FIRST CONFERENCE REPORT

The Committee of Conference on the matters of difference between the two Houses concerning

House Bill No. 4105, entitled

A bill to make appropriations for the judiciary for the fiscal year ending September 30, 2016; and to provide for the expenditure of the appropriations.

Recommends:

First: That the Senate recede from the Substitute of the Senate as passed by the Senate.

Second: That the House and Senate agree to the Substitute of the House as passed by the House, amended to read as follows:

(attached)

Third: That the House and Senate agree to the title of the bill to read as follows:

A bill to make appropriations for the judiciary for the fiscal year ending September 30, 2016; and to provide for the expenditure of the appropriations.

_______________________ ________________________

Rob VerHeulen John Proos

_______________________ ________________________

Laura Cox Tonya Schuitmaker

_______________________ ________________________

Jon Hoadley Coleman Young II

Conferees for the House Conferees for the Senate

SUBSTITUTE FOR

HOUSE BILL NO. 4105

A bill to make appropriations for the judiciary for the fiscal

year ending September 30, 2016; and to provide for the expenditure

of the appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. There is appropriated for the judiciary for the

fiscal year ending September 30, 2016, from the following funds:

JUDICIARY

APPROPRIATION SUMMARY

Full-time equated exempted positions............ 489.0

GROSS APPROPRIATION.................................... $ 284,651,400

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers............................................ 2,362,900

ADJUSTED GROSS APPROPRIATION........................... $ 282,288,500

Federal revenues:

Total federal revenues................................. 6,428,600

Special revenue funds:

Total local revenues................................... 7,229,000

Total private revenues................................. 942,900

Total other state restricted revenues.................. 84,245,800

State general fund/general purpose..................... $ 183,442,200

Sec. 102. SUPREME COURT

Full-time equated exempted positions............ 246.0

Supreme court administration--92.0 FTE positions....... $ 13,338,700

Judicial institute--13.0 FTE positions................. 2,159,100

State court administrative office--61.0 FTE positions.. 11,832,000

Judicial information systems--22.0 FTE positions....... 3,057,700

Direct trial court automation support--44.0 FTE

positions............................................ 7,229,000

Foster care review board--10.0 FTE positions........... 1,285,900

Community dispute resolution--3.0 FTE positions........ 2,366,800

Other federal grants................................... 275,100

Drug treatment courts.................................. 10,958,000

Mental health courts and diversion services--1.0 FTE

position............................................. 5,334,700

Veterans courts........................................ 500,000

Swift and sure sanctions program....................... 4,250,000

Next generation Michigan court system.................. 4,116,000

GROSS APPROPRIATION.................................... $ 66,703,000

Appropriated from:

Interdepartmental grant revenues:

IDG from department of state police.................... 1,500,000

IDG from department of corrections..................... 50,000

IDG from state police - Michigan justice training fund. 339,200

Federal revenues:

DOJ, victims assistance programs....................... 56,500

DOJ, drug court training and evaluation................ 300,000

DOT, National Highway Traffic Safety Administration.... 2,203,500

HHS, access and visitation grant....................... 612,200

HHS, children's justice grant.......................... 229,400

HHS, court improvement project......................... 1,290,500

HHS, title IV-D child support program.................. 1,009,700

HHS, title IV-E foster care program.................... 386,500

Other federal grant revenues........................... 275,100

Special revenue funds:

Local - user fees...................................... 7,229,000

Private................................................ 188,100

Private - interest on lawyers trust accounts........... 258,600

Private - state justice institute...................... 413,600

Community dispute resolution fund...................... 2,366,800

Court of appeals filing/motion fees.................... 1,641,800

Law exam fees.......................................... 639,100

Drug court fund........................................ 1,920,500

Miscellaneous revenue.................................. 270,600

Justice system fund.................................... 566,800

State court fund....................................... 377,100

State general fund/general purpose..................... $ 42,578,400

Sec. 103. COURT OF APPEALS

Full-time equated exempted positions............ 175.0

Court of appeals operations--175.0 FTE positions....... $ 22,606,900

GROSS APPROPRIATION.................................... $ 22,606,900

Appropriated from:

State general fund/general purpose..................... $ 22,606,900

Sec. 104. BRANCHWIDE APPROPRIATIONS

Full-time equated exempted positions.............. 4.0

Branchwide appropriations--4.0 FTE positions........... $ 8,550,400

GROSS APPROPRIATION.................................... $ 8,550,400

Appropriated from:

State general fund/general purpose..................... $ 8,550,400

Sec. 105. JUSTICES' AND JUDGES' COMPENSATION

Full-time judges positions...................... 593.0

Supreme court justices' salaries--7.0 justices......... $ 1,152,300

Court of appeals judges' salaries--27.0 judges......... 4,087,900

District court judges' state base salaries--243.0

judges............................................... 22,489,200

District court judicial salary standardization......... 11,111,000

Probate court judges' state base salaries--103.0

judges............................................... 9,627,900

Probate court judicial salary standardization.......... 4,669,600

Circuit court judges' state base salaries--213.0

judges............................................... 20,064,100

Circuit court judicial salary standardization.......... 9,739,200

Judges' retirement system defined contributions........ 4,425,800

OASI, social security.................................. 5,736,600

GROSS APPROPRIATION.................................... $ 93,103,600

Appropriated from:

Special revenue funds:

Court fee fund......................................... 2,988,100

State general fund/general purpose..................... $ 90,115,500

Sec. 106. JUDICIAL AGENCIES

Full-time equated exempted positions.............. 7.0

Judicial tenure commission--7.0 FTE positions.......... $ 1,115,200

GROSS APPROPRIATION.................................... $ 1,115,200

Appropriated from:

State general fund/general purpose..................... $ 1,115,200

Sec. 107. INDIGENT DEFENSE - CRIMINAL

Full-time equated exempted positions............. 57.0

Appellate public defender program--51.0 FTE positions.. $ 7,857,800

Michigan indigent defense commission--6.0 FTE

positions............................................ 996,700

GROSS APPROPRIATION.................................... $ 8,854,500

Appropriated from:

Interdepartmental grant revenues:

IDG from state police - Michigan justice training fund. 473,700

Federal revenues:

Other federal grant revenues........................... 65,200

Special revenue funds:

Private - interest on lawyers trust accounts........... 82,600

Miscellaneous revenue.................................. 132,900

State general fund/general purpose..................... $ 8,100,100

Sec. 108. INDIGENT CIVIL LEGAL ASSISTANCE

Indigent civil legal assistance........................ $ 7,937,000

GROSS APPROPRIATION.................................... $ 7,937,000

Appropriated from:

Special revenue funds:

State court fund....................................... 7,937,000

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

Sec. 109. TRIAL COURT OPERATIONS

Court equity fund reimbursements....................... $ 60,815,700

Judicial technology improvement fund................... 4,815,000

Drug case-flow program................................. 250,000

Drunk driving case-flow program........................ 3,300,000

Juror compensation reimbursement....................... 6,600,000

Statewide e-file system................................ 100

GROSS APPROPRIATION.................................... $ 75,780,800

Appropriated from:

Special revenue funds:

Court equity fund...................................... 50,440,000

Judicial technology improvement fund................... 4,815,000

Drug fund.............................................. 250,000

Drunk driving fund..................................... 3,300,000

Juror compensation fund................................ 6,600,100

State general fund/general purpose..................... $ 10,375,700

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2015-2016

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 2015-2016 is $267,688,000.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2015-2016 is $137,079,400.00. The

itemized statement below identifies appropriations from which

spending to local units of government will occur:

JUDICIARY

SUPREME COURT

State court administrative office...................... $ 511,900

Drug treatment courts.................................. 10,658,000

Mental health courts and diversion services............ 5,222,800

Veterans courts........................................ 500,000

Swift and sure sanctions program....................... 4,150,000

Next generation Michigan court system.................. 4,116,000

TRIAL COURT OPERATIONS

Court equity fund reimbursements....................... $ 60,815,700

Judicial technology improvement fund................... 4,815,000

Drunk driving case-flow program........................ 3,300,000

Drug case-flow program................................. 250,000

Juror compensation reimbursement....................... 6,600,000

JUSTICES' AND JUDGES' COMPENSATION

District court judicial salary standardization......... $ 11,111,000

Probate court judges' state base salaries.............. 9,627,900

Probate court judicial salary standardization.......... 4,669,600

Circuit court judicial salary standardization.......... 9,739,200

Grant to OASI contribution fund, employers share,

social security..................................... 992,300

TOTAL.................................................. $ 137,079,400

Sec. 202. (1) The appropriations authorized under this part

and part 1 are subject to the management and budget act, 1984 PA

431, MCL 18.1101 to 18.1594.

(2) Funds appropriated in part 1 to an entity within the

judicial branch shall not be expended or transferred to another

account without written approval of the authorized agent of the

judicial entity. If the authorized agent of the judicial entity

notifies the state budget director of its approval of an

expenditure or transfer, the state budget director shall

immediately make the expenditure or transfer. The authorized

judicial entity agent shall be designated by the chief justice of

the supreme court.

Sec. 203. As used in this part and part 1:

(a) "DOJ" means the United States Department of Justice.

(b) "DOT" means the United States Department of

Transportation.

(d) "HHS" means the United States Department of Health and

Human Services.

(e) "IDG" means interdepartmental grant.

(f) "OASI" means old age survivor's insurance.

(g) "Title IV-D" means the part of the federal social security

act, 42 USC 301 to 1397mm, pertaining to the child support

enforcement program.

(h) "Title IV-E" means the part of the federal social security

act, 42 USC 301 to 1397mm, pertaining to the foster care program.

Sec. 204. The judicial branch shall not take disciplinary

action against an employee for communicating with a member of the

legislature or his or her staff.

Sec. 205. It is the intent of the legislature that judges who

are presiding over a hearing on a foster care case shall publicly

acknowledge and request the input of the foster parent or foster

parents during the hearing.

Sec. 207. If the judicial branch makes any changes to a foster

care family service plan before its finalization, it is the intent

of the legislature that the presiding judge provide an explanation

for any changes to that plan in the court record.

Sec. 208. The reporting requirements of this part shall be

completed with the approval of, and at the direction of, the

supreme court, except as otherwise provided in this part. The

judicial branch shall use the Internet to fulfill the reporting

requirements of this part. 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 an Internet

or intranet site.

Sec. 209. (1) If funds become available in part 1 for juvenile

justice vision 20/20, the state court administrative office shall

implement the information technology services and projects

described in subsection (2).

(2) The state court administrative office shall use the funds

described in subsection (1) to implement a data exchange for use by

circuit and probate courts, private juvenile justice agencies, and

the state court administrative office under the guidance of

appropriate data sharing agreements that tracks statistical and

demographic data on juveniles referred to the family division of

the circuit court, otherwise known as the juvenile courts, after

successful implementation and evaluation of the existing pilot

database in Ottawa, Kalamazoo, Kent, Ionia, and Berrien Counties.

(3) It is the intent of the legislature that the purpose of

the project is to implement a new juvenile justice data sharing

model that will track data on juveniles referred to the courts. The

project will be accomplished by local court staff, state employees,

contracts with private vendors, and juvenile justice stakeholders.

The total estimated cost of the project is $5,550,000.00. The

tentative completion date is September 30, 2019. The data exchange

shall be compatible with the Michigan statewide automated child

welfare information system.

(4) If funding becomes available for the project, the state

court administrative office shall submit a report by March 1 to the

senate and house appropriations subcommittees on judiciary, the

senate and house fiscal agencies, the senate and house policy

offices, and the state budget office on the status of the

implementation items described in subsections (1) and (2) should

funding become available.

Sec. 211. From the funds appropriated in part 1, the state

court administrative office shall evaluate programs within the

department of health and human services and the department of

talent and economic development to establish programmatic

connections with the participants in the swift and sure sanctions

program. The purpose of this relationship is to leverage

collaborations and to determine avenues of success for offenders

who are eligible for state-provided programs. By March 1, the state

court administrative office shall deliver guidance to courts

participating in the swift and sure sanctions program under chapter

XIA of the code of criminal procedure, 1927 PA 175, MCL 771A.1 to

771A.8, detailing the evaluations and to direct participants into

available programming.

Sec. 212. The judicial branch shall receive and retain copies

of all reports funded from appropriations in part 1. Federal and

state guidelines for short-term and long-term retention of records

shall be followed. The judicial branch may electronically retain

copies of reports unless otherwise required by federal and state

guidelines.

Sec. 214. 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. Preference shall be given to

goods or services, or both, manufactured or provided by Michigan

businesses, if they are competitively priced and of comparable

quality. In addition, preference shall be given to goods or

services, or both, that are manufactured or provided by Michigan

businesses owned and operated by veterans, if they are

competitively priced and of comparable quality.

Sec. 215. Not later than January 1 of each year, the state

court administrative office shall prepare a report on out-of-state

travel listing all travel by judicial branch employees outside this

state in the immediately preceding fiscal year that was funded in

whole or in part with funds appropriated in the budget for the

judicial branch. The report shall be submitted to the senate and

house of representatives standing committees on appropriations, the

senate and house fiscal agencies, and the state budget director.

The report shall include the following information:

(a) The dates of each travel occurrence.

(b) The transportation and related costs of each travel

occurrence, including the proportion funded with state general

fund/general purpose revenues, the proportion funded with state

restricted revenues, the proportion funded with federal revenues,

and the proportion funded with other revenues.

Sec. 219. Not later than November 30, the state budget office

shall prepare and transmit a report that provides for estimates of

the total general fund/general purpose appropriation lapses at the

close of the prior fiscal year. This report shall summarize the

projected year-end general fund/general purpose appropriation

lapses by major program or program areas. The report shall be

transmitted to the chairpersons of the senate and house

appropriations committees and the senate and house fiscal agencies.

Sec. 221. From the funds appropriated in part 1, the judicial

branch shall maintain a searchable website accessible by the public

at no cost that includes all expenditures made by the judicial

branch within a fiscal year. The posting shall include the purpose

for which each expenditure is made. The judicial branch shall not

provide financial information on its website under this section if

doing so would violate a federal or state law, rule, regulation, or

guideline that establishes privacy or security standards applicable

to that financial information.

Sec. 222. Within 14 days after the release of the executive

budget recommendation, the judicial branch shall cooperate with the

state budget office to provide the chairpersons of the senate and

house appropriations committees, the chairpersons of the senate and

house appropriations subcommittees on judiciary, and the senate and

house fiscal agencies with an annual report on estimated state

restricted fund balances, state restricted fund projected revenues,

and state restricted fund expenditures for the prior 2 fiscal

years.

Sec. 223. The judiciary shall maintain, on a publicly

accessible website, a scorecard that identifies, tracks, and

regularly updates key metrics that are used to monitor and improve

the judiciary's performance.

Sec. 224. Total authorized appropriations from all sources

under part 1 for legacy costs for the fiscal year ending September

30, 2016 are $13,723,300.00. From this amount, total appropriations

for judiciary pension-related legacy costs are estimated at

$7,772,600.00. Total appropriations for judiciary retiree health

care legacy costs are estimated at $5,950,700.00.

Sec. 225. In addition to the metrics required under section

447 of the management and budget act, 1984 PA 431, MCL 18.1447, for

each new program or program enhancement for which funds in excess

of $500,000.00 are appropriated in part 1, the judiciary shall

provide not later than November 1 a list of program-specific

metrics intended to measure its performance based on a return on

taxpayer investment. The judiciary shall deliver the program-

specific metrics to members of the senate and house subcommittees

that have subject matter jurisdiction for this budget, to the

senate and house fiscal agencies, and to the state budget director.

The judiciary shall provide an update on its progress in tracking

program-specific metrics and the status of program success at an

appropriations subcommittee meeting called for by the subcommittee

chair.

JUDICIAL BRANCH

Sec. 301. From the funds appropriated in part 1, the direct

trial court automation support program of the state court

administrative office shall recover direct and overhead costs from

trial courts by charging for services rendered. The fee shall cover

the actual costs incurred to the direct trial court automation

support program in providing the service, including development of

future versions of case management systems.

Sec. 302. Funds appropriated within the judicial branch shall

not be expended by any component within the judicial branch without

the approval of the supreme court.

Sec. 303. Of the amount appropriated in part 1 for the

judicial branch, $511,900.00 is allocated for circuit court

reimbursement under section 3 of 1978 PA 16, MCL 800.453, and for

costs associated with the court of claims.

Sec. 306. By February 1, the state court administrative office

shall produce a statistical report, categorized by county,

regarding both the collected and uncollected amounts of restitution

payments, court fees, and any other applicable judgment placed upon

any person within the county reported for the years 2009 through

2014.

Sec. 307. From the funds appropriated in part 1 for mental

health courts and diversion services, $1,730,000.00 is intended to

address the recommendations of the mental health diversion council.

Sec. 308. If sufficient funds are not available from the court

fee fund to pay judges' compensation, the difference between the

appropriated amount from that fund for judges' compensation and the

actual amount available after the amount appropriated for trial

court reimbursement is made shall be appropriated from the state

general fund for judges' compensation. If an appropriation is made

under this section, the state court administrative office shall

notify, within 14 days of the appropriation, the senate and house

standing committees on appropriations, the senate and house

subcommittees on judiciary, the senate and house fiscal agencies,

and the state budget office.

Sec. 309. By April 1, the state court administrative office

shall provide a report on drug treatment, mental health, and

veterans court programs in this state. The report shall include

information on the number of each type of program that has been

established, the number of program participants in each

jurisdiction, and the impact of the programs on offender criminal

involvement and recidivism. The report shall be submitted to the

senate and house appropriations subcommittees on judiciary, the

senate and house fiscal agencies, and the state budget director.

Sec. 311. (1) The funds appropriated in part 1 for drug

treatment courts as that term is defined in section 1060 of the

revised judicature act of 1961, 1961 PA 236, MCL 600.1060, shall be

administered by the state court administrative office to operate

drug treatment court programs. A drug treatment court shall be

responsible for handling cases involving substance abusing

nonviolent offenders through comprehensive supervision, testing,

treatment services, and immediate sanctions and incentives. A drug

treatment court shall use all available county and state personnel

involved in the disposition of cases including, but not limited to,

parole and probation agents, prosecuting attorneys, defense

attorneys, and community corrections providers. The funds may be

used in connection with other federal, state, and local funding

sources.

(2) From the funds appropriated in part 1, the chief justice

shall allocate sufficient funds for the judicial institute to

provide in-state training for those identified in subsection (1),

including training for new drug treatment court judges.

(3) For drug treatment court grants, consideration for

priority may be given to those courts where higher instances of

substance abuse cases are filed.

(4) The judiciary shall receive $1,500,000.00 in Byrne formula

grant funding as an interdepartmental grant from the department of

state police to be used for expansion of drug treatment courts, to

assist in avoiding prison bed space growth for nonviolent offenders

in collaboration with the department of corrections.

Sec. 312. From the funds appropriated in part 1, the state

court administrator shall produce a statistical report regarding

the implementation of the parental rights restoration act, 1990 PA

211, MCL 722.901 to 722.908, as it pertains to minors seeking a

court-issued waiver of parental consent. The state court

administrative office shall report the total number of petitions

filed and the total number of petitions granted under that act.

Sec. 317. Funds appropriated in part 1 shall not be used for

the permanent assignment of state-owned vehicles to justices or

judges or any other judicial branch employee. This section does not

preclude the use of state-owned motor pool vehicles for state

business in accordance with approved guidelines.

Sec. 320. (1) From the funds appropriated in part 1 for the

swift and sure sanctions program, created under section 3 of

chapter XIA of the code of criminal procedure, 1927 PA 175, MCL

771A.3, the state court administrative office shall administer a

program to distribute grants to qualifying courts in accordance

with the objectives and requirements of the probation swift and

sure sanctions act, chapter XIA of the code of criminal procedure,

1927 PA 175, MCL 771A.1 to 771A.8. Of the $4,250,000.00 designated

for the program, not more than $100,000.00 shall be available to

the state court administrative office to pay for employee costs

associated with the administration of the program funds. Courts

interested in participating in the swift and sure sanctions program

may apply to the state court administrative office for a portion of

the funds appropriated in part 1 under this section.

(2) By April 1, the state court administrative office shall

provide a report on the courts that receive funding under the swift

and sure sanctions program described in subsection (1) to the

senate and house appropriations subcommittees on judiciary, the

senate and house fiscal agencies, and the state budget director.

The report shall include all of the following:

(a) The number of offenders who participate in the program.

(b) The criminal history of offenders who participate in the

program.

program, including the rate of return to jail, prison, or both.

(d) A detailed description of the establishment and parameters

of the program.

(3) As used in this section, "program" means a swift and sure

sanctions program described in subsection (1).

Sec. 321. It is the intent of the legislature that the

judicial branch support a statewide legal self-help Internet

website and local nonprofit self-help centers that use the

statewide website to provide assistance to individuals representing

themselves in civil legal proceedings. The state court

administrative office shall summarize the costs of maintaining the

website, provide statistics on the number of people visiting the

website, and provide information on content usage, form completion,

and user feedback. By March 1, the state court administrative

office shall report this information for the preceding fiscal year

to the senate and house appropriations subcommittees on judiciary,

the senate and house fiscal agencies, and the state budget

director.

Sec. 322. If Byrne formula grant funding is awarded to the

state appellate defender, the state appellate defender office may

receive and expend Byrne formula grant funds in an amount not to

exceed $250,000.00 as an interdepartmental grant from the

department of state police. If the appellate defender appointed

under section 3 of the appellate defender act, 1978 PA 620, MCL

780.713, receives federal grant funding from the United States

Department of Justice in excess of the amount appropriated in part

1, the office of appellate defender may receive and expend grant

funds in an amount not to exceed $300,000.00 as other federal

grants.

Sec. 322a. If Byrne formula grant funding is awarded to the

Michigan indigent defense commission, the Michigan indigent defense

commission may receive and expend Byrne formula grant funds in an

amount not to exceed $250,000.00 as an interdepartmental grant from

the department of state police. The Michigan indigent defense

commission, created under section 5 of the Michigan indigent

defense commission act, 2013 PA 93, MCL 780.985, may receive and

expend federal grant funding from the United States Department of

Justice in an amount not to exceed $300,000.00 as other federal

grants.

Sec. 323. The state court administrative office shall provide

courts with a quarterly listing of out-of-state placements of

juveniles by each court. The state court administrative office

shall also provide each judge who hears juvenile matters with the

annual listing of per diem costs of the public and private

residential care facilities located or doing business in this

state, and the recidivism data for each facility, if available, as

provided by the department of health and human services. The courts

shall acknowledge receipt of this information.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

FOR FISCAL YEAR 2016-2017

GENERAL SECTIONS

Sec. 1201. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, 2017 for

the line items listed in part 1. The fiscal year 2016-2017

appropriations are anticipated to be the same as those for fiscal

year 2015-2016, except that the line items will be adjusted for

changes in caseload and related costs, federal fund match rates,

economic factors, and available revenue. These adjustments will be

determined after the January 2016 consensus revenue estimating

conference.