FY 2014-15 LICENSING AND REGULATORY AFFAIRS BUDGET                        S.B. 772 (CR-1):  CONFERENCE REPORT

 

 

 

 

 

 

 

FY 2013-14 Year-to-Date Gross Appropriation.....................................................................

$502,918,700

 

Changes from FY 2013-14 Year-to-Date:

 

Items Included by the Senate and House

 

  1.  Administrative Hearings. The Governor, House, and Senate included 6.0 FTEs, Federal and GF/GP funding for an anticipated increase in administrative hearings under Medicaid expansion.

900,000

  2.  Other Items.  The Governor, House, and Senate included $700,000 in Federal funds for Health Systems surveys, $700,000 for increased elevator inspections, various technical fund adjustments, $1.0M for replacement of a tax credit for self-insurers, and $4.1M in economic adjustments.

4,300,800

Conference Agreement on Items of Difference

 

  3.  Department-Wide Process Improvements.  The Governor and Senate included GF/GP funding for an initiative to improve customer service and administrative efficiencies.  The House did not include any funding for this item.  The Conference included full funding, but used Corporation Fees for $175,000 of the total $700,000.

700,000

  4.  Bureau of Construction Codes.  The Governor and House included additional restricted funding to pay for online database development and permitting of demolitions in Detroit.  The Senate and Conference created a new $800,000 line item for Detroit demolitions and put the remainder in the Bureau line-item.  The total funding for the item was unchanged.

1,066,300

  5.  Accessibility Pilot Project.  The Senate and Conference included a pilot project to assist municipalities and businesses with accessibility and to provide universal design blueprints.

100,000

  6.  Veterans' Fee Exemption Fund Shift.  The House removed $2.1M in GF/GP and replaced it with restricted funds in MIOSHA and the Bureau of Construction Codes (BCC) to reflect lower-than-anticipated utilization of statutory exemptions for certain fees.  The Conference made the shift of $2.0M in MIOSHA, but did not make the shift in BCC.

0

  7.  Delphi Corporation Workers' Compensation Payment Fund.  The Conference included a $15.0M GF/GP appropriation to this fund.  The Fund would be used to pay State workers' compensation liabilities related to the bankruptcy of Delphi Corp.

15,000,000

  8.  Health Professions Disciplinary Actions IT Upgrades.  The Conference included GF/GP for upgrades to the Bureau of Healthcare Services website to allow users to search health professionals' disciplinary actions.

200,000

  9.  Bureau of Fire Services Fund Shift.  The Conference reduced Liquor Purchase Revolving Fund appropriations in the Bureau by $2.0M and replaced them with GF/GP.

0

10.  One-Time Unemployment Insurance Agency Operations.  The Governor and Senate included additional restricted funds for UIA operations for FY 2014-15.  The Governor also requested $2.4 million for a mobile claim filing app for the UIA.  The Senate included half of the funding for the app; the House and Conference did not fund the mobile app.

18,000,000

11.  Other Changes.  Other changes included by the Conference include removal of 100.7 unfunded FTE positions, $1.5M in additional Federal authority for the Bureau of Services for Blind Persons, removal of the Children's Protection Registry Fund per EO 2014-5, removal of private fund appropriations, removal of two IT placeholders, $1.3M for property management for UIA, and reducing a Liquor Control Commission IT project by $1.5M to reflect its actual budget.

(697,600)

 

Total Changes.....................................................................................................................

$39,569,500

FY 2014-15 Conference Report Ongoing/One-Time Gross Appropriation............................

$542,488,200

Amount Over/(Under) GF/GP Target: $0

 


FY 2014-15 LICENSING AND REGULATORY AFFAIRS BUDGET                                          BOILERPLATE HIGHLIGHTS

Changes from FY 2013-14 Year-to-Date:

Items Included by the Senate and House

  1.  Legacy Costs in Budget.  The Governor, House, and Senate included a new section detailing legacy costs that are included as part of the FY 2014-15 LARA budget.  (Sec. 235)

  2.  Medical Marihuana Program Grants.  The Governor, House, and Senate included a section directing how $3.0M in grants to county sheriffs for education, communication, and enforcement of the Michigan Medical Marihuana Act be spent. (Sec. 902)

Conference Agreement on Items of Difference

  3.  Performance Benchmarks. The House included a section requiring performance benchmarks be identified for any new program or program increase.  The Conference included a modified version of this section that only required benchmarks for increases of $500,000 or more. (Sec. 205)

  4.  Special Events Private Revenue.  The House included a section allowing revenue from training seminars and other events to be spent as it was received.  The Conference included a $500,000 limitation on these expenditures.  (Sec. 241)

  5.  Private Grant Revenue.  The Conference included a section allowing private revenues to be expended upon receipt.  No more than $1,500,000 would be allowed to be spent under the section (Sec. 225)

  6.  Reinventing Performance in Michigan (RPM) Cost-Share.  The Conference included a section requiring the Department to work with other agencies participating in the RPM program to help cover the Department's costs.  (Sec. 243)

  7.  Healthy Michigan Plan Accounting.  The House and Conference included a section requiring the Department to work with the Department of Community Health to identify any expenditures related to the Healthy Michigan Plan.  (Sec. 245)

  8.  Fireworks Safety Local Reimbursement. The Governor removed guidelines for fireworks safety grants.  The Senate and Conference retained only the reporting requirements of the section.  (Sec. 511)

  9.  Fire Services Non-Compliance Pilot Project.  The Conference included a pilot project to allow the Bureau of Fire Services to charge a $200 fee to those who make false inspection appointments.  (Sec. 513)

10.  Accessibility Pilot Project.  The Senate and Conference included a requirement that LARA work with a nonprofit group with expertise in disability accessibility to provide services and universal design blueprints (Sec. 1002)

11.  Health Professional Disciplinary Actions.  The Senate and Conference included a requirement that disciplinary actions be posted on the online license verification website.  (Sec. 512)

12.  MARVIN Usage.  The Governor removed and Senate retained a section requiring a report on usage of the UIA's MARVIN system and establishing a goal of 80% usage of the Internet MARVIN system. The House increased the goal to 85% and the Conference reduced it to 75%. (Sec. 703)

13.  Rule Stringency.  The Governor, Senate, and Conference removed and House retained a section prohibiting the promulgation of rules more stringent than Federal standards.  (Sec. 246 of House Bill)

14.  Licensing and Regulatory Program Report.  The Governor removed and Conference retained a section requiring a detailed activity report on most of the Department's programs.  (Sec. 248)

15.  Freestanding Surgical Outpatient Facilities. The Governor and Senate removed the earmark of $530,000 for the inspection and licensing of these facilities.  (Sec. 510)

16.  Firefighter Training Grant Allocations.  The Conference included a section requiring the Firefighter Training Council to use the statutory formula when distributing grants, but that the minimum grant size be $5,000.  (Sec. 903)

17.  Delphi Corp. Workers' Compensation Payment Fund.  The Conference included a new section directing how the balance of the Fund may be spent.  $8.0M would be immediately available, and $7.0M would be available over five years.  (Sec. 1001)

 

Date Completed:  6-9-14                                                                                                       Fiscal Analyst:  Josh Sefton

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.