SENATE BILL NO. 114

February 09, 2021, Introduced by Senator STAMAS and referred to the Committee on Appropriations.

A bill to make, supplement, and adjust appropriations for various state departments and agencies for the fiscal year ending September 30, 2021; and to provide for the expenditure of the appropriations.

the people of the state of michigan enact:


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part 1

line-item appropriations

Sec. 101. There is appropriated for various state departments and agencies to supplement appropriations for the fiscal year ending September 30, 2021, from the following funds:


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APPROPRIATION SUMMARY

 

 

 

Full-time equated classified positions

(63.8)

 

 

GROSS APPROPRIATION

 

$

1,257,441,300

Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

1,257,441,300

Federal revenues:

 

 

 

Total federal revenues

 

 

707,884,400

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

(10,393,100)

State general fund/general purpose

 

$

559,950,000

 

 

 

 

Sec. 102. DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

 

 

 

(1) APPROPRIATION SUMMARY

 

 

 

Full-time equated classified positions

(1.0)

 

 

GROSS APPROPRIATION

 

$

(100,000)

Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

(100,000)

Federal revenues:

 

 

 

Total federal revenues

 

 

0

Special revenue funds:

 

 

 

Total local revenues

 

 

0


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Total private revenues

 

 

0

Total other state restricted revenues

 

 

(50,000)

State general fund/general purpose

 

$

(50,000)

(2) FOOD AND DAIRY

 

 

 

Full-time equated classified positions

(1.0)

 

 

Food safety and quality assurance--FTE positions

(1.0)

$

(100,000)

GROSS APPROPRIATION

 

$

(100,000)

Appropriated from:

 

 

 

Special revenue funds:

 

 

 

Dairy and food safety fund

 

 

(50,000)

State general fund/general purpose

 

$

(50,000)

 

 

 

 

Sec. 103. DEPARTMENT OF HEALTH AND HUMAN SERVICES

 

 

 

(1) APPROPRIATION SUMMARY

 

 

 

GROSS APPROPRIATION

 

$

547,582,200

Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

547,582,200

Federal revenues:

 

 

 

Total federal revenues

 

 

487,582,200

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

0

State general fund/general purpose

 

$

60,000,000


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(2) ONE-TIME APPROPRIATIONS

 

 

 

Community substance use disorder prevention, education, and treatment

 

$

17,400,000

COVID-19 direct care worker hazard pay adjustment

 

 

227,000,000

Federal COVID epidemiology and laboratory capacity reserve fund

 

 

184,942,400

Federal COVID immunization and vaccine grant reserve fund

 

 

110,239,800

Federal mental health block grant

 

 

8,000,000

GROSS APPROPRIATION

 

$

547,582,200

Appropriated from:

 

 

 

Federal revenues:

 

 

 

Total other federal revenues

 

 

487,582,200

State general fund/general purpose

 

$

60,000,000

 

 

 

 

Sec. 104. DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY

 

 

 

(1) APPROPRIATION SUMMARY

 

 

 

Full-time equated classified positions

(39.4)

 

 

GROSS APPROPRIATION

 

$

364,217,000

Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

364,217,000

Federal revenues:

 

 

 

Total federal revenues

 

 

220,302,200

Special revenue funds:

 

 

 


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Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

(6,085,200)

State general fund/general purpose

 

$

150,000,000

(2) EMPLOYMENT SERVICES

 

 

 

Michigan occupational safety and health administration--FTE positions

(39.4)

$

(6,085,200)

GROSS APPROPRIATION

 

$

(6,085,200)

Appropriated from:

 

 

 

Special revenue funds:

 

 

 

Corporation fees

 

 

(4,440,400)

Safety education and training fund

 

 

(1,644,800)

State general fund/general purpose

 

$

0

(3) ONE-TIME APPROPRIATIONS

 

 

 

Emergency rental assistance

 

$

220,302,200

Michigan unemployment compensation funds

 

 

150,000,000

GROSS APPROPRIATION

 

$

370,302,200

Appropriated from:

 

 

 

Federal revenues:

 

 

 

Total federal revenues

 

 

220,302,200

State general fund/general purpose

 

$

150,000,000

 

 

 

 

Sec. 105. DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS

 

 

 

(1) APPROPRIATION SUMMARY

 

 

 

Full-time equated classified positions

(23.4)

 

 

GROSS APPROPRIATION

 

$

(4,257,900)

Interdepartmental grant revenues:

 

 

 


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Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

(4,257,900)

Federal revenues:

 

 

 

Total federal revenues

 

 

0

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

(4,257,900)

State general fund/general purpose

 

$

0

(2) LIQUOR CONTROL COMMISSION

 

 

 

Liquor licensing and enforcement--FTE positions

(18.2)

$

(3,315,800)

Management support services--FTE positions

(5.2)

 

(942,100)

GROSS APPROPRIATION

 

$

(4,257,900)

Appropriated from:

 

 

 

Special revenue funds:

 

 

 

Direct shipper enforcement revolving fund

 

 

(60,700)

Liquor control enforcement and license investigation revolving fund

 

 

(35,000)

Liquor license fee enhancement fund

 

 

(15,300)

Liquor license revenue

 

 

(1,569,700)

Liquor purchase revolving fund

 

 

(2,577,200)

State general fund/general purpose

 

$

0

 

 

 

 

Sec. 106. DEPARTMENT OF TREASURY

 

 

 

(1) APPROPRIATION SUMMARY

 

 

 

GROSS APPROPRIATION

 

$

350,000,000

Interdepartmental grant revenues:

 

 

 


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Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

350,000,000

Federal revenues:

 

 

 

Total federal revenues

 

 

0

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

0

State general fund/general purpose

 

$

350,000,000

(2) ONE-TIME APPROPRIATIONS

 

 

 

Afflicted business tax and fee relief

 

$

350,000,000

GROSS APPROPRIATION

 

$

350,000,000

Appropriated from:

 

 

 

State general fund/general purpose

 

$

350,000,000

 

 

 

 

 

part 2

provisions concerning appropriations

general sections

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1 for the fiscal year ending September 30, 2021 is $549,556,900.00 and total state spending from state sources to be paid to local units of government is $0.00.

Sec. 202. The appropriations made and expenditures authorized under this part and part 1 and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1, are subject to the management and


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budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 203. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under this act, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, inter-transfer funds within this act for the particular department, board, commission, office, or institution.

Sec. 204. It is the intent of the legislature that a hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department.

 

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Sec. 251. (1) From the funds appropriated in part 1 for COVID-19 direct care worker hazard pay adjustment, the department of health and human services shall provide sufficient funding, including any applicable federal match, to increase the wages paid to direct care workers described in subsection (2) by $2.25 per hour above the rates paid on March 1, 2020 beginning March 1, 2021 through June 30, 2021.

(2) The direct care wage increase shall be provided to direct care workers employed by the department of health and human services, its contractors, and its subcontractors who received a $2.00 per hour state-funded wage increase beginning in April 2020. The total combined direct care wage increases from the April 2020 direct care wage increase and the wage increase outlined in this


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section shall be $2.00 per hour and shall be in effect from April 1, 2020 to February 28, 2021 and $2.25 per hour and shall be in effect from March 1, 2021 through June 30, 2021.

(3) From the funds appropriated in part 1 for COVID-19 direct care worker hazard pay adjustment, a direct care wage increase of $2.25 per hour shall be provided to direct care workers employed by skilled nursing facilities on the effective date of this act, beginning March 1, 2021 and continuing until June 30, 2021. This funding shall include all costs incurred by the employer, including payroll taxes, due to the $2.25 per hour increase. As used in this subsection, "direct care workers" means a registered nurse, licensed practical nurse, competency evaluated nursing assistant, and respiratory therapist.

(4) From the funds appropriated in part 1 for COVID-19 direct care worker hazard pay adjustment, a direct care wage increase of $2.25 per hour shall be provided to direct care workers employed by area agencies on aging and their contractors for in-home and respite services on the effective date of this act, beginning March 1, 2021 and continuing until June 30, 2021. This funding shall include all costs incurred by the employer, including payroll taxes, due to the $2.00 per hour increase.

(5) Contractors and subcontractors receiving funding to support these direct care wage increases shall be required to provide documentation of the wage increases provided pursuant to this section to the department of health and human services.

(6) Any payment enhancement above the hourly rate in effect on March 1, 2020 shall be of no effect in determining any employee's average compensation as provided by any contract or other provision of law.


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(7) A direct care worker may elect to not receive the wage increase provided in this section. The election to not receive the wage increase in this section must be made either in writing or electronically. The employer of a direct care worker who has elected to not receive the wage increase in this section must remit back to the state any of the funds authorized by this section based on the number of direct care workers it employs who have elected to not receive the wage increase authorized by this section.

Sec. 252. (1) From the funds appropriated in part 1 for federal COVID immunization and coronavirus vaccine grant reserve fund, the department of health and human services shall allocate $36,746,600.00 to manage the administration of a coronavirus vaccine to all Michigan residents through financial support to local health departments and other health care providers.

(2) The funds appropriated in part 1 for federal COVID immunization and coronavirus vaccine grant reserve fund, not allocated in subsection (1), shall not be expended unless a legislative transfer request is issued by the state budget office and the requirements of the legislative transfer process are met under section 393 of the management and budget act, 1984 PA 431, MCL. 18.1393.

(3) Prior to issuing a legislative transfer request under this section, the department shall first:

(a) Demonstrate the funds appropriated in 2020 PA 257 for coronavirus vaccine strategy have been expended.

(b) Provide a report to the house and senate appropriation committees, the house and senate fiscal agencies, and the state budget office to illustrate how the requested funds would be utilized.


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Sec. 253. (1) From the funds appropriated in part 1 for federal COVID epidemiology and laboratory capacity grant reserve fund, the department of health and human services shall allocate at least $75,000,000.00 for grants to school districts, public school academies, intermediate school districts, and nonpublic schools as provided in this section.

(2) The department of health and human services shall work with the department of education to distribute grants to school districts and public school academies based on the headcount each of those entities reported to the center for educational performance and information as of the most recent headcount data submission.

(3) The department of health and human services shall work with the department of education to notify registered and approved nonpublic schools of the availability of grant funds for COVID-19 testing, and to set up a grant process to distribute testing funds to nonpublic schools. The department must notify registered and approved nonpublic schools within 5 days of enactment of this legislation that the funds are available and must open a grant process within 10 days of enactment of this legislation. Registered and approved nonpublic schools applying for COVID-19 testing funds must report headcount enrollment to the department within 5 days of the grant process being open for applications. An application with enrollment data reported by a registered and approved nonpublic school shall be approved for grant funding.

(4) The amount of a grant to each school district, public school academy, and nonpublic school shall be equal to the product of the educating entity's headcount multiplied by $50.00. The amount of a grant to each intermediate school district shall be


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equal to the product of the intermediate school district's staff headcount as reported to the center for educational performance and information as of the most recent data submission multiplied by $50.00.

(5) The department of health and human services shall work with the department of education to make payments to districts, public school academies, intermediate school districts, and nonpublic schools not later than 21 days after enactment of this legislation.

(6) An entity receiving a grant under this section may use the funds for COVID-19 testing for staff and students including, but not limited to, teachers, counselors, administrators, support staff, aides, bus drivers, coaches, cafeteria staff, custodians, students playing contact sports, and other students as determined by the entity.

(7) If the sum of the grants calculated under subsection (4) exceeds the appropriation in subsection (1), grants shall be reduced on an equal dollar basis.

(8) The funds appropriated in part 1 for federal COVID epidemiology and laboratory capacity grant reserve fund, not allocated in subsection (1), shall not be expended unless a legislative transfer request is issued by the state budget office and the requirements of the legislative transfer process are met under section 393 of the management and budget act, 1984 PA 431, MCL. 18.1393.

(9) Prior to issuing a legislative transfer request under this section, the department shall first:

(a) Demonstrate the funds appropriated in 2020 PA 257 for coronavirus response activities have been expended.


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(b) Provide a report to the house and senate appropriation committees, the house and senate fiscal agencies, and the state budget office to illustrate how the requested funds would be utilized.

Sec. 254. From the funds appropriated in part 1 for community substance use disorder prevention, education, and treatment, the department of health and human services shall provide grants, pursuant to federal laws, rules, and regulations, to local public entities that provide substance use disorder services and to 1 private entity that has a statewide contract to provide community-based substance use disorder services.

Sec. 255. From the funds appropriated in part 1 for federal mental health block grant, the department of health and human services shall provide grants, pursuant to federal laws, rules, and regulations, to local public entities that provide substance use disorder services and to 1 private entity that has a statewide contract to provide community-based mental health services.

 

DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY

Sec. 301. (1) Funds appropriated in part 1 for emergency rental assistance shall be administered by the terms set forth in section 501(a) of Division N of the Consolidated Appropriations Act, 2021, Pub. L. No. 116-260, authorizing the United States Department of Treasury to make payments to certain recipients to be used to provide emergency rental assistance.

(2) The department of labor and economic opportunity shall collaborate with the department of health and human services, the judiciary, local community action agencies, local nonprofit agencies, and legal aid organizations to create a rental and


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utility assistance program.

(3) The rental assistance program will operate in accordance with rules and guidance published by the U.S. Department of Treasury to serve eligible renter households with rental and utility assistance to preserve their housing and avoid eviction.

(4) The unexpended funds appropriated in part 1 for emergency rental assistance are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the work project is to create an emergency rental assistance program, which includes rental and utility assistance payments, housing stability services, and case management to eligible renter households impacted by COVID-19.

(b) The projects will be accomplished by utilizing state employees or by contracts.

(c) The total estimated cost of the work project is $220,302,200.00.

(d) The tentative completion date is March 31, 2022.

Sec. 302. From the funds appropriated in part 1 for Michigan unemployment compensation funds, $150,000,000.00 shall be deposited into the unemployment compensation fund established under section 26 of the Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.26.

 

DEPARTMENT OF TREASURY

Sec. 401. (1) From the funds appropriated in part 1 for


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afflicted business tax and fee relief, $300,000,000.00 shall be used by the department of treasury to create and operate a property tax relief program to provide grants for property tax relief to afflicted businesses in this state. The department of treasury shall provide grants to afflicted businesses that have realized a significant financial hardship as a result of the COVID-19 emergency as defined in this section. Grant applications shall be accepted, reviewed, and approved by the department of treasury.

(2) Grants made available to afflicted businesses under the program must meet all of the following conditions:

(a) Must not exceed the amount calculated in subparagraph (i) or (ii) as follows:

(i) For an afflicted business that pays property taxes directly, an amount equal to the property taxes paid by the afflicted business for calendar year 2020.

(ii) For an afflicted business that is a lessee, an amount equal to 17% of the annual lease cost paid by the afflicted business for calendar year 2020.

(b) An afflicted business that was in operation on October 1, 2019 must be subject to the following grant schedule:

(i) Afflicted businesses that certify a gross receipts loss of 50% or more for a calendar quarter in 2020 when compared to the same calendar quarter in 2019 shall receive a grant equal to 100% of the amount calculated in subdivision (a).

(ii) Afflicted businesses that certify a gross receipts loss greater than or equal to 25%, but less than 50%, for a calendar quarter in 2020 when compared to the same calendar quarter in 2019 shall receive a grant equal to 75% of the amount calculated in subdivision (a).


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(iii) Afflicted businesses that certify a gross receipts loss greater than or equal to 10%, but less than 25%, for a calendar quarter in 2020 when compared to the same calendar quarter in 2019 shall receive a grant equal to 50% of the amount calculated in subdivision (a).

(iv) Afflicted businesses that certify a gross receipts loss greater than or equal to 5%, but less than 10%, for a calendar quarter in 2020 when compared to the same calendar quarter in 2019 shall receive a grant equal to 25% of the amount calculated in subdivision (a).

(c) An afflicted business that was not in operation on October 1, 2019, but started operations before June 1, 2020, shall receive a grant equal to 50% of the amount calculated in subdivision (a) if the afflicted business can certify that it was closed or partially closed due to an executive order or DHHS epidemic order.

(3) An afflicted business is considered to have qualified for a grant under this section if, and only if, the afflicted business has certified and attested, under penalty of perjury, to either of the following:

(a) If the business was in operation on October 1, 2019, and was either an eligible self-employed individual, independent contractor, or sole proprietorship with no employees, or had employees for which it paid salaries or wages and payroll taxes or paid independent contractors, the afflicted business was adversely impacted by the pandemic as indicated by a gross receipts loss of at least 5% for a calendar quarter in 2020 when compared to the same calendar quarter in 2019.

(b) If the business was not in operation on October 1, 2019, but started operations before June 1, 2020, and was either an


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eligible self-employed individual, independent contractor, or sole proprietorship with no employees, or had employees for which it paid salaries or wages and payroll taxes or paid independent contractors, the afflicted business was negatively impacted by the COVID-19 pandemic through a closure or partial closure due to an executive order or DHHS epidemic order.

(4) Any afflicted business that falsifies certification under subsection (3) shall forfeit any payments under this section and sections 402 through 404 of this part and shall repay this state all payments it has received under this section and sections 402 through 404 of this part.

(5) If the amount appropriated under this section is not sufficient to fully pay grant awards under this section, payments shall be prorated on an equal basis among all afflicted businesses that qualified for a grant under this section. Any funds remaining after the disbursement of all grant awards shall revert to the general fund.

(6) The department of treasury must develop and post on the department website application, program operation, award, and reporting criteria for the program no later than April 1, 2021. Afflicted businesses shall have until May 1, 2021 to submit program grant applications. The department of treasury shall disburse grant awards by June 1, 2021.

(7) The department of treasury shall submit a monthly report to the senate and house appropriations committees, the senate and house fiscal agencies, and the state budget office that provides a listing of grants awarded in the previous month and the name of the recipient of each grant provided under the program. The department of treasury shall submit a summary of all grants awarded under the


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program, by industry, over the course of the current fiscal year by September 30, 2021.

(8) As used in this section:

(a) "Afflicted business" means any of the following:

(i) An entertainment venue.

(ii) An exercise facility.

(iii) A food service establishment.

(iv) A recreation facility or place of public amusement.

(v) A cosmetologist, barber, cosmetology shop, or barber shop.

(vi) A nursery dealer or nursery grower.

(vii) An athletic trainer.

(viii) A body art facility.

(b) "Entertainment venue" includes an auditorium, arena, banquet hall, cinema, concert hall, conference center, performance venue, sporting venue, stadium, or theater.

(c) "Exercise facility" means a facility in which individuals participate in individual or group physical activity, including a gymnasium, fitness center, or exercise studio.

(d) "Food service establishment" means that term as defined in section 1107 of the food law, 2000 PA 92, MCL 289.1107.

(e) "Gross receipts" means that term as defined in section 607 of the income tax act of 1967, 1967 PA 281, MCL 206.607.

(f) "Recreation facility or place of public amusement" includes an amusement park, arcade, bingo hall, bowling alley, casino, nightclub, skating rink, water park, or trampoline park.

Sec. 402. (1) From the funds appropriated in part 1 for afflicted business tax and fee relief, $16,500,000.00 shall be used by the department of treasury to create and operate an on-premise retail liquor license relief program to provide grants for on-


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premise retail liquor license relief to eligible on-premise retail liquor establishments of this state. The department of treasury shall provide grants to on-premise retail liquor establishments as defined in this section. Grant applications shall be accepted, reviewed, and approved by the department of treasury.

(2) As used in this section, an eligible retail liquor establishment means an establishment that meets both of the following:

(a) Possessed an on-premise retail liquor license as issued under the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1101 to 436.2303.

(b) Experienced a 30% reduction in net revenue during 2020 compared to 2019 due to COVID-19.

(3) Grants made available to on-premise retail liquor establishments under the program must meet all of the following conditions:

(a) Must equal the amount of fees paid by the on-premise retail liquor establishments for an on-premise retail liquor license under the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1101 to 436.2303.

(b) Must be used only for working capital to support payroll expenses, rent, mortgage payments, utility expenses, and costs related to reopening a business.

(4) An on-premise retail liquor establishment is considered to have qualified for a grant under this section if the on-premise retail liquor establishment has certified and attested to all of the following:

(a) On-premise retail liquor license fees were paid, and the on-premise retail liquor establishment has documented the fees paid


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for calendar year 2020 to the department of treasury.

(b) The on-premise retail liquor establishment was in operation on February 15, 2020.

(5) The department shall only consider the criteria in subsection (4) when determining if a food service establishment is qualified for a grant under this section.

(6) Any on-premise retail liquor establishment that falsifies certification shall forfeit any payments under this section.

(7) If the amount appropriated under this section is not sufficient to fully pay grant awards under this section, payments shall be prorated on an equal basis among all eligible applicants that qualified for a grant under this section. Any funds remaining after the disbursement of all grant awards shall revert to the general fund.

(8) The department of treasury must develop and post on the department website application, program operation, award, and reporting criteria for the program no later than April 1, 2021. Eligible applicants shall have until May 1, 2021 to submit program grant applications. The department of treasury shall disburse grant awards no later than June 1, 2021.

(9) The department of treasury shall submit a monthly report to the senate and house appropriations committees, the senate and house fiscal agencies, and the state budget office that provides a listing of grants awarded from license and fee relief in the previous month and the name of the recipient of each grant provided under the program. The department of treasury shall submit a summary of all grants awarded under the program, by industry, over the course of the current fiscal year by September 30, 2021.

Sec. 403. (1) From the funds appropriated in part 1 for


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afflicted business tax and fee relief, $22,000,000.00 shall be used by the department of treasury to create and operate a food service establishment license relief program to provide grants for food service establishment license relief to eligible food service establishments of this state. The department of treasury shall provide grants to eligible food service establishments as defined in this section. Grant applications shall be accepted, reviewed, and approved by the department of treasury.

(2) As used in this section, an eligible food service establishment means an establishment that meets both of the following:

(a) Is a food service establishment as defined in section 1107 of the food law, 2000 PA 92, MCL 289.1107.

(b) Experienced a 30% reduction in net revenue during 2020 compared to 2019 due to COVID-19.

(3) Grants made available to food service establishments under the program must equal the total amount of fees paid by the food service establishment for a license or required inspection under the food law, 2000 PA 92, MCL 289.1101 to 289.8111.

(4) A food service establishment is considered to have qualified for a grant under this section if the food service establishment has certified and attested to all of the following:

(a) License fees required under the food law, 2000 PA 92, MCL 289.1101 to 289.8111, were paid, and the food service establishment has documented the fees paid for calendar year 2020 to the department of treasury.

(b) Inspection fees were paid to either the state or local health department for inspections required for annual licensing by the food law, 2000 PA 92, MCL 289.1101 to 289.8111, and the food


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service establishment has documented the fee paid for calendar year 2020 to the department of treasury.

(c) The food service establishment was in operation on February 15, 2020.

(5) The department shall only consider the criteria in subsection (4) when determining if a food service establishment is qualified for a grant under this section.

(6) Any food service establishment that falsifies certification shall forfeit any payments under this section.

(7) If the amount appropriated under this section is not sufficient to fully pay grant awards under this section, payments shall be prorated on an equal basis among all eligible applicants that qualified for a grant under this section. Any funds remaining after the disbursement of all grant awards shall revert to the general fund.

(8) The department of treasury must develop and post on the department website application, program operation, award, and reporting criteria for the program no later than April 1, 2021. Eligible applicants shall have until May 1, 2021 to submit program grant applications. The department of treasury shall disburse grant awards no later than June 1, 2021.

(9) The department of treasury shall submit a monthly report to the senate and house appropriations committees, the senate and house fiscal agencies, and the state budget office that provides a listing of grants awarded from license and fee relief in the previous month and the name of the recipient of each grant provided under the program. The department of treasury shall submit a summary of all grants awarded under the program, by industry, over the course of the current fiscal year by September 30, 2021.


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Sec. 404. (1) From the funds appropriated in part 1 for afflicted business tax and fee relief, $11,500,000.00 shall be used by the department of treasury to create and operate a license and inspection fee relief program to provide grants for license and inspection fee relief to eligible licensees of this state. The department of treasury shall provide grants to eligible licensees as defined in this section. Grant applications shall be accepted, reviewed, and approved by the department of treasury.

(2) As used in this section, an eligible grantee means a person that meets both of the following:

(a) Is 1 or more of the following:

(i) An entertainment venue including an auditorium, arena, banquet hall, cinema, concert hall, conference center, performance venue, sporting venue, stadium, or theater.

(ii) An exercise facility, which means a facility in which individuals participate in individual or group physical activity, including a gymnasium, fitness center, or exercise studio.

(iii) A food service establishment as that term is defined in section 1107 of the food law, 2000 PA 92, MCL 289.1107.

(iv) A recreation facility or place of public amusement including an amusement park, arcade, bingo hall, bowling alley, casino, nightclub, skating rink, water park, or trampoline park.

(v) A cosmetologist, barber, cosmetology shop, or barber shop.

(vi) A nursery dealer or nursery grower.

(vii) An athletic trainer.

(viii) A body art facility.

(b) Experienced a 30% reduction in net revenue during 2020 compared to 2019 due to COVID-19.

(3) Grants made available to eligible licensees under the


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program must equal the amount of fees paid by the eligible licensee for a state license or inspection fee. This does not include on-premise retail liquor licenses under the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1101 to 436.2303, or a food service establishment license under the food law, 2000 PA 92, MCL 289.1101 to 289.8111.

(4) An eligible licensee is considered to have qualified for a grant under this section if the eligible licensee has certified and attested to both of the following:

(a) State license and inspection fees required under Michigan law were paid, and the eligible licensee has documented the fees paid for calendar year 2020 to the department of treasury.

(b) The eligible licensee was licensed or in operation on February 15, 2020.

(5) The department shall only consider the criteria in subsection (4) when determining if an eligible licensee is qualified for a grant under this section.

(6) Any eligible licensee that falsifies certification shall forfeit any payments under this section.

(7) If the amount appropriated under this section is not sufficient to fully pay grant awards under this section, payments shall be prorated on an equal basis among all eligible applicants that qualified for a grant under this section. Any funds remaining after the disbursement of all grant awards shall revert to the general fund.

(8) The department of treasury must develop and post on the department website application, program operation, award, and reporting criteria for the program no later than April 1, 2021. Eligible applicants shall have until May 1, 2021 to submit program


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grant applications. The department of treasury shall disburse grant awards no later than June 1, 2021.

(9) The department of treasury shall submit a monthly report to the senate and house appropriations committees, the senate and house fiscal agencies, and the state budget office that provides a listing of grants awarded for license and fee relief in the previous month and the name of the recipient of each grant provided under the program. The department of treasury shall submit a summary of all grants awarded under the program, by industry, over the course of the current fiscal year by September 30, 2021.