ENERGY, LABOR,AND ECONOMIC GROWTH

Summary: Senate Bill 243 (S-1), as passed by the Senate

Analyst: Mark Wolf

April 21, 2009

		FY 2009-10	FY 2009-10	*Difference: Executive* *From FY 2008-09 YTD*		*Difference: Senate* *From FY 2008-09 YTD*
	FY 2008-09 YTD	Revised Exec	Senate	*Amount*	%	*Amount*	%
IDG/IDT	$30,774,200	$29,117,100	$29,117,100	($1,657,100)	(5.4)	($1,657,100)	(5.4)
Federal	874,942,400	918,286,200	917,336,200	43,343,800	5.0	42,393,800	4.8
Local	15,889,200	15,921,000	15,921,000	31,800	0.2	31,800	0.2
Private	5,314,300	5,314,300	5,314,300	0	0.0	0	0.0
Restricted	402,614,000	399,903,500	399,803,500	(2,710,500)	(0.7)	(2,810,500)	(0.7)
GF/GP	72,704,200	73,914,300	65,430,700	1,210,100	1.7	(7,273,500)	(10.0)
Gross	$1,402,238,300	$1,442,456,400	$1,432,922,800	*$40,218,100*	*2.9*	*($30,384,500)*	*2.2*
FTEs	4,383.5	4,723.0	4,705.0	339.5	7.7	321.5	7.3

Note: FY 2008-09 figures reflect supplementals and Executive Order (EO) actions through January 31, 2009. This does not include the $236.1 million in additional federal funding available through the American Recovery and Reinvestment Act and appropriated in 2009 PA 7 (HB 4258). The Revised Executive Recommendation includes a revision, datedMarch 4, 2009, reducing the GF/GP appropriation to the SHPO and archaeology programs, included within MSHDA.

Overview

The Department of Energy, Labor, and Economic Growth (DLEG) has primary responsibility for the regulatory functions that relate specifically to commercial, business, and workers’ issues. It also includes various employment training-related programs for displaced workers, adults, and youth, as well as unemployment and workers compensation administration. Executive Order 2008-20 transferred certain energy-related functions from the Department of Environmental Quality in order to consolidate energy-related programs within the department. The EO also renamed the department, adding "Energy" to its name.

Major Budget Issues

Major Budget Changes From FY 2008-09 YTD Appropriations	FY 2008-09 YTD	Exec. Change From YTD	Senate Change From YTD
Items included in both the Executive and the Senate
1. Energy Program Consolidation (EO 2008-20) Adds 1.0FTE position and $1.9 million (Retired Engineers Technical Assistance Program Fund) for the consolidation of energy programs, mostly transferred from DEQ, within DELEG.	FTEs Gross Restricted GF/GP	N/A N/A N/A N/A	1.0 $1,957,200 1,957,200 $0	1.0 $1,957,200 1,957,200 $0
*2. Unemployment Insurance Agency* Adds 300.0FTE positions and $18.0 million (Federal) to respond to the increased number of UI benefit claims. Also recognizes $4.6 million (Federal) for postage costs, which were previously paid directly byDOL but are now provided to states (including UIA) to pay postage costs.	FTEs Gross Federal Restricted	1,002.7 $103,928,000 90,870,300 13,057,700	300.0 $22,587,800 22,587,800 0	300.0 $22,587,800 22,587,800 0
*3. Office of Financial and Insurance Regulation (OFIR)* Adds 1.0FTE position and $59,900 (Securities Fees) to implement increased responsibilities of 2008 PA 551 (updated Uniform Securities Act).	FTEs Gross Federal Restricted	348.0 $52,670,200 50,400 52,169,800	1.0 $59,900 0 59,900	1.0 $59,900 0 59,900
*4. Jobs, Education, and Training (JET) Program* Reduces $3.0 million in administrative costs, based on anticipated program efficiencies.	FTEs Gross IDG	57.0 $18,410,200 18,410,200	0.0 ($3,000,000) (3,000,000)	0.0 ($3,000,000) (3,000,000)
*5. MSHDA Payments on Behalf of Tenants* Increases funding for Section 8 Rental Assistance based on anticipated revenue from the U.S. Department of Housing and Urban Development.	Gross Federal	$145,000,000 145,000,000	$11,000,000 11,000,000	$11,000,000 11,000,000
*6. Remonumentation Grants* Decreases authorization for grants to counties based on estimated revenue.	Gross Restricted	$11,000,000 11,000,000	($5,700,000) (5,700,000)	($5,700,000) (5,700,000)
7. *Michigan* *Tax Tribunal* Increases appropriation by $550,000 to work through backlog of cases.	FTEs Gross Restricted	11.0 $2,028,300 2,028,300	0.0 $550,000 550,000	0.0 $550,000 550,000
*8. Low Income Energy Efficiency Fund* Reduces authorization by $3.2 million to align with annual revenue and provide sufficient authorization to re-appropriate prior-year awards not fully expended. From FY 2009 enacted, this represents an increase of $10.0 million. Annual revenue is $84.0 million.	Gross Restricted	$93,200,000 93,200,000	($3,200,000) (3,200,000)	($3,200,000) (3,200,000)
*9. Information Technology* Increases funding ($618,900) to provide DELEG's share of the costs for the Michigan Business Services improvement initiative (MBSii) - a one-stop web portal designed to improve the business-state interface as it relates to starting and operating a business in the state; adds $655,600 for Microsoft license upgrade; includes $101,000 in efficiencies.	Gross Federal Restricted	$42,853,200 27,479,400 15,373,800	$1,173,500 301,200 872,300	$1,173,500 301,200 872,300
*10. Commission for the Blind* Increases authorization based on federal revenue available.	Gross Federal Local Private Restricted GF/GP	$19,684,900 14,246,100 521,000 110,300 545,200 $4,262,300	$4,575,000 4,575,000 0 0 0 $0	$4,575,000 4,575,000 0 0 0 $0
*11. Annualize EO 2008-21 Reductions* Annualizes GF/GP reductions from EO 2008-21 for Fire Marshal ($5,000), Fire Safety ($10,000), Fire Fighters Training Council ($10,000), Workers Compensation Agency ($200,000), Workers Compensation Board of Magistrates and Appellate Commission ($10,500), and Workforce Programs Administration ($50,000)	Gross GF/GP	N/A N/A	($285,500) ($285,500)	($285,500) ($285,500)
*12. FY 2008-09 Economic Increases*	Gross IDG Federal Local Restricted GF/GP	N/A N/A N/A N/A N/A N/A	$9,344,000 261,200 4,277,500 31,800 4,261,500 $512,000	$9,344,000 261,200 4,277,500 31,800 4,261,500 $512,000

Senate-Executive Items of Difference
*13. Liquor Revenue Fund Shift* The Executive replaces $19.7 million in Liquor Purchase Revolving Funds used in several LCC-related administrative lines with an anticipated increase in Liquor License Revenue generated from proposed doubling liquor license fees, providing a2am-4am license, and a Sunday morning license. The Senate does not concur with the Executive.	Gross Federal Restricted GF/GP	N/A N/A N/A N/A	$0 0 0 $0	$0 0 0 $0
*14. Centers for Independent Living* The Executive removes $500,000 (Corporations Fees) added in FY 2008 to support the 15 Centers for Independent Living within the state. The Senate concurs with the reduction in Corporations Fees, but adds $400,000 GF/GP.	Gross Federal Private Restricted GF/GP	$3,579,700 420,000 100,000 500,000 $2,109,500	($500,000) 0 0 (500,000) $0	($100,000) 0 0 (500,000) $400,000
*15. State Office of Administrative Hearings and Rules* The Executive and Senate add 11.0FTE positions and $1.3 million (IDG-DHS) to support increased hearing caseloads from the Department of Human Services; transfer 3.0FTE positions and $263,600 (L&R Fees) to the Bureau of Commercial Services, and aligns funding andFTE positions with support and activities from Corrections, Education, and Human Services. The Senate does not include a reduction of 2.0 FTEs related to Corrections administrative hearings.	FTEs Gross IDG Federal Restricted	170.5 $23,051,200 11,254,200 6,978,800 4,818,200	5.5 $818,100 1,081,700 0 (263,600)	7.5 $818,100 1,081,700 0 (263,600)
*16.* *HAL* *Transfer: Historic Preservation and Archaeology Programs* The Executive proposes to eliminate the Department of History, Arts, and Libraries, and transfer programs throughout state government. Included in this is the transfer of the State Historic Preservation Office and archaeology programs to MSHDA. The Senate continues to have a separate budget bill forHAL. To date, there has not been an EO eliminating the department.	FTEs Gross Federal GF/GP	N/A N/A N/A N/A	20.0 $1,933,600 950,000 $983,900	0.0 $0 0 $0
*17. No Worker Left Behind GF/GP* The Executive continues a $15.0 million GF/GP appropriation for the No Worker Left Behind program, with funding used for adult education and worker training in in-demand occupations. The Senate appropriates $6.6 million GF/GP for No Worker Left Behind (in addition to other funds).	Gross GF/GP	$15,000,000 $15,000,000	$0 $0	($8,400,000) ($8,400,000)
*18.* *Michigan* *Occupational Safety and Health Administration* The Senate reduces funding by a $100,000 placeholder. The intent is to explore the possibility of returning the program to the federal Department of Labor, Occupational Safety and Health Administration.	FTEs Gross Federal Restricted	229.0 $26,264,300 12,227,400 14,036,900	0.0 $0 0 0	0.0 ($100,000) 0 (100,000)
*19. Agricultural Economic Development* The Senate adds $500,000 GF/GP for anIDG to the Department of Agriculture "to foster and promote growth in the food and agriculture sector."	Gross GF/GP	N/A N/A	$500,000 $500,000	$500,000 $500,000

Major Budget Changes From FY 2008-09 YTD Appropriations

FY 2008-09 YTD

Exec. Change

From YTD

Senate Change

From YTD

Items included in both the Executive and the Senate

1. Energy Program Consolidation (EO 2008-20)

Adds 1.0FTE position and $1.9 million (Retired Engineers Technical Assistance Program Fund) for the consolidation of energy programs, mostly transferred from DEQ, within DELEG.

FTEs

Gross

Restricted

GF/GP

N/A

N/A

N/A

1.0

$1,957,200

1,957,200

1.0

$1,957,200

1,957,200

2. Unemployment Insurance Agency

Adds 300.0FTE positions and $18.0 million (Federal) to respond to the increased number of UI benefit claims. Also recognizes $4.6 million (Federal) for postage costs, which were previously paid directly byDOL but are now provided to states (including UIA) to pay postage costs.

FTEs

Gross

Federal

Restricted

1,002.7

$103,928,000

90,870,300

13,057,700

300.0

$22,587,800

22,587,800

300.0

$22,587,800

22,587,800

3. Office of Financial and Insurance Regulation (OFIR)

Adds 1.0FTE position and $59,900 (Securities Fees) to implement increased responsibilities of 2008 PA 551 (updated Uniform Securities Act).

FTEs

Gross

Federal

Restricted

348.0

$52,670,200

50,400

52,169,800

1.0

$59,900

59,900

1.0

$59,900

59,900

4. Jobs, Education, and Training (JET) Program

Reduces $3.0 million in administrative costs, based on anticipated program efficiencies.

FTEs

Gross

IDG

57.0

$18,410,200

18,410,200

0.0

($3,000,000)

(3,000,000)

0.0

($3,000,000)

(3,000,000)

5. MSHDA Payments on Behalf of Tenants

Increases funding for Section 8 Rental Assistance based on anticipated revenue from the U.S. Department of Housing and Urban Development.

Gross

Federal

$145,000,000

145,000,000

$11,000,000

11,000,000

$11,000,000

11,000,000

6. Remonumentation Grants

Decreases authorization for grants to counties based on estimated revenue.

Gross

Restricted

$11,000,000

11,000,000

($5,700,000)

(5,700,000)

($5,700,000)

(5,700,000)

7. Michigan Tax Tribunal

Increases appropriation by $550,000 to work through backlog of cases.

FTEs

Gross

Restricted

11.0

$2,028,300

2,028,300

0.0

$550,000

550,000

0.0

$550,000

550,000

8. Low Income Energy Efficiency Fund

Reduces authorization by $3.2 million to align with annual revenue and provide sufficient authorization to re-appropriate prior-year awards not fully expended. From FY 2009 enacted, this represents an increase of $10.0 million. Annual revenue is $84.0 million.

Gross

Restricted

$93,200,000

93,200,000

($3,200,000)

(3,200,000)

($3,200,000)

(3,200,000)

9. Information Technology

Increases funding ($618,900) to provide DELEG's share of the costs for the Michigan Business Services improvement initiative (MBSii) - a one-stop web portal designed to improve the business-state interface as it relates to starting and operating a business in the state; adds $655,600 for Microsoft license upgrade; includes $101,000 in efficiencies.

Gross

Federal

Restricted

$42,853,200

27,479,400

15,373,800

$1,173,500

301,200

872,300

$1,173,500

301,200

872,300

10. Commission for the Blind

Increases authorization based on federal revenue available.

Gross

Federal

Local

Private

Restricted

GF/GP

$19,684,900

14,246,100

521,000

110,300

545,200

$4,262,300

$4,575,000

4,575,000

$4,575,000

4,575,000

11. Annualize EO 2008-21 Reductions

Annualizes GF/GP reductions from EO 2008-21 for Fire Marshal ($5,000), Fire Safety ($10,000), Fire Fighters Training Council ($10,000), Workers Compensation Agency ($200,000), Workers Compensation Board of Magistrates and Appellate Commission ($10,500), and Workforce Programs Administration ($50,000)

Gross

GF/GP

N/A

N/A

($285,500)

($285,500)

($285,500)

($285,500)

12. FY 2008-09 Economic Increases

Gross

IDG

Federal

Local

Restricted

GF/GP

N/A

N/A

$9,344,000

261,200

4,277,500

31,800

4,261,500

$512,000

$9,344,000

261,200

4,277,500

31,800

4,261,500

$512,000

Senate-Executive Items of Difference

13. Liquor Revenue Fund Shift

The Executive replaces $19.7 million in Liquor Purchase Revolving Funds used in several LCC-related administrative lines with an anticipated increase in Liquor License Revenue generated from proposed doubling liquor license fees, providing a2am-4am license, and a Sunday morning license. The Senate does not concur with the Executive.

Gross

Federal

Restricted

GF/GP

N/A

N/A

14. Centers for Independent Living

The Executive removes $500,000 (Corporations Fees) added in FY 2008 to support the 15 Centers for Independent Living within the state. The Senate concurs with the reduction in Corporations Fees, but adds $400,000 GF/GP.

Gross

Federal

Private

Restricted

GF/GP

$3,579,700

420,000

100,000

500,000

$2,109,500

($500,000)

(500,000)

($100,000)

(500,000)

$400,000

15. State Office of Administrative Hearings and Rules

The Executive and Senate add 11.0FTE positions and $1.3 million (IDG-DHS) to support increased hearing caseloads from the Department of Human Services; transfer 3.0FTE positions and $263,600 (L&R Fees) to the Bureau of Commercial Services, and aligns funding andFTE positions with support and activities from Corrections, Education, and Human Services. The Senate does not include a reduction of 2.0 FTEs related to Corrections administrative hearings.

FTEs

Gross

IDG

Federal

Restricted

170.5

$23,051,200

11,254,200

6,978,800

4,818,200

5.5

$818,100

1,081,700

(263,600)

7.5

$818,100

1,081,700

(263,600)

16. HAL Transfer: Historic Preservation and Archaeology Programs

The Executive proposes to eliminate the Department of History, Arts, and Libraries, and transfer programs throughout state government. Included in this is the transfer of the State Historic Preservation Office and archaeology programs to MSHDA. The Senate continues to have a separate budget bill forHAL. To date, there has not been an EO eliminating the department.

FTEs

Gross

Federal

GF/GP

N/A

N/A

N/A

20.0

$1,933,600

950,000

$983,900

0.0

17. No Worker Left Behind GF/GP

The Executive continues a $15.0 million GF/GP appropriation for the No Worker Left Behind program, with funding used for adult education and worker training in in-demand occupations. The Senate appropriates $6.6 million GF/GP for No Worker Left Behind (in addition to other funds).

Gross

GF/GP

$15,000,000

$15,000,000

($8,400,000)

($8,400,000)

18. Michigan Occupational Safety and Health Administration

The Senate reduces funding by a $100,000 placeholder. The intent is to explore the possibility of returning the program to the federal Department of Labor, Occupational Safety and Health Administration.

FTEs

Gross

Federal

Restricted

229.0

$26,264,300

12,227,400

14,036,900

0.0

($100,000)

(100,000)

19. Agricultural Economic Development

The Senate adds $500,000 GF/GP for anIDG to the Department of Agriculture "to foster and promote growth in the food and agriculture sector."

Gross

GF/GP

N/A

$500,000

$500,000

$500,000

$500,000

Major Boilerplate Changes From FY 2008-09
The boilerplate sections are re-organized into 8 categories to improve readability: (1) General Sections; (2) Regulatory; (3) Office of Financial and Insurance Regulation; (4) Housing and Community Development; (5)*Michigan* *Rehabilitation Services andMichigan* Commission for the Blind; (7) Career Education; (8) Workforce Development.**
**Sec. 205. Hiring Freeze -RETAINED Prohibits DELEG from hiring new full-time classified civil service employees and from filling vacant state classified civil service positions unless exceptions to the freeze is granted by the state budget director. The Executive deletes this section; the Senate** retains it.
**Sec. 213. (Former Sec. 223) Contingency Appropriations -MODIFIED The Executive increases authorization for contingency appropriations. Total contingency appropriations are $31.0 million Federal, $26.2 million Restricted; $8.2 million Local; and $600,000 Private. The Senate** deletes the federal contingency appropriation.
**Sec. 214. IT Projects -RETAINED Designates IT services and projects appropriation as a work project. The Executive deletes this section; the Senate** retains it.
**Sec. 215. Policy Changes -RETAINED Requires DELEG to report on policy changes made to implement public acts; prohibits adopt of rules that have a disproportionate impact on small businesses. The Executive deletes this section; the Senate** retains it.
**Sec. 216. Appropriated Funds De-Aggregation -RETAINED States intent that all part 1 funds sources not be aggregated into general categories, but be specifically identified as much as possible. The Executive deletes this section; the Senate** retains it.
**Sec. 219. Executive Branch Employee Communications with Legislature -RETAINED Prohibits disciplinary action against Executive employees that communicate with a legislator or legislative staff. The Executive deletes this section; the Senate** retains it.
**Sec. 222. Government Efficiency Commission Recommendations- RETAINED Requires DELEG to review recommendations of the Commission on Governmental Efficiency. The Executive deletes this section; the Senate** retains it.
**Sec. 224. Restrictions on Out-of-State Travel to Training Seminars -RETAINED Prohibits more than one DELEG employee traveling out-of-state for training conferences unless funded by federal or private funds. The Executive deletes this section; the Senate** retains it.
**Sec. 311. Transfer to Construction Code Fund -DELETED Transfers $3.0 million in surplus corporation fees (copy and certification fees) to the State Construction Code Fund. The Executive and Senate** delete this section.
**Sec. 322 (Former Sec. 358). Real Estate Education Fund -RETAINED Allows real estate pre- and post-licensure education to be delivered through on-line courses by a community college, university, or private school; allows Real Estate Education Fund to be used for grants to educational providers to establish on-line courses available to students. The Executive deletes this section; the Senate** retains it.
**Sec. 331 (Former Sec. 352). Workers Compensation Board of Magistrates and Appellate Commission -RETAINED Requires expenditures in part 1 be used to that cases are decided in a timely manner; funds from unclassified salaries appropriation line to support five appellate commissioners and 26 magistrates. The Executive deletes this section; the Senate** retains it.
**Sec. 333. UI Internet Claims -NEW The Senate** adds a provision requiring the department to work to increase the number of Internet-filed unemployment benefit claims (with a goal of 50% of UI claims being filed via the Internet byJuly 1, 2010), and requiring a quarterly report on the number of claims filed via the Internet.
**Sec. 341 (Former Sec. 355). Ergonomics Rules Prohibited -RETAINED Prohibits promulgate of ergonomics rules that are more stringent than voluntary federal guidelines. The Executive deletes this section. The Senate** retains this section, and provides that the prohibition is in accordance with Attorney General Opinion No. 7225 (February 27, 2009).
**Sec. 342 (Former Sec. 365). Training Grant to Aggregate industry -RETAINED Requires allocation not less than $40,000 for training grants to non-profit organizations representing the aggregate industry inMichigan. The Executive deletes this section; the Senate** retains it.
**Sec. 345. Federal Enforcement of OSHA Standards -NEW The Senate** adds a provision stating the Legislature's intent to return the occupational safety and health program back to the federal government and to explore the option of entering an agreement with the federal government to continue the safety and training program for employers.
**Sec. 351 (Former Sec. 378). SOAHR Decisions in Public Assistance Cases -RETAINED States legislative intent that the State Office of Administrative Hearings and Rules (SOAHR) develop a system to post administrative hearing decisions regarding public assistance on the Internet. The Executive deletes this section; the Senate** retains it.
**Sec. 352. (Former Sec. 379). Teacher Tenure Cases -RETAINED Requires SOAHR to report on the status of pending teacher tenure cases. The Executive deletes this section; the Senate** retains it.
**Sec. 361 (Former Sec. 335). Low-Income Energy Efficiency Assistance Program -RETAINED Establishes deadlines for application and award announcements; requires the Public Service Commission to report to the Legislature and state budget office on the distribution of funds. The Executive deletes this section; the Senate** retains it.
*Sec. 364.* Agriculture Economic Development -NEW The Senate adds a section directing that the $500,000 GF/GP appropriated in Part 1 for agricultural economic development be expended by DELEG as anIDG to the Department of Agriculture foster the promote growth in the food and agriculture sector.
**Sec. 405 (Former Sec. 336). OFIR Expenditures -RETAINED Requires report of actual expenditures for last completed fiscal year for each division within OFIR. The Executive deletes this section; the Senate** retains it.
**Section 406 (Former Sec. 337). OFIR Credit Scoring -RETAINED Prohibits expending funds to implement a ban on credit scoring in insurance rate setting until the Legislature has authorized such a prohibition. The Executive deletes this section. The Senate** retains this section, and provides that the prohibition is in accordance with Attorney General Opinion No. 7225 (February 27, 2009).
**Sec. 407 (Former Sec. 340). Health Maintenance Organization (HMO) Financial Filings -RETAINED Requires that OFIR provide copies of HMO quarterly and annual financial filings to the fiscal agencies. The Executive deletes this section; the Senate** retains it.
**Sec. 415. Private Occupational School License Fees -DELETED Requires that these appropriated fees be applied to administrative cost of Proprietary Schools Oversight Unit. The Executive and Senate** delete this section.
**Sec. 418. Employment Outcomes for Future Faculty Program Participants -DELETED Requires participating universities to provide DELEG with information on employment outcomes of program participants; requires report on this data. The Executive and Senate** delete this section.
**Sec. 421. Marketing of King-Chavez-Parks Program -DELETED Direct DELET to mark the program to parents and students, and report to the Legislature electronically on these marketing efforts; requires program be administered as it was when in the Department of Education. The Executive and Senate** delete this section.
**Sec. 442. Temporary Assistance for Needy Families (TANF) Contingency Funds -DELETED Appropriates up to $30.0 million in TANF funds, upon receipt of TANF Contingency Funds in FY 2007-08, and subsequent carryforward of TANF block grant funds in FY 2008-09. The Executive and Senate** delete this section.
**Sec. 501 (Former Sec. 438). Housing and Community Development Fund -NEW The Senate** adds intent language providing that at least $2,163,400 in funding available from the American Recovery and Reinvestment Act and/or the National Affordable Housing Trust Fund be allocated for eligible purposes of the HCDF.
**Sec. 503 (Executive). State Historic Preservation -NOT INCLUDED Incorporated from theHAL appropriations act, this section appropriates funds received by the State Historic Preservation Office (MSHDA) from document reproduction and services, and application fees. The Executive includes this section. The Senate** continues theHAL appropriation as a separate budget bill (SB 247). [To date, the Executive has not yet issued an Executive Order eliminatingHAL.]
**Sec. 603 (Former Sec. 403). Local Match Requirements for Facilities Establishment Grants -RETAINED Requires that local match for vocational rehabilitation facilities establishment grants not exceed 21.3% for the fiscal year ending September 30. The Executive deletes this section; the Senate** retains it.
**Sec. 813 (Former Sec. 437). Welfare-to-Work Funds Allocation -MODIFIED Allocates $200,000 to public-private welfare-to-work partnership involving an imbedded DHS caseworker at the job site of an employer to work with employees receiving public assistance. The Executive deletes this section. The Senate** retains this section, but allocates the funds from the Workforce Training Program Subgrantees line item.
*Sec. 814 (Former Sec. 439). Focus: HOPE Career Prep Pilot Program -* RETAINED Establishes legislative intent that DELEG work with Career Alliance (Genesee-Shiawassee Michigan Works! Agency) and other interested MWAs in implementing the career prep pilot program developed by Focus: HOPE.
**Sec. 815 (Former Sec. 440). Gang Diversion -DELETED States legislative intent to set aside some Workforce Investment Act (statewide activities) funds to support gang diversion activities and support services of local law enforcement and MWAs inWyoming,Detroit, andBentonHarbor. The Executive deletes this section. The Senate** retains this section, and also includesSaginaw as an eligible area to receive funds.
**Sec. 816 (Former Sec. 429). Focus: HOPE Reporting -RETAINED Requires Focus: HOPE to report on its use of funds appropriated in the budget act. The Executive deletes this section. The Senate** retains this section, and provides that the from funds appropriated in Part 1 for Workforce Programs Subgrantees at least $5.0 million in Federal funds and $860,200 GF/GP shall be allocated to Focus: HOPE. [Previously these funds were a separate line item. The funds are rolled into the workforce subgrantees line item.]
**Sec. 820 (Executive Sec. 907). - Nursing Education Report -NEW** Incorporated from the Higher Education appropriations act, this section requires DELEG to report on the status of nursing education programs in the state.
**Sec. 830. (Former Sec. 432) No Worker Left Behind (NWLB) Report -RETAINED The Executive removes fund source detail from the required NWLB report, and adds to the reporting requirements, the number of participants securing employment within one year, the number securing employment in an occupation related to the training, and average wage of those securing employment within one year. The Senate** maintains current language.
*Sec. 831. (Former Sec. 432) No Worker Left Behind* GF/GP Funding - MODIFIED Directs the $15.0 million GF/GP appropriation for No Worker Left Behind to adult education, community colleges, and worker training. The Executive deletes a requirement that $2.5 million-$5.0 million of the $15.0 million GF/GP appropriated for NWLB be expended for capacity building at community colleges. The Senate provides that up to $2.5 million shall be expended for adult education, and up to $2.5 million shall be expended for community colleges, with the remaining balance expended for worker training in in-demand occupations. The Senate also reduces the GF/GP appropriation for NWLB to $6.6 million.

Major Boilerplate Changes From FY 2008-09

The boilerplate sections are re-organized into 8 categories to improve readability: (1) General Sections; (2) Regulatory; (3) Office of Financial and Insurance Regulation; (4) Housing and Community Development; (5)Michigan Rehabilitation Services andMichigan Commission for the Blind; (7) Career Education; (8) Workforce Development.

Sec. 205. Hiring Freeze -RETAINED

Prohibits DELEG from hiring new full-time classified civil service employees and from filling vacant state classified civil service positions unless exceptions to the freeze is granted by the state budget director. The Executive deletes this section; the Senate retains it.

Sec. 213. (Former Sec. 223) Contingency Appropriations -MODIFIED

The Executive increases authorization for contingency appropriations. Total contingency appropriations are $31.0 million Federal, $26.2 million Restricted; $8.2 million Local; and $600,000 Private. The Senate deletes the federal contingency appropriation.

Sec. 214. IT Projects -RETAINED

Designates IT services and projects appropriation as a work project. The Executive deletes this section; the Senate retains it.

Sec. 215. Policy Changes -RETAINED

Requires DELEG to report on policy changes made to implement public acts; prohibits adopt of rules that have a disproportionate impact on small businesses. The Executive deletes this section; the Senate retains it.

Sec. 216. Appropriated Funds De-Aggregation -RETAINED

States intent that all part 1 funds sources not be aggregated into general categories, but be specifically identified as much as possible. The Executive deletes this section; the Senate retains it.

Sec. 219. Executive Branch Employee Communications with Legislature -RETAINED

Prohibits disciplinary action against Executive employees that communicate with a legislator or legislative staff. The Executive deletes this section; the Senate retains it.

Sec. 222. Government Efficiency Commission Recommendations- RETAINED

Requires DELEG to review recommendations of the Commission on Governmental Efficiency. The Executive deletes this section; the Senate retains it.

Sec. 224. Restrictions on Out-of-State Travel to Training Seminars -RETAINED

Prohibits more than one DELEG employee traveling out-of-state for training conferences unless funded by federal or private funds. The Executive deletes this section; the Senate retains it.

Sec. 311. Transfer to Construction Code Fund -DELETED

Transfers $3.0 million in surplus corporation fees (copy and certification fees) to the State Construction Code Fund. The Executive and Senate delete this section.

Sec. 322 (Former Sec. 358). Real Estate Education Fund -RETAINED

Allows real estate pre- and post-licensure education to be delivered through on-line courses by a community college, university, or private school; allows Real Estate Education Fund to be used for grants to educational providers to establish on-line courses available to students. The Executive deletes this section; the Senate retains it.

Sec. 331 (Former Sec. 352). Workers Compensation Board of Magistrates and Appellate Commission -RETAINED

Requires expenditures in part 1 be used to that cases are decided in a timely manner; funds from unclassified salaries appropriation line to support five appellate commissioners and 26 magistrates. The Executive deletes this section; the Senate retains it.

Sec. 333. UI Internet Claims -NEW

The Senate adds a provision requiring the department to work to increase the number of Internet-filed unemployment benefit claims (with a goal of 50% of UI claims being filed via the Internet byJuly 1, 2010), and requiring a quarterly report on the number of claims filed via the Internet.

Sec. 341 (Former Sec. 355). Ergonomics Rules Prohibited -RETAINED

Prohibits promulgate of ergonomics rules that are more stringent than voluntary federal guidelines. The Executive deletes this section. The Senate retains this section, and provides that the prohibition is in accordance with Attorney General Opinion No. 7225 (February 27, 2009).

Sec. 342 (Former Sec. 365). Training Grant to Aggregate industry -RETAINED

Requires allocation not less than $40,000 for training grants to non-profit organizations representing the aggregate industry inMichigan. The Executive deletes this section; the Senate retains it.

Sec. 345. Federal Enforcement of OSHA Standards -NEW

The Senate adds a provision stating the Legislature's intent to return the occupational safety and health program back to the federal government and to explore the option of entering an agreement with the federal government to continue the safety and training program for employers.

Sec. 351 (Former Sec. 378). SOAHR Decisions in Public Assistance Cases -RETAINED

States legislative intent that the State Office of Administrative Hearings and Rules (SOAHR) develop a system to post administrative hearing decisions regarding public assistance on the Internet. The Executive deletes this section; the Senate retains it.

Sec. 352. (Former Sec. 379). Teacher Tenure Cases -RETAINED

Requires SOAHR to report on the status of pending teacher tenure cases. The Executive deletes this section; the Senate retains it.

Sec. 361 (Former Sec. 335). Low-Income Energy Efficiency Assistance Program -RETAINED

Establishes deadlines for application and award announcements; requires the Public Service Commission to report to the Legislature and state budget office on the distribution of funds. The Executive deletes this section; the Senate retains it.

Sec. 364. Agriculture Economic Development -NEW

The Senate adds a section directing that the $500,000 GF/GP appropriated in Part 1 for agricultural economic development be expended by DELEG as anIDG to the Department of Agriculture foster the promote growth in the food and agriculture sector.

Sec. 405 (Former Sec. 336). OFIR Expenditures -RETAINED

Requires report of actual expenditures for last completed fiscal year for each division within OFIR. The Executive deletes this section; the Senate retains it.

Section 406 (Former Sec. 337). OFIR Credit Scoring -RETAINED

Prohibits expending funds to implement a ban on credit scoring in insurance rate setting until the Legislature has authorized such a prohibition. The Executive deletes this section. The Senate retains this section, and provides that the prohibition is in accordance with Attorney General Opinion No. 7225 (February 27, 2009).

Sec. 407 (Former Sec. 340). Health Maintenance Organization (HMO) Financial Filings -RETAINED

Requires that OFIR provide copies of HMO quarterly and annual financial filings to the fiscal agencies. The Executive deletes this section; the Senate retains it.

Sec. 415. Private Occupational School License Fees -DELETED

Requires that these appropriated fees be applied to administrative cost of Proprietary Schools Oversight Unit. The Executive and Senate delete this section.

Sec. 418. Employment Outcomes for Future Faculty Program Participants -DELETED

Requires participating universities to provide DELEG with information on employment outcomes of program participants; requires report on this data. The Executive and Senate delete this section.

Sec. 421. Marketing of King-Chavez-Parks Program -DELETED

Direct DELET to mark the program to parents and students, and report to the Legislature electronically on these marketing efforts; requires program be administered as it was when in the Department of Education. The Executive and Senate delete this section.

Sec. 442. Temporary Assistance for Needy Families (TANF) Contingency Funds -DELETED

Appropriates up to $30.0 million in TANF funds, upon receipt of TANF Contingency Funds in FY 2007-08, and subsequent carryforward of TANF block grant funds in FY 2008-09. The Executive and Senate delete this section.

Sec. 501 (Former Sec. 438). Housing and Community Development Fund -NEW

The Senate adds intent language providing that at least $2,163,400 in funding available from the American Recovery and Reinvestment Act and/or the National Affordable Housing Trust Fund be allocated for eligible purposes of the HCDF.

Sec. 503 (Executive). State Historic Preservation -NOT INCLUDED

Incorporated from theHAL appropriations act, this section appropriates funds received by the State Historic Preservation Office (MSHDA) from document reproduction and services, and application fees. The Executive includes this section. The Senate continues theHAL appropriation as a separate budget bill (SB 247). [To date, the Executive has not yet issued an Executive Order eliminatingHAL.]

Sec. 603 (Former Sec. 403). Local Match Requirements for Facilities Establishment Grants -RETAINED

Requires that local match for vocational rehabilitation facilities establishment grants not exceed 21.3% for the fiscal year ending September 30. The Executive deletes this section; the Senate retains it.

Sec. 813 (Former Sec. 437). Welfare-to-Work Funds Allocation -MODIFIED

Allocates $200,000 to public-private welfare-to-work partnership involving an imbedded DHS caseworker at the job site of an employer to work with employees receiving public assistance. The Executive deletes this section. The Senate retains this section, but allocates the funds from the Workforce Training Program Subgrantees line item.

Sec. 814 (Former Sec. 439). Focus: HOPE Career Prep Pilot Program - RETAINED

Establishes legislative intent that DELEG work with Career Alliance (Genesee-Shiawassee Michigan Works! Agency) and other interested MWAs in implementing the career prep pilot program developed by Focus: HOPE.

Sec. 815 (Former Sec. 440). Gang Diversion -DELETED

States legislative intent to set aside some Workforce Investment Act (statewide activities) funds to support gang diversion activities and support services of local law enforcement and MWAs inWyoming,Detroit, andBentonHarbor. The Executive deletes this section. The Senate retains this section, and also includesSaginaw as an eligible area to receive funds.

Sec. 816 (Former Sec. 429). Focus: HOPE Reporting -RETAINED

Requires Focus: HOPE to report on its use of funds appropriated in the budget act. The Executive deletes this section. The Senate retains this section, and provides that the from funds appropriated in Part 1 for Workforce Programs Subgrantees at least $5.0 million in Federal funds and $860,200 GF/GP shall be allocated to Focus: HOPE. [Previously these funds were a separate line item. The funds are rolled into the workforce subgrantees line item.]

Sec. 820 (Executive Sec. 907). - Nursing Education Report -NEW

Incorporated from the Higher Education appropriations act, this section requires DELEG to report on the status of nursing education programs in the state.

Sec. 830. (Former Sec. 432) No Worker Left Behind (NWLB) Report -RETAINED

The Executive removes fund source detail from the required NWLB report, and adds to the reporting requirements, the number of participants securing employment within one year, the number securing employment in an occupation related to the training, and average wage of those securing employment within one year. The Senate maintains current language.

Sec. 831. (Former Sec. 432) No Worker Left Behind GF/GP Funding - MODIFIED

Directs the $15.0 million GF/GP appropriation for No Worker Left Behind to adult education, community colleges, and worker training. The Executive deletes a requirement that $2.5 million-$5.0 million of the $15.0 million GF/GP appropriated for NWLB be expended for capacity building at community colleges. The Senate provides that up to $2.5 million shall be expended for adult education, and up to $2.5 million shall be expended for community colleges, with the remaining balance expended for worker training in in-demand occupations. The Senate also reduces the GF/GP appropriation for NWLB to $6.6 million.