FIRST CONFERENCE REPORT

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

House Bill No. 4106, entitled

A bill to make appropriations for the department of licensing and regulatory affairs 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 department of licensing and regulatory affairs and certain other state purposes for the fiscal year ending September 30, 2016; to provide for the expenditure of those appropriations; to provide for the imposition of certain fees; to provide for the disposition of fees and other income received by the state agencies; to provide for reports to certain persons; and to prescribe powers and duties of certain state departments and certain state and local agencies and officers.

_______________________ ________________________

Chris Afendoulis Marty Knollenberg

_______________________ ________________________

Michael D. McCready Jim Marleau

_______________________ ________________________

Harvey Santana Coleman Young II

Conferees for the House Conferees for the Senate

SUBSTITUTE FOR

HOUSE BILL NO. 4106

A bill to make appropriations for the department of licensing

and regulatory affairs and certain other state purposes for the

fiscal year ending September 30, 2016; to provide for the

expenditure of those appropriations; to provide for the imposition

of certain fees; to provide for the disposition of fees and other

income received by the state agencies; to provide for reports to

certain persons; and to prescribe powers and duties of certain

state departments and certain state and local agencies and

officers.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

FOR FISCAL YEAR 2015-2016

Sec. 101. The amounts listed in this part are appropriated for

the department of licensing and regulatory affairs, subject to the

conditions set forth in part 2, for the fiscal year ending

September 30, 2016, from the funds identified in this part. The

following is a summary of the appropriations in this part:

DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS

APPROPRIATION SUMMARY

Full-time equated unclassified positions......... 57.5

Full-time equated classified positions........ 2,163.3

GROSS APPROPRIATION.................................... $ 407,649,000

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers............................................ 46,068,700

ADJUSTED GROSS APPROPRIATION........................... $ 361,580,300

Federal revenues:

Total federal revenues................................. 63,674,900

Special revenue funds:

Total local revenues................................... 679,000

Total private revenues................................. 341,300

Total other state restricted revenues.................. 258,403,600

State general fund/general purpose..................... $ 38,481,500

Sec. 102. DEPARTMENTAL ADMINISTRATION

Full-time equated unclassified positions......... 57.5

Full-time equated classified positions.......... 115.0

Unclassified salaries--57.5 FTE positions.............. $ 4,605,200

Executive director programs--24.0 FTE positions........ 2,890,200

Financial and administrative services--74.0 FTE

positions............................................ 7,805,800

Office of regulatory reinvention--4.0 FTE positions.... 482,600

Office of reinventing performance in Michigan--6.0 FTE

positions............................................ 700,000

Office for new Americans--4.0 FTE positions............ 593,000

FOIA coordination--2.0 FTE positions................... 302,900

Local community stabilization authority--1.0 FTE

position............................................. 150,000

Property management.................................... 11,776,400

Information technology services and projects........... 19,979,100

Worker's compensation.................................. 342,700

GROSS APPROPRIATION.................................... $ 49,627,900

Appropriated from:

Interdepartmental grant revenues:

IDG-DIFS, accounting services.......................... 150,000

IDG-TED, unemployment hearings......................... 555,000

Federal revenues:

DED-vocational rehabilitation and independent living... 2,184,100

DOL-occupational safety and health..................... 992,400

EPA-underground storage tanks.......................... 28,600

HHS-Medicaid, certification of health care providers

and suppliers........................................ 708,700

HHS-Medicare, certification of health care providers

and suppliers........................................ 1,165,600

Special revenue funds:

Local stabilization authority contract................. 150,000

Aboveground storage tank fees.......................... 145,500

Accountancy enforcement fund........................... 67,000

Asbestos abatement fund................................ 179,600

Boiler inspection fund................................. 630,800

Builder enforcement fund............................... 98,800

Construction code fund................................. 1,609,400

Corporation fees....................................... 8,622,900

Elevator fees.......................................... 683,400

Fire alarm fees........................................ 5,300

Fire safety standard and enforcement fund.............. 1,100

Fire service fees...................................... 771,800

Fireworks safety fund.................................. 93,600

Health professions regulatory fund..................... 2,672,200

Health systems fees.................................... 438,900

Licensing and regulation fund.......................... 3,035,800

Liquor license revenue................................. 300,000

Liquor purchase revolving fund......................... 7,046,300

Michigan medical marihuana fund........................ 917,600

Mobile home code fund.................................. 603,900

Nurse professional fund................................ 36,900

PMECSEMA fund.......................................... 217,700

Private occupational school license fees............... 164,000

Property development fees.............................. 6,000

Public utility assessments............................. 3,985,700

Radiological health fees............................... 296,200

Real estate appraiser education fund................... 6,400

Real estate education fund............................. 15,200

Real estate enforcement fund........................... 9,900

Restructuring mechanism assessments.................... 11,000

Safety education and training fund..................... 1,372,700

Second injury fund..................................... 395,000

Securities fees........................................ 4,594,100

Securities investor education and training fund........ 14,400

Security business fund................................. 3,100

Self-insurers security fund............................ 255,900

Silicosis and dust disease fund........................ 173,500

Survey and remonumentation fund........................ 142,000

Tax tribunal fund...................................... 1,631,400

Unarmed combat fund.................................... 12,800

Underground storage tank fees.......................... 355,200

Utility consumer representation fund................... 52,900

Worker's compensation administrative revolving fund.... 99,800

State general fund/general purpose..................... $ 1,917,800

Sec. 103. ENERGY AND UTILITY PROGRAMS

Full-time equated classified positions.......... 183.0

Michigan agency for energy--52.0 FTE positions......... $ 12,155,100

Public service commission--131.0 FTE positions......... 21,647,600

GROSS APPROPRIATION.................................... $ 33,802,700

Appropriated from:

Federal revenues:

DOE-heating oil and propane............................ 3,851,200

DOT-gas pipeline safety................................ 1,219,900

EPA-pollution prevention............................... 84,000

Special revenue funds:

Oil overcharge......................................... 30,000

Public utility assessments............................. 26,847,100

Restructuring mechanism assessments.................... 550,900

Retired engineers technical assistance program fund.... 669,600

State general fund/general purpose..................... $ 550,000

Sec. 104. LIQUOR CONTROL COMMISSION

Full-time equated classified positions.......... 143.0

Management support services--28.0 FTE positions........ $ 4,361,200

Liquor licensing and enforcement--115.0 FTE positions.. 15,089,200

GROSS APPROPRIATION.................................... $ 19,450,400

Appropriated from:

Special revenue funds:

Direct shipper enforcement revolving fund.............. 124,500

Liquor license fee enhancement fund.................... 75,000

Liquor license revenue................................. 7,304,100

Liquor purchase revolving fund......................... 11,946,800

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

Sec. 105. OCCUPATIONAL REGULATION

Full-time equated classified positions........ 1,024.9

Bureau of fire services--80.0 FTE positions............ $ 11,414,500

Bureau of construction codes--176.0 FTE positions...... 21,767,000

Detroit demolition permit assistance................... 800,000

Corporations, securities, and commercial licensing

bureau--178.0 FTE positions.......................... 26,818,100

Bureau of health care services--351.9 FTE positions.... 59,284,100

Medical marihuana program--20.0 FTE positions.......... 4,228,800

Bureau of children and adult licensing--219.0 FTE

positions............................................ 28,569,000

GROSS APPROPRIATION.................................... $ 152,881,500

Appropriated from:

Interdepartmental grant revenues:

IDG-DHHS, inspection contract.......................... 100,000

IDG-MDE, child care licensing.......................... 16,340,200

Federal revenues:

DHS-fire training systems.............................. 28,000

DOT-hazardous materials training and planning.......... 60,000

EPA-underground storage tanks.......................... 1,255,300

HHS-Medicaid, certification of health care providers

and suppliers........................................ 8,991,600

HHS-Medicare, certification of health care providers

and suppliers........................................ 12,215,700

Special revenue funds:

Private - civil monetary penalties..................... 199,500

Aboveground storage tank fees.......................... 447,200

Accountancy enforcement fund........................... 404,300

Boiler inspection fund................................. 3,756,800

Builder enforcement fund............................... 478,300

Construction code fund................................. 8,440,000

Corporation fees....................................... 6,916,900

Elevator fees.......................................... 4,780,500

Fire alarm fees........................................ 125,400

Fire safety standard and enforcement fund.............. 40,000

Fire service fees...................................... 2,452,400

Fireworks safety fund.................................. 682,900

Health professions regulatory fund..................... 23,491,300

Health systems fees.................................... 3,309,300

Licensing and regulation fund.......................... 11,386,500

Liquor purchase revolving fund......................... 130,900

Michigan medical marihuana fund........................ 4,228,800

Mobile home code fund.................................. 2,982,300

Nurse professional fund................................ 1,937,200

PMECSEMA fund.......................................... 1,821,300

Private occupational school license fees............... 817,600

Property development fees.............................. 318,100

Real estate appraiser education fund................... 63,200

Real estate education fund............................. 340,600

Real estate enforcement fund........................... 696,400

Securities fees........................................ 4,918,700

Securities investor education and training fund........ 999,900

Security business fund................................. 340,100

Survey and remonumentation fund........................ 837,200

Unarmed combat fund.................................... 137,000

Underground storage tank fees.......................... 2,518,500

State general fund/general purpose..................... $ 23,891,600

Sec. 106. EMPLOYMENT SERVICES

Full-time equated classified positions.......... 464.4

Workers' compensation agency--56.0 FTE positions....... $ 7,745,500

Insurance funds administration--23.0 FTE positions..... 5,236,300

Compensation supplement fund........................... 1,820,000

Bureau of services for blind persons--113.0 FTE

positions............................................ 25,011,000

Bureau of employment relations--22.0 FTE positions..... 4,117,800

Michigan occupational safety and health

administration--197.0 FTE positions.................. 28,660,200

Radiation safety section--21.4 FTE positions........... 3,437,000

Wage and hour program--32.0 FTE positions.............. 3,658,300

GROSS APPROPRIATION.................................... $ 79,686,100

Appropriated from:

Federal revenues:

DED-vocational rehabilitation and independent living... 18,279,800

DOL-occupational safety and health..................... 11,695,100

HHS-mammography quality standards...................... 764,900

Special revenue funds:

Local revenues......................................... 529,000

Private revenues....................................... 111,800

Asbestos abatement fund................................ 1,016,800

Corporation fees....................................... 8,455,400

Michigan business enterprise program fund.............. 562,000

Radiological health fees............................... 2,672,100

Safety education and training fund..................... 9,554,100

Second injury fund..................................... 2,814,600

Securities fees........................................ 8,484,500

Self-insurers security fund............................ 1,337,100

Silicosis and dust disease fund........................ 1,084,600

Worker's compensation administrative revolving fund.... 2,462,800

State general fund/general purpose..................... $ 9,861,500

Sec. 107. MICHIGAN ADMINISTRATIVE HEARING SYSTEM

Full-time equated classified positions.......... 233.0

Michigan administrative hearing system--215.0 FTE

positions............................................ $ 38,678,000

Michigan compensation appellate commission--18.0 FTE

positions............................................ 4,546,700

GROSS APPROPRIATION.................................... $ 43,224,700

Appropriated from:

Interdepartmental grant revenues:

IDG revenues - administrative hearings and rules....... 28,923,500

Federal revenues:

Federal revenues - administrative hearings and rules... 150,000

Special revenue funds:

State restricted revenues - administrative hearings

and rules............................................ 12,783,100

Worker's compensation administrative revolving fund.... 333,200

State general fund/general purpose..................... $ 1,034,900

Sec. 108. DEPARTMENT GRANTS

Fire protection grants................................. $ 9,273,900

Firefighter training grants............................ 1,000,000

Liquor law enforcement grants.......................... 7,200,000

Medical marihuana operation and oversight grants....... 3,000,000

Remonumentation grants................................. 7,300,000

Subregional libraries state aid........................ 451,800

Utility consumer representation........................ 750,000

GROSS APPROPRIATION.................................... $ 28,975,700

Appropriated from:

Special revenue funds:

Fire protection fund................................... 8,500,000

Fireworks safety fund.................................. 1,000,000

Liquor license revenue................................. 7,200,000

Michigan medical marihuana fund........................ 3,000,000

Survey and remonumentation fund........................ 7,300,000

Utility consumer representation fund................... 750,000

State general fund/general purpose..................... $ 1,225,700

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 $296,885,100.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2015-2016 is $28,225,700.00. The

itemized statement below identifies appropriations from which

spending to local units of government will occur:

DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS

Fire protection grants................................. $ 9,273,900

Firefighter training grants............................ 1,000,000

Liquor law enforcement grants.......................... 7,200,000

Medical marihuana operation and oversight grants....... 3,000,000

Remonumentation grants................................. 7,300,000

Subregional libraries state aid........................ 451,800

Total department of licensing and regulatory

affairs.............................................. $ 28,225,700

Sec. 202. 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.

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

(a) "DED" means the United States Department of Education.

(b) "Department" means the department of licensing and

regulatory affairs.

services.

(d) "DHS" means the United States Department of Homeland

Security.

(e) "DIFS" means the department of insurance and financial

services.

(f) "Director" means the director of the department.

(g) "DOE" means the United States Department of Energy.

(h) "DOL" means the United States Department of Labor.

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

Transportation.

(j) "EPA" means the United States Environmental Protection

Agency.

(k) "Fiscal agencies" means Michigan house fiscal agency and

Michigan senate fiscal agency.

(l) "FOIA" means the freedom of information act, 1976 PA 442,

MCL 15.231 to 15.246.

(m) "FTE" means full-time equated.

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

Human Services.

(o) "IDG" means interdepartmental grant.

(p) "MDE" means the Michigan department of education.

(q) "PMECSEMA" means pain management education and controlled

substances electronic monitoring and antidiversion.

(r) "Subcommittees" means all members of the subcommittees of

the house and senate appropriations committees with jurisdiction

over the budget for the department.

(s) "TED" means the Michigan department of talent and economic

development.

Sec. 205. 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 department 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 department shall deliver the program-

specific metrics to members of the senate and house subcommittees

that have subject matter jurisdiction for this budget, fiscal

agencies, and the state budget director. The department 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 chairperson.

Sec. 208. The departments and agencies receiving

appropriations in part 1 shall use the Internet to fulfill the

reporting requirements of this part. This requirement 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. 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. 210. The director shall take all reasonable steps to

ensure businesses in deprived and depressed communities compete for

and perform contracts to provide services or supplies, or both. The

director shall strongly encourage firms with which the department

contracts to subcontract with certified businesses in depressed and

deprived communities for services, supplies, or both.

Sec. 212. The department and agencies receiving appropriations

in part 1 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 department may electronically retain copies or reports unless

otherwise required by federal and state guidelines.

Sec. 215. The department shall not take disciplinary action

against an employee for communicating with a member of the

legislature or his or her staff.

Sec. 216. 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 departmental program or program areas. The report

shall be transmitted to the chairpersons of the senate and house

appropriations committees and the fiscal agencies.

Sec. 218. The departments and agencies receiving

appropriations in part 1 shall prepare a report on out-of-state

travel expenses not later than January 1 of each year. The travel

report shall be a listing of all travel by classified and

unclassified employees outside this state in the immediately

preceding fiscal year that was funded in whole or in part with

funds appropriated in the department's budget. The report shall be

submitted to the house and senate appropriations committee, the

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

The report shall include the following information:

(a) The dates of each travel occurrence.

(b) The total 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. No later than April 1, the department shall submit

to the subcommittees and the fiscal agencies a report pertaining to

the following information:

(a) The amount, in square footage, of office space paid for

with the appropriation in part 1 for both state-owned and leased

office space, respectively, during the previous fiscal year.

(b) The amount, in square footage, of office space actually

utilized by the department for both state-owned and leased office

space, respectively, during the previous fiscal year.

be utilized during the current and subsequent fiscal years.

Sec. 220. The department may carry into the succeeding fiscal

year unexpended federal pass-through funds to local institutions

and governments that do not require additional state matching

funds. Federal pass-through funds to local institutions and

governments that are received in amounts in addition to those

included in part 1 and that do not require additional state

matching funds are appropriated for the purposes intended. Within

14 days after the receipt of federal pass-through funds, the

department shall notify the house and senate chairpersons of the

subcommittees, the fiscal agencies, and the state budget director

of pass-through funds appropriated under this section.

Sec. 221. Funds appropriated in this part and part 1 shall not

be used by a principal executive department, state agency, or

authority to hire a person to provide legal services that are the

responsibility of the attorney general. This prohibition does not

apply to legal services for bonding activities and for those

outside services that the attorney general authorizes.

Sec. 223. (1) In addition to the funds appropriated in part 1,

there is appropriated an amount not to exceed $19,000,000.00 for

federal contingency funds.

(2) In addition to the funds appropriated in part 1, there is

appropriated an amount not to exceed $25,000,000.00 for state

restricted contingency funds.

(3) In addition to the funds appropriated in part 1, there is

appropriated an amount not to exceed $7,800,000.00 for local

contingency funds.

(4) In addition to the funds appropriated in part 1, there is

appropriated an amount not to exceed $400,000.00 for private

contingency funds.

(5) Funds appropriated pursuant to this section are not

available for expenditure until they have been transferred to

another line item in part 1 under section 393(2) of the management

and budget act, 1984 PA 431, MCL 18.1393.

Sec. 225. (1) Grants supported with private revenues received

by the department are appropriated upon receipt and are available

for expenditure by the department, subject to subsection (3), for

purposes specified within the grant agreement and as permitted

under state and federal law.

(2) Within 10 days after the receipt of a private grant

appropriated in subsection (1), the department shall notify the

house and senate chairpersons of the subcommittees, the fiscal

agencies, and the state budget director of the receipt of the

grant, including the fund source, purpose, and amount of the grant.

(3) The amount appropriated under subsection (1) shall not

exceed $1,500,000.00.

Sec. 227. (1) The department shall sell documents at a price

not to exceed the cost of production and distribution. Money

received from the sale of these documents shall revert to the

department. In addition to the funds appropriated in part 1, these

funds are available for expenditure when they are received by the

department of treasury. This subsection applies only for the

following documents:

(a) Corporation and securities division documents, reports,

and papers required or permitted by law pursuant to section 1060(5)

of the business corporation act, 1972 PA 284, MCL 450.2060.

(b) The Michigan liquor control code of 1998, 1998 PA 58, MCL

436.1101 to 436.2303.

to 125.2349; the business corporation act, 1972 PA 284, MCL

450.1101 to 450.2098; the nonprofit corporation act, 1982 PA 162,

MCL 450.2101 to 450.3192; and the uniform securities act (2002),

2008 PA 551, MCL 451.2101 to 451.2703.

(d) Worker's compensation health care services rules.

(e) Construction code manuals.

(f) Copies of transcripts from administrative law hearings.

(2) In addition to the funds appropriated in part 1, funds

appropriated for the department under sections 55, 57, 58, and 59

of the administrative procedures act of 1969, 1969 PA 306, MCL

24.255, 24.257, 24.258, and 24.259, and section 203 of the

legislative council act, 1986 PA 268, MCL 4.1203, are appropriated

for all expenses necessary to provide for the cost of publication

and distribution.

(3) Unexpended funds at the end of the fiscal year shall carry

forward to the subsequent fiscal year and not lapse to the general

fund.

Sec. 228. Unless prohibited by law, the department may accept

credit card or other electronic means of payment for licenses,

fees, or permits.

Sec. 229. The department shall maintain, on a publicly

accessible website, a department scorecard that identifies, tracks,

and regularly updates key metrics that are used to monitor and

improve the department's performance.

Sec. 231. The department shall cooperate with the department

of technology, management, and budget to maintain a searchable

website accessible by the public at no cost that includes, but is

not limited to, all of the following for each department or agency:

(a) Fiscal year-to-date expenditures by category.

(b) Fiscal year-to-date expenditures by appropriation unit.

including the vendor name, payment date, payment amount, and

payment description.

(d) The number of active department employees by job

classification.

(e) Job specifications and wage rates.

Sec. 232. The department shall not develop or produce any

television or radio productions.

Sec. 234. Within 14 days after the release of the executive

budget recommendation, the department shall cooperate with the

state budget office to provide the senate and house appropriations

chairs, the senate and house appropriations subcommittees chairs,

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

preceding and current fiscal years.

Sec. 235. Total authorized appropriations from all sources

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

30, 2016 are $55,244,600.00. From this amount, total agency

appropriations for pension-related legacy costs are estimated at

$31,352,700.00. Total agency appropriations for retiree health care

legacy costs are estimated at $23,891,800.00.

Sec. 241. (1) The department may charge registration fees to

attendees of informational, training, or special events sponsored

by the department.

(2) These fees shall reflect the costs for the department to

sponsor the informational, training, or special events.

(3) Revenue generated by the registration fees is appropriated

upon receipt and available for expenditure to cover the

department's costs of sponsoring informational, training, or

special events.

(4) Revenue generated by registration fees in excess of the

department's costs of sponsoring informational, training, or

special events shall carry forward to the subsequent fiscal year

and not lapse to the general fund.

(5) Not later than November 15, the department shall submit a

report to the subcommittees, fiscal agencies, and the state budget

office that identifies each of the following in the immediately

preceding fiscal year:

(a) Each informational, training, or special event sponsored

by the department.

(b) The amount of revenue generated by registration fees.

sponsoring informational, training, or special events.

(d) Any balance carried forward into the subsequent fiscal

year.

(6) The amount appropriated under subsection (3) shall not

exceed $500,000.00.

Sec. 242. The department may make available to interested

entities otherwise unavailable customized listings of

nonconfidential information in its possession, such as names and

addresses of licensees. The department may establish and collect a

reasonable charge to provide this service. The revenue received

from this service shall be used to offset expenses to provide the

service. Any balance of this revenue collected and unexpended at

the end of the fiscal year shall revert to the appropriate

restricted fund.

Sec. 243. The department shall work to establish memoranda of

understanding with other state departments or agencies that

participate in the reinventing performance in Michigan program

supported by appropriations in part 1. Each memorandum shall detail

a mechanism for the department to recover costs related to program

services performed on behalf of the receiving agency. Not later

than March 1, the department shall submit a report to the state

budget office, subcommittees, and fiscal agencies containing the

following information:

(a) The name of each state department or agency participating

in the program.

(b) Whether a memorandum of understanding was established with

each participating state department or agency.

understanding.

Sec. 245. The department, in conjunction with the department

of health and human services, shall maintain an accounting

structure within the Michigan administrative information network

that will allow expenditures associated with the administration of

the Healthy Michigan plan to be identified. By October 1, the

department shall provide the state budget office and the fiscal

agencies with the relevant accounting structure and associated

business objects script and report that group's administrative

costs.

Sec. 248. (1) No later than March 1, the department shall

submit a report to the subcommittees and fiscal agencies pertaining

to licensing and regulatory programs during the previous fiscal

year for the following agencies:

(a) Public service commission.

(b) Liquor control commission.

(d) Corporations, securities, and commercial licensing bureau.

(e) Bureau of health care services.

(f) Michigan occupational safety and health administration.

(2) The report shall be in a format that is consistent between

the agencies listed in subsection (1) and shall provide, but is not

limited to, the following information for each agency in subsection

(1):

(a) Revenue generated by and expenditures disbursed for each

regulatory product.

(b) Number of applications, both initial and renewal, for each

regulatory product.

for each regulatory product.

(d) Number of applications, both initial and renewal, denied

for each regulatory product.

(e) Average amount of time, both tolled and untolled, to

approve or deny applications, both initial and renewal, for each

regulatory product.

(f) Number of examinations proctored for initial applications

for each regulatory product, if applicable.

(g) Number of complaints received pertaining to each regulated

activity.

(h) Number of investigations opened pertaining to each

regulated activity.

(i) Number of investigations closed pertaining to each

regulated activity.

(j) Average amount of time to close investigations pertaining

to each regulated activity.

(k) Number of enforcement actions pertaining to each regulated

activity.

(l) Number of administrative hearings pertaining to each

regulated activity.

(m) Number of administrative hearing adjudications pertaining

to each regulated activity.

(n) The type and amount of each fee charged to support each

regulated activity.

(3) In addition to providing agency-level information as

specified in subsection (2), the report shall include a summary

that provides the following information as a sum total for all of

the agencies specified in subsection (1):

(a) Total fee revenue and expenditures.

(b) The numbers of applications, both initial and renewal,

received, approved, and denied for each regulatory product.

(d) Number of investigations opened.

(e) Number of investigations closed.

(f) Number of enforcement actions taken.

(g) Number of administrative hearing adjudications undertaken.

(4) As used in subsection (2), "regulatory products" means

licensure, certification, registration, permitting, approval, or

any other regulatory service provided by the agencies specified in

subsection (1) for occupations, facilities, entities, industries,

or activities regulated by the agencies specified in subsection

(1).

Sec. 252. It is the intent of the legislature that the

department establish an employee performance monitoring process

that is consistent throughout the department in addition to current

civil service commission evaluations. By April 1, the department

shall submit a report to the state budget office, the

subcommittees, and the fiscal agencies on changes to the employee

performance monitoring process that are planned or implemented.

OCCUPATIONAL REGULATION

Sec. 501. Money appropriated under this part and part 1 for

the bureau of fire services shall not be expended unless, in

accordance with section 2c of the fire prevention code, 1941 PA

207, MCL 29.2c, inspection and plan review fees will be charged

according to the following schedule:

Operation and maintenance inspection fee

Facility type Facility size Fee

Hospitals Any $8.00 per bed

Plan review and construction inspection fees for

hospitals and schools

Project cost range Fee

$101,000.00 or less minimum fee of $155.00

$101,001.00 to $1,500,000.00 $1.60 per $1,000.00

$1,500,001.00 to $10,000,000.00 $1.30 per $1,000.00

$10,000,001.00 or more $1.10 per $1,000.00

or a maximum fee of $60,000.00.

Sec. 502. The funds collected by the department for licenses,

permits, and other elevator regulation fees set forth in the

Michigan administrative code and as determined under section 8 of

1976 PA 333, MCL 338.2158, and section 16 of 1967 PA 227, MCL

408.816, that are unexpended at the end of the fiscal year shall

carry forward to the subsequent fiscal year.

Sec. 503. No later than February 15, the department shall

submit a report to the subcommittees, fiscal agencies, and state

budget director providing the following information:

(a) The number of honorably discharged veterans, individually

or if a majority interest of a corporation or limited liability

company, that were exempted from paying licensure, registration,

filing, or any other fees collected under each licensure or

regulatory program administered by the bureau of construction codes

and the corporations, securities, and commercial licensing bureau

during the preceding fiscal year.

(b) The specific fees and total amount of revenue exempted

under each licensure or regulatory program administered by the

bureau of construction codes and the corporations, securities, and

commercial licensing bureau during the preceding fiscal year.

regulatory services to veterans exempted from paying licensure,

registration, filing, or any other fees during the preceding fiscal

year and a description of how these costs were calculated.

(d) The estimated amount of revenue that will be exempted

under each licensure or regulatory program administered by the

bureau of construction codes and the corporations, securities, and

commercial licensing bureau in both the current and subsequent

fiscal years and a description of how the exempted revenue was

estimated.

Sec. 505. (1) Funds remaining in the homeowner construction

lien recovery fund are appropriated to the department for payment

of court-ordered homeowner construction lien recovery fund

judgments entered prior to August 23, 2010. Pursuant to available

funds, the payment of final judgments shall be made in the order in

which the final judgments were entered and began accruing interest.

(2) Not later than April 1, the department shall submit to the

subcommittees and fiscal agencies a report on the revenues,

expenditures, and balance of the homeowner construction lien

recovery fund as of the end of the previous fiscal year.

Sec. 507. The department shall submit a report by January 1 to

the standing committees on appropriations of the senate and house

of representatives, the fiscal agencies, and the state budget

director that includes all of the following information for the

prior fiscal year regarding the medical marihuana program under the

Michigan medical marihuana act, 2008 IL 1, MCL 333.26421 to

333.26430:

(a) The number of initial applications received.

(b) The number of initial applications approved and the number

of initial applications denied.

denial, to process an initial application.

(d) The number of renewal applications received.

(e) The number of renewal applications approved and the number

of renewal applications denied.

(f) The average amount of time, from receipt to approval or

denial, to process a renewal application.

(g) The percentage of initial applications not approved or

denied within the time requirements established in section 6 of the

Michigan medical marihuana act, 2008 IL 1, MCL 333.26426.

(h) The percentage of renewal applications not approved or

denied within the time requirements established in section 6 of the

Michigan medical marihuana act, 2008 IL 1, MCL 333.26426.

(i) The percentage of registry cards for approved initial

applications not issued within the time requirements established in

section 6 of the Michigan medical marihuana act, 2008 IL 1, MCL

333.26426.

(j) The percentage of registry cards for approved renewal

applications not issued within the time requirements established in

section 6 of the Michigan medical marihuana act, 2008 IL 1, MCL

333.26426.

(k) The amount collected from the medical marihuana program

application and renewal fees authorized in section 5 of the

Michigan medical marihuana act, 2008 IL 1, MCL 333.26425.

(l) The costs of administering the medical marihuana program

under the Michigan medical marihuana act, 2008 IL 1, MCL 333.26421

to 333.26430.

Sec. 508. If the revenue collected by the department for

health systems administration or radiological health administration

and projects from fees and collections exceeds the amount

appropriated in part 1, the revenue may be carried forward into the

subsequent fiscal year. The revenue carried forward under this

section shall be used as the first source of funds in the

subsequent fiscal year.

Sec. 511. No later than February 1, the department shall

submit a report to the subcommittees, fiscal agencies, and state

budget director providing the following information:

(a) The total amount of reimbursements made to local units of

government for delegated inspections of fireworks retail locations

pursuant to section 11 of the Michigan fireworks safety act, 2011

PA 256, MCL 28.461, from the funds appropriated in part 1 for the

bureau of fire services during the preceding fiscal year.

(b) The amount of reimbursement for delegated inspections of

fireworks retail locations for each local unit of government that

received reimbursement from the funds appropriated in part 1 for

the bureau of fire services during the preceding fiscal year.

Sec. 512. To the extent allowed under applicable state and

federal laws, the bureau of health care services shall make

disciplinary actions taken against health professionals publicly

available through the online license verification website.

Sec. 513. (1) Beginning October 1, for the purpose of

defraying the costs associated with responding to false final

inspection appointments and to discourage the practice of calling

for final inspections when the project is incomplete or

noncompliant with a plan of correction previously provided by the

bureau of fire services, the bureau of fire services may assess a

fee not to exceed $200.00 for responding to confirmed false

inspection appointments. Fees collected under this section shall be

deposited into the restricted account referenced by section 2c(2)

of the fire prevention code, 1941 PA 207, MCL 29.2c, and explicitly

identified within the Michigan administrative information network.

(2) Not later than September 30, the department shall prepare

a report that provides the amount of the fee assessed under

subsection (1), the number of fees assessed and issued per region,

the cost allocation for the work performed and reduced as a result

of this section, and any recommendations for consideration by the

legislature. The department shall submit this information to the

state budget director, the subcommittees, and the fiscal agencies.

Sec. 514. (1) From the funds appropriated in part 1 for the

bureau of children and adult licensing from the interdepartmental

grant from the department of education, the department shall

increase the number of child care licensing consultants and staff.

The purpose of the additional staff is to increase the number of

monitoring visits to applicants for a child care license and those

who are licensed to ensure the health and safety of children in

early learning settings across this state.

(2) By February 1, the department shall submit a report to the

subcommittees, the fiscal agencies, and the senate and house policy

offices detailing the improvements that the bureau of children and

adult licensing has achieved due to the increased number of child

care licensing consultants that were hired using the funds

appropriated in part 1 for the bureau of children and adult

licensing.

EMPLOYMENT SERVICES

Sec. 704. (1) The appropriation in part 1 for the bureau of

services for blind persons includes funds for case services. These

funds may be used for tuition payments for blind clients.

(2) Revenue collected by the bureau of services for blind

persons and from private and local sources that is unexpended at

the end of the fiscal year may carry forward to the subsequent

fiscal year.

Sec. 705. The bureau of services for blind persons shall work

collaboratively with service organizations and government entities

to identify qualified match dollars to maximize use of available

federal vocational rehabilitation funds.

Sec. 706. Not later than January 1, the department shall

submit a report to the subcommittees and fiscal agencies including,

but not limited to, the following information pertaining to the

activities of the youth low-vision program during the preceding

fiscal year:

(a) Number of individuals, classified by age, who received

services or devices.

(b) Description of the services and devices purchased under

the program.

classified by the county in which the provider is located.

(d) Amount by which private health insurance or other public

health programs were utilized to offset the expense of services or

devices.

(e) Amount of expenditures under the program that qualified

for federal matching revenue and the amount of federal matching

revenue received by the department.

Sec. 707. The bureau of services for blind persons may provide

and enter into agreements to provide general services, training,

meetings, information, special equipment, software, facility use,

and technical consulting services to other principal executive

departments, state agencies, local units of government, the

judicial branch of government, other organizations, and patrons of

department facilities. The department may charge fees for these

services that are reasonably related to the cost of providing the

services. In addition to the funds appropriated in part 1, funds

collected by the department for these services are appropriated for

all expenses necessary. The funds appropriated under this section

are allotted for expenditure when they are received by the

department of treasury.

DEPARTMENT GRANTS

Sec. 901. The appropriation in part 1 for fire protection

grants shall be appropriated to cities, villages, and townships

with state-owned facilities for fire services, instead of taxes, in

accordance with 1977 PA 289, MCL 141.951 to 141.956.

Sec. 902. (1) Not later than November 30, the department shall

prepare a report that provides the number of registry

identification cards issued to or renewed for patients residing in

each county as of September 30 of the preceding fiscal year, under

the Michigan medical marihuana act, 2008 IL 1, MCL 333.26421 to

333.26430. The department shall submit this report to the state

budget director, the subcommittees, and the fiscal agencies.

(2) The department shall expend the funds appropriated in part

1 for medical marihuana operation and oversight grants for grants

to county law enforcement offices for the operation and oversight

of the Michigan medical marihuana program pursuant to section 6(l)

of the Michigan medical marihuana act, 2008 IL 1, MCL 333.26426.

These grants shall be distributed proportionately based on the

number of registry identification cards issued to or renewed for

the residents of each county whose county law enforcement office

applied for a grant under subsection (3). For the purposes of this

subsection, operation and oversight grants are for education,

communication, and enforcement of the Michigan medical marihuana

act, 2008 IL 1, MCL 333.26421 to 333.26430.

(3) No later than December 1, the department shall post a

listing of potential grant money available to each county law

enforcement office on its website. A county law enforcement office

requesting a grant shall apply on a form developed by the

department and available on the website. The form shall contain the

county law enforcement office's specific projected plan for use of

the money and its agreement to maintain all records and to submit

documentation to the department to support the use of the grant

money.

(4) In order to be eligible to receive a grant under

subsection (2), a county law enforcement office shall apply no

later than January 1 and agree to report how the grant was expended

and provide that report to the department no later than September

15. The department shall submit a report no later than October 15

of the subsequent fiscal year to the state budget director, the

subcommittees, and the fiscal agencies detailing the grant amounts

by recipient and the reported uses of the grants in the preceding

fiscal year.

(5) County law enforcement offices may distribute

discretionary grants made under subsection (2) to municipal law

enforcement agencies for the operation and oversight of the

Michigan medical marihuana program pursuant to section 6(l) of the

Michigan medical marihuana act, 2008 IL 1, MCL 333.26426. If a

county law enforcement office distributes a discretionary grant in

this manner, that county law enforcement office shall require the

receiving municipal law enforcement agency to provide a report on

how that grant was spent. Reports from municipal law enforcement

agencies shall be included as part of the report submitted to the

department as required in subsection (4).

Sec. 903. (1) The amount appropriated in part 1 for

firefighter training grants shall only be expended for payments to

counties to reimburse organized fire departments for firefighter

training and other activities required under the firefighters

training council act, 1966 PA 291, MCL 29.361 to 29.377.

(2) If the amount appropriated in part 1 for firefighter

training grants is expended by the firefighter training council,

established in section 3 of the firefighters training council act,

1966 PA 291, MCL 29.363, for payments to counties under section 14

of the firefighters training council act, 1966 PA 291, MCL 29.374,

it is the intent of the legislature that:

(a) The amount appropriated in part 1 for firefighter training

grants shall be disbursed pursuant to section 14(2) of the

firefighters training council act, 1966 PA 291, MCL 29.374.

(b) If the amount disbursed to any county under subsection

(2)(a) is less than $5,000.00, the amounts disbursed to each county

under subsection (2)(a) shall be adjusted to provide for a minimum

payment of $5,000.00 to each county.

(3) No later than February 1, the department shall submit a

financial report to the subcommittees and fiscal agencies

identifying the following information for the preceding fiscal

year:

(a) The amount of the payments that would be made to each

county if the distribution formula described by the first sentence

of section 14(2) of the firefighters training council act, 1966 PA

291, MCL 29.374, would have been utilized to disburse the total

amount appropriated in part 1 for firefighter training grants.

(b) The amount of the payments approved by the firefighter

training council for disbursement to each county.

within each county.

(d) A description of any other payments or expenditures made

under the authority of the firefighter training council.

(e) The amount of payments approved for disbursements to

counties that was not expended or encumbered and lapsed back to the

fireworks safety fund.

(4) It is the intent of the legislature that the amount

appropriated in part 1 for firefighter training grants be adjusted

each fiscal year to reflect lapses from the preceding fiscal year

into the fireworks safety fund created in section 11 of the

Michigan fireworks safety act, 2011 PA 256, MCL 28.461, for the

purpose of ensuring that lapsed grant funds are reallocated in

subsequent fiscal years.

Sec. 904. (1) The funds appropriated in part 1 for a regional

or subregional library shall not be released until a budget for

that regional or subregional library has been approved by the

department for expenditures for library services directly serving

the blind and persons with disabilities.

(2) In order to receive subregional state aid as appropriated

in part 1, a regional or subregional library's fiscal agency shall

agree to maintain local funding support at the same level in the

current fiscal year as in the fiscal agency's preceding fiscal

year. If a reduction in expenditures equally affects all agencies

in a local unit of government that is the regional or subregional

library's fiscal agency, that reduction shall not be interpreted as

a reduction in local support and shall not disqualify a regional or

subregional library from receiving state aid under part 1. If a

reduction in income affects a library cooperative or district

library that is a regional or subregional library's fiscal agency

or a reduction in expenditures for the regional or subregional

library's fiscal agency, a reduction in expenditures for the

regional or subregional library shall not be interpreted as a

reduction in local support and shall not disqualify a regional or

subregional library from receiving state aid under part 1.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

FOR FISCAL YEAR 2016-2017

GENERAL SECTIONS

Sec. 1201. Except as otherwise provided in this part, 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