HB-5344, As Passed Senate, March 27, 2008

 

 

 

 

 

 

 

 

 

 

 

SENATE SUBSTITUTE FOR

 

HOUSE BILL NO. 5344

 

(As amended, March 27, 2008)

 

 

 

 

 

 

 

 

 

 

 

     A bill to make, supplement, and adjust appropriations for

 

various state departments and agencies for the fiscal year ending

 

September 30, 2008; to provide for the expenditure of the

 

appropriations; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

PART 1

 

LINE-ITEM APPROPRIATIONS

 

     Sec. 101. There is appropriated for the various state

 

departments and agencies to supplement appropriations for the

 

fiscal year ending September 30, 2008, from the following funds:

 

APPROPRIATION SUMMARY

 

   Full-time equated classified positions........... 11.0

 

GROSS APPROPRIATION.................................... $  <<134,656,400>>

 


House Bill No. 5344 as amended March 27, 2008

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $  <<134,656,400>>

 

Total federal revenues.................................      <<72,432,700>>

 

Total local revenues...................................         2,310,300

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................      <<20,806,400>>

 

State general fund/general purpose..................... $   <<39,107,000>>

 

 

 

   Sec. 102. DEPARTMENT OF COMMUNITY HEALTH

 

   (1) APPROPRIATION SUMMARY

 

GROSS APPROPRIATION.................................... $  <<137,144,400>>

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $  <<137,144,400>>

 

Total federal revenues.................................      <<58,800,000>>

 

Total local revenues...................................         1,198,400

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................        41,206,400

 

State general fund/general purpose..................... $     35,939,600

 

   (2) MEDICAL SERVICES

 

Hospital services and therapy.......................... $     60,821,000

 

Health plan services...................................      <<40,383,800>>

 

Subtotal basic medical services program................     <<101,204,800>>

 

School-based services..................................        35,939,600

 

Subtotal special medical services payments.............        35,939,600

 

GROSS APPROPRIATION.................................... $  <<137,144,400>>

 


House Bill No. 5344 as amended March 27, 2008

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................      <<58,800,000>>

 

   Special revenue funds:

 

Total local revenues...................................         1,198,400

 

Total other state restricted revenues..................        41,206,400

 

State general fund/general purpose..................... $     35,939,600

 

 

 

   Sec. 103. DEPARTMENT OF EDUCATION

 

   (1) APPROPRIATION SUMMARY

 

   Full-time equated classified positions............ 6.0

 

GROSS APPROPRIATION.................................... $      3,322,400

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $      3,322,400

 

Total federal revenues.................................         3,322,400

 

Total local revenues...................................                 0

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................                 0

 

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

 

   (2) EDUCATIONAL ASSESSMENT AND ACCOUNTABILITY

 

   Full-time equated classified positions............ 6.0

 

Educational assessment operations--6.0 FTE positions... $       3,322,400

 

GROSS APPROPRIATION.................................... $      3,322,400

 

    Appropriated from:

 

   Federal revenues:

 

Federal revenues.......................................         3,322,400

 


House Bill No. 5344 as amended March 27, 2008

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

 

 

 

   Sec. 104. DEPARTMENT OF ENVIRONMENTAL QUALITY

 

   (1) APPROPRIATION SUMMARY

 

GROSS APPROPRIATION.................................... $      <<250,000>>

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $      <<250,000>>

 

Total federal revenues.................................                 0

 

Total local revenues...................................                 0

 

Total private revenues.................................                 0

 

Total other state restricted revenues.................. <<(10,750,000)>>

 

State general fund/general purpose..................... $     11,000,000

 

   (2) AIR QUALITY

 

Air quality programs................................... $               0

 

GROSS APPROPRIATION.................................... $              0

 

    Appropriated from:

 

   Special revenue funds:

 

Air emissions fees.....................................        (3,527,400)

 

State general fund/general purpose..................... $      3,527,400

 

   (3) ENVIRONMENTAL SCIENCE AND SERVICES DIVISION

 

Pollution prevention and technical assistance.......... $               0

 

GROSS APPROPRIATION.................................... $              0

 

    Appropriated from:

 

   Special revenue funds:

 

Air emissions fees.....................................          (377,600)

 

Waste reduction fee revenue............................          (175,200)

 


State general fund/general purpose..................... $        552,800

 

   (4) OFFICE OF GEOLOGICAL SURVEY

 

Mineral wells management............................... $               0

 

GROSS APPROPRIATION.................................... $              0

 

    Appropriated from:

 

   Special revenue funds:

 

Mineral well regulatory fee revenue....................           (75,000)

 

State general fund/general purpose..................... $         75,000

 

   (5) LAND AND WATER MANAGEMENT

 

Field permitting and project assistance................ $              0

 

Great Lakes shorelands.................................                 0

 

GROSS APPROPRIATION.................................... $              0

 

    Appropriated from:

 

   Special revenue funds:

 

Land and water permit fees.............................        (2,965,000)

 

State general fund/general purpose..................... $      2,965,000

 

   (6) WASTE AND HAZARDOUS MATERIALS

 

Hazardous waste management program..................... $              0

 

Solid waste management program.........................                 0

 

GROSS APPROPRIATION.................................... $              0

 

    Appropriated from:

 

   Special revenue funds:

 

Environmental pollution prevention fund................        (1,066,900)

 

Solid waste program fees...............................          (510,500)

 

State general fund/general purpose..................... $      1,577,400

 

   (7) WATER

 

Drinking water and environmental health................ $              0

 


House Bill No. 5344 as amended March 27, 2008

Groundwater discharge..................................                 0

 

GROSS APPROPRIATION.................................... $              0

 

    Appropriated from:

 

   Special revenue funds:

 

Groundwater discharge permit fees......................        (1,709,900)

 

On-site wastewater treatment program fund..............          (592,500)

 

State general fund/general purpose..................... $      2,302,400

   <<(8) GRANTS

Real-time water quality monitoring.....................           250,000

GROSS APPROPRIATION....................................           250,000

    Appropriated from:

   Special revenue funds:

Settlement funds.......................................           250,000

State general fund/general purpose.....................                 0>>

 

   Sec. 105. HIGHER EDUCATION

 

   (1) APPROPRIATION SUMMARY

 

GROSS APPROPRIATION.................................... $     (9,700,000)

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $     (9,700,000)

 

Total federal revenues.................................                 0

 

Total local revenues...................................                 0

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................        (9,700,000)

 

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

 

   (2) GRANTS AND FINANCIAL AID

 

Michigan merit award program........................... $     (7,700,000)

 

Michigan promise grant program.........................        (2,000,000)

 

GROSS APPROPRIATION.................................... $     (9,700,000)

 

    Appropriated from:

 

   Special revenue funds:

 

Michigan merit award trust fund........................        (9,700,000)

 

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

 


 

 

   Sec. 106. DEPARTMENT OF HUMAN SERVICES

 

   (1) APPROPRIATION SUMMARY

 

GROSS APPROPRIATION.................................... $     13,182,800

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $     13,182,800

 

Total federal revenues.................................        10,310,300

 

Total local revenues...................................           622,400

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................                 0

 

State general fund/general purpose..................... $      2,250,100

 

   (2) ADULT AND FAMILY SERVICES

 

Nutrition education.................................... $       9,688,400

 

GROSS APPROPRIATION.................................... $      9,688,400

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................         9,688,400

 

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

 

   (3) CHILDREN'S SERVICES

 

Foster care payments................................... $      2,281,200

 

Adoption support services..............................         213,100

 

GROSS APPROPRIATION.................................... $      2,494,300

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................           621,900

 

   Special revenue funds:

 


Local funds - county chargeback........................           622,400

 

State general fund/general purpose..................... $      1,250,000

 

   (4) JUVENILE JUSTICE SERVICES

 

Child care fund........................................ $         838,600

 

GROSS APPROPRIATION.................................... $        838,600

 

    Appropriated from:

 

State general fund/general purpose..................... $        838,600

 

   (5) LOCAL OFFICE STAFF AND OPERATIONS

 

Field staff, salaries and wages........................ $         161,500

 

GROSS APPROPRIATION.................................... $        161,500

 

    Appropriated from:

 

State general fund/general purpose..................... $        161,500

 

 

 

   Sec. 107. JUDICIARY

 

   (1) APPROPRIATION SUMMARY

 

GROSS APPROPRIATION.................................... $        489,500

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                0

 

ADJUSTED GROSS APPROPRIATION........................... $        489,500

 

Total federal revenues.................................                 0

 

Total local revenues...................................           489,500

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................                 0

 

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

 

   (2) SUPREME COURT

 

Direct trial court automation support.................. $         489,500

 

GROSS APPROPRIATION.................................... $        489,500

 


    Appropriated from:

 

   Special revenue funds:

 

Local - user fees......................................           489,500

 

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

 

 

 

   Sec. 108. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

 

   (1) APPROPRIATION SUMMARY

 

GROSS APPROPRIATION.................................... $        117,300

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $        117,300

 

Total federal revenues.................................                 0

 

Total local revenues...................................                 0

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................                 0

 

State general fund/general purpose..................... $        117,300

 

   (2) VETERANS SERVICE ORGANIZATIONS

 

American legion........................................ $         26,600

 

Disabled American veterans.............................            22,000

 

Marine corps league....................................            10,100

 

American veterans of World War II and Korea............            13,900

 

Veterans of foreign wars...............................            26,600

 

Michigan paralyzed veterans of America.................             5,000

 

Purple heart...........................................             4,700

 

Polish legion of American veterans.....................             1,200

 

Jewish veterans of America.............................             1,200

 

State of Michigan council - Vietnam veterans of

 


   America..............................................             4,800

 

Catholic war veterans..................................             1,200

 

GROSS APPROPRIATION.................................... $        117,300

 

    Appropriated from:

 

State general fund/general purpose..................... $        117,300

 

 

 

   Sec. 109. DEPARTMENT OF NATURAL RESOURCES

 

   (1) APPROPRIATION SUMMARY

 

   Full-time equated classified positions............ 5.0

 

GROSS APPROPRIATION.................................... $      1,050,000

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $      1,050,000

 

Total federal revenues.................................                 0

 

Total local revenues...................................                 0

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................            50,000

 

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

 

   (2) FOREST, MINERAL, AND FIRE MANAGEMENT

 

   Full-time equated classified positions............ 5.0

 

Wildfire protection--5.0 FTE positions................. $        500,000

 

Forest recreation and trails...........................           500,000

 

GROSS APPROPRIATION.................................... $      1,000,000

 

    Appropriated from:

 

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

 

   (3) GRANTS

 

St. Jean public boat launch............................ $          50,000

 


GROSS APPROPRIATION.................................... $         50,000

 

    Appropriated from:

 

   Special revenue funds:

 

Michigan state waterways fund..........................            50,000

 

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

 

 

 

   Sec. 110. DEPARTMENT OF STATE POLICE

 

   (1) APPROPRIATION SUMMARY

 

GROSS APPROPRIATION.................................... $      4,300,000

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $      4,300,000

 

Total federal revenues.................................                 0

 

Total local revenues...................................                 0

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................                0

 

State general fund/general purpose..................... $      4,300,000

 

   (2) FORENSIC SCIENCES

 

Laboratory operations.................................. $       2,000,000

 

GROSS APPROPRIATION.................................... $      2,000,000

 

    Appropriated from:

 

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

 

   (3) POST UNIFORM SERVICES

 

At-post troopers....................................... $       1,000,000

 

GROSS APPROPRIATION.................................... $      1,000,000

 

    Appropriated from:

 

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

 


House Bill No. 5344 as amended March 27, 2008

   (4) INFORMATION TECHNOLOGY

 

Information technology services and projects........... $       1,300,000

 

GROSS APPROPRIATION.................................... $      1,300,000

 

    Appropriated from:

 

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

 

 

 

   Sec. 111. DEPARTMENT OF TREASURY

 

   (1) APPROPRIATION SUMMARY

 

GROSS APPROPRIATION.................................... $  <<(15,500,000)>>

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $  <<(15,500,000)>>

 

Total federal revenues.................................                 0

 

Total local revenues...................................                 0

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................                 0

 

State general fund/general purpose..................... $  <<(15,500,000)>>

 

   (2) DEBT SERVICES

 

Quality of life bond................................... $     (8,000,000)

 

Clean Michigan initiative..............................       (18,000,000)

 

Great Lakes water quality bond.........................        (4,000,000)

 

GROSS APPROPRIATION.................................... $    (30,000,000)

 

    Appropriated from:

 

State general fund/general purpose..................... $    (30,000,000)

 

   (3) GRANTS

 

Presidential primary................................... $      10,000,000

 

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

 


House Bill No. 5344 as amended March 27, 2008

    Appropriated from:

 

State general fund/general purpose..................... $     10,000,000

 

   (4) MICHIGAN STRATEGIC FUND

 

Michigan State University bio-energy grant.............         3,500,000

<<Business incubator – Washtenaw County................           500,000>>

<<Business incubator - Macomb County................... $         500,000>>

 

GROSS APPROPRIATION.................................... $    <<4,500,000>>

 

    Appropriated from:

 

State general fund/general purpose..................... $    <<4,500,000>>

 

 

 

PART 2

 

PROVISIONS CONCERNING APPROPRIATIONS

 

GENERAL SECTIONS

 

     Sec. 201. In accordance with the provisions of section 30 of

 

article IX of the state constitution of 1963, total state spending

 

from state resources in this appropriation act for the fiscal year

 

ending September 30, 2008 is <<$59,913,400.00>> and state

 

appropriations paid to local units of government are

$13,500,000.00.

     Sec. 202. The appropriations made and expenditures authorized

under this act and the departments, commissions, boards, offices,

and programs for which appropriations are made under this act are

subject to the management and budget act, 1984 PA 431, MCL 18.1101

to 18.1594.

<<DEPARTMENT OF COMMUNITY HEALTH

 

     Sec. 301. (1) From the funds appropriated in part 1 for long-term care services, the department of community health shall contract with a stand-alone psychiatric facility that provides at least 20% of its total care to Medicaid recipients to provide access to Medicaid recipients who require specialized Alzheimer's disease or dementia care.

     (2) The department of community health shall report to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies on the effectiveness of the contract required under subsection (1) to improve the quality of services to Medicaid recipients.>>

 

DEPARTMENT OF EDUCATION

 

     Sec. 411. From the unexpended balances of appropriations for

 

educational assessment and accountability operations for the fiscal

 


House Bill No. 5344 as amended March 27, 2008

year ending September 30, 2008, up to $3,000,000.00 may be carried

 

forward as a work project and expended for a testing item bank

 

system. The work shall be carried out by state employees, or by

 

contract as necessary, at an estimated cost of $3,000,000.00. The

 

estimated completion date of the work is September 30, 2009.

<<DEPARTMENT OF ENVIRONMENTAL QUALITY

 

     Sec. 451. The appropriation in part 1 for real-time water quality monitoring is a grant to Macomb County and Huron-Erie corridor to support a real-time water quality monitoring program in the St. Clair watershed. Not later than September 30, 2008, grant recipients shall report to the department of environmental quality on the program's implementation and status. The department of environmental quality shall forward the report to the state budget director, the senate and house appropriations subcommittees on environmental quality, the senate and house standing committees on natural resources and environmental issues, and the senate and house fiscal agencies. Funding is contingent upon development of a department of environmental quality approved plan for long-term  funding of operation and maintenance of the real-time monitoring system for the Huron-Erie corridor.>>

 

DEPARTMENT OF HUMAN SERVICES

 

     Sec. 456. A private nonprofit provider of juvenile services

 

may receive funding for services of different security levels if

 

the provider has appropriate services for each security level and

 

adequate measures to physically separate residents of each security

 

level. However, to be eligible for funding, the private nonprofit

 

service provider shall not use a for-profit management group or

 

contract with a for-profit organization for its management, except

 

pursuant to an arrangement or written management contract existing

 

prior to August 1, 2007.

 

     Sec. 458. From the money appropriated in part 1 of 2007 PA 131

 

for adoption support services, $1,049,400.00 is allocated to

 

support new adoption contracts focusing on long-term permanent

wards who have been wards for more than 1 year after termination of

parental rights. Private agencies shall receive $16,000.00 for each

finalized placement under the new program.

     Sec. 460. (1) Beginning October 1, 2007, from the funds

appropriated in part 1 of 2007 PA 131, the department shall

reimburse a private child placing agency for an adoption placement

or finalization at the following unit rate, as applicable,

depending on the category into which the placement falls under

 


subsection (2):

 

     (a) For basic and standard, $2,594.00 for a placement,

 

$1,733.00 for a finalization.

 

     (b) For enhanced, $4,068.00 for a placement, $2,712.00 for a

 

finalization.

 

     (c) For premium, $5,404.00 for a placement, $3,603.00 for a

 

finalization.

 

     (d) For residential, $6,240.00 for a placement, $4,160.00 for

 

a finalization.

 

     (e) For I-MARE, $4,368.00 for a placement, $2,912.00 for a

 

finalization.

 

     (f) For MARE, $5,819.00 for a placement, $3,879.00 for a

 

finalization.

 

     (g) For preplacement, $1,352.00 for basic or standard,

 

$2,704.00 for enhanced.

 

     (2) The following categories shall be used to determine which

 

unit rate is applicable under subsection (1):

 

     (a) The residential category shall be used for a placement

 

that involves a child who was being cared for in a residential

 

child caring institution.

 

     (b) The MARE category shall be used for a placement other than

 

an interagency placement in which the private agency used the

 

Michigan adoption resource exchange photo-listing system.

 

     (c) The I-MARE category shall be used for an interagency

 

placement in which the private agency used the Michigan adoption

 

resource exchange photo-listing system.

 

     (d) A placement to which subdivisions (a) to (c) do not apply

 


shall be reimbursed based on the length of time between the

 

termination of parental rights or case referral and the placement

 

as follows:

 

     (i) The premium category shall be used if the placement is

 

achieved less than 6 months after the termination of parental

 

rights, or after the case referral to the agency if the case was

 

referred 3 months or more after termination.

 

     (ii) The enhanced category shall be used if the placement is

 

achieved 6 months or more but less than 9 months after the

 

termination of parental rights, or after the case referral to the

 

agency if the case was referred 3 months or more after termination.

 

     (iii) The basic and standard category shall be used if the

 

placement is achieved 9 months or more after the termination of

 

parental rights, or after the case referral to the agency if the

 

case was referred 3 months or more after termination.

 

     (3) The department shall not establish a payment category or

 

unit rate other than those in this section and shall not expend

 

funds appropriated in part 1 for a payment that does not fall

 

within a payment category or unit rate structure established in

 

this section.

 

     Sec. 461. The department will implement a $25.00 annual fee

 

pursuant to title IV-D, section 454(6)(B)(ii) of the social security

 

act, 42 USC 651. The fee shall be deducted from support collected

 

on behalf of the individual. Fee revenues shall be used to

 

administer and operate the child support program under part D of

 

title IV of the social security act.

 

     Sec. 463. As a condition of receipt of federal TANF funds,

 


homeless shelters and human service agencies shall collaborate with

 

the department to obtain necessary TANF eligibility information on

 

families as soon as possible after admitting a family to the

 

homeless shelter. From the funds appropriated in part 1 for

 

homeless programs, the department is authorized to make allocations

 

of TANF funds only to the agencies that report necessary data to

 

the department for the purpose of meeting TANF eligibility

 

reporting requirements. Homeless shelters that do not report

 

necessary data to the department for the purpose of meeting TANF

 

eligibility reporting requirements will not receive reimbursements

 

which exceed the per diem amount they received in fiscal year 2000.

 

The use of TANF funds under this section should not be considered

 

an ongoing commitment of funding.

 

     Sec. 464. The state supplementation level under the

 

supplemental security income program for the personal care/adult

 

foster care and home for the aged categories shall not be reduced

 

below the level in effect on October 1, 2006. The legislature shall

 

be notified not less than 30 days before any proposed reduction in

 

the state supplementation level.

 

 

 

DEPARTMENT OF LABOR AND ECONOMIC GROWTH

 

     Sec. 502. (1) The amount of $2,163,400.00 in the housing and

 

community development fund is hereby appropriated and may be

 

expended by the state housing development authority as provided in

 

sections 58c and 58d of the state housing development authority act

 

of 1966, 1966 PA 346, MCL 125.1458c and 125.1458d.

 

     (2) The state housing development authority shall report by

 


House Bill No. 5344 as amended March 27, 2008

May 1 to the senate and house standing committees on appropriations

 

subcommittees on economic development, the senate and house fiscal

 

agencies, and the state budget office on the status of the projects

 

described in subsection (1), including the statewide allocation

 

plan, the number of applicants, amounts requested, description of

 

projects, amounts rewarded, number of housing units that have been

 

or are projected to be created, and income levels of the households

 

that have been or are projected to be served.

 

 

 

DEPARTMENT OF NATURAL RESOURCES

 

     Sec. 560. The appropriation in part 1 for the St. Jean public

 

boat launch shall be provided to the city of Detroit to make

 

necessary improvements to the Vaughn-Reid marine launching park,

 

including the installation of a floating dock, dredging to remove

 

material impeding boater access, and on-site fencing.

 

 

 

DEPARTMENT OF TRANSPORTATION

 

     Sec. 572. For the fiscal year ending September 30, 2008, there

 

is appropriated from the state general fund $6,500,000.00 to the

 

transportation economic development fund created in section 2 of

 

1987 PA 231, MCL 247.902.

 

 

 

DEPARTMENT OF TREASURY

     <<Sec. 601. It is the intent of the legislature that the department

of treasury implement a cigarette stamping program utilizing new digital

stamping technology.>>

 

 

 

MICHIGAN STRATEGIC FUND

 

     Sec. 610. (1) The appropriation in part 1 of 2007 PA 127 to

 

the fund for the economic development job training program is

 

focused on skills businesses need to compete in the twenty-first

 


century. The purpose of this program is to develop a specific

 

skill, identified for a particular business that assists that

 

company to compete in the global economy and to create or retain

 

high-paying jobs for Michigan residents.

 

     (2) Not more than $800,000.00 of the total appropriation in

 

part 1 may be expended for administrative costs by the fund. Not

 

more than 10% of the total grant award may be expended by a

 

recipient for administration costs.

 

     (3) No funds appropriated in part 1 of 2007 PA 127 to the fund

 

for the economic development job training program grants may be

 

expended for the training of permanent striker replacement workers,

 

unless a strike exceeds 3 years and good faith negotiations are

 

ongoing.

 

     (4) Of the total funds appropriated in part 1 of 2007 PA 127

 

for the economic development job training program grants,

 

$4,500,000.00 of the funds shall be awarded to community colleges

 

or a consortium of community colleges and other eligible applicants

 

pursuant to subsection (5). Remaining funds may be awarded to any

 

of the entities listed in subsection (5) or businesses which create

 

at least 100 new jobs at a single location in a period not to

 

exceed 2 years from the date of the grant award.

 

     (5) An applicant may be a school district, intermediate school

 

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 school districts,

 

intermediate school districts, community colleges, nonprofit

 

organizations described in this subsection, or public or private

 

nonprofit colleges or universities described in this subsection or

 

businesses which meet the criteria set in subsection (4).

 

     (6) On or before October 1, 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.

 

     (7) 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.

 

     (8) 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 within a predetermined time period. For grants to

 

businesses permitted under subsection (4), if the business does not

 

create or retain the number of jobs specified within the

 

predetermined time period, the business shall reimburse the state

 

for the amount of the grant equal to the percentage difference

 

between the number of jobs the business committed to create or

 

retain and the number actually created or retained. The number of

 

jobs created and retained will be verified by the business via

 

audit after the training is completed.

 

     (c) Other criteria determined by the fund to be important.

 

     (9) Participants in the economic development job training

 

program shall be 16 years or older and not enrolled and counted in

 

membership in a school district, intermediate school district, or

 

community college, or any other program funded with state funding.

 

Any training provider that receives state appropriated funds shall

 

not include in the enrollment data reported for determining state

 

aid any student credit hours or student contact hours for a student

 

who is a participant in the economic development job training

 

program. Exclusions of these students is intended to avoid payment

 

of state aid for the same individuals for whom training costs are

 

paid for through the economic development job training program.

 

     (10) A recipient of a grant under this section shall not

 

charge tuition or fees to participants in the program funded by the

 

economic development job training program 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.

 

     (11) For training delivered to incumbent workers, the business

 

receiving the benefit of the training shall provide a minimum of

 

30% of the program costs in matching funds as necessitated by the

 

program.

 

     (12) Grant funds shall be expended on a cost reimbursement

 

basis.

 

     (13) 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. A grant

 

recipient or contractor shall reimburse the state for all

 

disallowances found in the audit. Costs disallowed under subsection

 

(8)(b) based on the employer job creation and retention

 

requirements are not the same as the training costs that are

 

disallowed in this subsection.

 

     (14) The fund shall provide to the state budget director and

 

the fiscal agencies by November 1 of each year a report on the

 

economic development job training program grants. The report 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.

 

     (15) As a condition of receiving funds under part 1 of 2007 PA

 

127, the fund shall not expend any of the economic development job

 

training program funds to train any employee who is an officer of a

 

corporation in a corporation employing more than 250 employees.

 

     (16) The Michigan strategic fund shall allocate $500,000.00

 

for aeronautics certification grants as described in this

 

subsection. The grants shall be funded from the appropriation in

 

part 1 for economic development job training grants or work project

 

funds available for the defense contract coordination center, or

 

both. The Michigan strategic fund shall report to the senate and

 

house subcommittees on general government, the fiscal agencies, and

 

the state budget office by January 15, 2008 on the sources of

 

funding for this program. $500,000.00 shall be allocated for the

 

following purposes:

 

     (a) $250,000.00 shall be allocated for aeronautics

 

certification grants to assist manufacturers in becoming certified

 

for aerospace manufacturing. Priority shall be given to ISO or TS

 

certified companies that are members of a state of Michigan

 

nonprofit, tax-exempt aerospace manufacturers association and have

 

received a request for quotes or request for proposal from an

 

aerospace company. Grant awards of up to $10,000.00 shall be given

 

to a qualifying company seeking such certification. As used in this

 


section, "ISO" means international organization for standardization

 

and "TS" means technical specification.

 

     (b) $250,000.00 shall be provided to the Michigan aerospace

 

manufacturers association, a nonprofit, tax-exempt, aerospace-based

 

manufacturing association. Funding shall be used for organizational

 

assistance and to advance and promote the aerospace manufacturing

 

community in the state of Michigan within the global economy.

 

     Sec. 613. From the funds appropriated in part 1 of 2007 PA 127

 

to the 21st century jobs fund program, $1,400,000.00 shall be

 

granted by the Michigan strategic fund board to the Michigan small

 

business and technology development centers to be used for the

 

small business technology transfer or small business innovation

 

research grant or loan matching programs. These funds shall only be

 

used to provide the required match. Grants or loans under this

 

section shall not exceed 25% of the federal funds and must leverage

 

third-party commercialization funding at both the phase I and phase

 

II levels.

 

 

 

REPEALER

 

     Sec. 701. The following sections are repealed:

 

     (a) Sections 1002 and 1024 of 2007 PA 127.

 

     (b) Sections 566, 573, 609, 615, 643, and 723 of 2007 PA 131.