2001.
(3) The department shall cooperate with the family independence agency in formulating and acquiring the identified data.
(4) The department may retain a third party to conduct the studies to obtain the data identified under this section.
Sec. 307. The department shall work cooperatively with the department of civil service to identify state employees who will lose their jobs as a result of an agency or program being reorganized, modified, or eliminated and shall develop training programs and provide training to these individuals that will provide them an opportunity and skills necessary to secure new employment within state government or the private sector. It shall be a priority of the department to provide training and employment opportunities to these individuals through their employment service locations.
Sec. 308. 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. Each board shall appoint an education advisory group made up of high-level administrators within local educational institutions, workforce development board members, other employers, labor, academic educators, and parents of public school pupils.
Sec. 309. From the funds appropriated in part 1 to job training programs subgrantees, the department shall allocate sufficient funds to the Michigan works! service centers to allow these centers to remain fully operational.
Sec. 310. (1) Of the funds appropriated in part 1 for precollege programs in engineering and the sciences, $620,000.00 shall be provided in the form of a grant to the Detroit precollege engineering program, incorporated and $424,700.00 shall be provided in the form of a grant to the Grand Rapids area precollege engineering program.
(2) The department shall submit a report to the appropriate house and senate appropriations subcommittees and the fiscal agencies by February 1, 2001 regarding dropout rates, grade point averages, enrollment in science, engineering, and math-based curricula, and employment in science, engineering, and math-based fields for students within the programs. The report shall continue to evaluate the effectiveness of the precollege programs in engineering and sciences funded through part 1 appropriations and shall make recommendations on whether state support to expand such programs to other areas of the state is warranted in future fiscal years.
Sec. 311. 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 notifies the appropriations subcommittees of the house and senate of the purpose and amount of each grant award.
Sec. 312. (1) The department shall have at least 1 disabled veterans outreach program specialist or local veterans employment representative present, if able and willing to serve, at each Michigan works! employment services office on a full- or part-time basis during hours of operation.
(2) The department 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, 1999.
(3) The department 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 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 shall require each Michigan works! employment services office to provide free mediated services to employers wishing to hire a veteran.
(6) The department shall continue to make the appropriate placement of veterans and disabled veterans a priority.
Sec. 313. The department shall report to the appropriations subcommittees of the house and senate by September30, 2001, on the distribution of the Michigan community service commission volunteer investment grants.
Sec. 315. The funds appropriated in part 1 for the council of Michigan foundations from tobacco settlement revenue shall be distributed to the council of Michigan foundations as a grant to support local community efforts to address youth and senior health needs. The council may distribute the funds according to a formula determined by the council or may invest these funds. Any investment earnings from this appropriation shall be used for the same purpose as the original appropriation.
Sec. 316. The department may carry into the succeeding fiscal year unexpended federal pass-through funds to local institutions and governments that do not require additional state matching funds. Federal pass-through funds to local institutions and governments that are received in amounts in addition to those included in part 1 and that do not require additional state matching funds are appropriated for the purposes intended.
Sec. 317. Of the amounts appropriated in part 1 for postsecondary education, $250,000.00 of private occupational school license fees shall fund 3.0 FTE positions and related administrative costs of the proprietary schools oversight unit within the department.
Sec. 318. Money in the school loan exception fee fund that is unexpended at the end of the fiscal year shall not revert to the general fund but shall be carried over to the succeeding fiscal year.
Sec. 319. The department is appropriated an amount not to exceed $100,000.00 from collection of defaulted loans under the future faculty program in the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks programs to offset costs of administering the loan collections.
Sec. 320. From the funds appropriated in part 1 for postsecondary education, the department shall compile data from each university that receives funding for the future faculty program within the King-Chavez-Parks initiative on employment outcomes for program participants. The report shall be distributed to the house and senate appropriations committees by February 1 of each year. The report shall include data from each participating university covering the most recently completed fiscal year. The data shall include all of the following:
(a) The number of participants receiving support under the program.
(b) The number of participants obtaining full-time employment.
(c) The number of participants obtaining full-time employment in college faculty positions.
(d) The number of participants obtaining full-time employment in college faculty positions within the university through which they received future faculty program support for graduate studies.
Sec. 321. The appropriation in part 1 for adult education shall be utilized to support the administration of up to $100,000,000.00 in general fund/general purpose revenue for adult education programs. It is the intent of the legislature that department staff funded through the appropriation in part 1 ensure that at least $80,000,000.00 in adult education program funding be distributed through the existing grant process as outlined in section 107 of the state school aid act of 1979, 1979 PA 94, MCL 388.1707. No more than $20,000,000.00 may be administered through any alternative process.
Sec. 323. The department shall work with the department of community health to establish a Medicaid buy-in program for the working disabled through the options available under the federal ticket to work and work incentives improvement act of 1999.
Sec. 324. It is the intent of the legislature that the King-Chavez-Parks initiative is marketed by the department to Michigan parents and high school and college students, to promote the benefits and the availability of its various programs. It is further the intent of the legislature that the department administer the King-Chavez-Parks initiative in the same manner as when it was previously contained in the department of education.
Sec. 325. It is the intent of the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks future faculty program to increase the pool of minority candidates pursuing faculty teaching careers in postsecondary education. Each university shall apply the percentage increase applicable to every university in the calculation of appropriations allocated to the future faculty program.
Sec. 326. (1) It is the intent of the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college day program to introduce school children underrepresented in postsecondary education to the potential of a college education.
(2) Individual program plans of each university shall include a budget of equal contributions from this program, the participating public university, the participating school district, and the participating independent degree-granting college. College day funds shall not be expended to cover indirect cost. Not more than 20% of the university match shall be attributable to indirect costs. Each university shall apply the percentage increase applicable to every university in the calculation of appropriations allocated to the college day program.
Sec. 327. (1) It is the intent of the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks select student support services program to develop academically and economically disadvantaged student retention programs for 4-year public and independent educational institutions in this state.
(2) An award made under this program to any 1 institution shall not be greater than $150,000.00, and the amount awarded shall be matched on a 70% state, 30% college or university basis.
Sec. 328. (1) It is the intent of the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college/university partnership program between 4-year public and independent colleges and universities and public community colleges to increase the number of underrepresented minority students who transfer from community colleges into baccalaureate programs.
(2) The grants shall be made under this program to Michigan public and independent colleges and universities. An award to any 1 institution shall not be greater than $150,000.00, and the amount awarded shall be matched on a 70% state, 30% university basis.
Sec. 329. It is the intent of the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks visiting professors program to increase the number of minority instructors in the classroom and provide role models for underrepresented minority students.
Sec. 330. Each state institution of higher education receiving funds under section 325, 326, 327, 328, or 329 shall notify the department by April 15, 2001 as to whether it will expend by the end of its fiscal year the funds received under section 325, 326, 327, 328, or 329. Notwithstanding the award limitations in sections 327 and 328, the amount of funding reported as not being expended will be reallocated to the institutions that intend to expend all funding received under section 325, 326, 327, 328, or 329.
Sec. 331. (1) It is the intent of the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks initiative for the Morris Hood, Jr. educator development program to increase the number of minority students, especially males, who enroll in and complete K-12 teacher education programs at the baccalaureate level.
(2) The program shall be administered by each state-approved teacher education institution in a manner prescribed by the department.
(3) Approved teacher education institutions may and are encouraged to use student support services funding in coordination with the Morris Hood, Jr. funding to achieve the goals of the program.
MICHIGAN STRATEGIC FUND
Sec. 401. (1) The appropriation in part 1 to the fund 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 fund 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 5% of the total grant, administration, and operating funds appropriated in part 1 for the fund's economic development job training grants program may be expended for administrative costs. Not more than 12% of the total grant awarded to recipients may be expended for administration costs.
(3) No funds appropriated in part 1 to the fund for economic development job training grants may be expended for the training of permanent striker replacement workers.
(4) At least 70% 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, 2000, the fund shall publish proposed application criteria, instructions, and forms for use by eligible applicants. The fund shall provide at least a 2-week period for public comment prior to finalization of the application criteria, instructions, and forms.
(8) The award process will include a simple notice of intent to be reviewed to see if the application merits further consideration. If so, a full application may be submitted. Applications for all grants shall be submitted to the fund, and each application shall contain at least all of the following:
(a) The name, address, and total number of employees of each business organization whose employees are receiving job training.
(b) A description of the specific job skills that will be taught.
(c) A clear statement of the project's scope of activities and number of participants to be involved.
(d) A commitment to maintain participant records in a form and manner required by the fund.
(e) A budget which relates to the proposed activities and various program components.
(9) Priority in the fund's awarding of grants shall be based on the following criteria:
(a) Demonstrated need for the type of training offered.
(b) Creation and/or retention of high wage and high skilled level jobs.
(c) Other criteria determined by the fund 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).
(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) Funds allocated under this section shall be for the purpose of ensuring that employers have trained workers they need to compete in the global economy. The fund shall have on file a specific plan to accomplish its objectives. The program estimated completion cost is the total amount appropriated to the fund and shall have an estimated completion date of September 30, 2005.
(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) For incumbent worker training, the business organization shall provide 25% of the program costs in matching funds as determined by the program.
(15) Grant funds shall be expended on a cost reimbursement basis.
(16) A recipient of a grant under this section shall allow the fund or the agency's designee to audit all records related to the grant for all entities that receive money, either directly or indirectly through a contract, from the grant funds. Agrant recipient or contractor shall reimburse the state for all disallowances found in the audit.
(17) The fund shall provide to the state budget director and the 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.
(18) Of the funds appropriated in part 1 for economic development job training grants, the fund shall not use these funds to finance the startup or in any way subsidize any private distributor of liquor products in Michigan.
(19) As a condition of receiving funds under part 1 of this act, the fund shall not expend any of the economic development job training grant funds to train any employee who is an officer of a corporation in a corporation employing more than 250 employees.
(20) Of the funds appropriated in part 1, $1,000,000.00 may be used for a recruitment program. This will be a pilot program that provides worker recruitment assistance to companies in Michigan. Priority for using the funds shall be to recruit workers from outside the state of Michigan. However, in the event funds are available for in-state recruitment efforts, the Michigan works! agencies shall be utilized unless they indicate they are unable to provide the service.
Sec. 402. 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. 403. The fund shall submit an annual status report to the appropriations subcommittees of the house of representatives and senate on all activities, grants, and investment programs financed from the strategic fund/renaissance fund using investment or Indian gaming revenues. The report shall provide a list of individual grants and loans made from the fund.
Sec. 404. The travel administration may receive and expend private revenue related to the use of the "Michigan Great Lakes. Great Times." copyrighted slogan and image. This revenue may come from the direct licensing of the name and image or from the royalty payments from various merchandise sales. Revenue collected is appropriated for the marketing of the state as a travel destination. The funds are available for expenditure when they are received by the department of treasury.
Sec. 405. Of the funds appropriated in part 1 for the Michigan promotion program, at least 25% of all program funds shall be used to promote cultural tourism opportunities in Michigan. In addition, $200,000.00 shall be used to promote tourism activities in the northeast region of the state.
Sec. 406. The fund shall submit on or before May 1, 2001 and November 1, 2001 to the senate and house of representatives appropriations subcommittees and the fiscal agencies a listing of all grants which have been awarded by the fund or by the Michigan economic development corporation from the funds appropriated in part 1. The list shall include all of the following:
(a) The name of the recipient.
(b) The amount awarded to the recipient.
(c) The purpose of the grant.
Sec. 407. (1) The fund shall provide reports to the relevant senate and house of representatives appropriations subcommittees and the fiscal agencies concerning the activities of the Michigan economic development corporation. The report shall include, but not be limited to, the following programs funded in part 1:
(a) Travel Michigan bureau.
(b) National business development.
(c) International business development.
(d) Small, minority, and disabled business services.
(e) CDBG.
(f) Strategic/renaissance fund administration.
(g) Renaissance zones.
(h) Business roundtables.
(i) Business and clean air ombudsman.
(j) Economic development job training grants.
(k) Film office.
(l) Health and aging research and development initiative.
(m) Any other programs of the fund.
(2) The reports in subsection (1) shall be submitted by January 1, 2001. The report for each program in subsection (1)(a) through (m) shall include details on the actual spending and number of FTEs for that program for the previous fiscal year.
Sec. 408. As a condition of receiving funds under part 1, any interlocal agreement entered into by the fund shall include language which states that if a local unit of government has a contract or memorandum of understanding with a private economic development agency, the Michigan economic development corporation will work cooperatively with that private organization in that local area.
Sec. 409. (1) Of the funds appropriated to the fund or through grants to the Michigan economic development corporation, no funds shall be expended for the purchase of options on land or the purchase of land unless at least 1 of the following conditions applies:
(a) The land is located in an economically distressed area.
(b) The land is obtained through a purchase or exercise of an option at the invitation of the local unit of government and local economic development agency.
(2) It is the intent of the legislature that consideration be given to purchases where the proposed use of the land is consistent with a regional land use plan, will result in the redevelopment of an economically distressed area, can be supported by existing infrastructure, and will not cause shifts in population away from the area's population centers.
(3) As used in this section, "economically distressed area" means an area in a city, village, or township that has been designated as blighted; a city, village, or township that shows negative population change from 1970 and a poverty rate and unemployment rate greater than the statewide average; or an area certified as a neighborhood enterprise zone.
Sec. 410. (1) From the funds appropriated in part 1 for the fund, $50,000,000.00 is appropriated for a health and aging research and development initiative to support basic and applied research in health-related areas, with emphasis on issues related to aging. The program shall be administered by the Michigan economic development corporation.
(2) A health and aging steering committee, appointed by the governor, shall consist of 14 members including the CEO of the Michigan economic development corporation, a member from Michigan State University, the University of Michigan, Wayne State University, the VanAndel Institute, and 2 members from the private sector. The remaining members shall be appointed at large and may include members from the private sector, public sector, or other Michigan universities. The purpose of the steering committee is to provide advice and oversight of the initiative, including the development of criteria for the award of contracts or grants to qualifying universities, institutions, or individuals. The steering committee will make decisions regarding distribution of these grant funds and has the authority to make minor adjustments to the category funding percentage based upon the demands within categories and the quality of the applications received.
(3) Of the funds appropriated, 40% is allocated for a basic research fund, to be distributed on a competitive basis to Michigan universities or Michigan nonprofit research institutes, or both, for basic research in health-related areas. Not less than $5,000,000.00 is allocated to research related to aging diseases and health problems. Fifty percent of the appropriated funds are earmarked for a collaborative research fund to support peer-reviewed collaborative grants among Michigan universities and/or private research facilities, with emphasis on testing or developing emerging discoveries. Up to 10% of the appropriated funds may be used to support a commercial development fund to support commercialization opportunities for life science research in Michigan. Appropriated funds must be matched with other university, private, or federal funding. Not more than 1% of the appropriated funds may be used for administrative costs of administering the initiative.
Sec. 411. (1) The appropriation in part 1 for the Michigan small business development center network shall be awarded to the Michigan small business development center state headquarters, located at Wayne State University, for distribution to the small business development centers' offices located throughout Michigan. The Michigan small business development center state headquarters shall establish criteria for awarding these grant funds, which shall include, but are not limited to, all of the following:
(a) The ability to demonstrate a clear and effective plan to deliver small business management assistance services in this state.
(b) How small business management assistance services will enhance and expand basic services provided by the Michigan small business development center network under its existing cooperative agreement with the United States small business administration.
(2) The Michigan small business development center state headquarters shall compile a summary report to the fund that shall include a financial statement identifying all encumbrances on or expenditures from these grant funds. The summary report shall be submitted by September 30, 2001. The summary report shall include an economic impact analysis resulting from expenditure of the funds. All financial and impact reports shall be made available to the appropriate subcommittee of the house and senate appropriations committee upon request.
Sec. 412. The fund shall inform the members of the appropriate appropriations subcommittees of the house and senate of any decisions to eliminate any foreign outreach personnel.
Sec. 413. The money appropriated in part 1 to the fund is subject to the condition that none is spent for premiums or advertising material involving personal effects or apparel including, but not limited to, T-shirts, hats, coffee mugs, or other promotional items, except Travel Michigan.
Sec. 414. (1) From the general fund/general purpose appropriations in part 1 to the fund and granted or transferred to the Michigan economic development corporation, any unexpended or unencumbered balance shall be returned to the general fund at the end of the fiscal year, unless carryforward authorization has been otherwise provided for in this act.
(2) Any encumbered funds shall be used for the same purposes for which funding was originally appropriated in this act.
Sec. 415. As a condition of receiving funds under part 1, the fund shall ensure that a public body corporate, created under section 28 of article VII of the state constitution of 1963, and the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by a contractual interlocal agreement between local participating economic development corporations formed under the economic development corporations act, 1974 PA 338, MCL 125.1601 to 125.1636, and the Michigan strategic fund, complies with all of the following:
(a) The freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(b) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(c) Annual audits of all financial records by the auditor general or his or her designee.
(d) All reports required by law to be submitted to the legislature.
Sec. 417. As a condition for receiving the appropriations in part 1, any staff of the Michigan economic development corporation involved in private fund-raising activities shall not be party to any decisions regarding the awarding of grants or tax abatements from the Michigan strategic fund, Michigan economic development corporation, or the Michigan economic growth authority.
This act is ordered to take immediate effect.
Clerk of the House of Representatives.
Secretary of the Senate.
Approved
Governor.