hj09201t.061

No. 61

STATE OF MICHIGAN

JOURNAL

OF THE

House of Representatives

91st Legislature

REGULAR SESSION OF 2001

House Chamber, Lansing, Thursday, September 20, 2001.

12:00 Noon.

The House was called to order by the Speaker Pro Tempore.

The roll was called by the Clerk of the House of Representatives, who announced that a quorum was present.

Adamini--present

Allen--present

Anderson--present

Basham--present

Bernero--excused

Birkholz--present

Bisbee--present

Bishop--present

Bogardus--present

Bovin--present

Bradstreet--present

Brown, Bob--present

Brown, Cameron--present

Brown, Rich--present

Callahan--present

Cassis--present

Caul--present

Clark--present

Clarke--present

Daniels--present

Dennis--present

DeRossett--present

DeVuyst--present

DeWeese--present

Drolet--present

Ehardt--present

Faunce--present

Frank--present

Garza--present

George--present

Gieleghem--present

Gilbert--present

Godchaux--present

Gosselin--present

Hager--present

Hale--present

Hansen--present

Hardman--present

Hart--present

Howell--present

Hummel--present

Jacobs--present

Jamnick--present

Jansen--present

Jelinek--present

Johnson, Rick--present

Johnson, Ruth--present

Julian--present

Kilpatrick--present

Koetje--e/d/s

Kolb--present

Kooiman--present

Kowall--present

Kuipers--present

LaSata--present

Lemmons--present

Lipsey--present

Lockwood--present

Mans--present

McConico--present

Mead--present

Meyer--present

Middaugh--present

Minore--present

Mortimer--present

Murphy--present

Neumann--present

Newell--present

O'Neil--present

Pappageorge--present

Patterson--present

Pestka--present

Phillips--present

Plakas--present

Pumford--present

Quarles--present

Raczkowski--present

Reeves--present

Richardville--present

Richner--present

Rison--present

Rivet--present

Rocca--present

Sanborn--present

Schauer--present

Schermesser--excused

Scranton--present

Shackleton--present

Sheltrown--present

Shulman--present

Spade--present

Stallworth--present

Stamas--present

Stewart--present

Switalski--present

Tabor--present

Thomas--present

Toy--present

Vander Roest--present

Vander Veen--present

Van Woerkom--present

Vear--present

Voorhees--present

Waters--present

Whitmer--present

Williams--present

Wojno--present

Woodward--present

Woronchak--present

Zelenko--present

e/d/s = entered during session

Rep. Rick Johnson, from the 46th District, offered the following invocation:

"Dear God, let us remember the innocent victims and the people they left behind. Continue to fill us with compassion. Help us reach out to those in need--those who lost loved ones. Be with the heroic rescue workers who sift through the rubble night and day. Help us to support them in any way that we can. Lord, please speed the healing of those who were injured. Comfort the spouses and the orphans, protect and sustain the rescue workers. Father, please bless our President, Vice President and other leaders in government and in the military. Grant them Your wisdom and guidance. Help them lead our nation on a path of justice, strength and righteousness. Give us the courage to face the challenges that lie ahead, and protect us from further attacks. Our nation has been wounded and our sense of security violated. But with Your help, we will carry on. We who are in government must carry on with our responsibilities, even though we do so with heavy hearts. Lord, help us to carry out all of the duties with which we're charged. Amen."

______

Rep. Minore moved that Reps. Bernero and Schermesser be excused from today's session.

The motion prevailed.

Communications from State Officers

The following communication from the Secretary of State was received and read:

July 23, 2001

Mr. Gary L. Randall, Clerk

Michigan House of Representatives

P.O. Box 30014

Lansing, MI 48909-7514

Dear Mr. Randall:

The official returns certified by the Board of State Canvassers for the special election conducted on July 10, 2001 to fill the vacancy in the 86th State House District are enclosed for your records.

Sincerely,

Christopher M. Thomas

Director of Elections

The communication was referred to the Clerk.

I, Candice S. Miller, Secretary of State and Custodian of the Great Seal of the State of Michigan, certify that the attached document is a true and accurate copy of the official returns certified by the Board of State Canvassers for the special election conducted on July 10, 2001 to fill the vacancy in the 86th State House District.

[SEAL] In Testimony Whereof, I have hereunto set my hand and affixed the Great Seal of the State at the Capitol, in the City of Lansing.

July 17, 2001

Candice S. Miller

Secretary of State

Representative-elect Hummel took and subscribed the constitutional oath of office which was administered by the Honorable Gary L. Randall, Clerk of the House of Representatives. Said oath was filed in the office of the Clerk of the House of Representatives.

Rep. Hummel was assigned seat No. 8.

By unanimous consent the House returned to the order of

Motions and Resolutions

The Speaker, on behalf of the entire membership of the House of Representatives, offered the following resolution:

House Resolution No. 181.

A resolution to express our support for the actions of the President and the governmental agencies working in response to the tragedy of the terrorist attacks of September 11, 2001.

Whereas, The murderous attacks of September 11, 2001, against our country have ushered in a new era and new challenges for the American people. The utter destruction of the World Trade Center's twin towers, the gaping wound in the headquarters of our military at the Pentagon, and the crash of the fourth hijacked plane in Pennsylvania from actions yet unknown were designed to intimidate this country and render it unable to function. While terrorists have killed thousands of our fellow citizens, the actions of the past week have clearly demonstrated the vigor and will of our people; and

Whereas, The response to the crisis has been nothing short of remarkable. The people of Michigan, while mourning the lost and offering fervent prayers, have drawn great strength from the selfless service of the fire fighters, police officers, and medical and rescue personnel, who are working so hard. The individual stories of heroism in the most trying circumstances imaginable will prove invaluable to our recovery in the weeks and months to come; and

Whereas, All of Michigan's citizens share the burden of this loss. There is a strong sense of commitment to do whatever we can to help our country and the devastated families and communities that have suffered so much. Whether the needs are for blood donations, equipment or personnel for cleanup and rebuilding, or for help with any of the many other tasks that our country now faces, Michigan stands ready to respond with determination and unity; now, therefore, be it

Resolved by the House of Representatives, That we join together to express our strong support for the actions of the President and the governmental agencies working in response to the tragedy of the terrorist attacks of September 11, 2001. We promise to provide whatever assistance we can in the recovery effort and in addressing the challenges now facing our country; and be it further

Resolved, That copies of this resolution be transmitted to the Office of the President of the United States and the governors of Pennsylvania, New York, and Virginia.

Pending the reference of the resolution to a committee,

Rep. Patterson moved that Rule 77 be suspended and the resolution be considered at this time.

The motion prevailed, 3/5 of the members present voting therefor.

The question being on the adoption of the resolution,

The resolution was adopted.

Notices

The Speaker appointed as conferees, on the part of the House of Representatives for House Bill No. 4371, Reps. Jelinek, Stamas and Switalski.

By unanimous consent the House returned to the order of

Messages from the Senate

House Bill No. 4371, entitled

A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending sections 6, 11, 11f, 11g, 20, 20j, 22a, 22b, 24, 26a, 31a, 31d, 32a, 32b, 32c, 32d, 32e, 32f, 32g, 32h, 33, 41, 51a, 51c, 53a, 54, 56, 57, 61a, 62, 63, 67, 68, 74, 81, 94, 94a, 96, 97, 98, 99, 107, 108, and 147 (MCL 388.1606, 388.1611, 388.1611f, 388.1611g, 388.1620, 388.1620j, 388.1622a, 388.1622b, 388.1624, 388.1626a, 388.1631a, 388.1631d, 388.1632a, 388.1632b, 388.1632c, 388.1632d, 388.1632e, 388.1632f, 388.1632g, 388.1632h, 388.1633, 388.1641, 388.1651a, 388.1651c, 388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662, 388.1663, 388.1667, 388.1668, 388.1674, 388.1681, 388.1694, 388.1694a, 388.1696, 388.1697, 388.1698, 388.1699, 388.1707, 388.1708, and 388.1747), sections 6, 11, 11f, 11g, 20, 20j, 24, 26a, 31a, 31d, 33, 41, 51a, 53a, 54, 56, 57, 61a, 62, 63, 67, 68, 74, 81, 94, 99, 107, and 147 as amended and sections 22a, 22b, 32a, 32b, 32c, 32d, 32e, 32g, 32h, 51c, 94a, 96, 97, 98, and 108 as added by 2000 PA 297 and section 32f as amended by 2000 PA 388; and to repeal acts and parts of acts.

The Senate has appointed Senators Stille, DeGrow and DeBeaussaert as conferees to join with Reps. Jelinek, Stamas and Switalski.

The bill was referred to the Conference Committee on September 19, 2001.

By unanimous consent the House returned to the order of

Reports of Standing Committees

The Committee on Appropriations, by Rep. Shulman, Chair, reported

House Bill No. 4753, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending section 2131 (MCL 324.2131), as added by 1995 PA 60.

The committee recommended that the bill be referred to the Committee on Conservation and Outdoor Recreation.

Favorable Roll Call

HB 4753 To Report Out:

Yeas: Reps. Shulman, LaSata, Cameron Brown, Godchaux, Jansen, Jelinek, Kooiman, Mead, Mortimer, Newell, Pappageorge, Pumford, Shackleton, Stamas, Stewart, Toy, Vander Roest, Rich Brown, Switalski,

Nays: Reps. Frank, Clarke, Whitmer

The recommendation was concurred in and the bill was referred to the Committee on Conservation and Outdoor Recreation.

The Committee on Appropriations, by Rep. Shulman, Chair, reported

House Bill No. 5036, entitled

A bill to amend 1941 PA 122, entitled "An act to establish a revenue division of the department of treasury; to prescribe its powers and duties as the revenue collection agency of the state; to prescribe certain powers and duties of the state treasurer; to regulate the importation, stamping, and disposition of certain tobacco products; to create the position and to define the powers and duties of the state commissioner of revenue; to provide for the transfer of powers and duties now vested in certain other state boards, commissions, departments and offices; to prescribe certain duties of and require certain reports from the department of treasury; to provide procedures for the payment, administration, audit, assessment, levy of interests or penalties on, and appeals of taxes and tax liability; to prescribe its powers and duties if an agreement to act as agent for a city to administer, collect, and enforce the city income tax act on behalf of a city is entered into with any city; to provide an appropriation; to abolish the state board of tax administration; to prescribe penalties and provide remedies; and to declare the effect of this act," by amending sections 24, 30c, and 31 (MCL 205.24, 205.30c, and 205.31), sections 24 and 31 as amended by 1993 PA 14 and section 30c as amended by 1998 PA 493.

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

The bill and substitute were referred to the order of Second Reading of Bills.

Favorable Roll Call

HB 5036 To Report Out:

Yeas: Reps. Shulman, LaSata, Cameron Brown, Caul, Godchaux, Jansen, Jelinek, Kooiman, Mead, Mortimer, Newell, Pappageorge, Pumford, Shackleton, Stamas, Stewart, Toy, Vander Roest, Clarke, Pestka, Phillips, Reeves, Whitmer,

Nays: None.

The Committee on Appropriations, by Rep. Shulman, Chair, reported

Senate Bill No. 291, entitled

A bill to make appropriations for the department of history, arts, and culture, certain other state departments, and certain other state purposes for the fiscal years ending September 30, 2002 and September 30, 2003; to make, supplement, and adjust appropriations for certain state departments and certain other state purposes for the fiscal years ending September 30, 2001 and September 30, 2002; 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; to prescribe powers and duties of certain state departments and certain state and local agencies and officers; and to repeal acts and parts of acts.

With the recommendation that the substitute (H-4) be adopted and that the bill then pass.

The bill and substitute were referred to the order of Second Reading of Bills.

Favorable Roll Call

SB 291 To Report Out:

Yeas: Reps. Shulman, LaSata, Cameron Brown, Caul, Jansen, Jelinek, Kooiman, Mead, Mortimer, Newell, Pappageorge, Pumford, Shackleton, Stamas, Stewart, Toy, Vander Roest,

Nays: Reps. Frank, Rich Brown, Phillips, Reeves, Switalski, Whitmer.

The Committee on Appropriations, by Rep. Shulman, Chair, reported

Senate Bill No. 551, entitled

A bill to amend 1855 PA 105, entitled "An act to regulate the disposition of the surplus funds in the state treasury; to provide for the deposit of surplus funds in certain financial institutions; to lend surplus funds pursuant to loan agreements secured by certain commercial, agricultural, or industrial real and personal property; to authorize the loan of surplus funds to certain municipalities; to authorize the participation in certain loan programs; to authorize an appropriation; and to prescribe the duties of certain state agencies," (MCL 21.141 to 21.147) by adding section 2e.

Without amendment and with the recommendation that the bill pass.

The bill was referred to the order of Second Reading of Bills.

Favorable Roll Call

SB 551 To Report Out:

Yeas: Reps. Shulman, LaSata, Cameron Brown, Caul, Jansen, Jelinek, Kooiman, Mead, Mortimer, Newell, Pappageorge, Pumford, Shackleton, Stamas, Stewart, Toy, Vander Roest, Frank, Rich Brown, Pestka, Phillips, Reeves, Switalski, Whitmer,

Nays: None.

COMMITTEE ATTENDANCE REPORT

The following report, submitted by Rep. Shulman, Chair of the Committee on Appropriations, was received and read:

Meeting held on: Thursday, September 13, 2001, at 9:00 a.m.,

Present: Reps. Shulman, LaSata, Cameron Brown, Caul, Godchaux, Jansen, Jelinek, Kooiman, Mead, Mortimer, Newell, Pappageorge, Pumford, Shackleton, Stamas, Stewart, Toy, Vander Roest, Frank, Rich Brown, Clarke, Pestka, Phillips, Reeves, Switalski, Whitmer,

Absent: Reps. Lockwood, Plakas, Stallworth,

Excused: Reps. Lockwood, Plakas, Stallworth.

Announcement by the Clerk of Printing and Enrollment

The Clerk announced that the following bills had been printed and placed upon the files of the members, Thursday, July 12:

Senate Bill Nos. 575 576 577 578 579 580 581 582 583 584 585 586 587 588

589 590 591 592 593 594 595 596 597 598 599 600 601 602

603 604 605 606 607 608 609 610 611 612 613 614 615

The Clerk announced the enrollment printing and presentation to the Governor on Friday, July 13, for his approval of the following bill:

Enrolled House Bill No. 4576 at 2:48 p.m.

The Clerk announced that the following bills had been printed and placed upon the files of the members, Friday, July 13:

Senate Bill Nos. 616 617 618 619 620

The Clerk announced that the following bills had been printed and placed upon the files of the members, Monday, July 16:

House Bill Nos. 5031 5032 5033 5034 5035 5036 5037 5038 5039 5040 5041 5042 5043 5044

The Clerk announced the enrollment printing and presentation to the Governor on Tuesday, July 17, for his approval of the following bills:

Enrolled House Bill No. 4610 at 3:36 p.m.

Enrolled House Bill No. 4611 at 3:38 p.m.

Enrolled House Bill No. 4612 at 3:40 p.m.

Enrolled House Bill No. 4613 at 3:42 p.m.

Enrolled House Bill No. 4633 at 3:44 p.m.

The Clerk announced the enrollment printing and presentation to the Governor on Wednesday, July 18, for his approval of the following bills:

Enrolled House Bill No. 4253 at 4:34 p.m.

Enrolled House Bill No. 4254 at 4:36 p.m.

Enrolled House Bill No. 4547 at 4:38 p.m.

Enrolled House Bill No. 4709 at 4:40 p.m.

Enrolled House Bill No. 4713 at 4:42 p.m.

Enrolled House Bill No. 4715 at 4:44 p.m.

Enrolled House Bill No. 4716 at 4:46 p.m.

Enrolled House Bill No. 4717 at 4:48 p.m.

The Clerk announced the enrollment printing and presentation to the Governor on Thursday, July 19, for his approval of the following bills:

Enrolled House Bill No. 4939 at 2:16 p.m.

Enrolled House Bill No. 4940 at 2:18 p.m.

Enrolled House Bill No. 4941 at 2:20 p.m.

Enrolled House Bill No. 4942 at 2:22 p.m.

Enrolled House Bill No. 4943 at 2:24 p.m.

Enrolled House Bill No. 4944 at 2:26 p.m.

Enrolled House Bill No. 4945 at 2:28 p.m.

Enrolled House Bill No. 4946 at 2:30 p.m.

Enrolled House Bill No. 4947 at 2:32 p.m.

Enrolled House Bill No. 4948 at 2:34 p.m.

Enrolled House Bill No. 4949 at 2:36 p.m.

Enrolled House Bill No. 4950 at 2:38 p.m.

Enrolled House Bill No. 4951 at 2:40 p.m.

Enrolled House Bill No. 4952 at 2:42 p.m.

Enrolled House Bill No. 4953 at 2:44 p.m.

Enrolled House Bill No. 4954 at 2:46 p.m.

Enrolled House Bill No. 4955 at 2:48 p.m.

Enrolled House Bill No. 4956 at 2:50 p.m.

Enrolled House Bill No. 4957 at 2:52 p.m.

The Clerk announced the enrollment printing and presentation to the Governor on Friday, July 20, for his approval of the following bills:

Enrolled House Bill No. 4459 at 11:30 a.m.

Enrolled House Bill No. 4540 at 11:32 a.m.

Enrolled House Bill No. 4711 at 11:34 a.m.

Enrolled House Bill No. 4718 at 11:36 a.m.

The Clerk announced the enrollment printing and presentation to the Governor on Tuesday, September 11, for his approval of the following bill:

Enrolled House Bill No. 4965 at 4:42 p.m.

The Clerk announced that the following Senate bill had been received on Wednesday, September 19:

Senate Bill No. 371

Communications from State Officers

The following communications from the Secretary of State were received and read:

Notices of Filing

Administrative Rules

July 9, 2001

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 4:05 P.M. this date, administrative rule (01-07-01) for the Department of Consumer and Industry Services, Director's Office, entitled "Chapter IV General Workplace Requirements; Part 1 Illumination", effective 7 days hereafter.

July 16, 2001

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 2:05 P.M. this date, administrative rule (01-07-02) for the Department of Consumer and Industry Services, Public Service Commission, entitled "MPSC - Uncollectibles Allowance Recovery Fund", effective 7 days hereafter.

July 16, 2001

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 2:08 P.M. this date, administrative rule (01-07-03) for the Department of Consumer and Industry Services, Public Service Commission, entitled "MPSC - Consumer Standards and Billing Practices for Gas Residential Service", effective 7 days hereafter.

July 23, 2001

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 3:20 P.M. this date, administrative rule (01-07-04) for the Department of Consumer and Industry Services, Director's Office, entitled "Part IV - Medical Services and First Aid - General Industry", effective 7 days hereafter.

July 23, 2001

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 3:25 P.M. this date, administrative rule (01-07-05) for the Department of Consumer and Industry Services, Director's Office, entitled "Part 22. Signals, Signs, Tags, and Barricades", effective 7 days hereafter.

August 1, 2001

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 12:20 P.M. this date, administrative rule (01-08-01E) for the Department of Consumer and Industry Services, Bureau of Commercial Services, entitled "Preservation of Contract Rights", effective upon filing with the Secretary of State.

August 6, 2001

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 1:12 P.M. this date, administrative rule (01-08-02) for the Department of Consumer and Industry Services, Director's Office, entitled "Mortuary Science Licensure Education Requirements", effective January 1, 2002.

August 14, 2001

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 1:40 P.M. this date, administrative rule (01-08-03) for the Department of Environmental Quality, Air Quality Division, entitled "Part 2. Air Use Approval", effective 7 days hereafter.

August 20, 2001

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 3:55 P.M. this date, administrative rule (01-08-04) for the Department of Environmental Quality, Air Quality Division, entitled "Part 9. Emission Limitations and Prohibitions - Miscellaneous", effective 7 days hereafter.

August 20, 2001

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 4:00 P.M. this date, administrative rule (01-08-05) for the Department of Treasury, Bureau of State Lottery, entitled "Lottery Rules", effective 7 days hereafter.

August 23, 2001

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 2:40 P.M. this date, administrative rule (01-08-06) for the Department of Environmental Quality, Waste Management Division, entitled "Water Resources Protection - Part 5. Spillage of Polluting Materials", effective 7 days hereafter.

September 4, 2001

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 1:35 P.M. this date, administrative rule (01-09-01) for the Department of Environmental Quality, Air Quality Division, entitled "Part 9. Emission Limitations and Prohibitions - Miscellaneous", effective 7 days hereafter.

Sincerely,

Candice S. Miller

Secretary of State

Elena L. Beasley, Manager

Office of the Great Seal

The communications were referred to the Clerk.

The following communications from the Department of Consumer and Industry Services were received and read:

July 16, 2001

Pursuant to Section 314 of P.A. 293 of 2000, we are enclosing copies of the following reports:

Type of Report Facility Report # License #

Special Investigation Green Oak Center 2001C0208028 CS470201159

These reports were performed in compliance with the requirements of P.A. 116 of 1973 as amended, and the Administrative Rules for Child Caring Institutions. The report may also be viewed on our web site at the following address: http://www.cis.state.mi.us/fast/leg_rep.htm.

If you have any questions regarding this information, please feel free to contact me at 373-3892.

July 19, 2001

Pursuant to Section 314 of P.A. 293 of 2000, we are enclosing copies of the following reports:

Type of Report Facility Report # License #

Special Investigation Green Oak Center SIR2001C0208031 CS470201159

Interim Licensing Inspection Green Oak Center CS470201159

These reports were performed in compliance with the requirements of P.A. 116 of 1973 as amended, and the Administrative Rules for Child Caring Institutions. The reports may also be viewed on our web site at the following address: http://www.cis.state.mi.us/fast/leg_rep.htm.

If you have any questions regarding this information, please feel free to contact me at 373-3892.

August 22, 2001

Pursuant to Section 314 of P.A. 293 of 2000, we are enclosing a copy of the following report:

Type of Report Facility Report # License #

Special Investigation Green Oak Center SIR2001C0208032 CS470201159

This report was performed in compliance with the requirements of P.A. 116 of 1973 as amended, and the Administrative Rules for Child Caring Institutions. The report may also be viewed on our web site at the following address: http://www.cis.state.mi.us/fast/leg_rep.htm.

If you have any questions regarding this information, please feel free to contact me at 373-3892.

August 30, 2001

Pursuant to Section 314 of P.A. 293 of 2000, we are enclosing a copy of the following report:

Type of Report Facility Report # License #

Special Investigation Olympic Center SIR2001C0201023 CS470201339

If you have any questions regarding this information, please feel free to contact me at 373-3892.

Sincerely,

John R. Suckow, C.P.A.

Director, Finance and

Administrative Services

The communications were referred to the Clerk.

The following communication from the Department of Consumer and Industry Services was received and read:

August 20, 2001

Pursuant to Public Act 8 of 1982 and Public Act 318 of 1986, I am submitting a consolidated final report on the state of competition in the workers' compensation insurance market and the commercial liability insurance market.

Sincerely,

Frank M. Fitzgerald

Commissioner of the

Office of Financial and

Insurance Services

The communication was referred to the Clerk.

The following communication from the Department of Corrections was received and read:

July 23, 2001

Michigan Compiled Laws 791.220g, requires the Department of Corrections to report to the Senate and House committees responsible for legislation concerning corrections and to the Clerk of the House of Representatives and the Secretary of the Senate, on the operation of the Michigan Youth Correctional Facility. Attached is a copy of that report as required by statute.

If you have any questions regarding this report, or request additional information, please feel free to contact me.

Sincerely,

Heidi Washington

Legislative Liaison

Department of Corrections

The communication was referred to the Clerk.

The following communication from the Department of State Police was received and read:

August 30, 2001

In compliance with P.A. 78 of 1999, we are pleased to provide this second annual report of the commercial mobile radio service (CMRS) wireless E9-1-1 surcharge conducted by the Emergency Telephone Service Committee (ETSC).

Sincerely,

Stephen D. Madden, Lt. Colonel

Chair, Emergency Telephone

Service Committee and

Deputy Director,

Michigan State Police

The communication was referred to the Clerk.

The following communication from the Department of Community Health was received and read:

September 7, 2001

In accordance with Public Act 336 of 1991 (Section 333.7524a), the Michigan Department of Community Health is submitting the attached Asset Forfeiture Report for FY 2000. This report presents an analysis of asset forfeitures conducted in Michigan during that fiscal year.

If you have any questions, please feel free to contact my office at 335-0267.

Sincerely,

James K. Haveman, Jr.

Director

The communication was referred to the Clerk.

The following communications from the Auditor General were received and read:

July 16, 2001

Enclosed is a copy of the following audit report and/or executive digest:

Performance Audit of

Sanilac County Community Mental Health Authority

An Agency Under Contract with the

Department of Community Health

July 2001

July 25, 2001

Enclosed is a copy of the following audit report and/or executive digest:

Performance Audit of the

Revenue Administrative Services Division

Department of Treasury

July 2001

August 13, 2001

Enclosed is a copy of the financial statements, together with the Auditor's Report, for the Bureau of State Lottery for the six-month period ended March 31, 2001

If you have questions regarding this report, please call me; Michael J. Mayhew, C.P.A., Deputy Auditor General for Audits; or Michael R. Becker, C.P.A., Audit Division Administrator for audits of the Bureau of State Lottery.

August 20, 2001

Enclosed is a copy of the following audit report and/or executive digest:

Performance Audit of the

Office of Purchasing

Department of Management and Budget

August 2001

August 22, 2001

Enclosed is a copy of the following audit report and/or executive digest:

Performance Audit of the

Data Collection and Distribution System

Michigan Administrative Information Network

Department of Management and Budget

August 2001

August 24, 2001

Enclosed is a copy of the following audit report and/or executive digest:

Performance and Financial Audit of the

Bureau of Construction Codes

Department of Consumer and Industry Services

October 1, 1998 through September 30, 2000

August 28, 2001

Enclosed is a copy of the following audit report and/or executive digest:

Performance Audit of the

Motor Carrier Division

Michigan Department of State Police

August 2001

August 30, 2001

Enclosed is a copy of the following audit report and/or executive digest:

Performance Audit of the

Economic Development Fund

Michigan Department of Transportation

August 2001

August 30, 2001

Enclosed is a copy of the following audit report and/or executive digest:

Performance Audit of the

Use of State Grant Funds by Veterans Service Organizations

Department of Military and Veterans Affairs

August 2001

August 31, 2001

Enclosed is a copy of the following audit report and/or executive digest:

Financial Audit Including the Provisions of the

Single Audit Act of the

Family Independence Agency

October 1, 1998 through September 30, 2000

Sincerely,

Thomas H. McTavish, C.P.A.

Auditor General

The communications were referred to the Clerk and the accompanying reports referred to the Committee on House Oversight and Operations.

Announcements by the Clerk

The following is a change of meeting day and time for one of the Standing Committees for the 2001-2002 Legislative Session:

Thursday 8:00 a.m. Agriculture and Resource Management Room 308 House Office Building

By unanimous consent the House returned to the order of

Notices

September 19, 2001

Mr. Gary Randall

Clerk of the House

Ground Floor, Capitol Building

Dear Mr. Randall:

This letter is to notify you of the following changes in House committee assignments:

* Representative Larry DeVuyst is removed from the Transportation Committee, and replaced by Representative Scott Hummel.

* Representative Alan Sanborn is removed from the Civil Law and the Judiciary Committee, and replaced by Representative Scott Hummel.

* Representative Alan Sanborn is removed from the Local Government and Urban Policy Committee, and replaced by Representative Scott Hummel.

* Representative Andrew Richner is removed from the Employment Relations, Training and Safety Committee, and replaced by Representative Tom Meyer.

Thank you for your attention to this matter. Please feel free to contact my office if you have any questions.

Sincerely,

Rick Johnson

Speaker of the House

Messages from the Governor

The following messages from the Governor, approving and signing the following bills at the times designated below, were received and read:

Date: July 19, 2001

Time: 4:00 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4255 (Public Act No. 41, I.E.), being

An act to make appropriations for the department of corrections and certain state purposes related to corrections for the fiscal year ending September 30, 2002; to provide for the expenditure of the appropriations; to provide for reports; to provide for the creation of certain advisory committees and boards; to prescribe certain powers and duties of the department of corrections, certain other state officers and agencies, and certain advisory committees and boards; to provide for the collection of certain funds; and to provide for the disposition of fees and other income received by certain state agencies.

(Filed with the Secretary of State July 23, 2001, at 9:35 a.m.)

Date: July 19, 2001

Time: 4:08 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4256 (Public Act No. 42, I.E.), being

An act to make appropriations for the department of education and certain other purposes relating to education for the fiscal year ending September 30, 2002; to provide for the expenditure of the appropriations; to prescribe the powers and duties of certain state departments, school districts, and other governmental bodies; and to provide for the disposition of fees and other income received by certain legal entities and state agencies.

(Filed with the Secretary of State July 23, 2001, at 9:37 a.m.)

Date: July 19, 2001

Time: 4:11 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4257 (Public Act No. 43, I.E.), being

An act to make appropriations for the department of environmental quality for the fiscal year ending September 30, 2002; to provide for the expenditure of those appropriations; to create certain funds and accounts; to require certain

reports; to prescribe the powers and duties of certain state agencies and officials; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by the various state agencies.

(Filed with the Secretary of State July 23, 2001, at 9:39 a.m.)

Date: July 19, 2001

Time: 4:24 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4259 (Public Act No. 44, I.E.), being

An act to make appropriations for the department of natural resources for the fiscal year ending September 30, 2002; to provide for the expenditure of those appropriations; to create funds and accounts; to require reports; to prescribe certain powers and duties of certain state agencies and officials; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by the various state agencies.

(Filed with the Secretary of State July 23, 2001, at 9:42 a.m.)

Date: July 20, 2001

Time: 4:48 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4792 (Public Act No. 49, I.E.), being

(Filed with the Secretary of State July 23, 2001, at 9:52 a.m.)

Date: July 20, 2001

Time: 4:50 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4912 (Public Act No. 50, I.E.), being

An act to amend 1994 PA 451, entitled "An act to protect the environment and natural resources of the state; to codify, revise, consolidate, and classify laws relating to the environment and natural resources of the state; to regulate the discharge of certain substances into the environment; to regulate the use of certain lands, waters, and other natural resources of the state; to prescribe the powers and duties of certain state and local agencies and officials; to provide for certain charges, fees, and assessments; to provide certain appropriations; to prescribe penalties and provide remedies; to repeal certain parts of this act on a specific date; and to repeal certain acts and parts of acts," by amending sections 43701, 43702, 43703, and 43704 (MCL 324.43701, 324.43702, 324.43703, and 324.43704), as added by 1995 PA 57, and by adding section 43705.

(Filed with the Secretary of State July 23, 2001, at 9:54 a.m.)

Date: July 20, 2001

Time: 4:38 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4253 (Public Act No. 52, I.E.), being

An act to make appropriations for community colleges and certain state purposes related to education for the fiscal year ending September 30, 2002; to provide for the expenditure of those appropriations; to establish or continue certain funds, programs, and categories; and to prescribe the powers and duties of certain state departments, institutions, agencies, employees, and officers.

(Filed with the Secretary of State July 23, 2001, at 3:47 p.m.)

Date: July 23, 2001

Time: 12:35 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4576 (Public Act No. 56, I.E.), being

An act to name a certain portion of highway I-69 the "Pearl Harbor Memorial Highway"; and to prescribe certain duties of the state transportation department.

(Filed with the Secretary of State July 23, 2001, at 3:55 p.m.)

Date: July 23, 2001

Time: 1:42 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4939 (Public Act No. 61, I.E.), being

An act to amend 1984 PA 431, entitled "An act to prescribe the powers and duties of the department of management and budget; to define the authority and functions of its director and its organizational entities; to authorize the department to issue directives; to provide for the capital outlay program; to provide for the leasing, planning, constructing, maintaining, altering, renovating, demolishing, conveying of lands and facilities; to provide for centralized administrative services such as purchasing, payroll, record retention, data processing, and publishing and for access to certain services; to provide for a system of internal accounting and administrative control for certain principal departments; to provide for an internal auditor in certain principal departments; to provide for certain powers and duties of certain state officers and agencies; to codify, revise, consolidate, classify, and add to the powers, duties, and laws relative to budgeting, accounting, and the regulating of appropriations; to provide for the implementation of certain constitutional provisions; to create funds and accounts; to make appropriations; to prescribe remedies and penalties; to rescind certain executive reorganization orders; to prescribe penalties; and to repeal certain acts and parts of acts," by amending sections 114 and 219 (MCL 18.1114 and 18.1219), section 114 as amended by 1990 PA 332 and section 219 as amended by 1999 PA 8.

(Filed with the Secretary of State July 24, 2001, at 10:14 a.m.)

Date: July 23, 2001

Time: 2:35 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4940 (Public Act No. 62, I.E.), being

An act to amend 1982 PA 540, entitled "An act to create the library of Michigan; to create a board of trustees for the library; to establish the qualifications of the state librarian; to provide the powers and duties of the board of trustees, the legislative council, the council administrator, the director of the legislative service bureau, the state librarian, and certain state officials and agencies; and to repeal acts and parts of acts," by amending the title and sections 2, 3, 4, 5, 6, 7, 10, and 11 (MCL 397.12, 397.13, 397.14, 397.15, 397.16, 397.17, 397.20, and 397.21), the title and sections 2, 4, and 6 as amended by 1995 PA 190 and sections 3, 5, 7, and 10 as amended by 1983 PA 114, and by adding sections 10a and 12.

(Filed with the Secretary of State July 24, 2001, at 10:16 a.m.)

Date: July 23, 2001

Time: 2:44 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4941 (Public Act No. 63, I.E.), being

An act to create a department of history, arts, and libraries; to provide for its administration; and to provide for its powers, duties, functions, and responsibilities.

(Filed with the Secretary of State July 24, 2001, at 10:18 a.m.)

Date: July 23, 2001

Time: 1:45 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4942 (Public Act No. 64, I.E.), being

An act to amend 1989 PA 24, entitled "An act to provide for the establishment and maintenance of district libraries; to provide for district library boards; to define the powers and duties of certain state and local governmental entities;

to prescribe penalties and provide remedies; and to repeal acts and parts of acts," by amending sections 2, 3, and 5 (MCL 397.172, 397.173, and 397.175), section 3 as amended by 1997 PA 160.

(Filed with the Secretary of State July 24, 2001, at 10:20 a.m.)

Date: July 23, 2001

Time: 1:50 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4943 (Public Act No. 65, I.E.), being

An act to amend 1977 PA 89, entitled "An act to provide for the establishment of cooperative libraries; to prescribe the powers and duties of the legislative council; to provide state aid for public libraries participating in cooperative libraries; to prescribe the powers and duties of cooperative library boards; to provide an appropriation; and to repeal certain acts and parts of acts," by amending the title and sections 2, 3, 6, 9, 11, 12, 14, 15, 16, 17, 18, 19, 20, 22, 23, and 25 (MCL 397.552, 397.553, 397.556, 397.559, 397.561, 397.562, 397.564, 397.565, 397.566, 397.567, 397.568, 397.569, 397.570, 397.572, 397.573, and 397.575), the title and sections 2 and 15 as amended by 1982 PA 541 and section 11 as amended by 1984 PA 432.

(Filed with the Secretary of State July 24, 2001, at 10:22 a.m.)

Date: July 23, 2001

Time: 6:55 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4944 (Public Act No. 66, I.E.), being

An act to amend 1913 PA 271, entitled "An act to create the Michigan historical commission; to provide for the appointment of members of the commission; to fix their terms of office, prescribe their powers and duties; to prescribe the powers and duties of certain state agencies and officers; to make an appropriation to carry out the provisions of this act; to provide for the distribution of certain revenue; to provide for the listing and destruction of useless documents, books and papers; and to repeal all acts and parts of acts inconsistent herewith," by amending sections 1, 2, 4a, 6, 7, 7a, 8a, and 10 (MCL 399.1, 399.2, 399.4a, 399.6, 399.7, 399.7a, 399.8a, and 399.10), section 4a as amended and section 10 as added by 1992 PA 190, sections 6 and 7 as amended by 1984 PA 309, and section 7a as added by 1988 PA 467.

(Filed with the Secretary of State July 24, 2001, at 10:24 a.m.)

Date: July 23, 2001

Time: 7:00 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4945 (Public Act No. 67, I.E.), being

An act to amend 1970 PA 169, entitled ''An act to provide for the establishment of historic districts; to provide for the acquisition of certain resources for historic preservation purposes; to provide for preservation of historic and nonhistoric resources within historic districts; to provide for the establishment of historic district commissions; to provide for the maintenance of publicly owned resources by local units; to provide for certain assessments under certain circumstances; to provide for procedures; and to provide for remedies and penalties,'' by amending sections 1a, 3, 5, and 9 (MCL 399.201a, 399.203, 399.205, and 399.209), section 1a as added and sections 3, 5, and 9 as amended by 1992 PA 96.

(Filed with the Secretary of State July 24, 2001, at 10:26 a.m.)

Date: July 23, 2001

Time: 7:02 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4946 (Public Act No. 68, I.E.), being

An act to amend 1975 PA 197, entitled "An act to provide for the establishment of a downtown development authority; to prescribe its powers and duties; to correct and prevent deterioration in business districts; to encourage historic preservation; to authorize the acquisition and disposal of interests in real and personal property; to authorize

the creation and implementation of development plans in the districts; to promote the economic growth of the districts; to create a board; to prescribe its powers and duties; to authorize the levy and collection of taxes; to authorize the issuance of bonds and other evidences of indebtedness; to authorize the use of tax increment financing; to reimburse downtown development authorities for certain losses of tax increment revenues; and to prescribe the powers and duties of certain state officials," by amending section 29 (MCL 125.1679).

(Filed with the Secretary of State July 24, 2001, at 10:28 a.m.)

Date: July 23, 2001

Time: 7:04 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4947 (Public Act No. 69, I.E.), being

An act to amend 1975 PA 228, entitled "An act to provide for the imposition, levy, computation, collection, assessment and enforcement, by lien or otherwise, of taxes on certain commercial, business, and financial activities; to prescribe the manner and times of making certain reports and paying taxes; to prescribe the powers and duties of public officers and state departments; to permit the inspection of records of taxpayers; to provide for interest and penalties on unpaid taxes; to provide exemptions, credits, and refunds; to provide penalties; to provide for the disposition of funds; to provide for the interrelation of this act with other acts; and to provide an appropriation," by amending section 39c (MCL 208.39c), as amended by 1999 PA 213.

(Filed with the Secretary of State July 24, 2001, at 10:30 a.m.)

Date: July 23, 2001

Time: 6:58 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4948 (Public Act No. 70, I.E.), being

An act to amend 1967 PA 281, entitled "An act to meet deficiencies in state funds by providing for the imposition, levy, computation, collection, assessment, and enforcement by lien and otherwise of taxes on or measured by net income; to prescribe the manner and time of making reports and paying the taxes, and the functions of public officers and others as to the taxes; to permit the inspection of the records of taxpayers; to provide for interest and penalties on unpaid taxes; to provide exemptions, credits and refunds of the taxes; to prescribe penalties for the violation of this act; to provide an appropriation; and to repeal certain acts and parts of acts," by amending section 266 (MCL 206.266), as amended by 1999 PA 214.

(Filed with the Secretary of State July 24, 2001, at 10:32 a.m.)

Date: July 23, 2001

Time: 7:06 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4949 (Public Act No. 71, I.E.), being

An act to amend 1984 PA 431, entitled "An act to prescribe the powers and duties of the department of management and budget; to define the authority and functions of its director and its organizational entities; to authorize the department to issue directives; to provide for the capital outlay program; to provide for the leasing, planning, constructing, maintaining, altering, renovating, demolishing, conveying of lands and facilities; to provide for centralized administrative services such as purchasing, payroll, record retention, data processing, and publishing and for access to certain services; to provide for a system of internal accounting and administrative control for certain principal departments; to provide for an internal auditor in certain principal departments; to provide for certain powers and duties of certain state officers and agencies; to codify, revise, consolidate, classify, and add to the powers, duties, and laws relative to budgeting, accounting, and the regulating of appropriations; to provide for the implementation of certain constitutional provisions; to create funds and accounts; to make appropriations; to prescribe remedies and penalties; to rescind certain executive reorganization orders; to prescribe penalties; and to repeal certain acts and parts of acts," by amending sections 284, 287, 288, 289, and 292 (MCL 18.1284, 18.1287, 18.1288, 18.1289, and 18.1292), sections 284, 288, and 292 as added and section 289 as amended by 1988 PA 504 and section 287 as amended by 1992 PA 191.

(Filed with the Secretary of State July 24, 2001, at 10:34 a.m.)

Date: July 23, 2001

Time: 7:08 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4950 (Public Act No. 72, I.E.), being

An act to amend 1992 PA 116, entitled ''An act to designate and regulate certain records media; and to prescribe the powers and duties of certain governmental entities and officials,'' by amending section 2 (MCL 24.402).

(Filed with the Secretary of State July 24, 2001, at 10:36 a.m.)

Date: July 23, 2001

Time: 7:10 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4951 (Public Act No. 73, I.E.), being

An act to amend 1976 PA 69, entitled "An act to permit the secretary of state to acquire and operate state historic sites; to accept gifts for that purpose; and to permit investment in certain funds to carry out the purposes of this act," by amending the title and sections 1, 2, and 3 (MCL 399.111, 399.112, and 399.113).

(Filed with the Secretary of State July 24, 2001, at 10:38 a.m.)

Date: July 23, 2001

Time: 2:39 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4952 (Public Act No. 74, I.E.), being

An act to amend 1976 PA 442, entitled ''An act to provide for public access to certain public records of public bodies; to permit certain fees; to prescribe the powers and duties of certain public officers and public bodies; to provide remedies and penalties; and to repeal certain acts and parts of acts,'' by amending section 13 (MCL 15.243), as amended by 2000 PA 88.

(Filed with the Secretary of State July 24, 2001, at 10:40 a.m.)

Date: July 23, 2001

Time: 7:12 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4953 (Public Act No. 75, I.E.), being

An act to amend 1994 PA 451, entitled "An act to protect the environment and natural resources of the state; to codify, revise, consolidate, and classify laws relating to the environment and natural resources of the state; to regulate the discharge of certain substances into the environment; to regulate the use of certain lands, waters, and other natural resources of the state; to prescribe the powers and duties of certain state and local agencies and officials; to provide for certain charges, fees, and assessments; to provide certain appropriations; to prescribe penalties and provide remedies; to repeal certain parts of this act on a specific date; and to repeal certain acts and parts of acts," by amending sections 76102, 76103, 76104, 76105, 76107, 76108, 76109, 76110, 76111, 76112, 76113, 76114, and 76118 (MCL 324.76102, 324.76103, 324.76104, 324.76105, 324.76107, 324.76108, 324.76109, 324.76110, 324.76111, 324.76112, 324.76113, 324.76114, and 324.76118), sections 76102, 76103, 76104, 76105, 76107, 76108, 76109, 76110, 76112, 76113, 76114, and 76118 as added by 1995 PA 58 and section 76111 as amended by 2000 PA 441.

(Filed with the Secretary of State July 24, 2001, at 10:42 a.m.)

Date: July 23, 2001

Time: 2:41 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4954 (Public Act No. 76, I.E.), being

An act to amend 1961 PA 236, entitled "An act to revise and consolidate the statutes relating to the organization and jurisdiction of the courts of this state; the powers and duties of such courts, and of the judges and other officers thereof; the forms and attributes of civil claims and actions; the time within which civil actions and proceedings may be brought in said courts; pleading, evidence, practice and procedure in civil and criminal actions and proceedings in said courts; to provide remedies and penalties for the violation of certain provisions of this act; to repeal all acts and parts of acts inconsistent with or contravening any of the provisions of this act; and to repeal acts and parts of acts," by amending section 2137 (MCL 600.2137), as amended by 1992 PA 192.

(Filed with the Secretary of State July 24, 2001, at 10:44 a.m.)

Date: July 23, 2001

Time: 7:15 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4955 (Public Act No. 77, I.E.), being

An act to amend 1984 PA 152, entitled ''An act to create the Michigan iron industry museum advisory board within the department of state; and to prescribe its powers and duties,'' by amending the title and sections 3 and 4 (MCL 399.73 and 399.74), the title and section 3 as amended by 1990 PA 232.

(Filed with the Secretary of State July 24, 2001, at 10:46 a.m.)

Date: July 23, 2001

Time: 2:48 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4956 (Public Act No. 78, I.E.), being

An act to amend 1994 PA 451, entitled "An act to protect the environment and natural resources of the state; to codify, revise, consolidate, and classify laws relating to the environment and natural resources of the state; to regulate the discharge of certain substances into the environment; to regulate the use of certain lands, waters, and other natural resources of the state; to prescribe the powers and duties of certain state and local agencies and officials; to provide for certain charges, fees, and assessments; to provide certain appropriations; to prescribe penalties and provide remedies; to repeal certain parts of this act on a specific date; and to repeal certain acts and parts of acts," by amending sections 63502, 63523, 63524, 63545, 76501, 76503, 76504, 76508, 76703, 76901, and 76903 (MCL 324.63502, 324.63523, 324.63524, 324.63545, 324.76501, 324.76503, 324.76504, 324.76508, 324.76703, 324.76901, and 324.76903), sections 63502, 63523, 63524, and 63545 as added by 1995 PA 57 and sections 76501, 76503, 76504, 76508, 76703, 76901, and 76903 as added by 1995 PA 58, and by adding part 779; and to repeal acts and parts of acts.

(Filed with the Secretary of State July 24, 2001, at 10:48 a.m.)

Date: July 23, 2001

Time: 7:18 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4957 (Public Act No. 79, I.E.), being

An act to amend 1998 PA 409, entitled "An act to create the Michigan freedom trail commission; and to prescribe the powers and duties of certain state departments, agencies, commissions, and officers," by amending sections 2 and 3 (MCL 399.82 and 399.83).

(Filed with the Secretary of State July 24, 2001, at 10:50 a.m.)

Date: July 26, 2001

Time: 1:08 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4633 (Public Act No. 85, I.E.), being

An act to amend 1974 PA 150, entitled "An act to provide for the acceptance, care, and discharge of youths committed as public wards; to prescribe the liability for the cost of services for public wards; to prescribe procedures for the return of public wards who absent themselves without permission; to provide a penalty for the violation of this act; and to repeal acts and parts of acts," by amending section 7a (MCL 803.307a), as amended by 1998 PA 517.

(Filed with the Secretary of State July 26, 2001, at 3:12 p.m.)

Date: July 26, 2001

Time: 1:10 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4612 (Public Act No. 86, I.E.), being

An act to amend 1953 PA 232, entitled "An act to revise, consolidate, and codify the laws relating to probationers and probation officers, to pardons, reprieves, commutations, and paroles, to the administration of correctional institutions, correctional farms, and probation recovery camps, to prisoner labor and correctional industries, and to the supervision and inspection of local jails and houses of correction; to provide for the siting of correctional facilities; to create a state department of corrections, and to prescribe its powers and duties; to provide for the transfer to and vesting in said department of powers and duties vested by law in certain other state boards, commissions, and officers, and to abolish certain boards, commissions, and offices the powers and duties of which are transferred by this act; to allow for the operation of certain facilities by private entities; to prescribe the powers and duties of certain other state departments and agencies; to provide for the creation of a local lockup advisory board; to prescribe penalties for the violation of the provisions of this act; to make certain appropriations; to repeal certain parts of this act on specific dates; and to repeal all acts and parts of acts inconsistent with the provisions of this act," by amending section 33d (MCL 791.233d), as amended by 1996 PA 509.

(Filed with the Secretary of State July 26, 2001, at 3:14 p.m.)

Date: July 26, 2001

Time: 1:50 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4610 (Public Act No. 88, I.E.), being

An act to amend 1990 PA 250, entitled "An act to provide for a DNA identification profiling system; to provide for the collection of samples from certain prisoners, convicted offenders, and juvenile offenders and the analysis of those samples; and to prescribe the powers and duties of certain state departments and county agencies," by amending section 2 (MCL 28.172), as amended by 1996 PA 508, and by adding section 3a.

(Filed with the Secretary of State July 26, 2001, at 3:18 p.m.)

Date: July 26, 2001

Time: 1:52 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4613 (Public Act No. 89, I.E.), being

An act to amend 1931 PA 328, entitled "An act to revise, consolidate, codify and add to the statutes relating to crimes; to define crimes and prescribe the penalties therefor; to provide for restitution under certain circumstances; to provide for the competency of evidence at the trial of persons accused of crime; to provide immunity from prosecution for certain witnesses appearing at such trials; and to repeal certain acts and parts of acts inconsistent with or contravening any of the provisions of this act," by amending section 520m (MCL 750.520m), as amended by 1996 PA 510.

(Filed with the Secretary of State July 26, 2001, at 3:20 p.m.)

Date: July 26, 2001

Time: 1:58 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4611 (Public Act No. 91, I.E.), being

An act to amend 1939 PA 288, entitled "An act to revise and consolidate the statutes relating to certain aspects of the family division of circuit court, to the jurisdiction, powers, and duties of the family division of circuit court and its judges and other officers, to the change of name of adults and children, and to the adoption of adults and children; to prescribe certain jurisdiction, powers, and duties of the family division of circuit court and its judges and other officers; to prescribe the manner and time within which certain actions and proceedings may be brought in the family division of the circuit court; to prescribe pleading, evidence, practice, and procedure in certain actions and proceedings in the family division of circuit court; to provide for appeals from certain actions in the family division of circuit court; to prescribe the powers and duties of certain state departments, agencies, and officers; to provide for certain immunity from liability; and to provide remedies and penalties," by amending section 18k of chapter XIIA (MCL 712A.18k), as amended by 1998 PA 478.

(Filed with the Secretary of State July 26, 2001, at 3:24 p.m.)

Date: July 27, 2001

Time: 2:20 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4547 (Public Act No. 92, I.E.), being

An act to authorize the department of natural resources to convey certain state owned property in Macomb county; to authorize the state administrative board to convey certain parcels of state owned property in Delta county and Ingham county; to prescribe conditions for the conveyances; and to provide for disposition of the revenue from the conveyances.

(Filed with the Secretary of State July 30, 2001, at 10:15 a.m.)

Date: July 27, 2001

Time: 2:22 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4459 (Public Act No. 93, I.E.), being

An act to amend 1992 PA 147, entitled ''An act to provide for the development and rehabilitation of residential housing; to provide for the creation of neighborhood enterprise zones; to provide for obtaining neighborhood enterprise zone certificates for a period of time and to prescribe the contents of the certificates; to provide for the exemption of certain taxes; to provide for the levy and collection of a specific tax on the owner of certain facilities; and to prescribe the powers and duties of certain officers of the state and local governmental units,'' by amending section 4 (MCL 207.774), as amended by 1996 PA 242.

(Filed with the Secretary of State July 30, 2001, at 10:17 a.m.)

Date: July 27, 2001

Time: 2:26 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4709 (Public Act No. 95, I.E.), being

An act to amend 1893 PA 206, entitled "An act to provide for the assessment of rights and interests, including leasehold interests, in property and the levy and collection of taxes on property, and for the collection of taxes levied; making those taxes a lien on the property taxed, establishing and continuing the lien, providing for the sale or forfeiture and conveyance of property delinquent for taxes, and for the inspection and disposition of lands bid off to the state and not redeemed or purchased; to provide for the establishment of a delinquent tax revolving fund and the borrowing of money by counties and the issuance of notes; to define and limit the jurisdiction of the courts in proceedings in connection with property delinquent for taxes; to limit the time within which actions may be brought; to prescribe certain limitations with respect to rates of taxation; to prescribe certain powers and duties of certain officers, departments, agencies, and political subdivisions of this state; to provide for certain reimbursements of certain expenses incurred by units of local government; to provide penalties for the violation of this act; and to repeal acts and parts of acts," by amending section 78f (MCL 211.78f), as added by 1999 PA 123.

(Filed with the Secretary of State July 30, 2001, at 10:21 a.m.)

Date: July 27, 2001

Time: 2:30 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4711 (Public Act No. 96, I.E.), being

(Filed with the Secretary of State July 30, 2001, at 10:23 a.m.)

Date: July 27, 2001

Time: 2:32 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4713 (Public Act No. 97, I.E.), being

(Filed with the Secretary of State July 30, 2001, at 10:25 a.m.)

Date: July 27, 2001

Time: 2:34 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4715 (Public Act No. 98, I.E.), being

(Filed with the Secretary of State July 30, 2001, at 10:27 a.m.)

Date: July 27, 2001

Time: 2:36 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4716 (Public Act No. 99, I.E.), being

(Filed with the Secretary of State July 30, 2001, at 10:29 a.m.)

Date: July 27, 2001

Time: 2:38 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4717 (Public Act No. 100, I.E.), being

(Filed with the Secretary of State July 30, 2001, at 10:31 a.m.)

Date: July 27, 2001

Time: 2:40 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4718 (Public Act No. 101, I.E.), being

(Filed with the Secretary of State July 30, 2001, at 10:33 a.m.)

Date: July 27, 2001

Time: 2:42 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4540 (Public Act No. 102, I.E.), being

An act to amend 1933 PA 167, entitled "An act to provide for the raising of additional public revenue by prescribing certain specific taxes, fees, and charges to be paid to the state for the privilege of engaging in certain business activities; to provide, incident to the enforcement thereof, for the issuance of licenses to engage in such occupations; to provide for the ascertainment, assessment and collection thereof; to appropriate the proceeds thereof; and to prescribe penalties for violations of the provisions of this act," by amending section 17 (MCL 205.67), as amended by 2000 PA 242.

(Filed with the Secretary of State July 30, 2001, at 10:35 a.m.)

Date: September 11, 2001

Time: 4:56 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4965 (Public Act No. 116), being

An act to divide this state into 110 representative and 38 senatorial districts; and to prescribe the powers and duties of certain state departments and officers.

(Filed with the Secretary of State September 11, 2001, at 5:17 p.m.)

The following message from the Governor was received July 23, 2001 and read:

EXECUTIVE ORDER

No. 2001 - 2

Recision of Executive Order No. 2001-1

WHEREAS, Article V, Section 1, of the Constitution of the state of Michigan of 1963 vests the executive power in the Governor; and

WHEREAS, Article V, Section 2, of the Constitution of the state of Michigan of 1963 empowers the Governor to make changes in the organization of the Executive Branch or in the assignment of functions among its units, which he considers necessary for efficient administration; and

WHEREAS, Article V, Section 8, of the Constitution of the state of Michigan of 1963 provides that each principal department shall be under the supervision of the Governor, unless otherwise provided by the Constitution; and

WHEREAS, the Michigan Legislature has passed legislation creating the Department of History, Arts and Libraries; and

WHEREAS, the legislation creating the Department of History, Arts and Libraries is substantially similar to the provisions of Executive Order 2001-1 creating the Department of History, Arts and Culture; and

WHEREAS, in fulfillment of the requirement of Article V, Section 2, of the Constitution of the state of Michigan of 1963 the provisions of Executive Order 2001-1 become effective August 5, 2001.

NOW, THEREFORE, I, John Engler, Governor of the state of Michigan, pursuant to the powers vested in me by the Constitution of the state of Michigan of 1963 and the laws of the state of Michigan, do hereby order the following:

Executive Order 2001-1, creating the Department of History, Arts and Culture, is hereby rescinded in its entirety.

The provisions of this Executive Order shall become effective upon filing.

[SEAL] Given under my hand and the Great Seal of the State of Michigan this 23rd day of July, in the Year of our Lord, Two Thousand One.

John Engler

Governor

By the Governor:

Candice S. Miller

Secretary of State

The message was referred to the Clerk.

The following message from the Governor was received August 9, 2001 and read:

EXECUTIVE ORDER

No. 2001 - 3

Department of Information Technology

Department of Management and Budget

Executive Reorganization

WHEREAS, Article V, Section 1, of the Constitution of the state of Michigan of 1963 vests the executive power in the Governor; and

WHEREAS, Article V, Section 2, of the Constitution of the state of Michigan of 1963 empowers the Governor to make changes in the organization of the Executive Branch or in the assignment of functions among its units which he considers necessary for efficient administration; and

WHEREAS, certain functions, duties and responsibilities currently assigned to other state departments can be more effectively carried out by a new principal Department of Information Technology; and

WHEREAS, reorganizing information technology management functions into a new principal department with a cabinet-level Chief Information Officer will promote a unified approach to information technology management for executive branch agencies; and

WHEREAS, the creation of a new Department of Information Technology will improve the management of information technology investments and allow the state to establish stronger strategic relationships with business partners; and

WHEREAS, the creation of a new Department of Information Technology will strengthen central policymaking and direction-setting in all areas of information technology, bring about improved information management and data standardization, and catalyze the use of improved project management practices and strategic technology infrastructure planning; and

WHEREAS, improvements are necessary to provide the customers of the state of Michigan - be they citizens, businesses or employees - with an improved delivery of state services; and

WHEREAS, it is necessary in the interests of efficient administration and good government to effect these changes in the organization of the Executive Branch of government.

I. DEFINITIONS

As used herein:

A. The "Department of Management and Budget" means the principal department created by Section 121 of Act No. 431 of the Public Acts of 1984, being Section 18.1121 of the Michigan Compiled Laws.

B. The "Michigan Information Network Office" means the entity created by Executive Order 1995-14, being Section 18.1695 of the Michigan Compiled Laws.

C. The "Michigan Information Network Advisory Board" means the entity created by Executive Order 1995-14, being Section 18.1695 of the Michigan Compiled Laws.

D. "Information Technology Services" means services involving all aspects of managing and processing information including, but not limited to:

· application development and maintenance;

· desktop computer support and management;

· mainframe computer support and management;

· server support and management;

· local area network support and management;

· information technology contract, project and procurement management;

· information technology planning and budget management, and;

· telecommunication services, security, infrastructure and support.

II. CREATION OF THE DEPARTMENT OF INFORMATION TECHNOLOGY

A. The Department of Information Technology (hereafter "Department") is hereby created. This Department shall be headed by a Director who shall be appointed by and serve at the pleasure of the Governor. The Director shall also serve as the state's Chief Information Officer.

B. The Department shall lead state efforts to re-engineer the state's information technology infrastructure with the goal of achieving the use of common technology across the executive branch.

C. The Department shall coordinate a unified executive branch strategic information technology plan, identify best practices from executive branch agencies and other public and private sector entities, and develop and implement processes to replicate information technology best practices and standards throughout the executive branch.

D. The Department shall oversee the expanded use and implementation of project and contract management principles as they relate to information technology projects within the executive branch. Funded projects within executive branch agencies shall use the project and contract management methodologies specified by the Department.

E. The Department shall serve as a general contractor between the state's information technology users and private-sector providers of information technology products and services. The Department shall work toward building stronger partnering relationships with providers.

F. The Department shall develop service-level agreements with executive branch departments and agencies to ensure quality products are delivered on schedule and within budget.

G. The Department shall develop standards for application development including, but not limited to, a standard methodology and cost-benefit analysis that all executive branch departments and agencies shall utilize for application development activities.

H. The Department shall have the full cooperation of executive branch departments and agencies in developing and implementing the sharing of data and information throughout the executive branch. The Department shall determine and implement statewide efforts to standardize data elements and shall determine data ownership assignments among executive branch departments and agencies.

I. The Department shall develop systems and methodologies to review, evaluate and prioritize existing information technology projects within the executive branch and shall report to the Governor the status of information technology projects on a semi-annual basis.

J. The Department will assist the State Budget Office with the development of information technology budgets for the executive branch. All information technology budget requests from the executive branch will be submitted to the State Budget Office and the Department. The State Budget Office and the Department will jointly review and recommend for funding consideration only those proposals that fit into the overall strategic information technology management plan of the state and that provide a reasonable return on investment.

III. INFORMATION TECHNOLOGY FUNCTIONS AND PERSONNEL

A. Except as otherwise provided in part IV of this order, all the authority, powers, duties, functions, responsibilities, personnel, equipment and budgetary resources involved in or related to the provision of information technology services currently located within any executive branch department or agency are hereby transferred to the Department of Information Technology by a Type II transfer, as defined in Section 3 of Act No. 380 of the Public Acts of 1965, as amended, being Section 16.103 of the Michigan Compiled Laws.

B. As necessary to accomplish the missions and goals of executive branch departments and agencies, the Director of the Department of Information Technology, or the individual designated by the Governor as the Information Technology Transition Director, may immediately detail personnel transferred from executive branch departments and agencies under the provisions of this part back to their respective department or agency of origin.

IV. DEPARTMENT OF MANAGEMENT AND BUDGET

A. All the authority, powers, duties, functions and responsibilities of the following units, teams, divisions, and offices within the Department of Management and Budget:

· the Michigan Administrative Information Network;

· the Computing Services Unit;

· the Information Technology Services Division;

· the Office of Project Management;

· the Information Technology Budget and Finance Division;

· the Office of Information Technology Solutions;

· the Telecommunications Services Unit, and;

· the Michigan Information Network Office;

including, but not limited to, the statutory authority, powers, duties, functions and responsibilities set forth in:

1. Section 203 of Act No. 431 of the Public Acts of 1984, as amended, being Section 18.1203 of the Michigan Compiled Laws (automated information processing installations);

2. Section 269(1)(b) and 269(1)(d) of Act No. 431 of the Public Acts of 1984, as amended, being Section 18.1269(1)(b) and 18.1269(1)(d) of the Michigan Compiled Laws (provision of centralized services to state agencies, specifically telecommunications and optical disc services);

3. Executive Order 1994-13, as amended, being Section 18.32 of the Michigan Compiled Laws (transfer of certain computer program analysis and programming responsibilities to the Michigan Administrative Information Network);

4. Executive Order 1994-15, as amended, being Section 18.33 of the Michigan Compiled Laws (telecommunications systems and related services);

5. Executive Order 1995-10, as amended, being Section 18.1691 of the Michigan Compiled Laws (consolidation of information processing systems for executive branch agencies);

6. Executive Order 1995-14, as amended, being Section 18.1695 of the Michigan Compiled Laws (Michigan Information Network Office); and

7. Section 1291 of Act No. 335 of the Public Acts of 1993, as amended, being Section 380.1291[1] of the Michigan Compiled Laws (world-class statewide interactive video and data access and exchange system); are hereby transferred from the Department of Management and Budget to the Department of Information Technology by a Type II transfer, as defined in Section 3 of Act No. 380 of the Public Acts of 1965, as amended, being Section 16.103 of the Michigan Compiled Laws.

B. All the authority, powers, duties, functions and responsibilities of the Michigan Information Center, which is currently located in the Executive Office of the Governor pursuant to the terms of a Memorandum of Understanding and a Memorandum of Agreement executed between the Executive Office of the Governor and the Department of Management and Budget in March of 2001, upon its return from the Executive Office of the Governor to the Department of Management and Budget, is hereby transferred from the Department of Management and Budget to the Department of Information Technology by a Type II transfer, as defined in Section 3 of Act No. 380 of the Public Acts of 1965, as amended, being Section 16.103 of the Michigan Compiled Laws.

V. MICHIGAN INFORMATION NETWORK ADVISORY BOARD

All the authority, powers, duties, functions and responsibilities of the Michigan Information Network Advisory Board are hereby transferred from the Department of Management and Budget to the Department of Information Technology by a Type III transfer, as defined in Section 3 of Act No. 380 of the Public Acts of 1965, as amended, being Section 16.103 of the Michigan Compiled Laws. The Michigan Information Network Advisory Board is hereby abolished.

VI. MISCELLANEOUS

A. The individual designated by the Governor as the Information Technology Transition Director shall provide executive direction and supervision for the implementation of all transfers of authority to the Department of Information Technology made under this Order.

B. The Information Technology Transition Director, and the Directors of all executive branch departments and agencies shall jointly identify the program positions and administrative function positions that will be transferred to the Department of Information Technology according to the terms of this Order. The Information Technology Transition Director and the Directors of all executive branch departments and agencies shall make every effort to develop agreements specifying these positions by the effective date of this order. In the event of a failure to reach agreement on the positions to be transferred under this order, the Information Technology Transition Director shall develop a written recommendation specifying the positions to be transferred to the Department of Information Technology under the terms of this order. The Information Technology Transition Director shall submit the recommendation to the Governor no later than January 1, 2002, for his consideration and approval.

C. The Information Technology Transition Director shall immediately initiate coordination with the directors of all state departments affected by this Order to facilitate the transfers and develop memoranda of record identifying any pending settlements, issues of compliance with applicable federal and state laws and regulations, or other obligations to be resolved related to the authority to be transferred.

D. All records, personnel, property, equipment, grants and unexpended balances of appropriations, allocations and other funds used, held, employed, available or to be made available to any entity for the activities, powers, duties, functions and responsibilities transferred to the Department of Information Technology by this Order are hereby transferred to the Department of Information Technology.

E. The Director of the Department of Information Technology shall administer the assigned functions transferred by this Order in such ways as to promote efficient administration and shall make internal organizational changes as may be administratively necessary to complete the realignment of responsibilities prescribed by this Order.

F. The Director of the Department of Information Technology, or other individual designated by the Governor, may establish an administrative unit, including budget, personnel, information systems, internal audit, procurement, legislative and other related administrative functions. The Director of the Department of Information Technology, or other individual designated by the Governor, may also request the assistance of any state department or agency with respect to personnel, budgeting, procurement, information systems and other management-related functions and the state department or agency shall provide such assistance.

G. The Director of the Department of Information Technology, or other individual designated by the Governor, may hire or retain such contractors, sub-contractors, advisors, consultants and agents as the director may deem advisable and necessary, in accordance with the relevant procedures, statutes, rules and regulations of the Civil Service Commission and the Department of Management and Budget, and may make and enter into contracts necessary or incidental to the exercise of the powers and performance of the duties of the department and the director. Under this provision, the Director of the Department of Information Technology, or other individual designated by the Governor, may specifically hire or retain such contractors, sub-contractors, advisors, consultants and agents as the director may deem advisable and necessary to provide legal advice or legal services, to provide for research and development activity, and/or to provide strategic planning services.

H. The Director of the Department of Information Technology, or other individual designated by the Governor, may by written instrument delegate a duty or power conferred by law or this Order, and the department, agency or person to whom such duty or power is delegated may perform the duty or exercise the power at the time and to the extent that the duty or power is delegated by the Director of the Department of Information Technology, or other individual designated by the Governor.

I. After consultation with the Director of the Department of Information Technology, or other individual designated by the Governor, the State Budget Director shall determine and authorize the most efficient manner possible for handling financial transactions and records in the state's financial management system for the remainder of the fiscal year.

J. All rules, orders, contracts, grants and agreements relating to the functions transferred to the Department of Information Technology by this Order lawfully adopted prior to the effective date of this Order by the responsible state agency shall continue to be effective until revised, amended or rescinded.

K. Any suit, action or other proceeding lawfully commenced by, against or before any entity affected by this Order shall not abate by reason of the taking effect of this Order.

L. The invalidity of any portion of this Order shall not affect the validity of the remainder thereof.

In fulfillment of the requirement of Article V, Section 2, of the Constitution of the state of Michigan of 1963, the provisions of this Executive Order shall become effective October 14, 2001.

[SEAL] Given under my hand and the Great Seal of the State of Michigan this 9th day of August, in the Year of our Lord, Two Thousand One.

John Engler

Governor

By the Governor:

Candice S. Miller

Secretary of State

The message was referred to the Clerk.

The following message from the Governor was received August 13, 2001 and read:

EXECUTIVE ORDER

No. 2001 - 4

Michigan Quarter Commission

Department of History, Arts and Libraries

WHEREAS, Article V, Section 1, of the Constitution of the state of Michigan of 1963 vests the executive power in the Governor; and

WHEREAS, United States Public Law 105-124 establishes a program that honors the individual 50 states that comprise the United States through a new series of quarters to be issued over the next decade in the order that each state ratified the Constitution of the United States or was admitted into the union; and

WHEREAS, this program is intended to "honor the unique Federal Republic of 50 States that comprise the United States; and to promote the diffusion of knowledge among the youth of the United States about the individual states, their history and geography, and the rich diversity of the national heritage"; and

WHEREAS, state governors have been invited to submit design concepts or themes that represent their states to the U.S. Secretary of Treasury; and

WHEREAS, designs for Michigan's quarter need to be submitted in 2002 so that the Michigan quarter can be released in 2004; and

WHEREAS, it is important that the residents of Michigan participate in the process of selecting a design for Michigan's quarter.

A. The Michigan Quarter Commission ("Commission") is hereby established within the Department of History, Arts and Libraries.

B. The Commission shall consist of twenty-five members who shall be appointed by, and serve at the pleasure of, the Governor. The Governor shall appoint one member of the Commission as Chairperson. Members of the Commission shall serve during the existence of the Commission. The Commission shall be staffed by personnel within the Department of History, Arts and Libraries, to be designated by the Director of the Department of History, Arts and Libraries.

C. The Commission is advisory in nature and is charged with the following responsibilities:

1. Review of the quarter design process established by United States Public Law 105-124 and the United States Secretary of Treasury;

2. Establish state guidelines for quarter design submissions, as well as the process and criteria by which submissions will be evaluated;

3. Encourage participation and ensure that Michigan citizens of all ages have an opportunity to participate in the design submission process;

4. Review design submissions and select the pool of finalists; and

5. Present the pool of finalists to the Governor for review and final selection.

D. All principal departments and other state agencies shall cooperate with the Commission in the performance of its responsibilities. The Commission may request, and principal departments and other state agencies shall provide, such policy and technical information as is required by the Commission in the discharge of its responsibilities.

E. Members of the Commission shall not receive compensation, but members may receive necessary expenses for the performance of Commission functions, based on existing state rates.

F. The Commission may adopt rules of procedure, not inconsistent with Michigan law and with this Executive Order, governing its organization and operations. A majority of the serving members constitutes a quorum for the transaction of business at a meeting, notwithstanding the existence of one (1) or more vacancies. Voting upon actions taken by the Commission shall be conducted by a majority vote.

G. Unless extended by the Governor, the Commission shall complete its work and submit finalists to the Governor by June 1, 2002.

H. The invalidity of any portion of this Order shall not affect the validity of the remainder thereof.

The provisions of this Executive Order shall become effective immediately upon filing.

[SEAL] Given under my hand and the Great Seal of the State of Michigan this 13th day of August, in the Year of our Lord, Two Thousand One.

John Engler

Governor

By the Governor:

Candice S. Miller

Secretary of State

The message was referred to the Clerk.

The following message from the Governor was received August 30, 2001 and read:

EXECUTIVE ORDER

No. 2001 - 5

Michigan Justice Training Commission and

Michigan Justice Training Fund

Commission on Law Enforcement Standards and

Law Enforcement Officers Training Fund

Michigan Commission on Law Enforcement Standards

Michigan Department of State Police

Executive Reorganization

WHEREAS, Article V, Section 1, of the Constitution of the state of Michigan of 1963 vests the executive power in the Governor; and

WHEREAS, Article V, Section 2, of the Constitution of the state of Michigan of 1963 empowers the Governor to make changes in the organization of the Executive Branch or in the assignment of functions among its units which he considers necessary for efficient administration; and

WHEREAS, the Michigan Justice Training Commission and the Michigan Justice Training Fund were created within the Department of Management and Budget by Act No. 302 of the Public Acts of 1982, as amended, being Section 18.421 et seq. of the Michigan Compiled Laws; and subsequently transferred to the Department of State Police by Executive Order 1993-11, being Section 18.431 of the Michigan Compiled Laws; and

WHEREAS, the Michigan Law Enforcement Officers Training Council (later renamed the Commission on Law Enforcement Standards by Act No. 237 of the Public Acts of 1998, which amended Section 28.601 et seq. of the Michigan Compiled Laws) and the Law Enforcement Officers Training Fund were created under Act No. 203 of the Public Acts of 1965, as amended, being section 28.601 et seq. of the Michigan Compiled Laws; and subsequently transferred by a Type I transfer to the Department of State Police by Act No. 407 of the Public Acts of 1965, being Section 16.257 of the Michigan Compiled Laws; and

WHEREAS, the powers, functions, duties and responsibilities assigned to the Michigan Justice Training Commission, the Michigan Justice Training Fund, the Commission on Law Enforcement Standards, and the Law Enforcement Officers Training Fund can be more effectively carried out by a new Michigan Commission on Law Enforcement Standards; and

WHEREAS, it is necessary in the interests of efficient administration and effectiveness of government to effect changes in the organization of the Executive Branch of government.

I. New Michigan Commission on Law Enforcement Standards

A. The new Michigan Commission on Law Enforcement Standards is hereby created as a Type I agency within the Department of State Police.

B. All the statutory authority, powers, duties, functions and responsibilities of the Michigan Justice Training Commission, the Michigan Justice Training Fund, the Commission on Law Enforcement Standards and the Law Enforcement Officers Training Fund including those involving rulemaking, grant awards and annual distributions and including, but not limited to, the statutory authority, powers, duties, functions and responsibilities set forth in:

1. The Commission on Law Enforcement Standards Act, Act No. 203 of the Public Acts of 1965, as amended, being Section 28.601 et seq. of the Michigan Compiled Laws;

2. The Michigan Justice Training Commission and Michigan Justice Training Fund Act, Act No. 302 of the Public Acts of 1982, as amended, being Section 18.421 et seq. of the Michigan Compiled Laws; are hereby transferred to the new Michigan Commission on Law Enforcement Standards by a Type III transfer, as defined by Section 3 of Act No. 380 of the Public Acts of 1965, as amended, being Section 16.103 of the Michigan Compiled Laws.

C. The new Michigan Commission on Law Enforcement Standards shall consist of fifteen (15) members as follows:

1. The Attorney General, or the designated representative of the Attorney General;

2. The Director of the Department of State Police, or the Director's designated representative who is a Michigan State Police Officer;

3. The Chief of the Police Department located in a city with a population of more that 750,000, or the Chief's designated representative who is a command officer with that department; and

4. Twelve (12) members appointed by the Governor, with the advice and consent of the Senate, as follows:

a. Three (3) individuals selected from a list of nine (9) active voting members of and submitted by the Michigan Association of Chiefs of Police or its successor organization;

b. Three (3) individuals selected from a list of nine (9) elected sheriffs submitted by the Michigan Sheriffs' Association or its successor organization;

c. One (1) individual selected from a list of three (3) individuals submitted by the Prosecuting Attorneys' Association of Michigan or its successor organization;

d. One (1) individual selected from a list of three (3) individuals submitted by the Criminal Defense Attorneys of Michigan or its successor organization;

e. One (1) individual selected from a list of three (3) individuals submitted by the Michigan State Police Trooper's Association or its successor organization;

f. One (1) individual selected from a list of three (3) individuals submitted by the Michigan Chapter of the Fraternal Order of Police or its successor organization;

g. One (1) individual selected from a list of three (3) individuals submitted by the Police Officer's Association of Michigan or its successor organization;

h. One (1) individual selected from a list of three (3) individuals submitted by a police association representing officers employed by one police agency employing more than 15 percent of the police officers in this state or their successor organizations; and

i. The Governor may appoint any individual meeting the membership requirements of the organizations listed in 4. a. through 4. h. in the event that an organization required to submit a list of potential candidates fails to submit a list:

(1) at least 30 days prior to a vacancy created by the expiration of a term; or

(2) within 30 days of the effective date of any other vacancy.

5. An individual selected under subdivision 4 shall serve as a commission member only while serving as a member of the respective organizations in subparagraphs 4. a. through 4. h.

6. Except as otherwise provided in this subdivision, members of the Commission appointed under subdivision 4 shall hold office for a term of three (3) years. However:

a. Of the members initially appointed from the list of nominees submitted by the Michigan Association of Chiefs of Police, one (1) member shall be appointed for a term of three (3) years, one (1) member shall be appointed for a term of two (2) years, and one (1) member shall be appointed for a term of one (1) year.

b. Of the members initially appointed from the list submitted by the Michigan Sheriffs' Association, one (1) member shall be appointed for a term of three (3) years, one (1) member shall be appointed for a term of two (2) years, and one (1) member shall be appointed for a term of one (1) year.

c. The members initially appointed from the list of nominees submitted by the Michigan State Police Trooper's Association and the Michigan Chapter of the Fraternal Order of Police shall be appointed for a term of two (2) years.

d. The members initially appointed from the list of nominees submitted by the Police Officer's Association of Michigan and the police association representing officers employed by one police agency employing more than 15 percent of the police officers in this state shall be appointed for a term of one (1) year.

7. A vacancy on the Commission caused by the expiration of a term or termination of the member's official position in law enforcement shall be filled in the same manner as the original appointment.

8. A member appointed to fill a vacancy created other than by expiration of a term shall be appointed for the unexpired term of the member who he or she is to succeed in the same manner as the original appointment. A member may be reappointed for additional terms.

D. The new Michigan Commission on Law Enforcement Standards, in addition to exercising the statutory authority, powers, duties, functions and responsibilities transferred to it by this order, shall focus its activities in order to accomplish the following objectives involving law enforcement organizations and officers:

1. Increase professionalism;

2. Increase the number of law enforcement organizations that offer formal in-service training and increase the number of law enforcement officers who receive formal in-service training;

3. Institute law enforcement in-service training standards applicable to all law enforcement in-service training in Michigan;

4. Implement a web-based information system that will allow the Commission to accomplish its goals and communicate with Michigan law enforcement organizations in a more efficient manner; and

5. Ensure that grants awarded by the Commission to Michigan law enforcement organizations advance the objectives listed in subparagraphs D.1. through D.3.

II. Miscellaneous

A. The Director of the Department of State Police shall provide executive direction and supervision for the implementation of all transfers of authority made under this Order.

B. The Executive Director of the new Michigan Commission on Law Enforcement Standards shall administer the assigned functions transferred by this Order in such ways as to promote efficient administration and shall make internal organizational changes as may be administratively necessary to complete the realignment of responsibilities prescribed by this Order.

C. The Director of the Department of State Police and the Executive Director of the new Michigan Commission on Law Enforcement Standards shall immediately initiate coordination to facilitate the transfer and shall develop a memorandum of record identifying any pending settlements, issues of compliance with applicable federal and State laws and regulations, or obligations to be resolved by the Michigan Justice Training Commission, the Michigan Justice Training Fund, the Commission on Law Enforcement Standards and the Law Enforcement Officers Training Fund.

D. All records, personnel, property and unexpended balances of appropriations, allocations and other funds used, held, employed, available or to be made available to the Michigan Justice Training Commission, the Michigan Justice Training Fund, the Commission on Law Enforcement Standards and the Law Enforcement Officers Training Fund for the activities, powers, duties, functions and responsibilities transferred by this Order are hereby transferred to the new Michigan Commission on Law Enforcement Standards.

E. The State Budget Director shall determine and authorize the most efficient manner possible for handling financial transactions and records in the state's financial management system for the remainder of the fiscal year.

F. All rules, orders, contracts and agreements relating to the assigned functions lawfully adopted prior to the effective date of this Order shall continue to be effective until revised, amended or repealed.

G. Any suit, action or other proceeding lawfully commenced by, against or before any entity affected by this Order shall not abate by reason of the taking effect of this Order. Any suit, action or other proceeding may be maintained by, against or before the appropriate successor of any entity affected by this Order.

H. The invalidity of any portion of this Order shall not affect the validity of the remainder thereof.

In fulfillment of the requirement of Article V, Section 2, of the Constitution of the state of Michigan of 1963, the provisions of this Executive Order shall become effective November 1, 2001.

[SEAL] Given under my hand and the Great Seal of the State of Michigan this 30th day of August, in the Year of our Lord, Two Thousand One.

John Engler

Governor

By the Governor:

Candice S. Miller

Secretary of State

The message was referred to the Clerk.

______

The Speaker Pro Tempore called Associate Speaker Pro Tempore Julian to the Chair.

Introduction of Bills

Reps. Lemmons, McConico, Hale, Thomas, Garza, Daniels, Kolb, Williams, Waters, Bogardus, Murphy, Zelenko, Mans, O'Neil, Wojno, Lipsey, Rich Brown, Whitmer, Adamini, Anderson, Plakas, Pestka, Rison, Clark, Newell, DeRossett, Howell, Rocca, Clarke and Pappageorge introduced

House Bill No. 5045, entitled

A bill to amend 1949 PA 300, entitled "Michigan vehicle code," by amending section 903 (MCL 257.903), as amended by 1997 PA 101.

The bill was read a first time by its title and referred to the Committee on Criminal Justice.

Reps. Gosselin and Pappageorge introduced

House Bill No. 5046, entitled

A bill to amend 1984 PA 431, entitled "The management and budget act," (MCL 18.1101 to 18.1594) by adding section 241c.

The bill was read a first time by its title and referred to the Committee on Regulatory Reform.

Reps. Anderson, Lockwood, Bovin, Jamnick, Basham, Pestka, Lemmons, Shackleton, Hale, Stewart, Zelenko, Kowall, Toy, Patterson, Vander Veen, Rich Brown, Plakas, Jacobs, Phillips, DeRossett, Neumann, Bob Brown, O'Neil, Rivet and Kooiman introduced

House Bill No. 5047, entitled

A bill to amend 1927 PA 175, entitled "The code of criminal procedure," (MCL 760.1 to 777.69) by adding section 12a to chapter V.

The bill was read a first time by its title and referred to the Committee on Civil Law and the Judiciary.

Rep. Rivet introduced

House Bill No. 5048, entitled

A bill to amend 1984 PA 431, entitled "The management and budget act," (MCL 18.1101 to 18.1594) by adding section 387.

The bill was read a first time by its title and referred to the Committee on Regulatory Reform.

Reps. Scranton, Godchaux, Hart, Dennis, Gilbert, LaSata, Stamas, Hager, Woronchak, Kowall, Bishop, Voorhees, DeWeese, Cameron Brown, Vander Roest, Stewart, Mead, Vear, Bradstreet, Faunce, Van Woerkom, Vander Veen, Stallworth, Basham, Toy, Mortimer, Ehardt, Ruth Johnson, Howell, Spade, Callahan, Lockwood, O'Neil, Mans, Hardman, Reeves, Gieleghem, Shackleton, Meyer, George, Caul, Richner, Bisbee, Thomas, Kolb, Switalski, Daniels, Sanborn, Pumford, Jelinek, Birkholz, Schauer, Garza, Middaugh, Minore, Hansen, Newell, Tabor, Kooiman, Clark, Cassis, Koetje, DeRossett, Hale, Bogardus, Bovin, Jamnick, Rich Brown, Adamini, Rivet, Neumann, Anderson, Rison, Jacobs, Murphy, Whitmer, Zelenko, Waters, Phillips, Pestka, Woodward, Jansen, Rocca, Wojno, Williams, Lipsey, McConico, Bernero, Bob Brown, Patterson, Richardville, Kuipers, Raczkowski, Allen and Lemmons introduced

House Bill No. 5049, entitled

A bill to amend 1976 PA 451, entitled "The revised school code," (MCL 380.1 to 380.1852) by adding section 1279a.

The bill was read a first time by its title and referred to the Committee on Education.

Rep. Cameron Brown introduced

House Bill No. 5050, entitled

A bill to amend 1933 PA 167, entitled "General sales tax act," (MCL 205.51 to 205.78) by adding section 4aa.

The bill was read a first time by its title and referred to the Committee on Tax Policy.

Reps. Gieleghem, Bovin, Kolb, Neumann, Dennis, DeWeese and Jacobs introduced

House Bill No. 5051, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," (MCL 324.101 to 324.90106) by adding section 19615a.

The bill was read a first time by its title and referred to the Committee on Conservation and Outdoor Recreation.

Reps. Gieleghem, Bovin, Kolb, Neumann, Dennis and Jacobs introduced

House Bill No. 5052, entitled

A bill to require the use of plain language in consumer contracts; to impose certain requirements relating to consumer contracts; to prescribe the powers and duties of certain state officers and departments; to provide remedies; to provide for limitation of actions; and to provide for civil fines and prescribe penalties for violations of this act.

The bill was read a first time by its title and referred to the Committee on Commerce.

Reps. Gieleghem, Neumann, Dennis and Jacobs introduced

House Bill No. 5053, entitled

A bill to amend 1967 PA 281, entitled "Income tax act of 1967," by amending section 30 (MCL 206.30), as amended by 2000 PA 400.

The bill was read a first time by its title and referred to the Committee on Tax Policy.

Reps. Schermesser, Basham, Wojno, Gieleghem, Lockwood, Minore, Bovin, Spade, Plakas, Dennis and Lemmons introduced

House Bill No. 5054, entitled

A bill to amend 1978 PA 368, entitled "Public health code," by amending section 21799c (MCL 333.21799c), as amended by 1996 PA 546.

The bill was read a first time by its title and referred to the Committee on Senior Health, Security and Retirement.

Reps. Toy, Voorhees, Julian, Howell, Pappageorge, Vander Veen, Stewart, Bovin, DeWeese, Basham, Tabor, Vander Roest, Kooiman and Mortimer introduced

House Bill No. 5055, entitled

A bill to amend 1949 PA 300, entitled "Michigan vehicle code," by amending section 675d (MCL 257.675d), as amended by 2000 PA 268.

The bill was read a first time by its title and referred to the Committee on Transportation.

Rep. Switalski introduced

House Bill No. 5056, entitled

A bill to amend 1949 PA 300, entitled "Michigan vehicle code," by amending section 226 (MCL 257.226), as amended by 2000 PA 36.

The bill was read a first time by its title and referred to the Committee on Transportation.

Rep. Switalski introduced

House Bill No. 5057, entitled

A bill to amend 1954 PA 116, entitled "Michigan election law," by amending section 737a (MCL 168.737a), as added by 1996 PA 461.

The bill was read a first time by its title and referred to the Committee on Redistricting and Elections.

Rep. Switalski introduced

House Bill No. 5058, entitled

A bill to provide for compulsory arbitration of labor disputes between university police officers and their employers; to provide for the selection of members of arbitration panels; to prescribe the procedures and authority of arbitration panels; and to provide for the enforcement and review of awards of those panels.

The bill was read a first time by its title and referred to the Committee on Employment Relations, Training and Safety.

Reps. Gosselin, Bradstreet, Voorhees and Kooiman introduced

House Bill No. 5059, entitled

A bill to prohibit discrimination by this state or a political subdivision of this state against a private organization or charitable funding organization based on the organization's beliefs, expression of beliefs, or exercise of rights protected by the constitution of the United States or of this state.

The bill was read a first time by its title and referred to the Committee on Civil Law and the Judiciary.

Reps. Bernero, Spade, Waters, Lipsey, Rich Brown, Adamini, McConico, Plakas, Pestka, Neumann, Minore, Gieleghem, Murphy, Bogardus, Wojno, Dennis, O'Neil, Zelenko, Jacobs, Clarke and Hansen introduced

House Bill No. 5060, entitled

A bill to amend 1970 PA 38, entitled "An act to provide for assessment and remedial assistance programs of students in reading, mathematics and vocational education," by amending sections 1, 2, and 6 (MCL 388.1081, 388.1082, and 388.1086).

The bill was read a first time by its title and referred to the Committee on Education.

Reps. Bernero, Spade, Waters, Lipsey, Rich Brown, Adamini, McConico, Plakas, Pestka, Neumann, Minore, Gieleghem, Murphy, Bogardus, Wojno, Dennis, O'Neil, Zelenko, Jacobs, Clarke and Hansen introduced

House Bill No. 5061, entitled

A bill to amend 1976 PA 451, entitled "The revised school code," by amending section 1279 (MCL 380.1279), as amended by 1997 PA 175.

The bill was read a first time by its title and referred to the Committee on Education.

Reps. Zelenko, Spade, Waters, Lipsey, Rich Brown, Adamini, McConico, Plakas, Pestka, Neumann, Minore, Gieleghem, Murphy, Bogardus, Wojno, Dennis, O'Neil, Bernero, Jacobs, Clarke and Hansen introduced

House Bill No. 5062, entitled

A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending section 104a (MCL 380.1704a), as amended by 1999 PA 119.

The bill was read a first time by its title and referred to the Committee on Education.

Reps. Spade, Bernero, Waters, Lipsey, Rich Brown, Adamini, McConico, Plakas, Pestka, Neumann, Minore, Gieleghem, Murphy, Bogardus, Wojno, Dennis, O'Neil, Zelenko, Jacobs, Clarke and Hansen introduced

House Bill No. 5063, entitled

A bill to amend 1999 PA 94, entitled "Michigan merit award scholarship act," by amending section 9 (MCL 390.1459).

The bill was read a first time by its title and referred to the Committee on Education.

Reps. Kowall, Pappageorge, McConico and Ruth Johnson introduced

House Bill No. 5064, entitled

A bill to amend 1961 PA 236, entitled "Revised judicature act of 1961," by amending section 8512a (MCL 600.8512a), as added by 1984 PA 278.

The bill was read a first time by its title and referred to the Committee on Civil Law and the Judiciary.

Reps. Kowall, Pappageorge, George, Voorhees, Ruth Johnson and Scranton introduced

House Bill No. 5065, entitled

A bill to amend 1931 PA 246, entitled "An act to provide for the construction, repair, and maintenance of pavements, sidewalks, and elevated structures on or along public roads and highways; to provide for the levying of taxes and of special assessments; to authorize the borrowing of money and the issuance of bonds; to prescribe the powers and duties of certain state and local agencies and officers; to validate actions taken, special assessments levied, and bonds issued; and to provide for the lighting of certain roads, highways, and bridges," by amending the title and section 18b (MCL 41.288b), the title as amended and section 18b as added by 1989 PA 80.

The bill was read a first time by its title and referred to the Committee on Civil Law and the Judiciary.

Rep. Scranton introduced

House Bill No. 5066, entitled

A bill to amend 1987 PA 96, entitled "The mobile home commission act," by amending section 3 (MCL 125.2303).

The bill was read a first time by its title and referred to the Committee on Commerce.

Rep. Scranton introduced

House Bill No. 5067, entitled

A bill to amend 1959 PA 243, entitled "An act to define, license and regulate trailer coach parks; to prescribe the powers and duties of the state health commissioner and other state and local officers; to provide for the levy and

collection of specific taxes on occupied trailers in trailer coach parks and the disposition of the revenues therefrom; to provide remedies and penalties for the violation of this act; and to repeal certain acts and parts of acts," by amending sections 41 and 42 (MCL 125.1041 and 125.1042), section 42 as amended by 1994 PA 365.

The bill was read a first time by its title and referred to the Committee on Commerce.

Rep. Callahan introduced

House Bill No. 5068, entitled

A bill to amend 1961 PA 236, entitled "Revised judicature act of 1961," by amending sections 5801 and 5867 (MCL 600.5801 and 600.5867) and by adding section 5867a.

The bill was read a first time by its title and referred to the Committee on Civil Law and the Judiciary.

Rep. Callahan introduced

House Bill No. 5069, entitled

A bill to amend 1945 PA 200, entitled "An act to define a marketable record title to an interest in land; to require the filing of notices of claim of interest in such land in certain cases within a definite period of time and to require the recording thereof; to make invalid and of no force or effect all claims with respect to the land affected thereby where no such notices of claim of interest are filed within the required period; to provide for certain penalties for filing slanderous notices of claim of interest, and to provide certain exceptions to the applicability and operation thereof," by amending section 1 (MCL 565.101), as amended by 1997 PA 154.

The bill was read a first time by its title and referred to the Committee on Civil Law and the Judiciary.

Rep. Jamnick introduced

House Bill No. 5070, entitled

A bill to amend 1961 PA 236, entitled "Revised judicature act of 1961," by amending section 1910 (MCL 600.1910), as amended by 1994 PA 403.

The bill was read a first time by its title and referred to the Committee on Civil Law and the Judiciary.

Rep. Jamnick introduced

House Bill No. 5071, entitled

A bill to designate an official fossil of this state.

The bill was read a first time by its title and referred to the Committee on House Oversight and Operations.

Rep. Minore introduced

House Bill No. 5072, entitled

A bill to amend 1975 PA 228, entitled "Single business tax act," by amending section 31 (MCL 208.31), as amended by 1999 PA 115.

The bill was read a first time by its title and referred to the Committee on Tax Policy.

Rep. Jamnick introduced

House Bill No. 5073, entitled

A bill to amend 1949 PA 300, entitled "Michigan vehicle code," (MCL 257.1 to 257.923) by adding sections 217w and 217x.

The bill was read a first time by its title and referred to the Committee on Transportation.

Rep. Bishop introduced

House Bill No. 5074, entitled

A bill to amend 1954 PA 116, entitled "Michigan election law," by amending sections 9a, 727, 729, 745, 746, and 769 (MCL 168.9a, 168.727, 168.729, 168.745, 168.746, and 168.769), section 9a as added by 1999 PA 219 and sections 727 and 769 as amended by 1995 PA 261.

The bill was read a first time by its title and referred to the Committee on Redistricting and Elections.

Rep. Bishop introduced

House Bill No. 5075, entitled

A bill to amend 1954 PA 116, entitled "Michigan election law," by amending sections 570, 576, 587, 706, 737, 782b, 795c, 803, and 804 (MCL 168.570, 168.576, 168.587, 168.706, 168.737, 168.782b, 168.795c, 168.803, and 168.804),

sections 570, 706, and 737 as amended by 1985 PA 160, section 576 as amended by 1996 PA 213, section 795c as amended by 1990 PA 109, and section 803 as amended by 1997 PA 137.

The bill was read a first time by its title and referred to the Committee on Redistricting and Elections.

Rep. Bishop introduced

House Bill No. 5076, entitled

A bill to amend 1987 PA 173, entitled "Mortgage brokers, lenders, and servicers licensing act," by amending section 2 (MCL 445.1652), as amended by 1996 PA 210.

The bill was read a first time by its title and referred to the Committee on Commerce.

Rep. Vander Roest introduced

House Bill No. 5077, entitled

A bill to amend 1996 PA 480, entitled "An act to make appropriations for the judicial branch for the fiscal year ending September 30, 1997; to make appropriations to various state departments for the fiscal year ending September 30, 1997; to make appropriations for a capital outlay program for fiscal years ending September 30, 1997; to implement the appropriations within the budgetary process; to make appropriations for planning and construction at state agencies, universities, and community colleges; to make appropriations for state building authority rent and insurance; to make a grant for state building authority rent; to provide for the acquisition of land and buildings; to provide for the elimination of fire hazards; to provide for special maintenance, remodeling and addition, alteration, renovation, demolition, and other projects; to provide for elimination of occupational safety and health hazards; to provide for the award and implementation of contracts; to provide for the purchase of furnishings and equipment relative to occupancy of a project; to provide for certain advances from the general fund; to require certain reports, plans, and agreements; to provide for leases; to provide for transfers; to prescribe standards and conditions relating to the appropriations; to provide for the acquisition of land and the development of public recreation facilities; to provide for the powers and duties of certain state agencies, employees, and officials; and to provide for the expenditure of the appropriations," by amending section 1813.

The bill was read a first time by its title and referred to the Committee on Regulatory Reform.

Rep. Jamnick introduced

House Bill No. 5078, entitled

A bill to amend 1949 PA 300, entitled "Michigan vehicle code," by amending sections 804 and 904c (MCL 257.804 and 257.904c), section 804 as amended by 2000 PA 77 and section 904c as amended by 1999 PA 73.

The bill was read a first time by its title and referred to the Committee on Transportation.

Rep. Bovin introduced

House Bill No. 5079, entitled

A bill to amend 1954 PA 116, entitled "Michigan election law," by amending section 759a (MCL 168.759a), as amended by 1999 PA 216.

The bill was read a first time by its title and referred to the Committee on Redistricting and Elections.

Reps. Allen, Howell, Gilbert, Koetje, Vear, DeVuyst and Mortimer introduced

House Bill No. 5080, entitled

A bill to provide for a streamlined system of sales and use tax collection; to prescribe the requirements necessary for this state to adopt a multistate agreement; to provide for a board with certain powers and duties; to provide for the registration of sellers who select a model of collection and remittance; to forgive liability of collection of sales and use taxes on past transactions for certain sellers; to assure privacy of buyers; to prescribe certain powers and duties of state departments; and to repeal acts and parts of acts.

The bill was read a first time by its title and referred to the Committee on Commerce.

______

Rep. Clarke asked and obtained an excuse from the balance of today's session.

By unanimous consent the House returned to the order of

Reports of Select Committees

First Conference Report

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

House Bill No. 4258, entitled

A bill to make appropriations for the state institutions of higher education and certain state purposes related to education for the fiscal year ending September 30, 2002; to provide for the expenditures of those appropriations; and to prescribe the powers and duties of certain state departments, institutions, agencies, employees, and officers.

Recommends:

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

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for higher education for the fiscal year ending September 30, 2002, from the funds indicated in this part. The following is a summary of the appropriations in this part:

HIGHER EDUCATION

Full-time equated classified positions 1.0

GROSS APPROPRIATION $ 1,947,842,366

Total interdepartmental grants and intradepartmental transfers $ 0

ADJUSTED GROSS APPROPRIATION $ 1,947,842,366

Appropriated from:

Federal revenues:

Total federal revenues 4,900,000

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 130,273,850

State general fund/general purpose $ 1,812,668,516

Sec. 102. CENTRAL MICHIGAN UNIVERSITY

Operations $ 90,003,800

GROSS APPROPRIATION $ 90,003,800

Appropriated from:

State general fund/general purpose $ 90,003,800

Sec. 103. EASTERN MICHIGAN UNIVERSITY

Operations $ 87,637,200

GROSS APPROPRIATION $ 87,637,200

Appropriated from:

State general fund/general purpose $ 87,637,200

Sec. 104. FERRIS STATE UNIVERSITY

Operations $ 55,520,300

GROSS APPROPRIATION $ 55,520,300

Appropriated from:

State general fund/general purpose $ 55,520,300

Sec. 105. GRAND VALLEY STATE UNIVERSITY

Operations $ 60,095,400

GROSS APPROPRIATION $ 60,095,400

Appropriated from:

State general fund/general purpose $ 60,095,400

Sec. 106. LAKE SUPERIOR STATE UNIVERSITY

Operations $ 14,268,700

GROSS APPROPRIATION $ 14,268,700

Appropriated from:

State general fund/general purpose $ 14,268,700

Sec. 107. MICHIGAN STATE UNIVERSITY

Operations $ 325,982,300

GROSS APPROPRIATION $ 325,982,300

Appropriated from:

State general fund/general purpose $ 325,982,300

Sec. 108. MICHIGAN TECHNOLOGICAL UNIVERSITY

Operations $ 55,241,600

GROSS APPROPRIATION $ 55,241,600

Appropriated from:

State general fund/general purpose $ 55,241,600

Sec. 109. NORTHERN MICHIGAN UNIVERSITY

Operations $ 52,012,900

GROSS APPROPRIATION $ 52,012,900

Appropriated from:

State general fund/general purpose $ 52,012,900

Sec. 110. OAKLAND UNIVERSITY

Operations $ 52,384,700

GROSS APPROPRIATION $ 52,384,700

Appropriated from:

State general fund/general purpose $ 52,384,700

Sec. 111. SAGINAW VALLEY STATE UNIVERSITY

Operations $ 27,393,300

GROSS APPROPRIATION $ 27,393,300

Appropriated from:

State general fund/general purpose $ 27,393,300

Sec. 112. UNIVERSITY OF MICHIGAN-ANN ARBOR

Operations $ 363,562,700

GROSS APPROPRIATION $ 363,562,700

Appropriated from:

State general fund/general purpose $ 363,562,700

Sec. 113. UNIVERSITY OF MICHIGAN-DEARBORN

Operations $ 27,993,300

GROSS APPROPRIATION $ 27,993,300

Appropriated from:

State general fund/general purpose $ 27,993,300

Sec. 114. UNIVERSITY OF MICHIGAN-FLINT

Operations $ 24,068,100

GROSS APPROPRIATION $ 24,068,100

Appropriated from:

State general fund/general purpose $ 24,068,100

Sec. 115. WAYNE STATE UNIVERSITY

Operations $ 253,644,700

GROSS APPROPRIATION $ 253,644,700

Appropriated from:

State general fund/general purpose $ 253,644,700

Sec. 116. WESTERN MICHIGAN UNIVERSITY

Operations $ 125,677,200

GROSS APPROPRIATION $ 125,677,200

Appropriated from:

State general fund/general purpose $ 125,677,200

Sec. 117. STATE AND REGIONAL PROGRAMS

Full-time equated classified positions 1.0

Agricultural experiment station $ 36,848,700

Cooperative extension service 31,782,600

Michigan molecular institute 236,900

Japan center for Michigan universities 305,300

Higher education database modernization and conversion--1.0 FTE position 275,000

Midwest higher education compact 82,500

GROSS APPROPRIATION $ 69,531,000

Appropriated from:

State general fund/general purpose $ 69,531,000

Sec. 118. MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS PROGRAM

Select student supportive services $ 2,173,450

Michigan college/university partnership program 652,050

Morris Hood, Jr. educator development program 165,100

GROSS APPROPRIATION $ 2,990,600

Appropriated from:

State general fund/general purpose $ 2,990,600

Sec. 119. GRANTS AND FINANCIAL AID

State competitive scholarships $ 36,354,616

Tuition grants 66,100,200

Michigan work-study program $ 8,015,800

Part-time independent student program 2,903,000

Grant for Michigan resident dental graduates 5,052,300

Grant for general degree graduates 6,319,400

Grant for allied health graduates 935,100

Michigan education opportunity grants 2,280,300

Robert C. Byrd honors scholarship program 1,600,000

Michigan merit award program 125,023,850

Tuition incentive program/high school completion 5,250,000

GROSS APPROPRIATION $ 259,834,566

Appropriated from:

Federal revenues:

Higher education act of 1965, title IV, 20 U.S.C. 3,300,000

Higher education act of 1965, title IV, part A 1,600,000

Special revenue funds:

Michigan merit award trust fund 130,273,850

State general fund/general purpose $ 124,660,716

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 resources under part 1 for fiscal year 2001-2002 is $1,942,942,366.00 and state spending from state resources to be paid to local units of government for fiscal year 2001-2002 is $4,050,073.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:

Part-time independent student program $ 1,352,857

Michigan education opportunity grant 1,005,121

Michigan work-study 1,692,095

TOTAL $ 4,050,073

Sec. 202. The appropriations authorized under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 208. Unless otherwise specified, the institutions of higher education shall use the Internet to fulfill the reporting requirements of this act. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement, or it may include placement of reports on an Internet or Intranet site. Quarterly, the institutions of higher education shall provide to the appropriations subcommittee members, state budget office, and the fiscal agencies an electronic and paper copy listing of the reports submitted during the most recent 3-month period along with the Internet or Intranet site of each report, if any.

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 and services, or both, are available. Not later than May 1, 2002, each university shall have available upon request information on efforts to comply with this section.

Sec. 210. (1) The funds appropriated in part 1 to state institutions of higher education shall be paid out of the state treasury and distributed by the state treasurer to the respective institutions in 11 equal monthly installments on the sixteenth of each month, or the next succeeding business day, beginning with October 16, 2001. Except for Wayne State University, each institution shall accrue its July and August 2002 payments to its institutional fiscal year ending June 30, 2002.

(2) The amount distributed to an institution shall not exceed the net appropriations plus additional distributions specifically authorized by this act.

(3) All universities shall submit higher education institutional data inventory (HEIDI) data and associated financial and program information requested by and in a manner prescribed by the state budget director. For universities with fiscal years ending June 30, 2001, these data shall be submitted to the state budget director by October 15, 2001. Universities with a fiscal year ending September 30, 2001 shall submit preliminary HEIDI data by November 15, 2001 and final data by December 15, 2001. If a university fails to submit HEIDI data and associated financial aid program information in accordance with this reporting schedule, the state treasurer shall withhold the monthly installments under subsection (1) to the university until those data are submitted.

(4) A detailed description of procedures utilized to arrive at the amounts appropriated in part 1 shall be submitted to each institution by the senate and house fiscal agencies.

Sec. 211. Funds received by the state from the federal government or private sources for the use of a college or university are appropriated for the purposes for which they are provided. The acceptance and use of federal or private funds does not place an obligation upon the legislature to continue the purposes for which the funds are made available.

Sec. 213. A state institution of higher education that receives funds under this act shall furnish all program and financial information that is required by and in a manner prescribed by the state budget director or the house or senate appropriations committee.

Sec. 214. (1) If section 274 of the income tax act of 1967, 1967 PA 281, MCL 206.274, is repealed, $27,533,553.00 is appropriated and allocated as determined by the legislature for the fiscal year ending September 30, 2002 for the public universities and the grant for general degree graduates. The $27,533,553.00 shall be added to the base appropriations for each public university and the grant for general degree graduates.

(2) If section 274 of the income tax act of 1967, 1967 PA 281, MCL 206.274, is not repealed and if a state institution of higher education that receives funds under this act notifies the department of treasury regarding its tuition and fee rates in order to qualify as an eligible institution for the Michigan tuition tax credit under section 274 of the income tax act of 1967, 1967 PA 281, MCL 206.274, the institution shall also submit the notification and applicable documentation of tuition and fee changes to the house and senate fiscal agencies.

Sec. 215. All funds received under part 1 for the charter schools development and performance institute are intended to be expended on activities of that institute.

Sec. 216. By February 15, 2002, the department of treasury shall provide the state budget director, the subcommittees on higher education of the house and senate appropriations committees, and the senate and house fiscal agencies with an annual report on restricted fund balances, projected revenues, and expenditures for the fiscal years ending September 30, 2001 and September 30, 2002.

GRANTS AND FINANCIAL AID

Sec. 301. (1) Payments of the amounts included in part 1 for the state competitive scholarship program shall be distributed pursuant to 1964 PA 208, MCL 390.971 to 390.981.

(2) The Michigan higher education assistance authority shall implement a proportional competitive scholarship maximum award level for recipients enrolled less than full-time in a given semester or term.

(3) If a student who receives an award under this section has his or her tuition and fees paid under the Michigan educational trust program, pursuant to the Michigan education trust act, 1986 PA 316, MCL 390.1421 to 390.1444, and still has financial need, the funds awarded under this section may be used for educational expenses other than tuition and fees.

(4) If the Michigan higher education assistance authority increases the maximum award per eligible student from that provided in the previous fiscal year, it shall not have the effect of reducing the number of eligible students receiving awards in relation to the total number of eligible applicants. Any increase in the maximum grant shall be proportional for all eligible students receiving awards.

Sec. 302. (1) The amounts appropriated in part 1 for the state tuition grant program shall be distributed pursuant to 1966 PA 313, MCL 390.991 to 390.997a.

(2) Tuition grant awards shall be made to all eligible Michigan residents who apply before September 1, 2001 and who are qualified. Tuition grant awards shall not be made to students newly enrolled in a juris doctor law degree program after the 1995-96 academic year.

(3) The Michigan higher education assistance authority shall determine an actual maximum tuition grant award per student that ensures that the aggregate payments for the tuition grant program do not exceed the appropriation contained in part 1 for the state tuition grant program. By December 15, 2001, and again by February 1, 2002, the authority shall analyze the status of award commitments, shall make any necessary adjustments, and shall confirm that those award commitments will not exceed the appropriation contained in part 1 for the tuition grant program. The determination and actions shall be reported to the state budget director and the house and senate fiscal agencies no later than February 15, 2002. If award adjustments are necessary, the students shall be notified of the adjustment by the third Monday in February.

(4) Any unexpended and unencumbered funds remaining on September 30, 2002 from the amounts appropriated in part 1 for the tuition grant program shall not lapse on September 30, 2002, but shall continue to be available for expenditure for tuition grants provided in the 2002-2003 fiscal year. The use of these unexpended fiscal year 2001-2002 funds shall terminate at the end of the 2002-2003 fiscal year.

(5) The Michigan higher education assistance authority shall continue a proportional tuition grant maximum award level for recipients enrolled less than full-time in a given semester or term.

(6) If the Michigan higher education assistance authority increases the maximum award per eligible student from that provided in the previous fiscal year, it shall not have the effect of reducing the number of eligible students receiving awards in relation to the total number of eligible applicants. Any increase in the maximum grant shall be proportional for all eligible students receiving awards for fiscal year 2001-2002.

(7) All Ferris State University students enrolled at Kendall College of Art and Design prior to January 1, 2001 who were qualified for the state tuition grant shall continue to receive the dollar amount of the state tuition grant for which they were eligible until they graduate or are no longer enrolled at Ferris State University. For the 2001-2002 academic year only, any first year, transfer, or readmitted student enrolled at Ferris State University's Kendall College of Art and Design who has received notification by July 1, 2001 from the Michigan higher education assistance authority that he or she is eligible for a state tuition grant award shall receive an award for academic year 2001-2002 only.

Sec. 303. (1) Included in the appropriation in part 1 is funding for the Michigan work-study program established under 1986 PA 288, MCL 390.1371 to 390.1382, and 1986 PA 303, MCL 390.1321 to 390.1332. An effort should be made by each institution participating in the Michigan work-study program to assure that not less than 10% of those undergraduate, graduate, and professional students eligible to participate in the program are placed with for-profit employers no later than December 31 of each year for which funding is provided under this act.

(2) The Michigan higher education assistance authority shall allocate funds to institutions eligible for work-study money based upon each institution's specific Pell grant index and each institution's utilization rate of work-study funds for the 3 most recent years for which statistics are available.

(3) The Michigan higher education assistance authority shall set aside not more than 5% of the total work-study appropriation to process requests from participating institutions for allocation adjustments. Allocation adjustments shall be based on criteria set by the authority prior to making the allocations under subsection (2).

Sec. 304. (1) Payments of the amounts included in part 1 for the general degree reimbursement program established under 1974 PA 75, MCL 390.1021 to 390.1027, shall be made for all degrees identified in section 1(1) of 1974 PA 75, MCL 390.1021, except doctor of dental surgery, doctor of dental medicine, juris doctor law, and allied health degrees.

(2) The reimbursement rate per eligible degree shall be the equally prorated amount permitted by the appropriation, except that the amount of the reimbursement for each associate degree shall be 1/2 of the rate of reimbursement for the other degrees eligible under subsection (1) for the general degree reimbursement program.

(3) From the general degree reimbursement program, $135,300.00 shall be provided to Spring Arbor College for the southern Michigan state prison program.

(4) From the general degree reimbursement program, $200,500.00 shall be provided to the University of Detroit - Mercy for graduate research aid.

(5) From the general degree reimbursement program, $30,100.00 shall be provided to Marygrove College for learning clinics.

(6) From the general degree reimbursement program, $50,000.00 shall be provided to Finlandia University for career education programs.

Sec. 305. The reimbursement rate per eligible degree under the allied health degree reimbursement program established under 1974 PA 75, MCL 390.1021 to 390.1027, shall be the equally prorated amount permitted by the appropriation included in part 1.

Sec. 306. Funds disbursed through the degree reimbursement programs shall not be used by any recipient institution for theology or divinity programs.

Sec. 307. The auditor general may audit selected enrollments, degrees, and awards at selected independent colleges and universities receiving awards administered by the department of treasury. The audits shall be based upon definitions and requirements established by the Michigan higher education assistance authority, the state budget director, and the senate and house fiscal agencies. The auditor general shall accept the Free Application for Federal Student Aid (FAFSA) form as the standard of residency documentation. The auditor general shall submit a report of findings to the senate and house appropriations committees and state budget director by May 1, 2002.

Sec. 308. The sums appropriated in part 1 for the student financial aid and degree reimbursement programs shall be paid out of the state treasury and shall be distributed to the respective institutions under a quarterly payment system as follows:

(a) For the state competitive scholarship, tuition incentive, and tuition grant programs, 40% shall be paid at the beginning of the state's first fiscal quarter, 40% at the beginning of the state's second fiscal quarter, l0% at the beginning of the state's third fiscal quarter, and l0% at the beginning of the state's fourth fiscal quarter.

(b) For the work-study program, payments shall be made in 11 monthly installments from October 1 to August 31 of any year.

(c) For the part-time independent student program and Michigan education opportunity grant program, 50% shall be paid at the beginning of the state's first fiscal quarter, 25% at the beginning of the state's second fiscal quarter, and 25% at the beginning of the state's third fiscal quarter.

(d) For the general degree reimbursement program, allied health degree reimbursement program, Michigan resident dental grant program, and Robert C. Byrd honors scholarship program, 50% shall be paid at the beginning of the state's first fiscal quarter and 50% at the beginning of the state's second fiscal quarter after the number of earned degrees conferred and total amounts to be paid are certified.

Sec. 309. The Michigan higher education assistance authority shall determine the needs analysis criteria for students to qualify for the competitive scholarship program and tuition grant program. To be consistent with federal requirements, student wages may be taken into consideration when determining the amount of the award.

Sec. 310. (1) The funds appropriated in part 1 for the tuition incentive program/high school completion program shall be distributed as provided in this section and pursuant to the administrative procedures for the tuition incentive program/high school completion program of the department of treasury.

(2) As used in this section:

(a) "Phase I" means the first part of the tuition incentive assistance program defined as the academic period of 80 semester or 120 term credits, or less, leading to an associate degree or certificate.

(b) "Phase II" means the second part of the tuition incentive assistance program which provides assistance in the third and fourth year of 4-year degree programs.

(3) A person shall meet the following basic criteria and financial thresholds to be eligible for tuition incentive benefits:

(a) To be eligible for phase I, a person shall meet all of the following criteria:

(i) Apply for certification to the department before graduating from high school or completing the general education development (GED) certificate.

(ii) Be less than 20 years of age at the time of high school graduation or GED completion.

(iii) Be a United States citizen and a resident of Michigan according to institutional criteria.

(iv) Be at least a half-time student, earning less than 80 semester or 120 term credits at a participating educational institution within 4 years of high school graduation or GED certificate completion.

(b) To be eligible for phase II, a person shall meet either of the following criteria in addition to the criteria in subdivision (a):

(i) Complete at least 56 transferable semester or 84 transferable term credits.

(ii) Obtain an associate degree or certificate at a participating institution.

(c) To be eligible for phase I or phase II, a person must be financially eligible as determined by the department. A person is financially eligible for the tuition incentive program if that person was Medicaid eligible for 24 months within the 36 months before application. Certification of eligibility may begin in the sixth grade and continue until the time of enrollment in a participating institution.

(4) For phase I, the department shall provide payment on behalf of a person eligible under subsection (3). The department shall reject billings that are excessive or outside the guidelines for the type of educational institution.

(5) For phase I, all of the following apply:

(a) Payments for associate degree or certificate programs shall not be made for more than 80 semester or 120 term credits for any individual student at any participating institution.

(b) For persons enrolled at a Michigan community college, the department shall pay the current in-district tuition and mandatory fees. For persons residing in an area that is not included in any community college district, the out-of-district tuition rate may be authorized.

(c) For persons enrolled at a Michigan public university, the department shall pay lower level resident tuition and mandatory fees for the current year.

(d) For persons enrolled at a Michigan independent, nonprofit degree granting college or university, or a Michigan federal tribally controlled community college, or Focus: HOPE, the department shall pay mandatory fees for the current year and a per credit payment that does not exceed the average community college in-district per credit tuition rate as reported on August 1, for the immediately preceding academic year.

(6) A person participating in phase II may be eligible for additional funds not to exceed $500.00 per semester or $400.00 per term up to a maximum of $2,000.00 subject to the following conditions:

(a) Credits are earned in a 4-year program at a Michigan degree granting 4-year college or university.

(b) The tuition reimbursement is for coursework completed within 30 months of completion of the phase I requirements.

(7) Program payments shall not be used by any recipient for theology or divinity courses.

(8) The department shall work closely with participating institutions to develop an application and eligibility determination process that will provide the highest level of participation and ensure that all requirements of the program are met.

(9) Applications for the tuition incentive program may be approved at any time after the student begins the sixth grade. If a determination of financial eligibility is made, that determination is valid as long as the student meets all other program requirements and conditions.

(10) Each institution shall ensure that all known available restricted grants for tuition and fees are used prior to billing the tuition incentive program for any portion of a student's tuition and fees.

(11) The department shall ensure that the tuition incentive program is well publicized and that potentially eligible Medicaid clients are provided information on the program. The department shall provide the necessary funding and staff to fully operate the program.

(12) When statutory provisions are enacted to provide for a tuition incentive program/high school completion program, the provisions of this section are superseded.

(13) Any unexpended and unencumbered funds remaining on September 30, 2002 from the amounts appropriated in part 1 for the tuition incentive program shall not lapse on September 30, 2002, but shall continue to be available for expenditure for the tuition incentive program in the fiscal year ending September 30, 2003.

(14) The department of treasury shall continue the outreach components of the tuition incentive program/high school completion program previously implemented by the family independence agency.

(15) If the funds in part 1 from the Michigan merit award trust fund are insufficient to support the tuition incentive program, a sum sufficient to fund the tuition incentive program is appropriated from the general fund.

Sec. 311. To enable the legislature and the state budget director to evaluate the appropriation needs of higher education, each independent college and university shall make available to the legislature or state budget director, upon request, data regarding grants for the preceding, current, and ensuing fiscal years.

STATE UNIVERSITIES

Sec. 401. (1) Included in part 1 is $6,356,023.00 to Wayne State University for the Joseph F. Young, Sr. psychiatric research and training program. Wayne State University shall use these funds for psychiatric laboratory and clinical research, training, and treatment services. Within the available appropriation, services shall not be denied to any patient who meets established research guidelines for treatment on the basis of personal financial circumstances, age, geographic residence, or projected/actual length of treatment as medically warranted.

(2) Wayne State University shall report the following information to the department of community health by November 1, 2002:

(a) The number and type of psychiatric research projects funded by the appropriation described in subsection (1).

(b) The number and type of students trained and the location of training funded by the appropriation.

(c) Demographic data regarding the number and profile of patients to receive psychiatric services funded by the appropriation and a profile of the services provided.

(d) A summary budget outlining major expenditure categories and any first- and third-party reimbursements.

(3) Copies of these reports shall also be provided to the house and senate fiscal agencies and the state budget director.

Sec. 402. The University of Michigan biological station at Douglas Lake in Cheboygan County is regarded as a unique resource and is designated as a special research reserve. It is the intent of the legislature to protect and preserve the unique long-term research value and capabilities of the biological station area and Douglas Lake. The legislature further intends that no state programs or policies be developed that would have a deleterious impact on the research value of Douglas Lake.

Sec. 404. It is the intent of the legislature that no funds, other than tuition and other revenues from law school students or private funds explicitly directed to the Detroit College of Law - Michigan State University law alliance, shall be used either directly or indirectly to support the joint law school. The auditor general or a certified public accountant appointed by the auditor general shall audit the financial and accounting systems of the Detroit College of Law - Michigan State University law alliance to determine compliance with this statement of legislative intent and report its findings to the state budget director, house and senate fiscal agencies, and members of the house and senate appropriations subcommittees on higher education.

Sec. 405. (1) There is created the higher education institutional data inventory advisory committee. The committee shall be appointed by the state budget director and shall consist of the following members:

(a) One representative from the house fiscal agency.

(b) One representative from the senate fiscal agency.

(d) Three representatives of the presidents council of state universities. The presidents council shall appoint 1 representative each from a masters, a doctoral, and a research university.

(2) The committee shall provide for the general scope and direction for implementing the conversion and modernization of the state's higher education databases, for which funding is provided in part 1.

(3) The committee shall prepare a plan for the conversion and modernization effort. The plan shall include, but is not limited to, all of the following:

(a) The development of a data dictionary/glossary.

(b) The integration of appropriate federal, national, regional, and state databases.

Sec. 408. The legislature recognizes that the first and foremost obligation of the public universities is undergraduate instruction. The public universities are therefore encouraged to increase their commitment of tenured and tenure track faculty to undergraduate instruction.

Sec. 409. The amounts included in part 1 for public universities recognize 4 separate university groupings. Funding floors for the 4 groupings are established as follows:

(a) Funding floor of $4,600.00 per fiscal-year-equated student for Eastern Michigan University, Ferris State University, Grand Valley State University, Lake Superior State University, Northern Michigan University, Saginaw Valley State University, and the University of Michigan-Flint.

(b) Funding floor of $4,800.00 per fiscal-year-equated student for Central Michigan University, Oakland University, and the University of Michigan-Dearborn.

(c) Funding floor of $5,800.00 per fiscal-year-equated student for Michigan Technological University and Western Michigan University.

(d) Funding floor of $9,100.00 per fiscal-year-equated student for Michigan State University, the University of Michigan-Ann Arbor, and Wayne State University.

Sec. 411. A bipartisan work group comprised of members of the house appropriations subcommittee on higher education shall be created to review the criteria established for tier funding. The review shall include, but not be limited to, an objective review of instructional costs differences in providing graduate and undergraduate programs, programmatic differences between colleges and universities and their relative instructional cost differences, and any other criteria determined by the work group. The bipartisan work group shall make recommendations to the chairperson of the house appropriations subcommittee on higher education by February 1, 2002.

Sec. 412. By October 15, 2001, each state university shall provide through the Higher Education Institutional Data Inventory (HEIDI) reporting system the number of graduates in each field of academic study for the preceding academic year.

Sec. 418. No state funds shall be used by any state university to undertake a collaborative effort with any other university that would have the effect of increasing its enrollment of first-time professional law degree seeking students.

Sec. 421. Central Michigan University shall report by September 30, 2002 to the state budget director, house and senate appropriations committees, and the house and senate fiscal agencies information on the activities and effectiveness of the charter schools development and performance institute for which an appropriation is provided in part 1. Included in the report shall be an accounting of all revenues and expenditures of the institute, the names of the public school academies served, and the type of assistance provided to each public school academy.

Sec. 426. It is legislative intent that private bookstores that sell textbooks to university students and student governments that provide a book swap for university students have accurate and timely access to lists of universities' required textbooks in order to provide prompt and efficient service for students. It is further legislative intent that each state university allow students who are on financial aid or are receiving tuition grants to decide where to purchase their textbooks.

Sec. 433. (1) Included in part 1 is $3,281,500.00 for the agricultural experiment station and $2,910,000.00 for the cooperative extension service for project GREEEN. Project GREEEN is intended to address critical regulatory, food safety, economic, and environmental problems faced by this state's plant-based agriculture, forestry, and processing industries. "GREEEN" is an acronym for generating research and extension to meet environmental and economic needs.

(2) The department of agriculture and Michigan State University, in consultation with agricultural commodity groups and other interested parties, shall develop project GREEEN and its program priorities.

(3) Not later than September 30, 2002, a report shall be submitted by Michigan State University to the state budget director, the house and senate appropriations subcommittees on agriculture and on higher education, and the house and senate fiscal agencies for the preceding fiscal year regarding project GREEEN projects. The report shall include, but is not limited to, the dollar amount of each project and a review of each project's performance and accomplishments.

Sec. 434. All state universities shall work with the Michigan economic development corporation (MEDC) to foster the state's economic development. The presidents council shall meet quarterly with the MEDC or its representative to discuss potential cooperative efforts and examine any strategies or issues of concern related to advancement of Michigan's economic development. The state universities, through its presidents council, shall submit a report that summarizes the discussion and identifies any conclusions or recommendations of the participants at each quarterly meeting. The quarterly report shall be submitted to the state budget director, the house and senate appropriations subcommittees on higher education, and the house and senate fiscal agencies no later than 30 days after each quarterly meeting.

Sec. 435. Each institution of higher education shall conduct a study on the installation of automatic sprinkler and other fire safety systems in dormitories, and shall report to the legislature on or before January 1, 2003 the existence or nonexistence of such systems and the estimated cost of installing automatic sprinkler systems where they do not exist.

MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS PROGRAMS

Sec. 501. (1) Included in the appropriation for each public university in part 1 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks future faculty program, that is intended to increase the pool of minority candidates pursuing faculty teaching careers in postsecondary education. Each university shall apply the percentage increase applicable to every university in the calculation of appropriations in part 1 to the amount of funds allocated to the future faculty program.

(2) The program shall be administered by each university in a manner prescribed by the Michigan department of career development. The Michigan department of career development shall use a good faith effort standard to evaluate whether a fellowship is in default.

Sec. 502. (1) Included in the appropriation for each public university in part 1 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college day program that is intended to introduce schoolchildren underrepresented in postsecondary education to the potential of a college education.

(2) Individual program plans of each university shall include a budget of equal contributions from this program, the participating public university, the participating school district, and the participating independent degree granting college. College day funds shall not be expended to cover indirect costs. Not more than 20% of the university match shall be attributable to indirect costs. Each university shall apply the percentage increase applicable to every university in the calculation of appropriations in part 1 to the amount of funds allocated to the college day program.

(3) The program shall be administered by each university in a manner prescribed by the Michigan department of career development.

Sec. 503. (1) Included in part 1 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks select student support services program for developing academically and economically disadvantaged student retention programs for 4-year public and independent educational institutions in this state.

(2) An award made under this program to any 1 institution shall not be greater than $150,000.00, and the amount awarded shall be matched on a 70% state, 30% college or university basis.

(3) The program shall be administered by the Michigan department of career development.

Sec. 504. (1) Included in part 1 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college/university partnership program between 4-year public and independent colleges and universities and public community colleges, which is intended to increase the number of academically and economically disadvantaged students who transfer from community colleges into baccalaureate programs.

(2) The grants shall be made under this program to Michigan public and independent colleges and universities. An award to any 1 institution shall not be greater than $150,000.00, and the amount awarded shall be matched on a 70% state, 30% college or university basis.

(3) The program shall be administered by the Michigan department of career development.

Sec. 505. (1) Included in the appropriation for each public university in part 1 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks visiting professors program which is intended to increase the number of underrepresented minority instructors in the classroom and provide role models for underrepresented minority students.

(2) The program shall be administered by the Michigan department of career development.

Sec. 506. (1) Included in the appropriation in part 1 is funding under the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks initiative for the Morris Hood, Jr. educator development program which is intended to increase the number of minority students, especially males, who enroll in and complete K-12 teacher education programs at the baccalaureate level.

(2) The program shall be administered by each state-approved teacher education institution in a manner prescribed by the Michigan department of career development.

(3) Approved teacher education institutions may and are encouraged to use student support services funding in coordination with the Morris Hood, Jr. funding to achieve the goals of the program.

Sec. 507. Each state institution of higher education receiving funds under section 503, 504, 505, or 506 shall notify the Michigan department of career development by April 15, 2002 as to whether it will expend by the end of its fiscal year the funds received under section 503, 504, 505, or 506. Notwithstanding the award limitations in sections 503 and 504, the amount of funding reported as not being expended will be reallocated to the institutions that intend to expend all funding received under section 503, 504, 505, or 506.

STUDENT PERFORMANCE REPORTING

Sec. 601. (1) From the amount appropriated in part 1 for state universities, the state universities shall systematically inform Michigan high schools regarding the academic status of students from each high school in a manner prescribed by the presidents council, state universities of Michigan in cooperation with the Michigan association of secondary school principals.

(2) The Michigan high schools shall systematically inform the state universities about the use of information received under this section in a manner prescribed by the Michigan association of secondary school principals in cooperation with the presidents council, state universities of Michigan.

(3) The Michigan association of secondary school principals in cooperation with the presidents council, state universities of Michigan shall provide a summary report to the state board of education, the state budget director, and the house and senate fiscal agencies by August 31, 2002 about the use of the student achievement information received by Michigan high schools under this section.

Sec. 602. From the amount appropriated in part 1 for state universities, the state universities shall inform Michigan community colleges regarding the academic status of community college transfer students in a manner prescribed by the presidents council, state universities of Michigan in cooperation with the Michigan community college association.

GENERAL REPORTS AND AUDITS

Sec. 701. (1) The auditor general shall audit enrollments at 5 randomly selected public universities. The audits shall be based upon the definitions and requirements established by the state budget director and the senate and house fiscal agencies. The audits shall be based on uniform reporting categories and shall include higher education institutional data inventory (HEIDI) data. The auditor general shall submit a report of findings to the house and senate appropriations committees and the state budget director no later than July 1, 2002.

(2) Student credit hours reports shall not include the following:

(a) Student credit hours generated through correspondence courses, credit by examination, or inmate prison programs regardless of teaching location.

(b) Student credit hours generated in new degree programs after January 1, 1975, that have not been specifically authorized for funding by the legislature, except spin-off programs converted from existing core programs that do all of the following:

(i) Represent new options, fields, or concentrations within existing programs.

(ii) Are consistent with the current institutional role and mission.

(iii) Are accommodated within the continuing funding base of the institution.

(iv) Do not require a new degree level beyond that which the institution is currently authorized to grant within that discipline or field.

(v) Do not require funding from the state other than that provided by the student credit hours generated within the program, either before program initiation or within the first 3 years of program operation.

(3) The auditor general shall periodically audit higher education institutional data inventory (HEIDI) data as submitted by the state universities for compliance with the definitions approved by the HEIDI advisory committee for the HEIDI database.

Sec. 701a. (1) Pursuant to section 701(2)(b), the following degree programs may be established:

(a) Bachelors

Central Michigan University Social Work, B.S.W.

Ferris State University Automotive Engineering Technology, B.S.

Ferris State University English Major, B.A.

Ferris State University History Major, B.A.

Ferris State University Mechanical Engineering Technology, B.S.

Ferris State University Sociology, B.A.

Lake Superior State University French Studies, B.A.

Oakland University Major and Minor in Women's Studies, B.A.

University of Michigan-Ann Arbor Biomedical Engineering, B.S.E.

University of Michigan-Ann Arbor Undergraduate Concentration in Organizational Studies, B.A.

University of Michigan-Dearborn Criminal Justice Studies, B.A.

University of Michigan-Dearborn Software Engineering, B.S.

(b) Masters

Michigan State University Adult Language Learning, M.A.

Northern Michigan University Criminal Justice, M.S.

Northern Michigan University Training and Development, M.S.

Michigan Technological University Applied Science Education, M.S.

University of Michigan-Ann Arbor Bioinformatics, M.S.

University of Michigan-Dearborn Environmental Science, M.S.

Western Michigan University Marriage and Family Therapy, M.A.

Western Michigan University Molecular Biotechnology, M.S.

Eastern Michigan University Technology, Ph.D.

Michigan Technological University Computer Science, Ph.D.

University of Michigan-Ann Arbor Bioinformatics, Ph.D.

University of Michigan-Ann Arbor Public Policy and Social Science, Ph.D.

Western Michigan University Interdisciplinary Health Studies, Ph.D.

(2) The listing of degree programs in subsection (1) does not constitute legislative intent to provide additional dollars for those programs.

Sec. 702. The principal executive officer of each institution of higher education receiving an appropriation under this act shall expend a portion of the funds appropriated to that institution to make a report to the auditor general, the house and senate fiscal agencies, and the state budget director within 60 days after the auditor general issues his or her annual report on the operation of the institution. The institution's report shall specify all of the following:

(a) The recommendations of the auditor general implemented by the institution, including projected dates and resources required, if any, to achieve compliance.

(b) The recommendations of the auditor general not implemented by the institution or implemented by the institution as modified.

(c) The rationale for not implementing a recommendation of the auditor general or of implementing a recommendation as modified.

Sec. 705. (1) As part of the higher education data inventory (HEIDI) submission, each state university shall report the following information for the 2001-2002 academic year on or before October 31, 2001:

(a) Separately, the number of tenured faculty, tenure-track faculty, nontenure-track faculty, and instruction/research assistants who taught an undergraduate class section.

(b) The total number of undergraduate credit hours and section credits taught by each of the following:

(i) Tenured faculty.

(ii) Tenure-track faculty.

(iii) Nontenure-track faculty.

(iv) Instruction/research assistants.

(2) For the purposes of subsection (1), the following definitions apply:

(a) "Tenured faculty" means a faculty member who has earned tenure.

(b) "Tenure-track faculty" means a faculty member who has not yet earned tenure but is eligible to earn tenure.

(d) "Instruction/research assistant" means an individual who is a master's or doctoral degree candidate.

(3) Each state university shall also report the following information for the 2000-2001 academic year, as part of the higher education data inventory (HEIDI) submission, on or before October 31, 2001:

(a) Separately, the number of part-time and full-time faculty.

(b) Separately, the number of tenured and nontenured faculty.

(4) For the purposes of subsection (3), the following definitions apply:

(a) "Part-time faculty" means an individual who does not have a full-time appointment as a faculty member.

(b) "Full-time faculty" means an individual who has a full-time appointment as a faculty member.

(d) "Nontenured faculty" means an individual who has not earned tenure.

Sec. 708. The auditor general shall conduct performance audits of not fewer than 3 state universities during the fiscal year ending September 30, 2002.

Sec. 709. (1) An institution receiving funds under this act and also subject to the student right-to-know and campus security act, Public Law 101-522, 104 Stat. 2381, shall furnish by October 15, 2001 to the Michigan department of education, a copy of all material prepared pursuant to the public information reporting requirements under the crime awareness and campus security act of 1990, title II of the student right-to-know and campus security act, Public Law 101-542, 104 Stat. 2381.

(2) Each institution shall make this information available in electronic Internet format on their websites.

Sec. 710. By February 15, 2002, each public university that receives funds under this act shall report to the house and senate appropriations subcommittees on higher education and the house and senate fiscal agencies the aggregate dollar amount and the number and percentages of undergraduate students who receive need-based grants, merit-based scholarships and grants, loans, and work-study financial aid for the academic year 2000-2001.

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

Sandra Caul

David Mead

Michael Switalski

Conferees for the House

John J.H. Schwarz, M.D.

George A. McManus, Jr.

Don W. Koivisto

Conferees for the Senate

The Speaker announced that under Joint Rule 9 the conference report would lie over one day.

Rep. Patterson moved pursuant to Joint Rule 9, that the Journal printing requirement be suspended, printed copies of the conference report having been placed on the members' desks.

The motion prevailed.

The question being on the adoption of the conference report,

The conference report was then adopted, a majority of the members serving voting therefor, by yeas and nays, as follows:

Roll Call No. 452 Yeas--105

Adamini George Lipsey Sanborn

Allen Gieleghem Lockwood Schauer

Anderson Gilbert Mans Scranton

Basham Godchaux McConico Shackleton

Bernero Gosselin Mead Sheltrown

Birkholz Hager Meyer Shulman

Bisbee Hale Middaugh Spade

Bishop Hansen Minore Stallworth

Bogardus Hardman Mortimer Stamas

Bovin Hart Murphy Stewart

Bradstreet Howell Neumann Switalski

Brown, B. Hummel Newell Tabor

Brown, C. Jacobs O'Neil Thomas

Brown, R. Jamnick Pappageorge Toy

Callahan Jansen Patterson Van Woerkom

Cassis Jelinek Pestka Vander Roest

Caul Johnson, Rick Phillips Vander Veen

Clark, I. Johnson, Ruth Plakas Vear

Daniels Julian Pumford Voorhees

Dennis Kilpatrick Raczkowski Waters

DeRossett Kolb Reeves Whitmer

DeVuyst Kooiman Richardville Williams

DeWeese Kowall Richner Wojno

Ehardt Kuipers Rison Woodward

Faunce LaSata Rivet Woronchak

Frank Lemmons Rocca Zelenko

Garza

Nays--1

Drolet

In The Chair: Julian

Rep. Patterson moved that the bill be given immediate effect.

The motion prevailed, 2/3 of the members serving voting therefor.

______

Rep. Koetje entered the House Chambers.

First Conference Report

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

House Bill No. 4371, entitled

Recommends:

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

A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending sections 6, 11, 11f, 11g, 20, 20j, 22a, 22b, 22c, 24, 25b, 26a, 31a, 31d, 32a, 32b, 32c, 32d, 32e, 32f, 32g, 32h, 33, 41, 51a, 51c, 53a, 54, 56, 57, 61a, 62, 63, 67, 68, 74, 81, 94, 94a, 95, 96, 98, 99, 107, 108, and 147 (MCL 388.1606, 388.1611, 388.1611f, 388.1611g, 388.1620, 388.1620j, 388.1622a, 388.1622b, 388.1622c, 388.1624, 388.1625b, 388.1626a, 388.1631a, 388.1631d, 388.1632a, 388.1632b, 388.1632c, 388.1632d, 388.1632e, 388.1632f, 388.1632g, 388.1632h, 388.1633, 388.1641, 388.1651a, 388.1651c, 388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662, 388.1663, 388.1667, 388.1668, 388.1674, 388.1681, 388.1694, 388.1694a, 388.1695, 388.1696, 388.1698, 388.1699, 388.1707, 388.1708, and 388.1747), sections 6, 11, 11f, 11g, 20, 20j, 24, 26a, 31a, 31d, 33, 41, 51a, 53a, 54, 56, 57, 61a, 62, 63, 67, 68, 74, 81, 94, 99, 107, and 147 as amended and sections 22a, 22b, 22c, 25b, 32a, 32b, 32c, 32d, 32e, 32g, 32h, 51c, 94a, 95, 96, 98, and 108 as added by 2000 PA 297 and section 32f as amended by 2000 PA 388, and by adding sections 18d and 25c; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 6. (1) "Center program" means a program operated by a district or intermediate district for special education pupils from several districts in programs for the autistically impaired, trainable mentally impaired, severely mentally impaired, severely multiply impaired, hearing impaired, physically and otherwise health impaired, and visually impaired. Programs for emotionally impaired pupils housed in buildings that do not serve regular education pupils also qualify. Unless otherwise approved by the department, a center program either shall serve all constituent districts within an intermediate district or shall serve several districts with less than 50% of the pupils residing in the operating district. In addition, special education center program pupils placed part-time in noncenter programs to comply with the least restrictive environment provisions of section 612 of part B of the individuals with disabilities education act, title VI of Public Law 91-230, 20 U.S.C. 1412, may be considered center program pupils for pupil accounting purposes for the time scheduled in either a center program or a noncenter program.

(2) "District pupil retention rate" means the proportion of pupils who have not dropped out of school in the immediately preceding school year and is equal to 1 minus the quotient of the number of pupils unaccounted for in the immediately preceding school year, as determined pursuant to subsection (3), divided by the pupils of the immediately preceding school year.

(3) "District pupil retention report" means a report of the number of pupils, excluding migrant and adult, in the district for the immediately preceding school year, adjusted for those pupils who have transferred into the district, transferred out of the district, transferred to alternative programs, and have graduated, to determine the number of pupils who are unaccounted for. The number of pupils unaccounted for shall be calculated as determined by the department.

(4) "Membership", except as otherwise provided in this act, means for 1999-2000 for a district, public school academy, university school, or intermediate district the sum of the product of .75 times the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the pupil membership count day for the current school year, plus the product of .25 times the final audited count from the supplemental count day for the immediately preceding school year. Beginning in 2000-2001, membership means for a district, public school academy, university school, or intermediate district the sum of the product of .8 times the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the pupil membership count day for the current school year, plus the product of .2 times the final audited count from the supplemental count day for the immediately preceding school year. All pupil counts used in this subsection are as determined by the department and calculated by adding the number of pupils registered for attendance plus pupils received by transfer and minus pupils lost as defined by rules promulgated by the superintendent, and as corrected by a subsequent department audit. The amount of the foundation allowance for a pupil in membership is determined under section 20. In making the calculation of membership, all of the following, as applicable, apply to determining the membership of a district, public school academy, university school, or intermediate district:

(a) Except as otherwise provided in this subsection, and pursuant to subsection (6), a pupil shall be counted in membership in the pupil's educating district or districts. An individual pupil shall not be counted for more than a total of 1.0 full-time equated membership.

(b) If a pupil is educated in a district other than the pupil's district of residence, if the pupil is not being educated as part of a cooperative education program, if the pupil's district of residence does not give the educating district its approval to count the pupil in membership in the educating district, and if the pupil is not covered by an exception specified in subsection (6) to the requirement that the educating district must have the approval of the pupil's district of residence to count the pupil in membership, the pupil shall not be counted in membership in any district.

(c) A special education pupil educated by the intermediate district shall be counted in membership in the intermediate district.

(d) A pupil placed by a court or state agency in an on-grounds program of a juvenile detention facility, a child caring institution, or a mental health institution, or a pupil funded under section 53a, shall be counted in membership in the district or intermediate district approved by the department to operate the program.

(e) A pupil enrolled in the Michigan schools for the deaf and blind shall be counted in membership in the pupil's intermediate district of residence.

(f) A pupil enrolled in a vocational education program supported by a millage levied over an area larger than a single district or in an area vocational-technical education program established pursuant to section 690 of the revised school code, MCL 380.690, shall be counted only in the pupil's district of residence.

(g) A pupil enrolled in a university school shall be counted in membership in the university school.

(h) A pupil enrolled in a public school academy shall be counted in membership in the public school academy.

(i) For a new district, university school, or public school academy beginning its operation after December 31, 1994, membership for the first 2 full or partial fiscal years of operation shall be determined as follows:

(i) If operations begin before the pupil membership count day for the fiscal year, membership is the average number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the pupil membership count day for the current school year and on the supplemental count day for the current school year, as determined by the department and calculated by adding the number of pupils registered for attendance on the pupil membership count day plus pupils received by transfer and minus pupils lost as defined by rules promulgated by the superintendent, and as corrected by a subsequent department audit, plus the final audited count from the supplemental count day for the current school year, and dividing that sum by 2.

(ii) If operations begin after the pupil membership count day for the fiscal year and not later than the supplemental count day for the fiscal year, membership is the final audited count of the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the supplemental count day for the current school year.

(j) If a district is the authorizing body for a public school academy, then, in the first school year in which pupils are counted in membership on the pupil membership count day in the public school academy, the determination of the district's membership shall exclude from the district's pupil count for the immediately preceding supplemental count day any pupils who are counted in the public school academy on that first pupil membership count day who were also counted in the district on the immediately preceding supplemental count day.

(k) In a district, public school academy, university school, or intermediate district operating an extended school year program approved by the superintendent, a pupil enrolled, but not scheduled to be in regular daily attendance on a pupil membership count day, shall be counted.

(l) Pupils to be counted in membership shall be not less than 5 years of age on December 1 and less than 20 years of age on September 1 of the school year except a special education pupil who is enrolled and receiving instruction in a special education program approved by the department and not having a high school diploma who is less than 26 years of age as of September 1 of the current school year shall be counted in membership.

(m) An individual who has obtained a high school diploma shall not be counted in membership. An individual who has obtained a general education development (G.E.D.) certificate shall not be counted in membership. An individual participating in a job training program funded under former section 107a or a jobs program funded under former section 107b, administered by the Michigan strategic fund or the department of career development, or participating in any successor of either of those 2 programs, shall not be counted in membership.

(n) If a pupil counted in membership in a public school academy is also educated by a district or intermediate district as part of a cooperative education program, the pupil shall be counted in membership only in the public school academy, and the instructional time scheduled for the pupil in the district or intermediate district shall be included in the full-time equated membership determination under subdivision (q). However, for pupils receiving instruction in both a public school academy and in a district or intermediate district but not as a part of a cooperative education program, the following apply:

(i) If the public school academy provides instruction for at least 1/2 of the class hours specified in subdivision (q), the public school academy shall receive as its prorated share of the full-time equated membership for each of those pupils an amount equal to 1 times the product of the hours of instruction the public school academy provides divided by the number of hours specified in subdivision (q) for full-time equivalency, and the remainder of the full-time membership for each of those pupils shall be allocated to the district or intermediate district providing the remainder of the hours of instruction.

(ii) If the public school academy provides instruction for less than 1/2 of the class hours specified in subdivision (q), the district or intermediate district providing the remainder of the hours of instruction shall receive as its prorated share of the full-time equated membership for each of those pupils an amount equal to 1 times the product of the hours of instruction the district or intermediate district provides divided by the number of hours specified in subdivision (q) for full-time equivalency, and the remainder of the full-time membership for each of those pupils shall be allocated to the public school academy.

(o) An individual less than 16 years of age as of September 1 of the current school year who is being educated in an alternative education program shall not be counted in membership if there are also adult education participants being educated in the same program or classroom.

(p) The department shall give a uniform interpretation of full-time and part-time memberships.

(q) The number of class hours used to calculate full-time equated memberships shall be consistent with section 101(3). In determining full-time equated memberships for pupils who are enrolled in a postsecondary institution, a pupil shall not be considered to be less than a full-time equated pupil solely because of the effect of his or her postsecondary enrollment, including necessary travel time, on the number of class hours provided by the district to the pupil.

(r) Full-time equated memberships for pupils in kindergarten shall be determined by dividing the number of class hours scheduled and provided per year per kindergarten pupil by a number equal to 1/2 the number used for determining full-time equated memberships for pupils in grades 1 to 12.

(s) For a district, university school, or public school academy that has pupils enrolled in a grade level that was not offered by the district, university school, or public school academy in the immediately preceding school year, the number of pupils enrolled in that grade level to be counted in membership is the average of the number of those pupils enrolled and in regular daily attendance on the pupil membership count day and the supplemental count day of the current school year, as determined by the department. Membership shall be calculated by adding the number of pupils registered for attendance in that grade level on the pupil membership count day plus pupils received by transfer and minus pupils lost as defined by rules promulgated by the superintendent, and as corrected by subsequent department audit, plus the final audited count from the supplemental count day for the current school year, and dividing that sum by 2.

(t) A pupil enrolled in a cooperative education program may be counted in membership in the pupil's district of residence with the written approval of all parties to the cooperative agreement.

(u) If, as a result of a disciplinary action, a district determines through the district's alternative or disciplinary education program that the best instructional placement for a pupil is in the pupil's home, if that placement is authorized in writing by the district superintendent and district alternative or disciplinary education supervisor, and if the district provides appropriate instruction as described in this subdivision to the pupil at the pupil's home, the district may count the pupil in membership on a pro rata basis, with the proration based on the number of hours of instruction the district actually provides to the pupil divided by the number of hours specified in subdivision (q) for full-time equivalency. For the purposes of this subdivision, a district shall be considered to be providing appropriate instruction if all of the following are met:

(i) The district provides at least 2 nonconsecutive hours of instruction per week to the pupil at the pupil's home under the supervision of a certificated teacher.

(ii) The district provides instructional materials, resources, and supplies, except computers, that are comparable to those otherwise provided in the district's alternative education program.

(iii) Course content is comparable to that in the district's alternative education program.

(iv) Credit earned is awarded to the pupil and placed on the pupil's transcript.

(v) A pupil enrolled in an alternative or disciplinary education program described in section 25 shall be counted in membership in the district or public school academy that expelled the pupil.

(w) If a pupil was enrolled in a public school academy on the pupil membership count day, if the public school academy's contract with its authorizing body is revoked, and if the pupil enrolls in a district within 45 days after the pupil membership count day, the department shall adjust the district's pupil count for the pupil membership count day to include the pupil in the count.

(x) For 1999-2000, for a public school academy that has been in operation for at least 2 years and that suspended operations for at least 1 semester and is resuming operations, membership is the sum of the product of .75 times the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the first pupil membership count day or supplemental count day, whichever is first, occurring after operations resume, plus the product of .25 times the final audited count from the most recent pupil membership count day or supplemental count day that occurred before suspending operations, as determined by the superintendent. Beginning in 2000-2001, for FOR a public school academy that has been in operation for at least 2 years and that suspended operations for at least 1 semester and is resuming operations, membership is the sum of the product of .8 times the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the first pupil membership count day or supplemental count day, whichever is first, occurring after operations resume, plus the product of .2 times the final audited count from the most recent pupil membership count day or supplemental count day that occurred before suspending operations, as determined by the superintendent.

(y) For 2000-2001 only, if a district's membership for ~~a particular~~ THAT fiscal year, as otherwise calculated under this subsection, would be less than 1,550 pupils, the district's membership for that fiscal year shall be considered to be THE MEMBERSHIP FIGURE CALCULATED UNDER THIS SUBDIVISION. FOR 2001-2002 ONLY, IF A DISTRICT'S MEMBERSHIP FOR THAT FISCAL YEAR, AS OTHERWISE CALCULATED UNDER THIS SUBSECTION, WOULD BE LESS THAN 1,550 PUPILS AND THE DISTRICT HAS 4.5 OR FEWER PUPILS PER SQUARE MILE, AS DETERMINED BY THE DEPARTMENT, THE DISTRICT'S MEMBERSHIP SHALL BE CONSIDERED TO BE THE MEMBERSHIP FIGURE CALCULATED UNDER THIS SUBSECTION. THE MEMBERSHIP FIGURE CALCULATED UNDER THIS SUBSECTION IS the greater of the following:

(i) The average of the district's membership for the 3-fiscal-year period ending with that fiscal year, calculated by adding the district's actual membership for that fiscal year, as otherwise calculated under this subsection, plus the district's membership AS CALCULATED UNDER THIS SUBDIVISION for each of the 2 immediately preceding fiscal years, and dividing the sum of those 3 membership figures by 3.

(ii) The district's actual membership as otherwise calculated under this subsection.

(5) "Public school academy" means a public school academy or strict discipline academy operating under the revised school code.

(6) "Pupil" means a person in membership in a public school. A district must have the approval of the pupil's district of residence to count the pupil in membership, except approval by the pupil's district of residence shall not be required for any of the following:

(a) A nonpublic part-time pupil enrolled in grades 1 to 12 in accordance with section 166b.

(b) A pupil receiving 1/2 or less of his or her instruction in a district other than the pupil's district of residence.

(d) A pupil enrolled in a district other than the pupil's district of residence under an intermediate district schools of choice pilot program as described in section 91a or former section 91 if the intermediate district and its constituent districts have been exempted from section 105.

(e) A pupil enrolled in a district other than the pupil's district of residence but within the same intermediate district if the educating district enrolls nonresident pupils in accordance with section 105.

(f) A pupil enrolled in a district other than the pupil's district of residence if the pupil has been continuously enrolled in the educating district since a school year in which the pupil enrolled in the educating district under section 105 or 105c and in which the educating district enrolled nonresident pupils in accordance with section 105 or 105c.

(g) A ~~nonresident~~ pupil who has made an official written complaint or whose parent or legal guardian has made an official written complaint to law enforcement officials and to school officials of the pupil's district of residence that the pupil has been the victim of a criminal sexual assault or other serious assault, if the official complaint either indicates that the assault occurred at school or that the assault was committed by 1 or more other pupils enrolled in the school the ~~nonresident~~ pupil would otherwise attend in the district of residence or by an employee of the district of residence. A person who intentionally makes a false report of a crime to law enforcement officials for the purposes of this subdivision is subject to section 411a of the Michigan penal code, 1931 PA 328, MCL 750.411a, which provides criminal penalties for that conduct. As used in this subdivision:

(i) "At school" means in a classroom, elsewhere on school premises, on a school bus or other school-related vehicle, or at a school-sponsored activity or event whether or not it is held on school premises.

(ii) "Serious assault" means an act that constitutes a felony violation of chapter XI of the Michigan penal code, 1931 PA 328, MCL 750.81 to 750.90g, or that constitutes an assault and infliction of serious or aggravated injury under section 81a of the Michigan penal code, 1931 PA 328, MCL 750.81a.

(h) A pupil enrolled in a district located in a contiguous intermediate district, as described in section 105c, if the educating district enrolls those nonresident pupils in accordance with section 105c.

(i) A pupil whose district of residence changed after the pupil membership count day and before the supplemental count day and who continues to be enrolled on the supplemental count day as a nonresident in the district in which he or she was enrolled as a resident on the pupil membership count day of the same school year.

(j) A pupil enrolled in an alternative education program operated by a district other than his or her district of residence who meets 1 or more of the following:

(i) The pupil has been suspended or expelled from his or her district of residence for any reason, including, but not limited to, a suspension or expulsion under section 1310, 1311, or 1311a of the revised school code, MCL 380.1310, 380.1311, and 380.1311a.

(ii) The pupil had previously dropped out of school.

(iii) The pupil is pregnant or is a parent.

(iv) The pupil has been referred to the program by a court.

(k) A pupil enrolled in the Michigan virtual high school, for the pupil's enrollment in the Michigan virtual high school.

However, if a district that is not a first class district educates pupils who reside in a first class district and if the primary instructional site for those pupils is located within the boundaries of the first class district, the educating district must have the approval of the first class district to count those pupils in membership. As used in this subsection, "first class district" means a district organized as a school district of the first class under the revised school code.

(7) "Pupil membership count day" of a district or intermediate district means:

(a) Except as provided in subdivision (b), the fourth Wednesday in September each school year.

(b) For a district or intermediate district maintaining school during the entire school year, the following days:

(i) Fourth Wednesday in July.

(ii) Fourth Wednesday in September.

(iii) Second Wednesday in February.

(iv) Fourth Wednesday in April.

(8) "Pupils in grades K to 12 actually enrolled and in regular daily attendance" means pupils in grades K to 12 in attendance and receiving instruction in all classes for which they are enrolled on the pupil membership count day or the supplemental count day, as applicable. A pupil who is absent from any of the classes in which the pupil is enrolled on the pupil membership count day or supplemental count day and who does not attend each of those classes during the 10 consecutive school days immediately following the pupil membership count day or supplemental count day, except for a pupil who has been excused by the district, shall not be counted as 1.0 full-time equated membership. In addition, a pupil who is excused from attendance on the pupil membership count day or supplemental count day and who fails to attend each of the classes in which the pupil is enrolled within 30 calendar days after the pupil membership count day or supplemental count day shall not be counted as 1.0 full-time equated membership. Pupils not counted as 1.0 full-time equated membership due to an absence from a class shall be counted as a prorated membership for the classes the pupil attended. For purposes of this subsection, "class" means a period of time in 1 day when pupils and a certificated teacher or legally qualified substitute teacher are together and instruction is taking place.

(9) "Rule" means a rule promulgated pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

(10) "The revised school code" means 1976 PA 451, MCL 380.1 to 380.1852.

(11) "School fiscal year" means a fiscal year that commences July 1 and continues through June 30.

(12) "State board" means the state board of education.

(13) "Superintendent", unless the context clearly refers to a district or intermediate district superintendent, means the superintendent of public instruction described in section 3 of article VIII of the state constitution of 1963.

(14) "Supplemental count day" means the day on which the supplemental pupil count is conducted under section 6a.

(15) "Tuition pupil" means a pupil of school age attending school in a district other than the pupil's district of residence for whom tuition may be charged. Tuition pupil does not include a pupil who is a special education pupil or a pupil described in subsection (6)(d) to (k). A pupil's district of residence shall not require a high school tuition pupil, as provided under section 111, to attend another school district after the pupil has been assigned to a school district.

(16) "State school aid fund" means the state school aid fund established in section 11 of article IX of the state constitution of 1963.

(17) "Taxable value" means the taxable value of property as determined under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a.

(18) "Total state aid" or "total state school aid" means the total combined amount of all funds due to a district, intermediate district, or other entity under all of the provisions of this act.

(19) "University school" means an instructional program operated by a public university under section 23 that meets the requirements of section 23.

Sec. 11. (1) For the fiscal year ending September 30, 2000, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $9,623,215,800.00 from the state school aid fund established by section 11 of article IX of the state constitution of 1963 and the sum of $420,613,500.00 from the general fund. For the fiscal year ending September 30, 2001, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of ~~$10,402,821,500.00~~ $10,306,721,500.00 from the state school aid fund established by section 11 of article IX of the state constitution of 1963 and the sum of $385,613,500.00 from the general fund. For the fiscal year ending September 30, 2002, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of ~~$11,192,489,800.00~~ $10,989,699,900.00 from the state school aid fund established by section 11 of article IX of the state constitution of 1963 and the sum of $205,613,500.00 from the general fund. For the fiscal year ending September 30, 2003, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of ~~$11,339,360,300.00~~ $10,985,960,300.00 from the state school aid fund established by section 11 of article IX of the state constitution of 1963 and the sum of $420,613,500.00 from the general fund. In addition, available federal funds are appropriated for each of those fiscal years.

(2) The appropriations under this section shall be allocated as provided in this act. Money appropriated under this section from the general fund and from available federal funds shall be expended to fund the purposes of this act before the expenditure of money appropriated under this section from the state school aid fund. If the maximum amount appropriated under this section from the state school aid fund for a fiscal year exceeds the amount necessary to fully fund allocations under this act from the state school aid fund, that excess amount shall not be expended in that state fiscal year and shall not lapse to the general fund, but instead shall remain in the state school aid fund.

(3) If the maximum amount appropriated under this section and section 11f from the state school aid fund for a fiscal year exceeds the amount available for expenditure from the state school aid fund for that fiscal year, payments under sections 11f, 11g, 22a, 31d, 51a(2), and 51c shall be made in full and payments under each of the other sections of this act shall be prorated on an equal percentage basis as necessary to reflect the amount available for expenditure from the state school aid fund for that fiscal year. However, if the department of treasury determines that proration will be required under this subsection, the department of treasury shall notify the state budget director, and the state budget director shall notify the legislature at least 30 calendar days or 6 legislative session days, whichever is more, before the department reduces any payments under this act because of the proration. During the 30 calendar day or 6 legislative session day period after that notification by the state budget director, the department shall not reduce any payments under this act because of proration under this subsection. The legislature may prevent proration from occurring by, within the 30 calendar day or 6 legislative session day period after that notification by the state budget director, enacting legislation appropriating additional funds from the general fund, countercyclical budget and economic stabilization fund, state school aid fund balance, or another source to fund the amount of the projected shortfall.

(4) Except for the allocation under section 26a, any general fund allocations under this act that are not expended by the end of the state fiscal year are transferred to the state school aid fund.

Sec. 11f. (1) In addition to any other money appropriated under this act, there is appropriated from the state school aid fund an amount not to exceed $32,000,000.00 each fiscal year ~~for the fiscal year ending September 30, 2000,~~ for the fiscal year ending September 30, 2001, for the fiscal year ending September 30, 2002, for the fiscal year ending September 30, 2003, and for each succeeding fiscal year through the fiscal year ending September 30, 2008. Payments under this section will cease after September 30, 2008. These appropriations are for paying the amounts described in subsection (4) to districts and intermediate districts, other than those receiving a lump sum payment under subsection (2), that were not plaintiffs in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492 and that, on or before March 2, 1998, submitted to the state treasurer a board resolution waiving any right or interest the district or intermediate district has or may have in any claim or litigation based on or arising out of any claim or potential claim through September 30, 1997 that is or was similar to the claims asserted by the plaintiffs in the consolidated cases known as Durant v State of Michigan. The waiver resolution shall be in form and substance as required under subsection (8). The state treasurer is authorized to accept such a waiver resolution on behalf of this state. The amounts described in this subsection represent offers of settlement and compromise of any claim or claims that were or could have been asserted by these districts and intermediate districts, as described in this subsection.

(2) In addition to any other money appropriated under this act, there is WAS appropriated from the state school aid fund an amount not to exceed $1,700,000.00 for the fiscal year ending September 30, 1999. This appropriation is WAS for paying the amounts described in this subsection to districts and intermediate districts that were not plaintiffs in the consolidated cases known as Durant v State of Michigan; that, on or before March 2, 1998, submitted to the state treasurer a board resolution waiving any right or interest the district or intermediate district ~~has~~ HAD or may have HAD in any claim or litigation based on or arising out of any claim or potential claim through September 30, 1997 that is or was similar to the claims asserted by the plaintiffs in the consolidated cases known as Durant v State of Michigan; and for which the total amount listed in section 11h and paid under this section is WAS less than $75,000.00. ~~The waiver resolution shall be in form and substance as required under subsection (8). The state treasurer is authorized to accept such a waiver resolution on behalf of this state.~~ For a district or intermediate district qualifying for a payment under this subsection, the entire amount listed for the district or intermediate district in section 11h ~~shall be~~ WAS paid in a lump sum on November 15, 1998 or on the next business day following that date. The amounts paid under this subsection represent offers of settlement and compromise of any claim or claims that were or could have been asserted by these districts and intermediate districts, as described in this subsection.

(3) This section does not create any obligation or liability of this state to any district or intermediate district that does not submit a waiver resolution described in ~~subsection (1) or (2)~~ THIS SECTION. This section, any other provision of this act, and section 353e of the management and budget act, 1984 PA 431, MCL 18.1353e, are not intended to admit liability or waive any defense that is or would be available to this state or its agencies, employees, or agents in any litigation or future litigation with a district or intermediate district.

(4) The amount paid each fiscal year to each district or intermediate district under subsection (1) shall be 1/20 of the total amount listed in section 11h for each listed district or intermediate district that qualifies for a payment under subsection (1). The amounts listed in section 11h and paid in part under this subsection and in a lump sum under subsection (2) are offers of settlement and compromise to each of these districts or intermediate districts to resolve, in their entirety, any claim or claims that these districts or intermediate districts may have asserted for violations of section 29 of article IX of the state constitution of 1963 through September 30, 1997, which claims are or were similar to the claims asserted by the plaintiffs in the consolidated cases known as Durant v State of Michigan. This section, any other provision of this act, and section 353e of the management and budget act, 1984 PA 431, MCL 18.1353e, shall not be construed to constitute an admission of liability to the districts or intermediate districts listed in section 11h or a waiver of any defense that is or would have been available to the state or its agencies, employees, or agents in any litigation or future litigation with a district or intermediate district.

(5) The entire amount of each payment under subsection (1) each fiscal year shall be paid on November 15 of the applicable fiscal year or on the next business day following that date.

(6) Funds paid to a district or intermediate district under this section shall be used only for textbooks, electronic instructional material, software, technology, infrastructure or infrastructure improvements, school buses, school security, training for technology, or to pay debt service on voter-approved bonds issued by the district or intermediate district before the effective date of this section. For intermediate districts only, funds paid under this section may also be used for other nonrecurring instructional expenditures including, but not limited to, nonrecurring instructional expenditures for vocational education, or for debt service for acquisition of technology for academic support services. Funds received by an intermediate district under this section may be used for projects conducted for the benefit of its constituent districts at the discretion of the intermediate board. To the extent payments under this section are used by a district or intermediate district to pay debt service on debt payable from millage revenues, and to the extent permitted by law, the district or intermediate district may make a corresponding reduction in the number of mills levied for that debt service.

(7) The appropriations under this section are from the money appropriated and transferred to the state school aid fund from the countercyclical budget and economic stabilization fund under section 353e(2) and (3) of the management and budget act, 1984 PA 431, MCL 18.1353e.

(8) The resolution to be adopted and submitted by a district or intermediate district under this section and section 11g shall read as follows:

"Whereas, the board of _________________________ (name of district or intermediate district) desires to settle and compromise, in their entirety, any claim or claims that the district (or intermediate district) has or had for violations of section 29 of article IX of the state constitution of 1963, which claim or claims are or were similar to the claims asserted by the plaintiffs in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492.

Whereas, the district (or intermediate district) agrees to settle and compromise these claims for the consideration described in sections 11f and 11g of the state school aid act of 1979, 1979 PA 94, MCL 388.1611f and 388.1611g, and in the amount specified for the district (or intermediate district) in section 11h of the state school aid act of 1979, 1979 PA 94, MCL 388.1611h.

Whereas, the board of _____________________ (name of district or intermediate district) is authorized to adopt this resolution.

Now, therefore, be it resolved as follows:

1. The board of ____________________ (name of district or intermediate district) waives any right or interest it may have in any claim or potential claim through September 30, 1997 relating to the amount of funding the district or intermediate district is, or may have been, entitled to receive under the state school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, or any other source of state funding, by reason of the application of section 29 of article IX of the state constitution of 1963, which claims or potential claims are or were similar to the claims asserted by the plaintiffs in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492.

2. The board of _____________________ (name of district or intermediate district) directs its secretary to submit a certified copy of this resolution to the state treasurer no later than 5 p.m. eastern standard time on March 2, 1998, and agrees that it will not take any action to amend or rescind this resolution.

3. The board of ____________________ (name of district or intermediate district) expressly agrees and understands that, if it takes any action to amend or rescind this resolution, the state, its agencies, employees, and agents shall have available to them any privilege, immunity, and/or defense that would otherwise have been available had the claims or potential claims been actually litigated in any forum.

4. This resolution is contingent on continued payments by the state each fiscal year as determined under sections 11f and 11g of the state school aid act of 1979, 1979 PA 94, MCL 388.1611f and 388.1611g. However, this resolution shall be an irrevocable waiver of any claim to amounts actually received by the school district or intermediate school district under sections 11f and 11g of the state school aid act of 1979.".

Sec. 11g. (1) From the general fund money appropriated in section 11, there is allocated an amount not to exceed $40,000,000.00 ~~for the fiscal year ending September 30, 2000,~~ for the fiscal year ending September 30, 2001, for the fiscal year ending September 30, 2002, for the fiscal year ending September 30, 2003, and for each succeeding fiscal year through the fiscal year ending September 30, 2013. Payments under this section will cease after September 30, 2013. These appropriations are for paying the amounts described in subsection (3) to districts and intermediate districts, other than those receiving a lump sum payment under section 11f(2), that were not plaintiffs in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492 and that, on or before March 2, 1998, submitted to the state treasurer a waiver resolution described in section 11f. The amounts paid under this section represent offers of settlement and compromise of any claim or claims that were or could have been asserted by these districts and intermediate districts, as described in this section.

(2) This section does not create any obligation or liability of this state to any district or intermediate district that does not submit a waiver resolution described in section 11f. This section, any other provision of this act, and section 353e of the management and budget act, 1984 PA 431, MCL 18.1353e, are not intended to admit liability or waive any defense that is or would be available to this state or its agencies, employees, or agents in any litigation or future litigation with a district or intermediate district regarding these claims or potential claims.

(3) The amount paid each fiscal year to each district or intermediate district under this section shall be the sum of the following:

(a) 1/30 of the total amount listed in section 11h for the district or intermediate district.

(b) If the district or intermediate district borrows money and issues bonds under section 11i, an additional amount in each fiscal year calculated by the department of treasury that, when added to the amount described in subdivision (a), will cause the net present value as of November 15, 1998 of the total of the 15 annual payments made to the district or intermediate district under this section, discounted at a rate as determined by the state treasurer, to equal the amount of the bonds issued by that district or intermediate district under section 11i and that will result in the total payments made to all districts and intermediate districts in each fiscal year under this section being no more than the amount appropriated under this section in each fiscal year.

(4) The entire amount of each payment under this section each fiscal year shall be paid on May 15 of the applicable fiscal year or on the next business day following that date. If a district or intermediate district borrows money and issues bonds under section 11i, the district or intermediate district shall use funds received under this section to pay debt service on bonds issued under section 11i. If a district or intermediate district does not borrow money and issue bonds under section 11i, the district or intermediate district shall use funds received under this section only for the following purposes, in the following order of priority:

(a) First, to pay debt service on voter-approved bonds issued by the district or intermediate district before the effective date of this section.

(b) Second, to pay debt service on other limited tax obligations.

(c) Third, for deposit into a sinking fund established by the district or intermediate district under the revised school code.

(5) To the extent payments under this section are used by a district or intermediate district to pay debt service on debt payable from millage revenues, and to the extent permitted by law, the district or intermediate district may make a corresponding reduction in the number of mills levied for debt service.

(6) A district or intermediate district may pledge or assign payments under this section as security for bonds issued under section 11i, but shall not otherwise pledge or assign payments under this section.

SEC. 18D. ANY CLAIM OF A DEBT OR FINANCIAL OBLIGATION OWED TO THE STATE AND MADE AGAINST A DISTRICT ARISING OUT OF A MEMBERSHIP COUNT DISPUTE OCCURRING ON OR BEFORE MARCH 1, 1997 SHALL BE CONSIDERED SATISFIED AND DISCHARGED IF NOT ASSERTED IN WRITING AGAINST THE DISTRICT BY AN EXECUTIVE AGENCY OR DEPARTMENT OF THE STATE ON OR BEFORE JULY 1, 2001.

Sec. 20. (1) ~~For 1999-2000, the basic foundation allowance is $5,700.00 per membership pupil.~~ For 2000-2001, the basic foundation allowance is $6,000.00 per membership pupil. For 2001-2002, the basic foundation allowance is $6,300.00 per membership pupil. For 2002-2003, the basic foundation allowance is $6,700.00 per membership pupil.

(2) From the appropriation in section 11, there is allocated for 1999-2000 an amount not to exceed $8,418,600,000.00 to guarantee each district a foundation allowance per membership pupil other than special education pupils and to make payments under this section to public school academies and university schools for membership pupils other than special education pupils. The amount of each district's foundation allowance shall be calculated as provided in this section, using a basic foundation allowance in the amount specified in subsection (1). If the maximum amount allocated under this section is not sufficient to fully fund payments under this section, and before any proration required under section 11, the amount of the payment to each district, university school, and public school academy shall be prorated by reducing by an equal percentage the total payment under this section to each district, university school, and public school academy. However, if the department determines that proration will be required under this section, the superintendent shall notify the state budget director, and the state budget director shall notify the legislature at least 30 calendar days or 6 legislative session days, whichever is more, before the department reduces any payments under this section because of the proration. During the 30 calendar day or 6 legislative session day period after that notification by the state budget director, the department shall not reduce any payments under this section because of proration. The legislature may prevent proration under this section from occurring by, within the 30 calendar day or 6 legislative session day period after that notification by the director, enacting legislation appropriating additional funds from the general fund, countercyclical budget and economic stabilization fund, state school aid fund balance, or another source to ensure full foundation allowance funding for each district, university school, and public school academy.

(3) Except as otherwise provided in this section, the amount of a district's foundation allowance shall be calculated as follows, using in all calculations the total amount of the district's foundation allowance as calculated before any proration:

(a) For a district that in the immediately preceding state fiscal year had a foundation allowance at least equal to the sum of $4,200.00 plus the total dollar amount of all adjustments made from 1994-95 to the immediately preceding state fiscal year in the lowest foundation allowance among all districts, but less than the basic foundation allowance in the immediately preceding state fiscal year, the district shall receive a foundation allowance in an amount equal to the sum of the district's foundation allowance for the immediately preceding state fiscal year plus the difference between twice the dollar amount of the adjustment from the immediately preceding state fiscal year to the current state fiscal year made in the basic foundation allowance and [(the dollar amount of the adjustment from the immediately preceding state fiscal year to the current state fiscal year made in the basic foundation allowance minus $50.00) times (the difference between the district's foundation allowance for the immediately preceding state fiscal year and the sum of $4,200.00 plus the total dollar amount of all adjustments made from 1994-95 to the immediately preceding state fiscal year in the lowest foundation allowance among all districts) divided by the difference between the basic foundation allowance for the current state fiscal year and the sum of $4,200.00 plus the total dollar amount of all adjustments made from 1994-95 to the immediately preceding state fiscal year in the lowest foundation allowance among all districts]. However, the foundation allowance for a district that had less than the basic foundation allowance in the immediately preceding state fiscal year shall not exceed the basic foundation allowance for the current state fiscal year.

(A) ~~(b)~~ Except as otherwise provided in this subsection, for a district that in the immediately preceding state fiscal year had a foundation allowance in an amount at least equal to the amount of the basic foundation allowance for the immediately preceding state fiscal year, the district shall receive a foundation allowance in an amount equal to the sum of the district's foundation allowance for the immediately preceding state fiscal year plus the dollar amount of the adjustment from the immediately preceding state fiscal year to the current state fiscal year in the basic foundation allowance.

(B) ~~(c) Beginning in 1999-2000, for~~ FOR a district that in the 1994-95 state fiscal year had a foundation allowance greater than $6,500.00, the district's foundation allowance is an amount equal to the sum of the district's foundation allowance for the immediately preceding state fiscal year plus the lesser of the increase in the basic foundation allowance for the current state fiscal year, as compared to the immediately preceding state fiscal year, or the product of the district's foundation allowance for the immediately preceding state fiscal year times the percentage increase in the United States consumer price index in the calendar year ending in the immediately preceding fiscal year as reported by the May revenue estimating conference conducted under section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b.

~~(d) For 1999-2000, each district's foundation allowance shall be at least $5,700.00.~~

(C) ~~(e) Beginning in 2000-2001, for~~ FOR a district that has a foundation allowance that is not a whole dollar amount, the district's foundation allowance shall be rounded up to the nearest whole dollar.

(D) ~~(f)~~ Beginning in 2002-2003, for a district that receives a payment under section 22c for 2001-2002, the district's 2001-2002 foundation allowance shall be considered to have been an amount equal to the sum of the district's actual 2001-2002 foundation allowance as otherwise calculated under this section plus the per pupil amount of the district's equity payment for 2001-2002 under section 22c.

(4) To ensure that a district receives the district's foundation allowance, there is allocated to each district a state portion of the district's foundation allowance in an amount calculated under this subsection. Except as otherwise provided in this subsection, the state portion of a district's foundation allowance is an amount equal to the district's foundation allowance or $6,500.00, whichever is less, minus the difference between the product of the taxable value per membership pupil of all property in the district that is not a homestead or qualified agricultural property times the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94 and the quotient of the ad valorem property tax revenue of the district captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership excluding special education pupils. ~~Beginning in 1999-2000, for~~ FOR a district described in subsection ~~(3)(c)~~ (3)(B), the state portion of the district's foundation allowance is an amount equal to $6,962.00 plus the difference between the district's foundation allowance for the current state fiscal year and the district's foundation allowance for 1998-99, minus the difference between the product of the taxable value per membership pupil of all property in the district that is not a homestead or qualified agricultural property times the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94 and the quotient of the ad valorem property tax revenue of the district captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership excluding special education pupils. For a district that has a millage reduction required under section 31 of article IX of the state constitution of 1963, the state portion of the district's foundation allowance shall be calculated as if that reduction did not occur. The $6,500.00 amount prescribed in this subsection shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00. However, beginning in 2002-2003, the $6,500.00 amount prescribed in this subsection shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, minus $200.00.

(5) The allocation CALCULATED under this section for a pupil shall be based on the foundation allowance of the pupil's district of residence. However, for a pupil enrolled pursuant to section 105 or 105c in a district other than the pupil's district of residence, the allocation CALCULATED under this section shall be based on the lesser of the foundation allowance of the pupil's district of residence or the foundation allowance of the educating district. For a pupil in membership in a K-5, K-6, or K-8 district who is enrolled in another district in a grade not offered by the pupil's district of residence, the allocation CALCULATED under this section shall be based on the foundation allowance of the educating district if the educating district's foundation allowance is greater than the foundation allowance of the pupil's district of residence. ~~Beginning in 1999-2000, the~~ THE calculation under this subsection shall take into account a district's per pupil allocation under section 20j(2).

(6) Subject to subsection (7) AND SECTION 22B(4) and except as otherwise provided in this subsection, for pupils in membership, other than special education pupils, in a public school academy or a university school, there is allocated under this section each fiscal year for 1999-2000, for 2000-2001, for 2001-2002, and for 2002-2003 to the authorizing body that is the fiscal agent for the public school academy for forwarding to the public school academy, or to the board of the public university operating the university school, THE ALLOCATION CALCULATED UNDER THIS SECTION IS an amount per membership pupil other than special education pupils in the public school academy or university school equal to the sum of the local school operating revenue per membership pupil other than special education pupils for the district in which the public school academy or university school is located and the state portion of that district's foundation allowance, or the sum of the basic foundation allowance under subsection (1) plus $500.00, whichever is less. However, beginning in 2002-2003, this $500.00 amount shall instead be $300.00. Notwithstanding section 101(2), for a public school academy that begins operations in ~~1999-2000,~~ 2000-2001, 2001-2002, or 2002-2003, as applicable, after the pupil membership count day, the amount per membership pupil calculated under this subsection shall be adjusted by multiplying that amount per membership pupil by the number of hours of pupil instruction provided by the public school academy after it begins operations, as determined by the department, divided by the minimum number of hours of pupil instruction required under section 1284 of the revised school code, MCL 380.1284. The result of this calculation shall not exceed the amount per membership pupil otherwise calculated under this subsection.

(7) If more than 25% of the pupils residing within a district are in membership in 1 or more public school academies located in the district, then the amount per membership pupil ~~allocated~~ CALCULATED under this section ~~to the authorizing body that is the fiscal agent~~ for a public school academy located in the district ~~for forwarding to the public school academy~~ shall be reduced by an amount equal to the difference between the product of the taxable value per membership pupil of all property in the district that is not a homestead or qualified agricultural property times the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94 and the quotient of the ad valorem property tax revenue of the district captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership excluding special education pupils, in the school fiscal year ending in the current state fiscal year, calculated as if the resident pupils in membership in 1 or more public school academies located in the district were in membership in the district. In order to receive state school aid under this act, a district described in this subsection shall pay to the authorizing body that is the fiscal agent for a public school academy located in the district for forwarding to the public school academy an amount equal to that local school operating revenue per membership pupil for each resident pupil in membership other than special education pupils in the public school academy, as determined by the department.

(8) If a district does not receive ~~a payment~~ AN AMOUNT CALCULATED under subsection (9); if the number of mills the district may levy on a homestead and qualified agricultural property under section 1211(1) of the revised school code, MCL 380.1211, is 0.5 mills or less; and if the district elects not to levy those mills, the district instead shall receive a separate supplemental ~~payment~~ AMOUNT CALCULATED under this subsection in an amount equal to the amount the district would have received had it levied those mills, as determined by the department of treasury. A district shall not receive a separate supplemental ~~payment~~ AMOUNT CALCULATED under this subsection for a fiscal year unless in the calendar year ending in the fiscal year the district levies 18 mills or the number of mills of school operating taxes levied by the district in 1993, whichever is less, on property that is not a homestead or qualified agricultural property.

(9) For a district that had combined state and local revenue per membership pupil in the 1993-94 state fiscal year of more than $6,500.00 and that had fewer than 350 pupils in membership, if the district elects not to reduce the number of mills from which a homestead and qualified agricultural property are exempt and not to levy school operating taxes on a homestead and qualified agricultural property as provided in section 1211(1) of the revised school code, MCL 380.1211, and not to levy school operating taxes on all property as provided in section 1211(2) of the revised school code, MCL 380.1211, there is ~~allocated~~ CALCULATED under this subsection for 1994-95 and each succeeding fiscal year a separate supplemental ~~payment~~ AMOUNT in an amount equal to the amount the district would have received per membership pupil had it levied school operating taxes on a homestead and qualified agricultural property at the rate authorized for the district under section 1211(1) of the revised school code, MCL 380.1211, and levied school operating taxes on all property at the rate authorized for the district under section 1211(2) of the revised school code, MCL 380.1211, as determined by the department of treasury. If in the calendar year ending in the fiscal year a district does not levy 18 mills or the number of mills of school operating taxes levied by the district in 1993, whichever is less, on property that is not a homestead or qualified agricultural property, the ~~payment~~ AMOUNT CALCULATED under this subsection will be reduced by the same percentage as the millage actually levied compares to the 18 mills or the number of mills levied in 1993, whichever is less.

(10) A district or public school academy may use any funds allocated under this section in conjunction with any federal funds for which the district or public school academy otherwise would be eligible.

(10) ~~(11)~~ For a district that is formed or reconfigured after June 1, 1994 by consolidation of 2 or more districts or by annexation, the resulting district's foundation allowance under this section beginning after the effective date of the consolidation or annexation shall be the average of the foundation allowances of each of the original or affected districts, calculated as provided in this section, weighted as to the percentage of pupils in total membership in the resulting district who reside in the geographic area of each of the original districts. If an affected district's foundation allowance is less than the basic foundation allowance, the amount of that district's foundation allowance shall be considered for the purpose of calculations under this subsection to be equal to the amount of the basic foundation allowance.

(11) ~~(12)~~ Each fraction used in making calculations under this section shall be rounded to the fourth decimal place and the dollar amount of an increase in the basic foundation allowance shall be rounded to the nearest whole dollar.

(12) ~~(13)~~ State payments related to payment of the foundation allowance for a special education pupil are not ~~funded~~ CALCULATED under this section but are instead ~~funded~~ CALCULATED under section 51a.

(13) ~~(14)~~ To assist the legislature in determining the basic foundation allowance for the subsequent state fiscal year, each revenue estimating conference conducted under section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b, shall calculate a pupil membership factor, a revenue adjustment factor, and an index as follows:

(a) The pupil membership factor shall be computed by dividing the estimated membership in the school year ending in the current state fiscal year, excluding intermediate district membership, by the estimated membership for the school year ending in the subsequent state fiscal year, excluding intermediate district membership. If a consensus membership factor is not determined at the revenue estimating conference, the principals of the revenue estimating conference shall report their estimates to the house and senate subcommittees responsible for school aid appropriations not later than 7 days after the conclusion of the revenue conference.

(b) The revenue adjustment factor shall be computed by dividing the sum of the estimated total state school aid fund revenue for the subsequent state fiscal year plus the estimated total state school aid fund revenue for the current state fiscal year, adjusted for any change in the rate or base of a tax the proceeds of which are deposited in that fund and excluding money transferred into that fund from the countercyclical budget and economic stabilization fund under section 353e of the management and budget act, 1984 PA 431, MCL 18.1353e, by the sum of the estimated total school aid fund revenue for the current state fiscal year plus the estimated total state school aid fund revenue for the immediately preceding state fiscal year, adjusted for any change in the rate or base of a tax the proceeds of which are deposited in that fund. If a consensus revenue factor is not determined at the revenue estimating conference, the principals of the revenue estimating conference shall report their estimates to the house and senate subcommittees responsible for school aid appropriations not later than 7 days after the conclusion of the revenue conference.

(c) The index shall be calculated by multiplying the pupil membership factor by the revenue adjustment factor. If a consensus index is not determined at the revenue estimating conference, the principals of the revenue estimating conference shall report their estimates to the house and senate subcommittees responsible for school aid appropriations not later than 7 days after the conclusion of the revenue conference.

(14) ~~(15)~~ If the principals at the revenue estimating conference reach a consensus on the index described in subsection ~~(14)(c)~~ (13)(C), the basic foundation allowance for the subsequent state fiscal year shall be at least the amount of that consensus index multiplied by the basic foundation allowance specified in subsection (1).

(15) ~~(16)~~ If at the January revenue estimating conference it is estimated that pupil membership, excluding intermediate district membership, for the subsequent state fiscal year will be greater than 101% of the pupil membership, excluding intermediate district membership, for the current state fiscal year, then it is the intent of the legislature that the executive budget proposal for the school aid budget for the subsequent state fiscal year include a general fund/general purpose allocation sufficient to support the membership in excess of 101% of the current year pupil membership.

(16) ~~(17) Beginning in 1999-2000, for~~ FOR a district that had combined state and local revenue per membership pupil in the 1993-94 state fiscal year of more than $6,500.00, that had fewer than 7 pupils in membership in the 1993-94 state fiscal year, that has at least 1 child educated in the district in the current state fiscal year, and that levies the number of mills of school operating taxes authorized for the district under section 1211 of the revised school code, MCL 380.1211, ~~the district shall be allocated~~ a minimum amount of combined state and local revenue SHALL BE CALCULATED FOR THE DISTRICT as provided under this subsection. The minimum amount of combined state and local revenue for 1999-2000 shall be $67,000.00 plus the district's additional expenses to educate pupils in grades 9 to 12 educated in other districts as determined and allowed by the department. ~~Beginning in 2000-2001, the~~ THE minimum amount of combined state and local revenue under this subsection, before adding the additional expenses, shall increase each fiscal year by the same percentage increase as the percentage increase in the basic foundation allowance from the immediately preceding fiscal year to the current fiscal year. The state portion of the minimum amount of combined state and local revenue under this subsection shall be calculated by subtracting from the minimum amount of combined state and local revenue under this subsection the sum of the district's local school operating revenue and AN AMOUNT EQUAL TO the product of the SUM OF THE state portion of the district's foundation allowance PLUS THE AMOUNT CALCULATED UNDER SECTION 20J times the district's membership. As used in this subsection, "additional expenses" means the district's expenses for tuition or fees, not to exceed $6,500.00 as adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, plus a room and board stipend not to exceed $10.00 per school day for each pupil in grades 9 to 12 educated in another district, as approved by the department. However, beginning in 2002-2003, the $6,500.00 amount prescribed in this subsection shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, minus $200.00.

(17) ~~(18)~~ For a district in which 7.75 mills levied in 1992 for school operating purposes in the 1992-93 school year were not renewed in 1993 for school operating purposes in the 1993-94 school year, the district's combined state and local revenue per membership pupil shall be recalculated as if that millage reduction did not occur and ~~, beginning in 2000-2001,~~ the district's foundation allowance shall be calculated as if its 1994-95 foundation allowance had been calculated using that recalculated 1993-94 combined state and local revenue per membership pupil as a base. A district is not entitled to any retroactive payments for fiscal years before 2000-2001 due to this subsection.

(18) ~~(19) Beginning in 2000-2001, payments~~ PAYMENTS to districts, university schools, or public school academies shall not be made under this section. Rather, the calculations under this section shall be used to determine the amount of state payments under section 22b.

~~(20) From the allocation in subsection (2), the department may expend funds to pay for necessary costs associated with resolving matters pending in federal court impacting payments to districts.~~

(19) ~~(21)~~ If an amendment to section 2 of article VIII of the state constitution of 1963 allowing state aid to some or all nonpublic schools is approved by the voters of this state, each foundation allowance or per pupil payment calculation under this section may be reduced.

(20) ~~(22)~~ As used in this section:

(a) "Combined state and local revenue" means the aggregate of the district's state school aid received by or paid on behalf of the district under this section and the district's local school operating revenue.

(b) "Combined state and local revenue per membership pupil" means the district's combined state and local revenue divided by the district's membership excluding special education pupils.

(d) "Homestead" means that term as defined in section 1211 of the revised school code, MCL 380.1211.

(e) "Immediately preceding state fiscal year" means the state fiscal year immediately preceding the current state fiscal year.

(f) "Local school operating revenue" means school operating taxes levied under section 1211 of the revised school code, MCL 380.1211.

(g) "Local school operating revenue per membership pupil" means a district's local school operating revenue divided by the district's membership excluding special education pupils.

(h) "Membership" means the definition of that term under section 6 as in effect for the particular fiscal year for which a particular calculation is made.

(i) "Qualified agricultural property" means that term as defined in section 1211 of the revised school code, MCL 380.1211.

(j) "School operating purposes" means the purposes included in the operation costs of the district as prescribed in sections 7 and 18.

(k) "School operating taxes" means local ad valorem property taxes levied under section 1211 of the revised school code, MCL 380.1211, and retained for school operating purposes.

(l) "Taxable value per membership pupil" means taxable value, as certified by the department of treasury, for the calendar year ending in the current state fiscal year divided by the district's membership excluding special education pupils for the school year ending in the current state fiscal year.

Sec. 20j. (1) ~~From the appropriation in section 11, there is allocated for 1999-2000 an amount not to exceed $23,400,000.00 for foundation~~ FOUNDATION allowance supplemental payments to districts that in the 1994-95 state fiscal year had a foundation allowance greater than $6,500.00 SHALL BE CALCULATED UNDER THIS SECTION.

(2) The per pupil allocation to each district under this section shall be the difference between the dollar amount of the adjustment from the 1998-99 state fiscal year to the current state fiscal year in the basic foundation allowance minus the dollar amount of the adjustment from the 1998-99 state fiscal year to the current state fiscal year in the district's foundation allowance.

(3) ~~The~~ IF A DISTRICT'S LOCAL REVENUE PER PUPIL DOES NOT EXCEED THE SUM OF ITS FOUNDATION ALLOWANCE UNDER SECTION 20 PLUS THE PER PUPIL ALLOCATION UNDER SUBSECTION (2), THE total payment to ~~each~~ THE district CALCULATED under this section shall be the product of the per pupil allocation under subsection (2) multiplied by the district's membership excluding special education pupils. IF A DISTRICT'S LOCAL REVENUE PER PUPIL EXCEEDS THE FOUNDATION ALLOWANCE UNDER SECTION 20 BUT DOES NOT EXCEED THE SUM OF THE FOUNDATION ALLOWANCE UNDER SECTION 20 PLUS THE PER PUPIL ALLOCATION UNDER SUBSECTION (2), THE TOTAL PAYMENT TO THE DISTRICT CALCULATED UNDER THIS SECTION SHALL BE THE PRODUCT OF THE DIFFERENCE BETWEEN THE SUM OF THE FOUNDATION ALLOWANCE UNDER SECTION 20 PLUS THE PER PUPIL ALLOCATION UNDER SUBSECTION (2) MINUS THE LOCAL REVENUE PER PUPIL MULTIPLIED BY THE DISTRICT'S MEMBERSHIP EXCLUDING SPECIAL EDUCATION PUPILS. IF A DISTRICT'S LOCAL REVENUE PER PUPIL EXCEEDS THE SUM OF THE FOUNDATION ALLOWANCE UNDER SECTION 20 PLUS THE PER PUPIL ALLOCATION UNDER SUBSECTION (2), THERE IS NO PAYMENT CALCULATED UNDER THIS SECTION FOR THE DISTRICT.

(4) ~~Beginning in 2000-2001, payments~~ PAYMENTS to districts shall not be made under this section. Rather, the calculations under this section shall be made and used to determine the amount of state payments under section 22b.

Sec. 22a. (1) From the appropriation in section 11, there is allocated an amount not to exceed ~~$7,181,000,000.00~~ $7,151,000,000.00 for 2000-2001, an amount not to exceed ~~$7,088,000,000.00~~ $7,042,100,000.00 for 2001-2002, and an amount not to exceed ~~$7,004,000,000.00~~ $6,956,000,000.00 for 2002-2003 for payments to districts, qualifying university schools, and qualifying public school academies to guarantee each district, qualifying university school, and qualifying public school academy an amount equal to its 1994-95 total state and local per pupil revenue for school operating purposes under section 11 of article IX of the state constitution of 1963. Pursuant to section 11 of article IX of the state constitution of 1963, this guarantee does not apply to a district in a year in which the district levies a millage rate for school district operating purposes less than it levied in 1994. However, subsection (2) applies to calculating the payments under this section. FUNDS ALLOCATED UNDER THIS SECTION THAT ARE NOT EXPENDED IN THE STATE FISCAL YEAR FOR WHICH THEY WERE ALLOCATED, AS DETERMINED BY THE DEPARTMENT, MAY BE USED TO SUPPLEMENT THE ALLOCATIONS UNDER SECTIONS 22B AND 51C IN ORDER TO FULLY FUND THOSE CALCULATED ALLOCATIONS FOR THE SAME FISCAL YEAR.

(2) To ensure that a district receives an amount equal to the district's 1994-95 total state and local per pupil revenue for school operating purposes, there is allocated to each district a state portion of the district's 1994-95 foundation allowance in an amount calculated as follows:

(a) Except as otherwise provided in this subsection, the state portion of a district's 1994-95 foundation allowance is an amount equal to the district's 1994-95 foundation allowance or $6,500.00, whichever is less, minus the difference between the product of the taxable value per membership pupil of all property in the district that is not a homestead or qualified agricultural property times the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94 and the quotient of the ad valorem property tax revenue of the district captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership. For a district that has a millage reduction required under section 31 of article IX of the state constitution of 1963, the state portion of the district's foundation allowance shall be calculated as if that reduction did not occur.

(b) For a district that had a 1994-95 foundation allowance greater than $6,500.00, the state payment under this subsection shall be the sum of the amount calculated under subdivision (a) plus the amount calculated under this subdivision. The amount calculated under this subdivision shall be equal to the difference between the district's 1994-95 foundation allowance minus $6,500.00 and the current year hold harmless school operating taxes per pupil. If the result of the calculation under subdivision (a) is negative, the negative amount shall be an offset against any state payment calculated under this subdivision. If the result of a calculation under this subdivision is negative, there shall not be a state payment or a deduction under this subdivision. The taxable values per membership pupil used in the calculations under this subdivision are as adjusted by ad valorem property tax revenue captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership.

(3) For pupils in membership in a qualifying public school academy or qualifying university school, there is allocated under this section each fiscal year for 2000-2001, for 2001-2002, and for 2002-2003 to the authorizing body that is the fiscal agent for the qualifying public school academy for forwarding to the qualifying public school academy, or to the board of the public university operating the qualifying university school, an amount equal to the 1994-95 per pupil payment to the qualifying public school academy or qualifying university school under section 20.

(4) A district, qualifying university school, or qualifying public school academy may use funds allocated under this section in conjunction with any federal funds for which the district, qualifying university school, or qualifying public school academy otherwise would be eligible.

(5) For a district that is formed or reconfigured after June 1, 2000 by consolidation of 2 or more districts or by annexation, the resulting district's 1994-95 foundation allowance under this section beginning after the effective date of the consolidation or annexation shall be the average of the 1994-95 foundation allowances of each of the original or affected districts, calculated as provided in this section, weighted as to the percentage of pupils in total membership in the resulting district in the state fiscal year in which the consolidation takes place who reside in the geographic area of each of the original districts. If an affected district's 1994-95 foundation allowance is less than the 1994-95 basic foundation allowance, the amount of that district's 1994-95 foundation allowance shall be considered for the purpose of calculations under this subsection to be equal to the amount of the 1994-95 basic foundation allowance.

(6) As used in this section:

(a) "1994-95 foundation allowance" means a district's 1994-95 foundation allowance calculated and certified by the department of treasury or the superintendent under former section 20a as enacted in 1993 PA 336 and as amended by 1994 PA 283.

(b) "Current state fiscal year" means the state fiscal year for which a particular calculation is made.

(c) "Current year hold harmless school operating taxes per pupil" means the per pupil revenue generated by multiplying a district's 1994-95 hold harmless millage by the district's current year taxable value per membership pupil.

(d) "Hold harmless millage" means, for a district with a 1994-95 foundation allowance greater than $6,500.00, the number of mills by which the exemption from the levy of school operating taxes on a homestead and qualified agricultural property could be reduced as provided in section 1211(1) of the revised school code, MCL 380.1211, and the number of mills of school operating taxes that could be levied on all property as provided in section 1211(2) of the revised school code, MCL 380.1211, as certified by the department of treasury for the 1994 tax year.

(e) "Homestead" means that term as defined in section 1211 of the revised school code, MCL 380.1211.

(f) "Membership" means the definition of that term under section 6 as in effect for the particular fiscal year for which a particular calculation is made.

(g) "Qualified agricultural property" means that term as defined in section 1211 of the revised school code, MCL 380.1211.

(h) "Qualifying public school academy" means a public school academy that was in operation in the 1994-95 school year and is in operation in the current state fiscal year.

(i) "Qualifying university school" means a university school that was in operation in the 1994-95 school year and is in operation in the current fiscal year.

(j) "School operating taxes" means local ad valorem property taxes levied under section 1211 of the revised school code, MCL 380.1211, and retained for school operating purposes.

(k) "Taxable value per membership pupil" means each of the following divided by the district's membership:

(i) For the number of mills by which the exemption from the levy of school operating taxes on a homestead and qualified agricultural property may be reduced as provided in section 1211(1) of the revised school code, MCL 380.1211, the taxable value of homestead and qualified agricultural property for the calendar year ending in the current state fiscal year.

(ii) For the number of mills of school operating taxes that may be levied on all property as provided in section 1211(2) of the revised school code, MCL 380.1211, the taxable value of all property for the calendar year ending in the current state fiscal year.

Sec. 22b. (1) From the appropriation in section 11, there is allocated an amount not to exceed ~~$1,811,000,000.00~~ $1,864,000,000.00 for 2000-2001, an amount not to exceed ~~$2,324,000,000.00~~ $2,377,200,000.00 for 2001-2002, and an amount not to exceed ~~$2,805,000,000.00~~ $2,845,000,000.00 for 2002-2003 for discretionary payments to districts under this section. FUNDS ALLOCATED UNDER THIS SECTION THAT ARE NOT EXPENDED IN THE STATE FISCAL YEAR FOR WHICH THEY WERE ALLOCATED, AS DETERMINED BY THE DEPARTMENT, MAY BE USED TO SUPPLEMENT THE ALLOCATIONS UNDER SECTIONS 22A AND 51C IN ORDER TO FULLY FUND THOSE CALCULATED ALLOCATIONS FOR THE SAME FISCAL YEAR.

(2) Subject to subsection ~~(4)~~ (3) AND SECTION 11, beginning in 2000-2001, the allocation to a district under this section shall be an amount equal to the sum of the amounts calculated under sections 20, 20j, 51a(2), 51a(3), and 51a(12), minus the sum of the allocations to the district under sections 22a and 51c.

~~(3) The allocations under this section are not considered to be per pupil revenue for school operating purposes under section 11 of article IX of the state constitution of 1963.~~

(3) ~~(4)~~ In order to receive an allocation under this section, each district shall administer in each grade level that it operates in grades 1 to 5 a standardized assessment approved by the department of grade-appropriate basic educational skills. A district may use the Michigan literacy progress profile to satisfy this requirement for grades 1 to 3.

(4) FROM THE ALLOCATION IN SUBSECTION (1), THE DEPARTMENT MAY EXPEND FUNDS TO PAY FOR NECESSARY COSTS ASSOCIATED WITH RESOLVING MATTERS PENDING IN FEDERAL COURT IMPACTING PAYMENTS TO DISTRICTS, INCLUDING, BUT NOT LIMITED TO, EXPERT WITNESS FEES.

Sec. 22c. From the appropriation in section 11, there is allocated FOR 2001-2002 an amount not to exceed $129,000,000.00 ~~for 2001-2002~~ to make equity payments to districts that have a foundation allowance or per pupil payment calculated under section 20 for 2001-2002 of less than $6,500.00. The equity payment for a district shall be an amount calculated by subtracting the district's 2001-2002 foundation allowance or per pupil payment from $6,500.00 and multiplying the result by the district's membership.

Sec. 24. (1) Subject to subsection (2), from the appropriation in section 11, there is allocated ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 to the educating district or intermediate district an amount equal to 100% of the added cost each fiscal year for educating all pupils assigned by a court or the family independence agency to reside in or to attend a juvenile detention facility or child caring institution licensed by the family independence agency or the department of consumer and industry services and approved by the department to provide an on-grounds education program. The total amount to be paid under this section for added cost shall not exceed $7,900,000.00 ~~for 1999-2000, and an amount not to exceed $8,000,000.00 each fiscal year~~ for 2000-2001, $8,400,000.00 for 2001-2002, and $8,900,000.00 for 2002-2003. For the purposes of this section, "added cost" shall be computed by deducting all other revenue received under this act for pupils described in this section from total costs, as approved by the department, for educating those pupils in the on-grounds education program or in a program approved by the department that is located on property adjacent to a juvenile detention facility or child caring institution. Costs reimbursed by federal funds are not included.

(2) A district or intermediate district educating pupils described in this section at a residential child caring institution may operate, and receive funding under this section for, a department-approved on-grounds educational program for those pupils that is longer than 181 days, but not longer than 233 days, if the child caring institution was licensed as a child caring institution and offered in 1991-92 an on-grounds educational program that was longer than 181 days but not longer than 233 days and that was operated by a district or intermediate district.

(3) Special education pupils funded under section 53a shall not be funded under this section.

Sec. 25b. (1) ~~This~~ BEGINNING IN 2000-2001, THIS section applies to a AN EDUCATING district's enrollment of a pupil IF THE EDUCATING DISTRICT IS NOT A SCHOOL DISTRICT OF THE FIRST CLASS UNDER THE REVISED SCHOOL CODE AND if all of the following apply:

(a) The pupil transfers from 1 of 3 other districts specified by the educating district and enrolls in the EDUCATING district after the pupil membership count day.

(b) Due to the pupil's enrollment status as of the pupil membership count day, the pupil was counted in membership in the district from which he or she transfers.

(C) THE PUPIL WAS A RESIDENT OF THE EDUCATING DISTRICT ON THE PUPIL MEMBERSHIP COUNT DAY OR MET OTHER ELIGIBILITY CRITERIA UNDER SECTION 6(4) OR (6) TO BE COUNTED IN MEMBERSHIP IN THE EDUCATING DISTRICT IF THE PUPIL HAD BEEN ENROLLED IN THE EDUCATING DISTRICT ON THE PUPIL MEMBERSHIP COUNT DAY.

(D) ~~(c)~~ The total number of pupils enrolled in the district who are described in subdivisions (a), ~~and~~ (b), AND (C) and who transfer from 1 of the 3 other districts specified by the educating district is at least equal to the greater of 25 or 1% of the educating district's membership.

(2) If the conditions specified in subsection (1) are met, and a pupil transfers from 1 of the 3 other specified districts described in subsection ~~(1)(c)~~ (1)(D) and enrolls during a school year in the educating district, the educating district shall report the enrollment information to the department and to the district in which the pupil is counted in membership, and the district in which the pupil is counted in membership shall pay to the educating district an amount equal to the amount of the foundation allowance or per pupil payment as calculated under section 20 for the district in which the pupil is counted in membership, prorated according to the number of days of the school year ending in the fiscal year the pupil is educated in the educating district compared to the number of days of the school year ending in the fiscal year the pupil was actually enrolled in the district in which the pupil is counted in membership. The foundation allowance or per pupil payment shall be adjusted by the pupil's full-time equated status as affected by the membership definition under section 6(4). If a district does not make the payment required under this section within 30 days after receipt of the report, the department shall calculate the amount owed, shall deduct that amount from the remaining state school aid payments to the district for that fiscal year under this act, and shall pay that amount to the educating district. The district in which the pupil is counted in membership and the educating district shall provide to the department all information the department requires to enforce this section.

(3) IN DETERMINING THE TOTAL AMOUNT A DISTRICT OWES TO THE EDUCATING DISTRICT UNDER THIS SECTION, REGARDLESS OF WHETHER THAT DISTRICT IS OTHERWISE ELIGIBLE FOR PAYMENT FROM THE EDUCATING DISTRICT UNDER THIS SECTION, THE DISTRICT MAY CALCULATE AND SUBTRACT FROM THE AMOUNT OWED, USING THE CALCULATION DESCRIBED IN SUBSECTION (1), ANY AMOUNT APPLICABLE TO PUPILS WHO TRANSFER TO THAT DISTRICT FROM THE EDUCATING DISTRICT AND MEET THE REQUIREMENTS OF SUBSECTION (1)(A) TO (C).

(4) ~~(3)~~ As used in this section, "educating district" means the district in which a pupil enrolls after the pupil membership count day as described in subsection (1).

SEC. 25C. (1) BEGINNING IN 2000-2001, THIS SECTION APPLIES TO AN EDUCATING DISTRICT'S ENROLLMENT OF A PUPIL IF THE EDUCATING DISTRICT IS A SCHOOL DISTRICT OF THE FIRST CLASS UNDER THE REVISED SCHOOL CODE AND IF ALL OF THE FOLLOWING APPLY:

(A) THE PUPIL TRANSFERS FROM ANOTHER DISTRICT AND ENROLLS IN THE EDUCATING DISTRICT AFTER THE PUPIL MEMBERSHIP COUNT DAY.

(B) DUE TO THE PUPIL'S ENROLLMENT STATUS AS OF THE PUPIL MEMBERSHIP COUNT DAY, THE PUPIL WAS COUNTED IN MEMBERSHIP IN THE DISTRICT FROM WHICH HE OR SHE TRANSFERS.

(D) THE TOTAL NUMBER OF PUPILS ENROLLED IN THE DISTRICT WHO ARE DESCRIBED IN SUBDIVISIONS (A), (B), AND (C) IS AT LEAST EQUAL TO 25.

(2) IF THE CONDITIONS SPECIFIED IN SUBSECTION (1) ARE MET, AND A PUPIL TRANSFERS FROM ANOTHER DISTRICT AND ENROLLS DURING A SCHOOL YEAR IN THE EDUCATING DISTRICT, THE EDUCATING DISTRICT SHALL REPORT THE ENROLLMENT INFORMATION TO THE DEPARTMENT AND TO THE DISTRICT IN WHICH THE PUPIL IS COUNTED IN MEMBERSHIP, AND THE DISTRICT IN WHICH THE PUPIL IS COUNTED IN MEMBERSHIP SHALL PAY TO THE EDUCATING DISTRICT AN AMOUNT EQUAL TO THE AMOUNT OF THE FOUNDATION ALLOWANCE OR PER PUPIL PAYMENT AS CALCULATED UNDER SECTION 20 FOR THE DISTRICT IN WHICH THE PUPIL IS COUNTED IN MEMBERSHIP, PRORATED ACCORDING TO THE NUMBER OF DAYS OF THE SCHOOL YEAR ENDING IN THE FISCAL YEAR THE PUPIL IS EDUCATED IN THE EDUCATING DISTRICT COMPARED TO THE NUMBER OF DAYS OF THE SCHOOL YEAR ENDING IN THE FISCAL YEAR THE PUPIL WAS ACTUALLY ENROLLED IN THE DISTRICT IN WHICH THE PUPIL IS COUNTED IN MEMBERSHIP. THE FOUNDATION ALLOWANCE OR PER PUPIL PAYMENT SHALL BE ADJUSTED BY THE PUPIL'S FULL-TIME EQUATED STATUS AS AFFECTED BY THE MEMBERSHIP DEFINITION UNDER SECTION 6(4). IF A DISTRICT DOES NOT MAKE THE PAYMENT REQUIRED UNDER THIS SECTION WITHIN 30 DAYS AFTER RECEIPT OF THE REPORT, THE DEPARTMENT SHALL CALCULATE THE AMOUNT OWED, SHALL DEDUCT THAT AMOUNT FROM THE REMAINING STATE SCHOOL AID PAYMENTS TO THE DISTRICT FOR THAT FISCAL YEAR UNDER THIS ACT, AND SHALL PAY THAT AMOUNT TO THE EDUCATING DISTRICT. THE DISTRICT IN WHICH THE PUPIL IS COUNTED IN MEMBERSHIP AND THE EDUCATING DISTRICT SHALL PROVIDE TO THE DEPARTMENT ALL INFORMATION THE DEPARTMENT REQUIRES TO ENFORCE THIS SECTION.

(4) AS USED IN THIS SECTION, "EDUCATING DISTRICT" MEANS THE DISTRICT IN WHICH A PUPIL ENROLLS AFTER THE PUPIL MEMBERSHIP COUNT DAY AS DESCRIBED IN SUBSECTION (1).

Sec. 26a. From the general fund appropriation in section 11, there is allocated each fiscal year for ~~1999-2000,~~ 2000-2001, 2001-2002, and 2002-2003 an amount not to exceed $7,000,000.00 to reimburse districts, intermediate districts, and the state school aid fund pursuant to section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied in ~~1999,~~ 2000, 2001, and 2002, respectively. This reimbursement shall be made by adjusting payments under section ~~20 or~~ 22a to eligible districts, adjusting payments under section 56, 62, or 81 to eligible intermediate districts, and adjusting the state school aid fund. The adjustments shall be made not later than 60 days after the department of treasury certifies to the department and to the state budget director that the department of treasury has received all necessary information to properly determine the amounts due to each eligible recipient.

Sec. 31a. (1) From the state school aid fund money appropriated in section 11, there is allocated ~~for 1999-2000 an amount not to exceed $270,920,000.00,~~ for 2000-2001 an amount not to exceed $304,000,000.00, for 2001-2002 an amount not to exceed ~~$319,200,000.00~~ $314,200,000.00, and for 2002-2003 an amount not to exceed ~~$329,095,200.00~~ $319,095,200.00 for payments to eligible districts and eligible public school academies under this section. Subject to subsection (10), the amount of the additional allowance under this section shall be based on the number of actual pupils in membership in the district or public school academy who met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding state fiscal year, as determined under the Richard B. Russell national school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to 1753, 1755 to 1761, 1762a, 1765 to 1766a, 1769, 1769b to 1769c, and 1769f to 1769h, and reported to the department by October 31 of the immediately preceding fiscal year and adjusted not later than December 31 of the immediately preceding fiscal year. However, for a public school academy that began operations as a public school academy after the pupil membership count day of the immediately preceding school year, the basis for the additional allowance under this section shall be the number of actual pupils in membership in the public school academy who met the income eligibility criteria for free breakfast, lunch, or milk in the current state fiscal year, as determined under the Richard B. Russell national school lunch act.

(2) To be eligible to receive funding under this section, a district or public school academy that has not been previously determined to be eligible shall apply to the department, in a form and manner prescribed by the department, and a district or public school academy must meet all of the following:

(a) The sum of the district's or public school academy's combined state and local revenue per membership pupil in the current state fiscal year, as calculated under section 20, plus the amount of the district's per pupil allocation under section 20j(2), is less than or equal to $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current state fiscal year and $5,000.00. However, beginning in 2002-2003, the $6,500.00 amount prescribed in this subdivision shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, minus $200.00.

(b) The district or public school academy agrees to use the funding only for purposes allowed under this section and to comply with the program and accountability requirements under this section.

(3) Except as otherwise provided in this subsection, an eligible district or eligible public school academy shall receive under this section for each membership pupil in the district or public school academy who met the income eligibility criteria for free breakfast, lunch, or milk, as determined under the Richard B. Russell national school lunch act and as reported to the department by October 31 of the immediately preceding fiscal year and adjusted not later than December 31 of the immediately preceding fiscal year, an amount per pupil equal to 11.5% of the sum of the district's foundation allowance or public school academy's per pupil allocation under section 20, plus the amount of the district's per pupil allocation under section 20j(2), not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current state fiscal year and $5,000.00, or of the public school academy's per membership pupil allocation under section 20 for the current state fiscal year. However, beginning in 2002-2003, the $6,500.00 amount prescribed in this subsection shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, minus $200.00. A public school academy that began operations as a public school academy after the pupil membership count day of the immediately preceding school year shall receive under this section for each membership pupil in the public school academy who met the income eligibility criteria for free breakfast, lunch, or milk, as determined under the Richard B. Russell national school lunch act and as reported to the department by October 31 of the current fiscal year and adjusted not later than December 31 of the current fiscal year, an amount per pupil equal to 11.5% of the public school academy's per membership pupil allocation under section 20 for the current state fiscal year.

(4) Except as otherwise provided in this section, a district or public school academy receiving funding under this section shall use that money only to provide instructional programs and direct noninstructional services, including, but not limited to, medical or counseling services, for at-risk pupils and for the purposes of subsection (5) or section ~~31c~~ 32E and shall not use any of that money for administrative costs or to supplant another program or other funds, except for funds allocated to the district or public school academy under this section in the immediately preceding year and already being used by the district or public school academy for at-risk pupils. The instruction or direct noninstructional services provided under this section may be conducted before or after regular school hours or by adding extra school days to the school year and may be conducted using a tutorial method, with paraprofessionals working under the supervision of a certificated teacher. The ratio of pupils to paraprofessionals shall be between 10:1 and 15:1. Only 1 certificated teacher is required to supervise instruction using a tutorial method. As used in this subsection, "to supplant another program" means to take the place of a previously existing instructional program or direct noninstructional services funded from a funding source other than funding under this section.

(5) A district or public school academy that receives funds under this section and that operates a school breakfast program under section 1272a of the revised school code, MCL 380.1272a, shall use from the funds received under this section an amount, not to exceed $10.00 per pupil for whom the district or public school academy receives funds under this section, necessary to operate the school breakfast program. For 1999-2000 only, a district or public school academy that receives funds under this section and that operates a school lunch program under section 1272a of the revised school code, MCL 380.1272a, shall use from the funds received under this section an amount, not to exceed $10.00 per pupil for whom the district or public school academy receives funds under this section, necessary to operate the school lunch program.

(6) Each district or public school academy receiving funds under this section shall submit to the department by July 15 of each fiscal year a report, not to exceed 10 pages, on the usage by the district or public school academy of funds under this section, which report shall include at least a brief description of each program conducted by the district or public school academy using funds under this section, the amount of funds under this section allocated to each of those programs, the number of at-risk pupils eligible for free or reduced price school lunch who were served by each of those programs, and the total number of at-risk pupils served by each of those programs. If a district or public school academy does not comply with this subsection, the department shall withhold an amount equal to the August payment due under this section until the district or public school academy complies with this subsection. If the district or public school academy does not comply with this subsection by the end of the state fiscal year, the withheld funds shall be forfeited to the school aid fund.

(7) In order to receive funds under this section, a district or public school academy shall allow access for the department or the department's designee to audit all records related to the program for which it receives those funds. The district or public school academy shall reimburse the state for all disallowances found in the audit.

(8) Subject to subsection (5), any district may use up to 100% of the funds it receives under this section to reduce the ratio of pupils to teachers in grades K-6, or any combination of those grades, in school buildings in which the percentage of pupils described in subsection (1) exceeds the district's aggregate percentage of those pupils. Subject to subsection (5), if a district obtains a waiver from the department, the district may use up to 100% of the funds it receives under this section to reduce the ratio of pupils to teachers in grades K-6, or any combination of those grades, in school buildings in which the percentage of pupils described in subsection (1) is at least 60% of the district's aggregate percentage of those pupils and at least 30% of the total number of pupils enrolled in the school building. To obtain a waiver, a district must apply to the department and demonstrate to the satisfaction of the department that the class size reductions would be in the best interests of the district's at-risk pupils.

(9) A district or public school academy may use funds received under this section for adult high school completion, general education development (G.E.D.) test preparation, or adult basic education programs described in section 107.

(10) If necessary, and before any proration required under section 11, the department shall prorate payments under this section by reducing the amount of the per pupil payment under this section by a dollar amount calculated by determining the amount by which the amount necessary to fully fund the requirements of this section exceeds the maximum amount allocated under this section and then dividing that amount by the total statewide number of pupils who met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding fiscal year, as described in subsection (1).

(11) If a district is formed by consolidation after June 1, 1995, and if 1 or more of the original districts was not eligible before the consolidation for an additional allowance under this section, the amount of the additional allowance under this section for the consolidated district shall be based on the number of pupils described in subsection (1) enrolled in the consolidated district who reside in the territory of an original district that was eligible before the consolidation for an additional allowance under this section.

(12) ~~Beginning in 1999-2000, a~~ A district or public school academy that does not meet the eligibility requirement under subsection (2)(a) is eligible for funding under this section if at least 1/4 of the pupils in membership in the district or public school academy met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding state fiscal year, as determined and reported as described in subsection (1), and at least 4,500 of the pupils in membership in the district or public school academy met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding state fiscal year, as determined and reported as described in subsection (1). A district or public school academy that is eligible for funding under this section because the district meets the requirements of this subsection shall receive under this section for each membership pupil in the district or public school academy who met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding fiscal year, as determined and reported as described in subsection (1), an amount per pupil equal to 5.75% of the sum of the district's foundation allowance or public school academy's per pupil allocation under section 20, plus the amount of the district's per pupil allocation under section 20j(2), not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current state fiscal year and $5,000.00. However, beginning in 2002-2003, the $6,500.00 amount prescribed in this subsection shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, minus $200.00.

(13) Beginning in 2001-2002, the total amount allocated under this section for a fiscal year shall be increased from the total amount allocated under this section for the immediately preceding fiscal year by the same percentage as the percentage increase in the amount of the basic foundation allowance under section 20 for that fiscal year from the amount of the basic foundation allowance under section 20 for the immediately preceding fiscal year.

(13) ~~(14)~~ As used in this section, "at-risk pupil" means a pupil for whom the district has documentation that the pupil meets at least 2 of the following criteria: is a victim of child abuse or neglect; is below grade level in English language and communication skills or mathematics; is a pregnant teenager or teenage parent; is eligible for a federal free or reduced-price lunch subsidy; has atypical behavior or attendance patterns; or has a family history of school failure, incarceration, or substance abuse. For pupils for whom the results of at least the applicable Michigan education assessment program (MEAP) test have been received, at-risk pupil also includes a pupil who does not meet the other criteria under this subsection but who did not achieve at least a score of moderate on the most recent MEAP reading test for which results for the pupil have been received, did not achieve at least a score of moderate on the most recent MEAP mathematics test for which results for the pupil have been received, or did not achieve at least a score of novice on the most recent MEAP science test for which results for the pupil have been received. For pupils in grades K-3, at-risk pupil also includes a pupil who is at risk of not meeting the district's core academic curricular objectives in English language, communication skills, or mathematics.

Sec. 31d. (1) From the state school aid fund appropriation in section 11, there is allocated ~~an amount not to exceed $6,454,500.00 for 1999-2000,~~ an amount not to exceed ~~$13,669,500.00~~ $14,149,400.00 for 2000-2001, an amount not to exceed ~~$14,079,600.00~~ $15,039,400.00 for 2001-2002, and an amount not to exceed ~~$14,502,000.00~~ $15,941,700.00 for 2002-2003, and from the general fund appropriation in section 11, there is allocated an amount not to exceed ~~$662,200.00~~ $682,300.00 for 2000-2001, an amount not to exceed ~~$682,100.00~~ $722,300.00 for 2001-2002, and an amount not to exceed ~~$702,500.00~~ $762,800.00 for 2002-2003 for the purpose of making payments to districts, intermediate districts, and other eligible entities under this section.

(2) The amounts allocated under this section shall be used to pay the amount necessary to reimburse districts for 6.0127% of the necessary costs of the state mandated portion of the school lunch programs provided by those districts. The amount due to each district under this section shall be computed by the department using the methods of calculation adopted by the Michigan supreme court in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492.

(3) For 1999-2000, the payments made under this section are in addition to the state payments made to districts under the department of education appropriations act for 1999-2000 and under section 31a(5), so that each district receives from all of these sources combined at least 6.0127% of the necessary costs of operating the state mandated portion of the school lunch program in a fiscal year. Beginning in 2000-2001, the THE payments made under this section include all state payments made to districts so that each district receives at least 6.0127% of the necessary costs of operating the state mandated portion of the school lunch program in a fiscal year.

(4) ~~Beginning in 2000-2001, notwithstanding~~ NOTWITHSTANDING section 17b, payments to intermediate districts and other eligible entities under this section shall be paid on a schedule determined by the department.

Sec. 32a. (1) From the state school aid fund appropriation in section 11, there is allocated an amount not to exceed ~~$267,850,000.00~~ $231,350,000.00 for 2000-2001, an amount not to exceed ~~$267,850,000.00~~ $189,250,000.00 for 2001-2002, and an amount not to exceed ~~$279,850,000.00~~ $99,250,000.00 for 2002-2003 to fund the all students achieve program (ASAP) as provided under sections 32b to 32h. In addition, from the general fund appropriations in section 11, there is allocated an amount not to exceed ~~$25,200,000.00~~ $21,250,000.00 for 2000-2001, an amount not to exceed ~~$30,200,000.00~~ $2,200,100.00 for 2001-2002, and an amount not to exceed ~~$35,200,000.00~~ $200,000.00 for 2002-2003 for the purposes of sections 32b to 32h. The programs funded through this section are for the purposes of improving parenting skills, improving school readiness, reducing the number of pupils retained in grade, and reducing the number of pupils requiring special education services.

(2) Each grant recipient approved by the department shall implement department-approved data collection methods and evaluation or assessment tools to measure the impact of the proposed program.

(3) A district shall not use funds received under sections 32b to 32h to supplant any local or federal funds it currently receives. A district may use these funds in combination with other federal, local, public, or private funds to enhance existing programs with similar purposes.

Sec. 32b. (1) From the state school aid fund allocation in section 32a(1), there is allocated an amount not to exceed $45,000,000.00 ~~each fiscal year~~ for 2000-2001, AN AMOUNT NOT TO EXCEED $45,000,000.00 for 2001-2002, and $0.00 for 2002-2003 for grants to intermediate districts and districts for programs for preschool children and their parents. The purpose of these programs is to improve school readiness and foster the maintenance of stable families by encouraging positive parenting skills; enhancing parent-child interaction; providing learning opportunities to promote intellectual, physical, and social growth; and promoting access to needed community services through a community-school-home partnership that provides parents with information on child development from birth to age 5.

(2) To qualify for funding under this section, a program shall meet all of the following:

(a) The program must provide services to all families with children age 5 or younger residing within the intermediate district or district who choose to participate, including at least all of the following services:

(i) Home visits by parent educators trained in child development to help parents understand appropriate expectations for each stage of their child's development, to encourage learning opportunities, and to promote strong parent-child relationships.

(ii) Group meetings of participating families.

(iii) Periodic developmental screening of the child's overall development, health, hearing, and vision.

(iv) A community resource network that provides referrals to other state, local, and private agencies as appropriate to assist parents in preparing their children for academic success and to foster the maintenance of stable families.

(v) Connection with quality preschool programs.

(b) The program must be a collaborative community effort that includes at least the intermediate district or district, local multipurpose collaborative bodies, local health and welfare agencies, and private nonprofit agencies involved in programs and services for preschool children and their parents.

(3) To compete for a grant under this section, an intermediate district or district shall apply to the superintendent not later than December 1, 2000 in the form and manner prescribed by the superintendent. To be considered for a grant under this section, a grant application must provide all of the following in a manner prescribed by the department:

(a) Provide a plan for the delivery of the program components described in subsection (2).

(b) Demonstrate an adequate collaboration of local entities involved in providing programs and services for preschool children and their parents.

(d) Provide a projected budget for the program to be funded. The intermediate district shall provide at least a 20% local match from local public or private resources for the funds received under this section. Not more than 1/2 of this matching requirement, up to a total of 10% of the total project budget, may be satisfied through in-kind services provided by participating providers of programs or services. In addition, not more than 10% of the grant may be used for program administration.

(4) Each successful grant recipient shall agree to include a data collection system and an evaluation tool approved by the department to measure the impact of the program on improving school readiness, reducing the number of children needing special education programs and services, and fostering the maintenance of stable families. The data collection system shall provide a report by October 15 of each year on the number of children in families with income below 200% of the federal poverty level that received services under this program and the total number of children who received services under this program.

(5) From the general fund allocation under section 32a(1), there is allocated an amount not to exceed $250,000.00 ~~each fiscal year~~ for 2000-2001, AN AMOUNT NOT TO EXCEED $100.00 for 2001-2002, and $0.00 for 2002-2003 to the department, including the office for safe schools, for implementation and evaluation of activities under this section. Further, ~~beginning in 2000-2001,~~ upon receipt of the federal drug-free schools grant, the department shall allocate $200,000.00 of that grant to the office for safe schools within the department.

(6) The department and superintendent shall do all of the following:

(a) The department shall make applications available for the purposes of this section not later than October 15, 2000.

(b) The superintendent shall approve or disapprove applications and notify the applying intermediate district or district of that decision not later than February 1, 2001. Priority in awarding grants shall be given to programs that focus on reducing the percentage of children needing special education programs and services when they enter school. The superintendent shall ensure that the intermediate districts and districts receiving grants under this section are geographically and economically diverse and that not more than 10% of the total allocation under this section is paid to any 1 particular intermediate district or district.

(c) The department shall ensure that all programs funded under this section utilize the most current validated research-based methods and curriculum for providing the program components described in subsection (2).

(d) The department shall submit a report to the legislature, the state budget director, and the senate and house fiscal agencies detailing the evaluations described in subsection (4) by December 1 of each year.

(7) An intermediate district or district receiving funds under this section shall use the funds only for the program funded under this section. Grants awarded by February 1, 2001 may be used for the following school year.

Sec. 32c. (1) From the general fund allocation in section 32a(1), there is allocated an amount not to exceed $2,000,000.00 each fiscal year for 2000-2001 , AND for 2001-2002, and $0.00 for 2002-2003, to the department for grants for community-based collaborative prevention services designed to foster positive parenting skills; improve parent/child interaction, especially for children 0-3 years of age; promote access to needed community services; increase local capacity to serve families at risk; improve school readiness; and support healthy family environments that discourage alcohol, tobacco, and other drug use. ~~This~~ THE allocation UNDER THIS SECTION is to fund secondary prevention programs as defined by the children's trust fund for the prevention of child abuse and neglect.

(2) The funds allocated under subsection (1) shall be distributed through a joint request for proposals process established by the department in conjunction with the children's trust fund and the state's interagency systems reform workgroup. Projects funded with grants awarded under this section shall meet all of the following:

(a) Be secondary prevention initiatives and voluntary to consumers. This appropriation is not intended to serve the needs of children for whom and families in which neglect or abuse has been substantiated.

(b) Demonstrate that the planned services are part of a community's integrated comprehensive family support strategy endorsed by the local multi-purpose collaborative body.

(c) Provide a 25% local match, of which not more than 10% may be in-kind services, unless this requirement is waived by the interagency systems reform workgroup.

(3) Notwithstanding section 17b, payments under this section may be made pursuant to an agreement with the department.

Sec. 32d. (1) From the state school aid fund allocation under section 32a(1), there is allocated an amount not to exceed $72,600,000.00 each fiscal year for 2000-2001, 2001-2002, and 2002-2003 for school readiness grants to enable eligible districts, as determined under section 37, to develop or expand, in conjunction with whatever federal funds may be available, including, but not limited to, federal funds under title I of the elementary and secondary education act of 1965, Public Law 89-10, 108 Stat. 3519, chapter 1 of title I of the Hawkins-Stafford elementary and secondary school improvement amendments of 1988, Public Law 89-10, 102 Stat. 140, and the head start act, subchapter B of chapter 8 of subtitle A of title VI of the omnibus budget reconciliation act of 1981, Public Law 97-35, comprehensive compensatory programs designed to improve the readiness and subsequent achievement of educationally disadvantaged children as defined by the department who will be at least 4, but less than 5 years of age, as of December 1 of the school year in which the programs are offered, and who show evidence of 2 or more risk factors as defined in the state board report entitled "children at risk" that was adopted by the state board on April 5, 1988. A comprehensive compensatory program funded under this section shall include an age-appropriate educational curriculum, nutritional services, health screening for participating children, a plan for parent and legal guardian involvement, and provision of referral services for families eligible for community social services. In addition, from the general fund allocations under section 32a(1), there is allocated an amount not to exceed ~~$20,200,000.00~~ $16,250,000.00 for 2000-2001 , FOR THE PURPOSES OF SUBSECTIONS (2) AND (3) AND an amount not to exceed ~~$25,200,000.00~~ $200,000.00 EACH FISCAL YEAR for 2001-2002 , and ~~an amount not to exceed $30,200,000.00~~ for 2002-2003 for the purposes of ~~subsections (2) and (3)~~ SUBSECTION (2).

(2) From the general fund allocation in subsection (1), there is allocated each fiscal year for 2000-2001, 2001-2002, and 2002-2003 an amount not to exceed $200,000.00 for a competitive grant to continue a longitudinal evaluation of children who have participated in the Michigan school readiness program.

(3) From the general fund allocation in subsection (1), there is allocated an amount not to exceed ~~$20,000,000.00~~ $16,050,000.00 for 2000-2001 ~~, an amount not to exceed $25,000,000.00 for 2001-2002, and an amount not to exceed $30,000,000.00 for 2002-2003~~ under this subsection to operate new or expanded full-day school readiness or head start programs. The funds shall be allocated through a competitive grant process to eligible districts that receive funding under subsection (1), to eligible public or nonprofit entities or agencies that receive funding for school readiness programs under the department appropriations act, or to eligible head start funded programs. The department shall determine the competitive grant criteria. The department may accept available federal funds from the family independence agency to support the program under this subsection. These federal funds include, but are not limited to, federal temporary assistance to needy families funds.

(4) A district, entity, or agency receiving funding under subsection (3) that offers head start or school readiness programs may use the funds to expand the program to operate a full day.

(5) A district, entity, or agency receiving funding under subsection (3) shall contribute a local match, which may consist of local, private, or federal funds or in-kind services, totaling at least 50% of the allocation under subsection (3).

(6) An application for a grant under subsection (3) shall be in the form and manner prescribed by the department. The department shall make the application form available to districts by December 15 of the school year. The application shall include a program budget that states all sources of funding to be used for the program. Applications shall be submitted to the department not later than February 1 of the school year. The department shall approve or disapprove the application and notify the applying district, entity, or agency of that decision by April 1 of the school year. Funds allocated under subsection (3) for the current fiscal year may be expended through the end of the following fiscal year.

(7) A district receiving a grant under this section may contract for the provision of the comprehensive compensatory program or full day school readiness program and retain for administrative services an amount equal to not more than 5% of the grant amount.

(8) As used in this section, "full day" means a program that offers supplementary day care and therefore offers full-day programming of at least 10 hours per day as part of its school readiness program.

(9) Not more than 10% of the grant funding in this section may be used for start-up, equipment, or other costs not directly related to the costs of the program. This does not prohibit any applicant from receiving other available state assistance for these purposes.

(10) A grant recipient receiving funds under this section shall report to the department no later than October 15 of each year the number of children participating in the program who meet the income or other eligibility criteria specified under section 37(3)(g) and the total number of children participating in the program. For children participating in the program who meet the income or other eligibility criteria specified under section 37(3)(g), grant recipients shall also report whether or not a parent is available to provide care based on employment status. For the purposes of this subsection, "employment status" shall be defined by the family independence agency in a manner consistent with maximizing the amount of spending that may be claimed for temporary assistance for needy families maintenance of effort purposes.

Sec. 32e. (1) From the state school aid fund allocations under section 32a(1), there is allocated an amount not to exceed ~~$29,750,000.00~~ $26,650,000.00 each fiscal year for 2000-2001, for 2001-2002, and for 2002-2003 for grants to eligible districts for programs to maintain or establish small classes in grades K to 3 in eligible school buildings in the district.

(2) For a school building to be eligible for funding under this section, the school building must operate at least 1 of grades K to 3; the school building must be operated by a district that operates all of grades K to 12 and that receives funds under section 31a; and at least 50% of the actual pupils enrolled in the school building in the immediately preceding fiscal year must have been eligible for free lunch, as determined under the Richard B. Russell national school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to 1753, 1755 to 1761, 1762a, 1765 to 1766a, 1769, 1769b to 1769c, and 1769f to 1769h, and reported to the department not later than October 31 of the immediately preceding fiscal year and adjusted not later than December 31 of the immediately preceding fiscal year.

(3) Not more than 25% of the total allocation under subsection (1) may be paid to any 1 particular district. The department shall make allocations under subsection (1) to at least 12 districts, and the districts shall be geographically diverse.

(4) A district receiving funds under subsection (1) shall use the funds to maintain or establish small classes in grades K to 3 in school buildings of the district for which funds are received under this section. The average class size shall be not more than 17 pupils per class, with not more than 19 pupils in any particular class. Each fiscal year, a district receiving funds under subsection (1) shall use at least $2,000,000.00 or 25% of the funds the district receives for the fiscal year under section 31a, whichever is less, for the purposes of this section.

(5) Except as otherwise provided in this section, funding to districts under this section for 2000-2001 is intended to be for the third of 5 years of funding under this section and former section 31c, funding to districts under this section for 2001-2002 is intended to be for the fourth of 5 years of funding under this section and former section 31c, and funding under this section for 2002-2003 is intended to be for the fifth of 5 years of funding under this section and former section 31c. For districts receiving funding under this section for the first time from the additional ~~$10,000,000.00~~ $6,900,000.00 allocated under this section for 2000-2001, as compared to the funding under former section 31c, funding to those districts under this section for 2000-2001 is intended to be for the first of 3 years of funding, funding to those districts under this section for 2001-2002 is intended to be for the second of 3 years of funding, and funding to those districts under this section for 2002-2003 is intended to be for the third of 3 years of funding.

(6) The funds allocated under this section for a fiscal year may be expended after the fiscal year through the end of either the fifth fiscal year of funding under this section and former section 31c or the final fiscal year of funding under this section and former section 31c, whichever occurs earlier.

Sec. 32f. (1) From the state school aid fund allocation under section 32a(1), there is allocated for 2000-2001 an amount not to exceed $57,500,000.00, ~~and there is allocated each fiscal year~~ for 2001-2002 ~~and 2002-2003~~ an amount not to exceed $45,000,000.00, AND FOR 2002-2003 $0.00, for grants under this section. From the general fund allocation under section 32a(1), there is allocated ~~each fiscal year~~ for 2000-2001 ~~, for 2001-2002, and for 2002-2003~~ an amount not to exceed $2,750,000.00 for the purposes of subsections (4) and (5), AND THERE IS ALLOCATED EACH FISCAL YEAR FOR 2001-2002 AND FOR 2002-2003 $0.00 FOR THE PURPOSES OF SUBSECTION (4).

(2) From the allocation in subsection (1), there is allocated ~~each fiscal year~~ for 2000-2001 ~~, for 2001-2002, and for 2002-2003~~ an amount not to exceed $5,000,000.00, FOR 2001-2002 AN AMOUNT NOT TO EXCEED $2,000,000.00, AND FOR 2002-2003 $0.00, for providing grants to the 8 regional literacy centers for the purposes of expanding training programs for trainers and teachers in the use of strategies for reading instruction and assessment, including the Michigan literacy progress profile.

(3) From the allocation in subsection (1), there is allocated for 2000-2001 an amount not to exceed $2,500,000.00 for competitive grants to higher education institutions for the development or enhancement of programs to meet the needs of autism impaired pupils. These programs may include, but are not limited to, student intervention centers on campus.

(4) From the general fund allocation in subsection (1), there is allocated to the department ~~each fiscal year for 2000-2001, for 2001-2002, and for 2002-2003~~ an amount not to exceed $2,500,000.00 FOR 2000-2001 AND $0.00 EACH FISCAL YEAR FOR 2001-2002 AND FOR 2002-2003 for the development and dissemination of read, educate, and develop youth (READY) kits to parents of preschool and kindergarten children to provide these parents with information about how they can prepare their children for reading success.

(5) From the general fund allocation in subsection (1), there is allocated to the department ~~each fiscal year~~ for 2000-2001 ~~, for 2001-2002, and for 2002-2003~~ an amount not to exceed $250,000.00 AND EACH FISCAL YEAR FOR 2001-2002 AND 2002-2003 $0.00 for the grant review process and grant administration under this section.

(6) Except as otherwise provided in subsection (18), to be eligible for a grant under this section, a district must have had at least 1,500 pupils in membership in 1998-99, and the number of pupils in the district that have been determined to have a specific learning disability according to R 340.1713 of the Michigan administrative code, as determined in the December 1, 1998 head count required under the individuals with disabilities education act, title VI of Public Law 91-230, must equal or exceed 5% of the district's membership. In addition, a district is eligible for a grant under this section if the district had at least 1,500 pupils in membership in 1998-99 and if not more than 41% of the district's pupils who took the spring 1999 fourth grade MEAP reading test achieved a score of at least satisfactory. Except as otherwise provided in subsection (18), for a public school academy to be eligible for a grant under this section, the public school academy must be located in a district that is eligible under this subsection.

(7) From the allocation in subsection (1), there is allocated ~~each fiscal year~~ for 2000-2001 ~~, for 2001-2002, and for 2002-2003~~ an amount not to exceed $50,000,000.00, FOR 2001-2002 AN AMOUNT NOT TO EXCEED $43,000,000.00, AND FOR 2002-2003 $0.00, for competitive grants to eligible districts, to intermediate districts, and to public school academies located within eligible districts for reading improvements programs for pupils in grades K to 4, reading disorders and reading methods programs, mentoring programs, language and literacy outreach programs, or cognitive development programs. FOR 2001-2002, GRANTS UNDER THIS SUBSECTION SHALL BE PAID TO GRANT RECIPIENTS IN THE SAME PROPORTION OF THE TOTAL ALLOCATION UNDER THIS SUBSECTION AS FOR 2000-2001. IF THE LEGISLATURE ENACTS LEGISLATION AUTHORIZING THE APPROPRIATION OF FEDERAL FUNDS FOR READING IMPROVEMENT PROGRAMS FOR 2001-2002 OR FOR 2002-2003, THEN IT IS THE INTENT OF THE LEGISLATURE THAT THESE FUNDS BE USED TO THE EXTENT POSSIBLE FOR THE PURPOSES OF THIS SUBSECTION. FEDERAL FUNDS RECEIVED FOR READING IMPROVEMENT PROGRAMS THAT CAN BE USED FOR SUBSTANTIALLY SIMILAR PURPOSES AS DESCRIBED UNDER THIS SECTION SHALL BE FIRST EXPENDED FOR THE PURPOSES OF THIS SUBSECTION BEFORE FUNDS APPROPRIATED FROM THE STATE SCHOOL AID FUND ALLOCATED UNDER THIS SUBSECTION, AND THE EXPENDITURE OF FUNDS UNDER THIS SUBSECTION FROM THE STATE SCHOOL AID FUND SHALL BE REDUCED BY AN AMOUNT EQUAL TO THE AMOUNT OF THE EXPENDITURE OF FEDERAL FUNDS UNDER THIS SUBSECTION. IF ANY CONFLICT EXISTS BETWEEN FEDERAL READING PROGRAM GUIDELINES AND THIS SECTION, FEDERAL LAW WILL CONTROL.

(8) Except as otherwise provided in subsection (18), to qualify for funding under this section, a proposed reading improvement program must meet all of the following:

(a) The program shall include assessment of reading skills of pupils in grades K to 4 to identify those pupils who are reading below grade level and must provide special reading assistance for these pupils.

(b) The program shall be a research-based, validated, structured reading program.

(d) The program shall align learning resources to state standards.

(e) For each school building receiving funding under this section for a reading improvement program, the program shall serve at least 25% of pupils who are identified as at-risk, as determined by the Michigan literacy progress profile, of reading failure, and the amount of the grant shall not exceed $85,000.00 per school building annually.

(9) Funds allocated for programs described in subsection (8) may be used to reimburse grant recipients for funds paid by districts for up to 1/2 of the salaries and benefits for each teacher trained and certified to provide a reading improvement program.

(10) Except as otherwise provided under subsection (18), to qualify for funding under this section, a proposed mentoring program must be a research-based, validated program or a statewide 1-to-1 mentoring program to enhance the independence and life quality of pupils who are mentally impaired by providing opportunities for mentoring and integrated employment.

(11) Except as otherwise provided under subsection (18), to qualify for funding under this section, a proposed cognitive development program must be a research-based, validated educational service program, focused on assessing and building essential cognitive and perceptual learning abilities to strengthen pupil concentration and learning.

(12) Except as otherwise provided under subsection (18), to qualify for funding under this section, a proposed structured mentoring-tutorial reading program for preschool to grade 4 pupils must be a research-based, validated program that develops individualized instructional plans based on each pupil's age, assessed needs, reading level, interests, and learning style.

(13) A program receiving funding under this section may be conducted outside of regular school hours or outside the regular school calendar.

(14) To compete for a grant under this section, an applicant shall apply to the superintendent in the form and manner prescribed by the superintendent. The department shall make applications available for this purpose. An applicant shall include in its application a projected budget for the programs. The grant recipient shall provide at least a 20% local match from local public or private resources for the funds received under this section. Not more than 1/2 of this matching requirement, up to a total of 10% of the total project budget, may be satisfied through in-kind services provided by participating providers of programs or services. In addition, not more than 10% of the grant may be used for program administration.

(15) The superintendent shall approve or disapprove applications and notify the applicant of that decision. Priority in awarding grants shall be given to programs that focus on accelerating student achievement on a cost-effective basis, reducing the number of pupils requiring special education programs and services, and improving pupil scores on standardized tests and assessments.

(16) A grant recipient receiving funds under this section shall report to the department, in the form and manner prescribed by the department, on the results achieved by the program. At a minimum, the grant recipient shall report to the department by October 15 regarding the program's impact on reducing the number of pupils requiring special education programs and services and on improving pupil scores on standardized tests and assessments, and information on the costs and benefits per unit of pupil improvement. In addition, the report shall state the number of pupils eligible for free or reduced price school lunch who received services under the program and the total number of pupils who received services under the program. Not later than November 15 of each fiscal year, the department shall submit a report to the legislature, the state budget director, and the senate and house fiscal agencies detailing the results of the programs. It is the intent of the legislature that further funding for the programs under this section will reflect the results achieved in these programs.

(17) Notwithstanding section 17b, payments under this section shall be paid on a schedule determined by the department.

(18) For a district or public school academy awarded a grant under former section 32, the determination of whether the district or public school academy is eligible for a grant under this section may be made according to the eligibility standards in effect under former section 32. Further, the district or public school academy may continue to use the grant proceeds for any use permissible under this section or former section 32 as in effect at the time the district or public school academy was awarded the grant.

(19) If the maximum amount appropriated under this section exceeds the amount necessary to fully fund allocations under this section, that excess amount shall not be expended in that state fiscal year but shall instead be carried forward to the succeeding fiscal year and added to any funds appropriated for that fiscal year for expenditure in that fiscal year.

(20) A district that received funding for 1999-2000 under former section 32 shall receive funding under this section for 2000-2001 2001-2002, and 2002-2003.

Sec. 32g. (1) From the state school aid fund allocation under section 32a(1), there is allocated an amount not to exceed ~~$38,000,000.00 each fiscal year~~ $28,000,000.00 for 2000-2001 ~~and for 2001-2002, and an amount not to exceed $50,000,000.00 for 2002-2003~~ for payments to districts to provide summer school instruction in reading and mathematics for pupils in grade 1, 2, 3, or 4.

(2) In order to improve elementary school pupil achievement, districts may provide summer school instruction in reading and mathematics. The department shall develop a model summer mathematics program for pupils who attended grade 1, 2, 3, or 4 in the school year that just ended and who have demonstrated the need for additional mathematics skills training, as evidenced by standardized test results on tests approved by the department for this purpose. The model mathematics program shall be in conformance with the national education goals and shall also meet criteria for DED-OESE, title I program funding.

(3) To be eligible to participate in summer school instruction funded under this section during a particular summer, a pupil shall have been enrolled in grade 1, 2, 3, or 4 in the school year that just ended and shall meet at least 1 of the following criteria:

(a) Achieved less than satisfactory results, as determined by the district, in the mathematics or reading portion of a department-approved annual standardized assessment of grade-appropriate basic educational skills.

(b) Scored in the low performance category of the mathematics or reading portion of the grade 4 Michigan education assessment program (MEAP) test.

(4) An application for funding under this section shall be submitted to the department for approval, in a manner and on forms prescribed by the department, by a date specified by the department.

(5) A district that receives funding under this section shall, at a minimum, offer summer school instruction under this section for pupils who were enrolled in grade 3 in the school year that just ended and met the criteria described in subsection (3)(a).

(6) A district that receives funding under this section shall provide a minimum of 6 weeks of pupil instruction under this section in mathematics and reading. In addition, applications for funding may include the provision of auxiliary services by the district in a manner determined by the district for such services as school lunch and transportation as is necessary to encourage pupil participation.

(7) A district applying for funding under this section must identify money from other sources available to the district that will be used to support at least 50% of the total costs of the summer school program.

(8) Grant awards under this section shall be distributed in accordance with the following:

(a) Eighty percent of the amount provided to a grant recipient shall be based on enrollment of eligible participants.

(b) Twenty percent of the amount provided to a grant recipient shall be based on measured improvement in reading or mathematics, as applicable.

(9) Funds allocated to a district under this section shall not be used to supplant other state or federal funds allocated to the district for similar purposes.

(10) Subject to program capacity, a pupil who was enrolled in grade 1, 2, 3, or 4 in the school year that just ended but who does not otherwise meet the eligibility criteria under this section may receive summer school instruction described in this section upon the payment of tuition. The tuition level shall be determined by the district but shall not exceed actual operating costs.

(11) A district receiving funding under this section shall report on the results achieved by the summer school program in a manner prescribed by the department. At a minimum, the grant recipient shall report to the department by October 15 regarding the program's impact on reducing the number of pupils requiring special education programs and services and on improving pupil scores on standardized tests and assessments, and information on the costs and benefits per unit of pupil improvement. In addition, the report shall state the number of pupils eligible for free or reduced price school lunch who received services under the program and the total number of pupils who received services under the program. Not later than November 15 of each fiscal year, the department shall submit a report to the legislature, the state budget director, and the senate and house fiscal agencies detailing the results of the programs.

(12) ~~Beginning in 2000-2001, notwithstanding~~ NOTWITHSTANDING section 17b, payments under this section shall be paid on a schedule determined by the department.

(13) Districts may form consortia or enter into cooperative arrangements for operating programs and obtaining funding under this section.

(14) Funds allocated under this section that are not expended in the state fiscal year for which they were allocated may be carried forward to a subsequent state fiscal year.

Sec. 32h. From the school aid fund allocation under section 32a(1), there is allocated ~~each fiscal year~~ for 2000-2001 ~~, for 2001-2002, and for 2002-2003~~ an amount not to exceed ~~$10,000,000.00~~ $1,600,000.00 to provide additional resources for coordinating counseling services or for payments to districts to make tuition grants for higher education programs that lead to a degree in school counseling.

Sec. 33. (1) From the state school aid fund appropriation in section 11, there is allocated an amount not to exceed $15,000,000.00 for 1999-2000 only to a district that is a school district of the first class under the revised school code.

(1) ~~(2)~~ From the state school aid fund appropriation in section 11, there is allocated an amount not to exceed $15,000,000.00 EACH FISCAL YEAR for 2000-2001 ~~only~~ AND FOR 2001-2002 to a district that is a qualifying school district under part 5a of the revised school code, MCL 380.371 to 380.376, or that is the subject of intervention under a substantially similar provision of the revised school code. If more than 1 district qualifies for funding under this subsection, the funds shall be allocated on an equal per-pupil basis.

(2) ~~(3)~~ Funds allocated under this section are for measures to improve student performance, including, but not limited to, enhanced school security and reading readiness programs.

Sec. 41. From the appropriation in section 11, there is allocated an amount not to exceed $4,212,000.00 each fiscal year ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003, to applicant districts and intermediate districts offering programs of bilingual instruction for pupils of limited English-speaking ability under section 1153 of the revised school code, MCL 380.1153. Reimbursement shall be on a per pupil basis and shall be based on the number of pupils of limited English-speaking ability in membership on the pupil membership count day. Funds allocated under this section shall be used solely for bilingual instruction in speaking, reading, writing, or comprehension of pupils of limited English-speaking ability.

Sec. 51a. (1) From the appropriation in section 11, there is allocated for ~~1999-2000~~ 2000-2001 an amount not to exceed ~~$777,631,900.00~~ $739,021,900.00 from state sources and all available federal funding under sections 611 to 619 of part B of the individuals with disabilities education act, title VI of Public Law 91-230, 20 U.S.C. 1411 to 1419, estimated at ~~$125,000,000.00~~ $160,000,000.00, plus any carryover federal funds from previous year appropriations; there is allocated for 2000-2001 an amount not to exceed $746,121,900.00 from state sources and all available federal funding, estimated at $145,000,000.00, plus any carryover federal funds from previous year appropriations; there is allocated for 2001-2002 an amount not to exceed ~~$805,861,900.00~~ $794,821,900.00 from state sources and all available federal funding, estimated at ~~$145,000,000.00~~ $203,000,000.00, plus any carryover federal funds from previous year appropriations; and there is allocated for 2002-2003 an amount not to exceed ~~$863,811,900.00~~ $848,661,900.00 from state sources and all available federal funding, estimated at ~~$145,000,000.00~~ $235,000,000.00, plus any carryover federal funds from previous year appropriations. The allocations under this subsection are for the purpose of reimbursing districts and intermediate districts for special education programs, services, and special education personnel as prescribed in article 3 of the revised school code, MCL 380.1701 to 380.1766; net tuition payments made by intermediate districts to the Michigan schools for the deaf and blind; and special education programs and services for pupils who are eligible for special education programs and services according to statute or rule. For meeting the costs of special education programs and services not reimbursed under this article, a district or intermediate district may use money in general funds or special education funds, not otherwise restricted, or contributions from districts to intermediate districts, tuition payments, gifts and contributions from individuals, or federal funds that may be available for this purpose, as determined by the intermediate district plan prepared pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766.

(2) From the funds allocated under subsection (1), there is allocated ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 the amount necessary, estimated at ~~$656,000,000.00 for 1999-2000, $126,000,000.00~~ $128,200,000.00 for 2000-2001, ~~$136,000,000.00~~ $138,000,000.00 for 2001-2002, and ~~$147,000,000.00~~ $148,000,000.00 for 2002-2003, for payments toward reimbursing districts and intermediate districts for 28.6138% of total approved costs of special education, excluding costs reimbursed under section 53a, and 70.4165% of total approved costs of special education transportation. Allocations under this subsection shall be made as follows:

(a) The initial amount allocated to a district under this subsection toward fulfilling the specified percentages shall be calculated by multiplying the district's special education pupil membership, excluding pupils described in subsection (12), times the sum of the foundation allowance under section 20 of the pupil's district of residence plus the amount of the district's per pupil allocation under section 20j(2), not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current fiscal year and $5,000.00, or, for a special education pupil in membership in a district that is a public school academy or university school, times an amount equal to the amount per membership pupil calculated under section 20(6). For an intermediate district, the amount allocated under this subdivision toward fulfilling the specified percentages shall be an amount per special education membership pupil, excluding pupils described in subsection (12), and shall be calculated in the same manner as for a district, using the foundation allowance under section 20 of the pupil's district of residence, not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current fiscal year and $5,000.00, and that district's per pupil allocation under section 20j(2). However, beginning in 2002-2003, the $6,500.00 amount prescribed in this subdivision shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, minus $200.00.

(b) After the allocations under subdivision (a), districts and intermediate districts for which the payments under subdivision (a) do not fulfill the specified percentages shall be paid the amount necessary to achieve the specified percentages for the district or intermediate district.

(3) From the funds allocated under subsection (1), there is allocated ~~for 1999-2000~~ EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 the amount necessary, estimated at ~~$38,300,000.00~~ $3,000,000.00 EACH FISCAL YEAR, to make payments to districts and intermediate districts under this subsection. If the amount allocated to a district or intermediate district for a fiscal year under subsection (2)(b) is less than the sum of the amounts allocated to the district or intermediate district for 1996-97 under sections 52 and 58, there is allocated to the district or intermediate district for the fiscal year an amount equal to that difference, adjusted by applying the same proration factor that was used in the distribution of funds under section 52 in 1996-97 as adjusted to the district's or intermediate district's necessary costs of special education used in calculations for the fiscal year. This adjustment is to reflect reductions in special education program operations between 1996-97 and subsequent fiscal years. Beginning in 2000-2001, adjustments for reductions in special education program operations shall be made in a manner determined by the department and shall include adjustments for program shifts.

(4) If the department determines that the sum of the amounts allocated for a fiscal year to a district or intermediate district under subsection (2)(a) and (b) is not sufficient to fulfill the specified percentages in subsection (2), then the shortfall shall be paid to the district or intermediate district during the fiscal year beginning on the October 1 following the determination and payments under subsection (3) shall be adjusted as necessary. If the department determines that the sum of the amounts allocated for a fiscal year to a district or intermediate district under subsection (2)(a) and (b) exceeds the sum of the amount necessary to fulfill the specified percentages in subsection (2), then the department shall deduct the amount of the excess from the district's or intermediate district's payments under this act for the fiscal year beginning on the October 1 following the determination and payments under subsection (3) shall be adjusted as necessary. However, if the amount allocated under subsection (2)(a) in itself exceeds the amount necessary to fulfill the specified percentages in subsection (2), there shall be no deduction under this subsection.

(5) State funds shall be allocated on a total approved cost basis. Federal funds shall be allocated under applicable federal requirements, except that an amount not to exceed $3,500,000.00 each fiscal year may be allocated by the department ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 to districts or intermediate districts on a competitive grant basis for programs, equipment, and services that the department determines to be designed to benefit or improve special education on a statewide scale.

(6) From the amount allocated in subsection (1), there is allocated an amount not to exceed $2,200,000.00 each fiscal year ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 to reimburse 100% of the net increase in necessary costs incurred by a district or intermediate district in implementing the revisions in the administrative rules for special education that became effective on July 1, 1987. As used in this subsection, "net increase in necessary costs" means the necessary additional costs incurred solely because of new or revised requirements in the administrative rules minus cost savings permitted in implementing the revised rules. Net increase in necessary costs shall be determined in a manner specified by the department.

(7) For purposes of this article, all of the following apply:

(a) "Total approved costs of special education" shall be determined in a manner specified by the department and may include indirect costs, but shall not exceed 115% of approved direct costs for section 52 and section 53a programs. The total approved costs include salary and other compensation for all approved special education personnel for the program, including payments for social security and medicare and public school employee retirement system contributions. The total approved costs do not include salaries or other compensation paid to administrative personnel who are not special education personnel as defined in section 6 of the revised school code, MCL 380.6. Costs reimbursed by federal funds, other than those federal funds included in the allocation made under this article, are not included. Special education approved personnel not utilized full time in the evaluation of students or in the delivery of special education programs, ancillary, and other related services shall be reimbursed under this section only for that portion of time actually spent providing these programs and services, with the exception of special education programs and services provided to youth placed in child caring institutions or juvenile detention programs approved by the department to provide an on-grounds education program.

(b) Reimbursement for ancillary and other related services, as defined by R 340.1701 of the Michigan administrative code, shall not be provided when those services are covered by and available through private group health insurance carriers or federal reimbursed program sources unless the department and district or intermediate district agree otherwise and that agreement is approved by the state budget director. Expenses, other than the incidental expense of filing, shall not be borne by the parent. In addition, the filing of claims shall not delay the education of a pupil. A district or intermediate district shall be responsible for payment of a deductible amount and for an advance payment required until the time a claim is paid.

(8) From the allocation in subsection (1), there is allocated each fiscal year ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 an amount not to exceed $15,313,900.00 each fiscal year to intermediate districts. The payment under this subsection to each intermediate district shall be equal to the amount of the 1996-97 allocation to the intermediate district under subsection (6) of this section as in effect for 1996-97.

(9) A pupil who is enrolled in a full-time special education program conducted or administered by an intermediate district or a pupil who is enrolled in the Michigan schools for the deaf and blind shall not be included in the membership count of a district, but shall be counted in membership in the intermediate district of residence.

(10) Special education personnel transferred from 1 district to another to implement the revised school code shall be entitled to the rights, benefits, and tenure to which the person would otherwise be entitled had that person been employed by the receiving district originally.

(11) If a district or intermediate district uses money received under this section for a purpose other than the purpose or purposes for which the money is allocated, the department may require the district or intermediate district to refund the amount of money received. Money that is refunded shall be deposited in the state treasury to the credit of the state school aid fund.

(12) From the funds allocated in subsection (1), there is allocated each fiscal year ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 the amount necessary, estimated at ~~$11,100,000.00 for 1999-2000, $7,700,000.00~~ $6,700,000.00 for 2000-2001, ~~$8,140,000.00~~ $7,100,000.00 for 2001-2002, and ~~$8,350,000.00~~ $7,300,000.00 for 2002-2003 to pay the foundation allowances for pupils described in this subsection. The allocation to a district under this subsection shall be calculated by multiplying the number of pupils described in this subsection who are counted in membership in the district times the sum of the foundation allowance under section 20 of the pupil's district of residence plus the amount of the district's per pupil allocation under section 20j(2), not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current fiscal year and $5,000.00, or, for a pupil described in this subsection who is counted in membership in a district that is a public school academy or university school, times an amount equal to the amount per membership pupil under section 20(6). The allocation to an intermediate district under this subsection shall be calculated in the same manner as for a district, using the foundation allowance under section 20 of the pupil's district of residence, not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current fiscal year and $5,000.00, and that district's per pupil allocation under section 20j(2). However, beginning in 2002-2003, the $6,500.00 amount prescribed in this subsection shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, minus $200.00. This subsection applies to all of the following pupils:

(a) Pupils described in section 53a.

(b) Pupils counted in membership in an intermediate district who are not special education pupils and are served by the intermediate district in a juvenile detention or child caring facility.

(c) Emotionally impaired pupils counted in membership by an intermediate district and provided educational services by the department of community health.

(13) After payments under subsections (2) and (12) and ~~, beginning in 2000-2001,~~ section 51c, the remaining expenditures from the allocation in subsection (1) shall be made in the following order:

(a) 100% of the reimbursement required under section 53a.

(b) 100% of the reimbursement required under subsection (6).

(d) 100% of the payment required under subsection (3).

(e) 100% of the payment required under subsection (8).

(f) 100% of the payments under section 56.

(14) ~~Beginning in 2000-2001, the~~ THE allocations under subsection (2), subsection (3), and subsection (12) shall be allocations to intermediate districts only and shall not be allocations to districts, but instead shall be calculations used only to determine the state payments under section 22b.

Sec. 51c. As required by the court in the consolidated cases known as Durant v ~~the state~~ STATE of Michigan, Michigan supreme court docket no. 104458-104492, from the allocation under section 51a(1), there is allocated for 2000-2001, for 2001-2002, and for 2002-2003 the amount necessary, estimated at ~~$540,300,000.00~~ $529,000,000.00 for 2000-2001, ~~$583,000,000.00~~ $568,000,000.00 for 2001-2002, and ~~$629,100,000.00~~ $611,000,000.00 for 2002-2003, for payments to reimburse districts for 28.6138% of total approved costs of special education excluding costs reimbursed under section 53a, and 70.4165% of total approved costs of special education transportation. FUNDS ALLOCATED UNDER THIS SECTION THAT ARE NOT EXPENDED IN THE STATE FISCAL YEAR FOR WHICH THEY WERE ALLOCATED, AS DETERMINED BY THE DEPARTMENT, MAY BE USED TO SUPPLEMENT THE ALLOCATIONS UNDER SECTIONS 22A AND 22B IN ORDER TO FULLY FUND THOSE CALCULATED ALLOCATIONS FOR THE SAME FISCAL YEAR.

Sec. 53a. (1) For districts, reimbursement for pupils described in subsection (2), reimbursement shall be 100% of the total approved costs of operating special education programs and services approved by the department and included in the intermediate district plan adopted pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766, minus the district's foundation allowance calculated under section 20, and minus the amount of the district's per pupil allocation under section 20j(2). For intermediate districts, reimbursement for pupils described in section (2) shall be calculated in the same manner as for a district, using the foundation allowance under section 20 of the pupil's district of residence, not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current fiscal year and $5,000.00, and that district's per pupil allocation under section 20j(2). However, beginning in 2002-2003, the $6,500.00 amount prescribed in this subsection shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, minus $200.00.

(2) Reimbursement under subsection (1) is for the following special education pupils:

(a) Pupils assigned to a district or intermediate district through the community placement program of the courts or a state agency, if the pupil was a resident of another intermediate district at the time the pupil came under the jurisdiction of the court or a state agency.

(b) Pupils who are residents of institutions operated by the department of community health.

(c) Pupils who are former residents of department of community health institutions for the developmentally disabled who are placed in community settings other than the pupil's home.

(d) Pupils enrolled in a department-approved on-grounds educational program longer than 180 days, but not longer than 233 days, at a residential child care institution, if the child care institution offered in 1991-92 an on-grounds educational program longer than 180 days but not longer than 233 days.

(e) Pupils placed in a district by a parent for the purpose of seeking a suitable home, if the parent does not reside in the same intermediate district as the district in which the pupil is placed.

(3) Only those costs that are clearly and directly attributable to educational programs for pupils described in subsection (2), and that would not have been incurred if the pupils were not being educated in a district or intermediate district, are reimbursable under this section.

(4) The costs of transportation shall be funded under this section ~~but~~ AND shall not be reimbursed under section 58.

(5) Not more than ~~$14,500,000.00 for 1999-2000, and not more than~~ $14,800,000.00 each fiscal year for 2000-2001, 2001-2002, and 2002-2003, of the allocation in section 51a(1) shall be allocated under this section.

(6) From the allocation in subsection (5), there is allocated each fiscal year for 2000-2001, for 2001-2002, and for 2002-2003 an amount not to exceed $150,000.00 to an intermediate district that received at least $1,000,000.00 for 1999-2000 under subsection (4).

Sec. 54. In addition to the aid received under section 52, each intermediate district shall receive an amount per pupil for each pupil in attendance at the Michigan schools for the deaf and blind. The amount shall be proportionate to the total instructional cost at each school. Not more than $1,688,000.00 each fiscal year for ~~1999-2000,~~ 2000-2001, 2001-2002, and 2002-2003 of the allocation in section 51a(1) shall be allocated under this section.

Sec. 56. (1) For the purposes of this section:

(b) "Millage levied" means the millage levied for special education pursuant to part 30 of the revised school code, MCL 380.1711 to 380.1743, including a levy for debt service obligations.

(c) "Taxable value" means the total taxable value of the districts constituent to an intermediate district, except that if a district has elected not to come under part 30 of the revised school code, MCL 380.1711 to 380.1743, membership and taxable value of the district shall not be included in the membership and taxable value of the intermediate district.

(2) From the allocation under section 51a(1), there is allocated an amount not to exceed ~~$38,530,000.00 for 1999-2000,~~ $38,120,000.00 for 2000-2001, $44,720,000.00 for 2001-2002, and $45,360,000.00 for 2002-2003 to reimburse intermediate districts levying millages for special education pursuant to part 30 of the revised school code, MCL 380.1711 to 380.1743. The purpose, use, and expenditure of the reimbursement shall be limited as if the funds were generated by these millages and governed by the intermediate district plan adopted pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766. As a condition of receiving funds under this section, an intermediate district distributing any portion of special education millage funds to its constituent districts shall submit for departmental approval and implement a distribution plan.

(3) Reimbursement for those millages levied in 1998-99 shall be made in 1999-2000 at an amount per 1998-99 membership pupil computed by subtracting from $106,800.00 the 1998-99 taxable value behind each membership pupil, and multiplying the resulting difference by the 1998-99 millage levied. Reimbursement for those millages levied in 1999-2000 shall be made in 2000-2001 at an amount per 1999-2000 membership pupil computed by subtracting from $111,700.00 the 1999-2000 taxable value behind each membership pupil, and multiplying the resulting difference by the 1999-2000 millage levied. Reimbursement for those millages levied in 2000-2001 shall be made in 2001-2002 at an amount per 2000-2001 membership pupil computed by subtracting from $118,000.00 the 2000-2001 taxable value behind each membership pupil and multiplying the resulting difference by the 2000-2001 millage levied. Reimbursement for those millages levied in 2001-2002 shall be made in 2002-2003 at an amount per 2001-2002 membership pupil computed by subtracting from $123,500.00 the 2001-2002 taxable value behind each membership pupil and multiplying the resulting difference by the 2001-2002 millage levied.

(4) From the allocation in subsection (2), there is allocated an amount not to exceed ~~$3,300,000.00 for 1999-2000, an amount not to exceed~~ $2,440,000.00 for 2000-2001, an amount not to exceed $6,820,000.00 for 2001-2002, and an amount not to exceed $7,240,000.00 for 2002-2003 for payments to intermediate districts under this subsection that do not qualify for a payment under subsection (3) for reimbursement for changes as a result of revisions to the personal property tax depreciation tables. ~~The allocation for 1999-2000 includes payments for prior year adjustments in taxable value for changes as a result of revisions to the personal property tax depreciation tables.~~ To receive a payment under this subsection, an intermediate district shall file a claim by July 1 of the fiscal year to the department, detailing the loss of revenue to the intermediate district's special education millage attributable to those revisions. The amount of the payment under this subsection to each intermediate district shall be an amount equal to the same proportion of the total amount of funding available under this subsection as the intermediate district's claim under this section bears to the total amount of claims under this subsection and, notwithstanding section 121, shall not be adjusted for prior year adjustments more than 2 years after the end of the state fiscal year for which payment under this subsection was made.

Sec. 57. (1) From the appropriation in section 11, there is allocated an amount not to exceed $600,000.00 each fiscal year ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 to applicant intermediate districts that provide support services for the education of gifted and talented pupils. An intermediate district is entitled to 75% of the actual salary, but not to exceed $25,000.00 reimbursement for an individual salary, of a support services teacher approved by the department, and not to exceed $4,000.00 reimbursement for expenditures to support program costs, excluding in-county travel and salary, as approved by the department.

(2) From the appropriation in section 11, there is allocated an amount not to exceed $400,000.00 each fiscal year ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 to support part of the cost of summer institutes for gifted and talented students. This amount shall be contracted to applicant intermediate districts in cooperation with a local institution of higher education and shall be coordinated by the department.

(3) From the appropriation in section 11, there is allocated ~~an amount not to exceed $4,000,000.00 for 1999-2000, and~~ an amount not to exceed $5,000,000.00 ~~each fiscal year~~ for 2000-2001, AN AMOUNT NOT TO EXCEED $4,000,000.00 for 2001-2002, and AN AMOUNT NOT TO EXCEED $4,000,000.00 for 2002-2003 for the development and operation of comprehensive programs for gifted and talented pupils. An eligible district or consortium of districts shall receive an amount not to exceed $100.00 per K-12 pupil for up to 5% of the district's or consortium's K-12 membership for the immediately preceding fiscal year with a minimum total grant of $6,000.00. Funding shall be provided in the following order: the per pupil allotment, and then the minimum total grant of $6,000.00 to individual districts. An intermediate district may act as the fiscal agent for a consortium of districts. In order to be eligible for funding under this subsection, the district or consortium of districts shall submit each year a current 3-year plan for operating a comprehensive program for gifted and talented pupils and the district or consortium shall demonstrate to the department that the district or consortium will contribute matching funds of at least $50.00 per K-12 pupil. The plan or revised plan shall be developed in accordance with criteria established by the department and shall be submitted to the department for approval. Within the criteria, the department shall encourage the development of consortia among districts of less than 5,000 memberships.

Sec. 61a. (1) From the appropriation in section 11, there is allocated an amount not to exceed $31,027,600.00 each fiscal year ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 to reimburse on an added cost basis districts, except for a district that served as the fiscal agent for a vocational education consortium in the 1993-94 school year, and secondary area vocational-technical education centers for secondary-level vocational-technical education programs, including parenthood education programs, according to rules approved by the superintendent. Applications for participation in the programs shall be submitted in the form prescribed by the department. The department shall determine the added cost for each vocational-technical program area. The allocation of added cost funds shall be based on the type of vocational-technical programs provided, the number of pupils enrolled, and the length of the training period provided, and shall not exceed 75% of the added cost of any program. With the approval of the department, the board of a district maintaining a secondary vocational-technical education program may offer the program for the period from the close of the school year until September 1. The program shall use existing facilities and shall be operated as prescribed by rules promulgated by the superintendent.

(2) Except for a district that served as the fiscal agent for a vocational education consortium in the 1993-94 school year, districts and intermediate districts shall be reimbursed for local vocational administration, shared time vocational administration, and career education planning district vocational-technical administration. The definition of what constitutes administration and reimbursement shall be pursuant to guidelines adopted by the superintendent. Not more than $800,000.00 of the allocation in subsection (1) shall be distributed under this subsection.

(3) From the allocation in subsection (1), there is allocated an amount not to exceed $388,700.00 each fiscal year to intermediate districts with constituent districts that had combined state and local revenue per membership pupil in the 1994-95 state fiscal year of $6,500.00 or more, served as a fiscal agent for a state board designated area vocational education center in the 1993-94 school year, and had an adjustment made to their 1994-95 combined state and local revenue per membership pupil pursuant to section 20d. The payment under this subsection to the intermediate district shall equal the amount of the allocation to the intermediate district for 1996-97 under this subsection.

Sec. 62. (1) For the purposes of this section:

(a) "Membership" means for a particular fiscal year the total membership for the immediately preceding fiscal year of the intermediate district and the districts constituent to the intermediate district or the total membership for the immediately preceding fiscal year of the area vocational-technical program.

(b) "Millage levied" means the millage levied for area vocational-technical education pursuant to sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, including a levy for debt service obligations incurred as the result of borrowing for capital outlay projects and in meeting capital projects fund requirements of area vocational-technical education.

(c) "Taxable value" means the total taxable value of the districts constituent to an intermediate district or area vocational-technical education program, except that if a district has elected not to come under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, the membership and taxable value of that district shall not be included in the membership and taxable value of the intermediate district. However, the membership and taxable value of a district that has elected not to come under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, shall be included in the membership and taxable value of the intermediate district if the district meets both of the following:

(i) The district operates the area vocational-technical education program pursuant to a contract with the intermediate district.

(ii) The district contributes an annual amount to the operation of the program that is commensurate with the revenue that would have been raised for operation of the program if millage were levied in the district for the program under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690.

(2) From the appropriation in section 11, there is allocated an amount not to exceed ~~$9,880,000.00 for 1999-2000, an amount not to exceed~~ $9,810,000.00 for 2000-2001, an amount not to exceed $11,190,000.00 for 2001-2002, and an amount not to exceed $11,330,000.00 for 2002-2003 to reimburse intermediate districts and area vocational-technical education programs established under section 690(3) of the revised school code, MCL 380.690, levying millages for area vocational-technical education pursuant to sections 681 to 690 of the revised school code, MCL 380.681 to 380.690. The purpose, use, and expenditure of the reimbursement shall be limited as if the funds were generated by those millages.

(3) Reimbursement for the millages levied in 1998-99 shall be made in 1999-2000 at an amount per 1998-99 membership pupil computed by subtracting from $108,800.00 the 1998-99 taxable value behind each membership pupil, and multiplying the resulting difference by the 1998-99 millage levied. Reimbursement for the millages levied in 1999-2000 shall be made in 2000-2001 at an amount per 1999-2000 membership pupil computed by subtracting from $114,300.00 the 1999-2000 taxable value behind each membership pupil, and multiplying the resulting difference by the 1999-2000 millage levied. Reimbursement for the millages levied in 2000-2001 shall be made in 2001-2002 at an amount per 2000-2001 membership pupil computed by subtracting from $121,500.00 the 2000-2001 taxable value behind each membership pupil, and multiplying the resulting difference by the 2000-2001 millage levied. Reimbursement for the millages levied in 2001-2002 shall be made in 2002-2003 at an amount per 2001-2002 membership pupil computed by subtracting from $127,600.00 the 2001-2002 taxable value behind each membership pupil, and multiplying the resulting difference by the 2001-2002 millage levied.

(4) From the allocation in subsection (2), there is allocated an amount not to exceed ~~$670,000.00 for 1999-2000, an amount not to exceed~~ $500,000.00 for 2000-2001, an amount not to exceed $1,380,000.00 for 2001-2002, and an amount not to exceed $1,470,000.00 for 2002-2003 for payments to intermediate districts under this subsection that do not qualify for a payment under subsection (3) for reimbursement for changes as a result of revisions to the personal property tax depreciation tables. ~~The allocation for 1999-2000 includes payments for prior year adjustments in taxable value for changes as a result of revisions to the personal property tax depreciation tables.~~ To receive a payment under this subsection, an intermediate district shall file a claim by July 1 of the fiscal year to the department, detailing the loss of revenue to the intermediate district's vocational education millage attributable to those revisions. The amount of the payment under this subsection to each intermediate district shall be an amount equal to the same proportion of the total amount of funding available under this subsection as the intermediate district's claim under this section bears to the total amount of claims under this subsection and, notwithstanding section 121, shall not be adjusted for prior year adjustments more than 2 years after the end of the state fiscal year for which payment under this subsection was made.

Sec. 63. (1) From the general fund appropriation in section 11, there is allocated an amount not to exceed $1,800,000.00 ~~each fiscal year for 1999-2000, 2000-2001, 2001-2002, and 2002-2003~~ FOR 2000-2001 for implementation of the Michigan manufacturing technology program for the corresponding school years as provided under this section.

(2) From the allocation in subsection (1), there is allocated $1,800,000.00 ~~each fiscal year~~ to the department, in conjunction with the department of career development, to award competitive grants for the purpose of improving manufacturing technology programs offered by public education agencies. The maximum amount of a grant under this subsection shall not exceed $50,000.00 ~~each fiscal year~~ for each public education agency determined to be eligible for funding.

(3) Applications for grants under subsection (2) shall be submitted in a form and manner determined by the department, in conjunction with the department of career development. Criteria for funding shall include all of the following:

(a) The public education agency operates a manufacturing technology program, is a participating agency in a regional career preparation plan described in section 68, and has the support of the local workforce development board for submission of the grant application.

(b) The public education agency offers employer-provided instruction for its pupils as part of its manufacturing technology curriculum.

(d) Any other criteria determined by the department, in conjunction with the department of career development.

(4) Grants awarded under subsection (2) shall be used by eligible public education agencies for activities intended to increase the amount of employer-provided instruction provided to pupils and to increase pupil awareness of manufacturing technology programs.

(5) The department, in conjunction with the department of career development, shall consider the potential for graduates to be placed in high-wage, high-demand positions upon completion of the manufacturing technology program in its determination of grant awards.

(6) Grants under subsection (2) shall be awarded by the department no later than May 31 before the beginning of ~~each~~ THE fiscal year and paid out to the grant recipients in total no later than October 1 of the fiscal year for which the grant is awarded. Funds may be used by grant recipients to support allowable expenditures in the following school year.

Sec. 67. (1) From the general fund appropriation in section 11, there is allocated an amount not to exceed $350,000.00 each fiscal year ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 for Michigan career preparation system grants under this section.

(2) From the allocation in subsection (1), there is allocated $150,000.00 each fiscal year ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 to the department to identify uniform career competency standards and assessments for career clusters, to establish a statewide information system on current and anticipated employment opportunities and the required level of skills and education required for employment.

(3) From the allocation in subsection (1), there is allocated $100,000.00 each fiscal year ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 to the department to provide information to parents, pupils, school personnel, employers, and others regarding opportunities to receive integrated academic and technical preparation in the public schools of this state.

(4) From the allocation in subsection (1), there is allocated $100,000.00 each fiscal year ~~for 1999-2000,~~ 2000-2001, 2001-2002, and 2002-2003 to the department to provide technical assistance to eligible education agencies and workforce development boards.

(5) As used in this section and in section 68:

(a) "Advanced career academy" means a career-technical education program operated by a district, by an intermediate district, or by a public school academy, that applies for and receives advanced career academy designation from the department. To receive this designation, a career-technical education program shall meet criteria established by the department, which criteria shall include at least all of the following:

(i) Operation of programs for those career clusters identified by the department as being eligible for advanced career academy status.

(ii) Involvement of employers in the design and implementation of career-technical education programs.

(iii) A fully integrated program of academic and technical education available to pupils.

(iv) Demonstration of an established career preparation system resulting in industry-validated career ladders for graduates of the program, including, but not limited to, written articulation agreements with postsecondary institutions to allow pupils to receive advanced college placement and credit or federally registered apprenticeships, as applicable.

(b) "Career cluster" means a grouping of occupations from 1 or more industries that share common skill requirements.

(c) "Career preparation system" is a system of programs and strategies providing pupils with opportunities to prepare for success in careers of their choice.

(d) "Department" means the department of career development.

(e) "Eligible education agency" means a district, intermediate district, or advanced career academy that participates in an approved regional career preparation plan.

(f) "FTE" means full-time equivalent pupil as determined by the department.

(g) "Workforce development board" means a local workforce development board established pursuant to ~~the job training partnership act, Public Law 97-300, 96 Stat. 1322, or, beginning July 1, 2000,~~ the workforce investment act of 1998, Public Law 105-220, 112 Stat. 936, and the school-to-work opportunities act of 1994, Public Law 103-239, 108 Stat. 568, or the equivalent.

(h) "Strategic plan" means a department-approved comprehensive plan prepared by a workforce development board with input from local representatives, including the education advisory group, that includes career preparation system goals and objectives for the region.

Sec. 68. (1) From the general fund appropriation in section 11, there is allocated an amount not to exceed ~~$23,850,000.00~~ $21,850,000.00 each fiscal year ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 to be used to implement the Michigan career preparation system in the corresponding school years as provided under this section. From this allocation, the department may reserve an amount not to exceed $2,000,000.00 each fiscal year for career-technical education programs that have achieved designation as an advanced career academy. In order to receive funds under this section, an eligible education agency shall be part of an approved regional career preparation plan under subsection (2) and shall agree to expend the funds required under this section in accordance with the regional career preparation plan. Funds awarded under this section that are not expended in accordance with this section may be recovered by the department.

(2) In order to receive funding under this section, an eligible education agency shall be a part of an approved 3-year regional career preparation plan that is consistent with the workforce development board's strategic plan and is as described in this subsection. All of the following apply to a regional career preparation plan:

(a) A 3-year regional career preparation plan shall be developed under subdivisions (b), (c), and (d) for all public education agencies participating as part of a regional career preparation system within the geographical boundaries of a workforce development board, and revised annually. If an intermediate district is located within the geographical boundaries of more than 1 workforce development board, the board of the intermediate district shall choose 1 workforce development board with which to align and shall notify the department of this choice not later than October 31, 1997.

(b) The regional career preparation plan shall be developed by representatives of the education advisory group of each workforce development board in accordance with guidelines developed under former section 67(5), and in accordance with subdivisions (d) and (e). All of the following shall be represented on each education advisory group: workforce development board members, other employers, labor, districts, intermediate districts, postsecondary institutions, career/technical educators, parents of public school pupils, and academic educators. The representatives of districts, intermediate districts, and postsecondary institutions appointed to the education advisory group by the workforce development board shall be individuals designated by the board of the district, intermediate district, or postsecondary institution.

(c) By majority vote, the education advisory group may nominate 1 education representative, who may or may not be a member of the education advisory group, for appointment to the workforce development board. This education representative shall be in addition to existing education representation on the workforce development board. This education representative shall meet all workforce development board membership requirements.

(d) The components of the regional career preparation plan shall include, but are not limited to, all of the following:

(i) The roles of districts, intermediate districts, advanced career academies, postsecondary institutions, employers, labor representatives, and others in the career preparation system.

(ii) Programs to be offered, including at least career exploration activities, for middle school pupils.

(iii) Identification of integrated academic and technical curriculum, including related professional development training for teachers.

(iv) Identification of work-based learning opportunities for pupils and for teachers and other school personnel.

(v) Identification of testing and assessments that will be used to measure pupil achievement.

(vi) Identification of all federal, state, local, and private sources of funding available for career preparation activities in the region.

(e) The education advisory group shall develop a 3-year regional career preparation plan consistent with the workforce development board's strategic plan and submit the plan to the department for final approval. The submission to the department shall also include statements signed by the chair of the education advisory group and the chair of the workforce development board certifying that the plan has been reviewed by each entity. Upon department approval, all eligible education agencies designated in the regional career preparation plan as part of the career preparation delivery system are eligible for funding under this section.

(3) Funding under this section shall be distributed to eligible education agencies for allowable costs defined in this subsection and identified as necessary costs for implementing a regional career preparation plan, as follows:

(a) For ~~1999-2000 and~~ 2000-2001, the department shall rank all career clusters, including career exploration, guidance, and counseling. Rank determination will be based on median salary data in career clusters and employment opportunity data provided by the council for career preparation standards. In addition, rank determination shall be based on placement data available for prior year graduates of the programs in the career clusters either in related careers or postsecondary education. The procedure for ranking of career clusters shall be determined by the department.

(b) Allowable costs to be funded under this section shall be determined by the department. Budgets submitted by eligible education agencies to the department in order to receive funding shall identify funds and in-kind contributions from the regional career education plan, excluding funds or in-kind contributions available as a result of funding received under section 61a, equal to at least 100% of anticipated funding under this section. Eligible categories of allowable costs are the following:

(i) Career exploration, guidance, and counseling.

(ii) Curriculum development, including integration of academic and technical content, and professional development for teachers directly related to career preparation.

(iii) Technology and equipment determined to be necessary.

(iv) Supplies and materials directly related to career preparation programs.

(v) Work-based learning expenses for pupils, teachers, and counselors.

(vi) Evaluation, including career competency testing and peer review.

(vii) Career placement services.

(viii) Student leadership organizations integral to the career preparation system.

(ix) Up to 10% of the allocation to an eligible education agency may be expended for planning, coordination, direct oversight, and accountability for the career preparation system.

(c) For ~~1999-2000 and~~ 2000-2001, the department shall calculate career preparation costs per FTE for each career cluster, including career exploration, guidance, and counseling, by dividing the allowable costs for each career cluster by the prior year FTE enrollment for each career cluster. Distribution to eligible education agencies shall be the product of 50% of career preparation costs per FTE times the current year FTE enrollment of each career cluster. This allocation shall be distributed to eligible education agencies in decreasing order of the career cluster ranking described in subdivision (a) until the money allocated for grant recipients in this section is distributed. Beginning in 2001-2002, funds shall be distributed to eligible education agencies according to workforce development board geographic area consistent with subsection (2)(a) based upon the proportion of each workforce development board area's K-12 public school membership to the total state K-12 public school membership.

(4) The department shall establish a review procedure for assessing the career preparation system in each region.

(5) An education advisory group is responsible for assuring the quality of the career preparation system. An education advisory group shall review the career preparation system in accordance with evaluation criteria established by the department.

(6) An education advisory group shall report its findings and recommendations for changes to the participating eligible education agencies, the workforce development board, and the department.

(7) The next revision of a regional career preparation plan shall take into account the findings of the education advisory group in accordance with evaluation criteria established by the department in order for the affected education agencies to receive continued funding under this section.

Sec. 74. (1) From the amount appropriated in section 11, there is allocated an amount not to exceed $1,625,000.00 each fiscal year ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 for the purposes of subsections (2) and (3).

(2) From the allocation in subsection (1), there is allocated each fiscal year the amount necessary for payments to state supported colleges or universities and intermediate districts providing school bus driver safety instruction or driver skills road tests pursuant to sections 51 and 52 of the pupil transportation act, 1990 PA 187, MCL 257.1851 and 257.1852. The payments shall be in an amount determined by the department not to exceed 75% of the actual cost of instruction and driver compensation for each public or nonpublic school bus driver attending a course of instruction. For the purpose of computing compensation, the hourly rate allowed each school bus driver shall not exceed the hourly rate received for driving a school bus. Reimbursement compensating the driver during the course of instruction or driver skills road tests shall be made by the department to the college or university or intermediate district providing the course of instruction.

(3) From the allocation in subsection (1), there is allocated each fiscal year the amount necessary to pay the reasonable costs of nonspecial education auxiliary services transportation provided pursuant to section 1323 of the revised school code, MCL 380.1323. Districts funded under this subsection shall not receive funding under any other section of this act for nonspecial education auxiliary services transportation.

Sec. 81. (1) Except as otherwise provided in this section, from the appropriation in section 11, there is allocated each fiscal year ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 to the intermediate districts the sum necessary, but not to exceed ~~$83,363,400.00 for 1999-2000, not to exceed~~ $87,781,700.00 for 2000-2001, not to exceed $92,170,800.00 for 2001-2002, and not to exceed $95,028,100.00 for 2002-2003 to provide state aid to intermediate districts under this section. Except as otherwise provided in this section, there shall be allocated to each intermediate district for 1999-2000 an amount equal to 104.4% of the amount of funding actually received by the intermediate district under this subsection for 1998-99. Except as otherwise provided in this section, there shall be allocated to each intermediate district for 2000-2001 an amount equal to 105.3% of the amount of funding actually received by the intermediate district under this subsection for 1999-2000. Except as otherwise provided in this section, there shall be allocated to each intermediate district for 2001-2002 an amount equal to 105% of the amount of funding actually received by the intermediate district under this subsection for 2000-2001. Except as otherwise provided in this section, there shall be allocated to each intermediate district for 2002-2003 an amount equal to 103.1% of the amount of funding actually received by the intermediate district under this subsection for 2001-2002. Funding provided under this section shall be used to comply with requirements of this act and the revised school code that are applicable to intermediate districts, and for which funding is not provided elsewhere in this act, and to provide technical assistance to districts as authorized by the intermediate school board.

(2) From the allocation in subsection (1), there is allocated to an intermediate district, formed by the consolidation or annexation of 2 or more intermediate districts or the attachment of a total intermediate district to another intermediate school district or the annexation of all of the constituent K-12 districts of a previously existing intermediate school district which has disorganized, an additional allotment of $3,500.00 each fiscal year for each intermediate district included in the new intermediate district for 3 years following consolidation, annexation, or attachment.

(3) If an intermediate district participated in 1993-94 in a consortium operating a regional educational media center under section 671 of the revised school code, MCL 380.671, and rules promulgated by the superintendent, and if the intermediate district obtains written consent from each of the other intermediate districts that participated in the consortium in 1993-94, the intermediate district may notify the department not later than December 30 of the current fiscal year that it is electing to directly receive its payment attributable to participation in that consortium. An intermediate district making that election, and that has obtained the necessary consent, shall receive each fiscal year ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003, as applicable, for each pupil in membership in the intermediate district or a constituent district an amount equal to the quotient of the 1993-94 allocation to the fiscal agent for that consortium under former section 83, adjusted as determined by the department to account for that election, divided by the combined total membership for the current fiscal year in all of the intermediate districts that participated in that consortium and their constituent districts. The amount allocated to an intermediate district under this subsection for a fiscal year shall be deducted from the total allocation for that fiscal year under this section to the intermediate district that was the 1993-94 fiscal agent for the consortium.

(4) During a fiscal year, the department shall not increase an intermediate district's allocation under subsection (1) because of an adjustment made by the department during the fiscal year in the intermediate district's taxable value for a prior year. Instead, the department shall report the adjustment and the estimated amount of the increase to the house and senate fiscal agencies and the state budget director not later than June 1 of the fiscal year, and the legislature shall appropriate money for the adjustment in the next succeeding fiscal year.

(5) From the appropriation in section 11, there is allocated an amount not to exceed ~~$360,000.00 for 1999-2000 an amount not to exceed~~ $320,000.00 for 2000-2001, an amount not to exceed $890,000.00 for 2001-2002, and an amount not to exceed $940,000.00 for 2002-2003 for payments to intermediate districts under this subsection for reimbursement for changes as a result of revisions to the personal property tax depreciation tables. To receive a payment under this subsection, an intermediate district shall file a claim by July 1 of the fiscal year to the department, detailing the loss of revenue to the intermediate district's operational millage attributable to those revisions. The amount of the payment under this subsection to each intermediate district shall be an amount equal to the same proportion of the total amount of funding available under this subsection as the intermediate district's claim under this subsection bears to the total amount of the claims under this subsection and, notwithstanding section 121, shall not be adjusted for prior year adjustments more than 2 years after the end of the state fiscal year for which payment under this subsection was made.

(6) In order to receive funding under this section, an intermediate district shall demonstrate to the satisfaction of the department that the intermediate district employs at least 1 person who is trained in pupil counting procedures, rules, and regulations.

Sec. 94. From the general fund money appropriated in section 11, there is allocated to the department ~~an amount not to exceed $1,500,000.00 for 1999-2000,~~ an amount not to exceed $3,000,000.00 for 2000-2001, an amount not to exceed ~~$5,000,000.00~~ $3,000,000.00 for 2001-2002, and an amount not to exceed ~~$10,000,000.00~~ $5,000,000.00 for 2002-2003 to provide technical assistance to districts for school accreditation purposes as described in section 1280 of the revised school code, MCL 380.1280.

Sec. 94a. (1) From the general fund appropriation in section 11, there is allocated ~~an amount not to exceed $10,000,000.00 for 1999-2000,~~ an amount not to exceed $2,160,000.00 for 2000-2001, an amount not to exceed $2,332,000.00 for 2002, and an amount not to exceed $2,519,000.00 for 2002-2003 for payments to the ~~database~~ CENTER for educational performance and information created pursuant to executive order.

(2) The goals of the ~~database~~ CENTER for educational performance and information shall be to improve the quality and quantity of educational data available to teachers, school administrators, parents, taxpayers, and others.

(3) A portion of the funds allocated under this section may be used for funding to districts to cover additional costs resulting from implementation of the ~~database~~ CENTER for educational performance and information.

(4) Funds allocated under this section that are not expended in the fiscal year in which they were allocated may be carried forward to a subsequent fiscal year. FROM THE FUNDS ALLOCATED FOR 1999-2000 THAT WERE CARRIED FORWARD UNDER THIS SUBSECTION, THE CENTER SHALL PAY DISTRICTS GRANTS FOR NET COSTS INCURRED FROM 1998-1999 THROUGH 2002-2003 DUE TO THE IMPLEMENTATION OF THE SINGLE RECORD STUDENT DATABASE. THE CENTER SHALL ALSO PAY INTERMEDIATE DISTRICTS GRANTS FOR NET COSTS INCURRED FROM 1998-1999 THROUGH 2002-2003 DUE TO THE IMPLEMENTATION OF THE SINGLE RECORD STUDENT DATABASE ON BEHALF OF CONSTITUENT DISTRICTS. NET COSTS SHALL BE DETERMINED AND THE AMOUNT OF THE GRANT CALCULATED IN A MANNER DETERMINED BY THE CENTER. PURPOSES FOR WHICH THE CENTER SHALL MAKE GRANTS TO DISTRICTS AND INTERMEDIATE DISTRICTS MAY INCLUDE PURCHASES OF SOFTWARE TO SUBMIT DATA FILES TO THE MICHIGAN EDUCATION INFORMATION SYSTEM OR NEW STUDENT INFORMATION MANAGEMENT SYSTEMS COMPATIBLE WITH THE SINGLE RECORD STUDENT DATABASE OR COSTS ASSOCIATED WITH THE DEVELOPMENT OF THE SINGLE RECORD STUDENT DATABASE. THE DISTRICT OR INTERMEDIATE DISTRICT SHALL PROVIDE WRITTEN JUSTIFICATION OF THESE NET COSTS TO THE CENTER FOR EDUCATION PERFORMANCE AND INFORMATION. PURPOSES FOR WHICH A GRANT IS MADE MUST BE APPROVED BY THE CENTER. THIS REIMBURSEMENT SHALL NOT EXCEED A TOTAL OF $2.00 PER PUPIL FOR EACH DISTRICT OR INTERMEDIATE DISTRICT.

Sec. 95. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed ~~$10,000,000.00~~ $0.00 each fiscal year for 2000-2001, 2001-2002, and for 2002-2003 for payments to districts and intermediate districts under this section.

(2) If a district or intermediate district provides a teacher professional development training program required under section 1527 of the revised school code, MCL 380.1527, during time that is not part of the time scheduled for pupil instruction in the district's or intermediate district's school calendar and if the district does not elect to use the hours of pupil instruction exception under section 101(11), there is allocated to the district or intermediate district an amount sufficient to reimburse the district or intermediate district for the full per diem compensation paid to the participants in that program.

Sec. 96. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed ~~$8,000,000.00 each fiscal year for 1999-2000, for 2000-2001, for 2001-2002, and for 2002-2003 for~~ $50,000.00 FOR 2000-2001 FOR ADJUSTING golden apple awards under this section FOR 1999-2000. The awards shall be based on elementary school achievement on the fourth grade and fifth grade Michigan education assessment program (MEAP) tests, AS DETERMINED BY THE DEPARTMENT OF TREASURY.

(2) To SUBJECT TO SUBSECTION (4), TO be eligible for a golden apple award, an elementary school shall ~~have~~ MEET ALL OF THE FOLLOWING REQUIREMENTS:

(A) THE ELEMENTARY SCHOOL HAS at least 50 pupils in membership. ~~and shall meet the following requirements:~~

(a) For 1999-2000, at least 80% of the fourth and fifth grade pupils enrolled and in regular daily attendance in the school on the pupil membership count day in that school year took the applicable MEAP tests, and 1 or both of the following are met:

(i) The composite score for the pupils in the school who took the applicable MEAP tests increased by at least 60 points over the 2 consecutive school years immediately preceding the state fiscal year in which the award is given.

(ii) The test scores for the pupils in the school who took the applicable MEAP tests are among the highest elementary school scores statewide, as determined by the department of treasury, for that school year.

(b) ~~Beginning in 2000-2001, at~~ AT least 90% of the fourth and fifth grade pupils enrolled and in regular daily attendance in the ELEMENTARY school on the pupil membership count day in that school year took the applicable MEAP tests, and 1 or both of the following are met:

(i) The composite score for the pupils in the ELEMENTARY school who took the applicable MEAP tests increased by at least 60 points over the 2 consecutive school years immediately preceding the state fiscal year in which the award is given.

(ii) The test scores for the pupils in the ELEMENTARY school who took the applicable MEAP tests are among the highest elementary school scores statewide, as determined by the department of treasury, for that school year.

(3) IN CALCULATING THE PERCENTAGE OF PUPILS THAT TOOK THE APPLICABLE MEAP TESTS FOR THE PURPOSES OF SUBSECTION (2), THE DEPARTMENT OF TREASURY SHALL NOT COUNT A SPECIAL EDUCATION PUPIL AS PART OF THE ELEMENTARY SCHOOL'S ENROLLMENT IF ALL OF THE FOLLOWING APPLY:

(A) THE PUPIL'S INDIVIDUALIZED EDUCATION PROGRAM PROVIDES THAT THE PUPIL WILL NOT TAKE ANY OF THE APPLICABLE MEAP TESTS.

(B) AT LEAST 10% OF THE GRADE 4 AND 5 PUPILS ENROLLED IN THE ELEMENTARY SCHOOL ARE SPECIAL EDUCATION PUPILS, AS DETERMINED BY THE DEPARTMENT.

(4) IF AN ELEMENTARY SCHOOL CONSISTS OF MULTIPLE SCHOOLS, WITH GRADE 4 OPERATED BY A DIFFERENT SCHOOL OR SCHOOLS THAN GRADE 5, THEN FOR THE ELEMENTARY SCHOOL TO BE ELIGIBLE FOR A GOLDEN APPLE AWARD, THE ELEMENTARY SCHOOL MUST MEET THE REQUIREMENTS UNDER SUBSECTION (2) AND SHALL PROVIDE TO THE DEPARTMENT OF TREASURY ANY INFORMATION THE DEPARTMENT OF TREASURY CONSIDERS NECESSARY TO MAKE THE DETERMINATION OF WHETHER THAT ELEMENTARY SCHOOL MEETS THOSE REQUIREMENTS. A DETERMINATION BY THE DEPARTMENT OF TREASURY UNDER THIS SUBSECTION IS FINAL. IF AN ELEMENTARY SCHOOL QUALIFIES UNDER THIS SUBSECTION FOR A GOLDEN APPLE AWARD, THE AWARD TO THE ELEMENTARY SCHOOL SHALL BE PAID TO THE DISTRICT THAT OPERATES THE ELEMENTARY SCHOOL. THE DISTRICT SHALL DISTRIBUTE THE AWARD TO THE COMPONENT SCHOOL OPERATING GRADE 4.

(5) ~~(3)~~ A golden apple award under this section shall be allocated to and used by a district exclusively for the purpose of distributing funds to each eligible elementary school. A golden apple award shall consist of $1,000.00 per each full-time employee who works in the ~~eligible elementary~~ school OPERATING GRADE 4 plus $10,000.00 to be allocated to the principal of ~~the~~ THAT school for school improvements, but shall not be less than $50,000.00 per recipient ELEMENTARY school. All money allocated under this section per full-time employee shall be used for school improvements FOCUSED ON GRADES K TO 5, as determined collectively by a majority vote of ~~those~~ THE FULL-TIME employees WHO WORK AT THE SCHOOL OPERATING GRADE 4.

~~(4) Funds allocated under this section that are not expended in the state fiscal year for which they were allocated may be carried forward to a subsequent state fiscal year.~~

(6) AS USED IN THIS SECTION, "ELEMENTARY SCHOOL" MEANS A SCHOOL OPERATING BOTH GRADES 4 AND 5, OR A COMBINATION OF A SCHOOL OPERATING GRADE 4 AND 1 OR MORE OTHER SCHOOLS THAT OPERATE GRADE 5 AND RECEIVE PUPILS FROM THE SCHOOL OPERATING GRADE 4.

Sec. 98. (1) From the general fund money appropriated in section 11, there is allocated an amount not to exceed $15,000,000.00 for 2000-2001, and an amount not to exceed $1,500,000.00 each fiscal year for 2001-2002 and for 2002-2003 to the department to provide a grant EACH FISCAL YEAR to the Michigan virtual university for the development, implementation, and operation of the Michigan virtual high school.

(2) The Michigan virtual high school shall have the following goals:

(a) Significantly expand curricular offerings for high schools across this state through agreements with districts or licenses from other recognized providers.

(b) Create statewide instructional models using interactive multimedia tools delivered by electronic means, including, but not limited to, the internet, digital broadcast, or satellite network, for distributed learning at the high school level.

(d) Offer teachers opportunities to learn new skills and strategies for developing and delivering instructional services.

(e) Accelerate this state's ability to respond to current and emerging educational demands.

(f) Grant high school diplomas through a dual enrollment method with districts.

(g) Act as a broker for college level equivalent courses, as defined in section 1471 of the revised school code, MCL 380.1471, and dual enrollment courses from postsecondary education institutions.

(3) The Michigan virtual high school course offerings shall include, but are not limited to, all of the following:

(a) Information technology courses.

(b) College level equivalent courses, as defined in section 1471 of the revised school code, MCL 380.1471.

(d) Programs and services for at-risk pupils.

(e) General education development test preparation courses for adjudicated youth.

(f) Special interest courses.

(g) Professional development programs and services for teachers.

(4) Funds allocated under this section that are not expended in the state fiscal year for which they were allocated may be carried forward to a subsequent state fiscal year.

Sec. 99. (1) From the state school aid fund appropriation in section 11, there is allocated ~~an amount not to exceed $7,904,900.00 for 1999-2000,~~ an amount not to exceed $9,270,000.00 for 2000-2001, an amount not to exceed ~~$10,684,300.00~~ $9,684,300.00 for 2001-2002, and an amount not to exceed ~~$10,984,500.00~~ $9,784,500.00 for 2002-2003, and from the general fund appropriation in section 11 there is allocated ~~an amount not to exceed $400,000.00 for fiscal year 1999-2000,~~ an amount not to exceed $475,100.00 for 2000-2001, an amount not to exceed $548,000.00 for 2001-2002, and an amount not to exceed $596,000.00 for 2002-2003 for implementing the comprehensive master plan for mathematics and science centers developed by the department and approved by the state board on February 17, 1993.

(2) Within a service area designated locally, approved by the department, and consistent with the master plan described in subsection (1), an established mathematics and science center shall address 2 or more of the following 6 basic services, as described in the master plan, to constituent districts and communities: leadership, pupil services, curriculum support, community involvement, professional development, and resource clearinghouse services.

(3) The department shall not award a grant under this section to more than 1 mathematics and science center located in a particular intermediate district unless each of the grants serves a distinct target population or provides a service that does not duplicate another program in the intermediate district.

(4) As part of the technical assistance process, the department shall provide minimum standard guidelines that may be used by the mathematics and science center for providing fair access for qualified pupils and professional staff as prescribed in this section.

(5) Allocations under this section to support the activities and programs of mathematics and science centers shall be continuing support grants to all 25 established mathematics and science centers and, subject to subsection (9), the 8 satellite extensions that were funded in 1996-97. ~~Each~~ BEGINNING IN 2000-2001, EACH established mathematics and science center that was funded in 1999-2000 shall receive an amount equal to ~~103%~~ 105.3% of the amount it received under this section in 1999-2000.

(6) In order to receive funds under this section, a grant recipient shall allow access for the department or the department's designee to audit all records related to the program for which it receives such funds. The grant recipient shall reimburse the state for all disallowances found in the audit.

(7) From the state school aid fund allocation under subsection (1), there is allocated an amount not to exceed $611,800.00 each fiscal year for ~~1999-2000,~~ 2000-2001, 2001-2002, and 2002-2003 for additional funding under this subsection for mathematics and science centers that have come into compliance with the comprehensive master plan described in subsection (1). These amounts are in addition to the funding determined under subsection (5) and are as follows for each of those fiscal years:

(a) $68,000.00 each to the central Michigan science, mathematics, and technology center; the Hillsdale-Lenawee-Monroe mathematics and science center; the St. Clair mathematics, science, and technology network; the Saginaw valley state university regional center; the Genesee area mathematics, science, and technology center; the Grand Traverse area regional mathematics, science, and technology center; and the Livingston/Washtenaw mathematics and science center.

(b) $85,000.00 to the Grand valley state university regional mathematics and science center.

(8) Not later than June 30, 2000, the department shall reevaluate and update the comprehensive master plan described in subsection (1), including any recommendations for upgrading satellite extensions to full centers.

(9) During the course of the 2000-2001 and 2001-2002 fiscal years, the department shall facilitate the conversion of the 8 existing satellite extensions to full mathematics and science centers. To this end, in 2000-2001 the department shall provide 4 satellite extensions, as selected by the department, with applications for conversion to full centers, and in 2001-2002 the department shall provide the remaining 4 satellite extensions with applications for conversion. The department shall provide the applications not later than October 15 of the applicable fiscal year; a satellite extension shall submit the application and a detail plan as prescribed by the department not later than November 15 of the applicable fiscal year; and the department shall review the applications and plans and notify the satellite extensions of their status not later than December 1 of the applicable fiscal year. The allocations under this section are sufficient to fund the conversion of the satellite extensions to full centers and to fund them as full centers.

(10) Beginning in 2001-2002, the total amount allocated under this section for a fiscal year shall be increased from the total amount allocated under this section for the immediately preceding fiscal year by the same percentage as the percentage increase in the amount of the basic foundation allowance under section 20 for that fiscal year from the amount of the basic foundation allowance under section 20 for the immediately preceding fiscal year.

Sec. 107. (1) From the appropriation in section 11, there is allocated ~~for 1999-2000, for 2000-2001, for 2001-2002, and for 2002-2003~~ an amount not to exceed $80,000,000.00 ~~each fiscal year~~ FOR 2000-2001 AND AN AMOUNT NOT TO EXCEED $75,000,000.00 EACH FISCAL YEAR FOR 2001-2002 AND FOR 2002-2003 for adult education programs authorized under this section.

(2) To be eligible to be a participant funded under this section, a person shall be enrolled in an adult basic education program, an adult English as a second language program, a general education development (G.E.D.) test preparation program, a job or employment related program, or a high school completion program, that meets the requirements of this section, and shall meet either of the following, as applicable:

(a) If the individual has obtained a high school diploma or a general education development (G.E.D.) certificate, the individual meets 1 of the following:

(i) Is less than 20 years of age on September 1 of the school year and is enrolled in the state technical institute and rehabilitation center.

(ii) Is less than 20 years of age on September 1 of the school year, is not attending an institution of higher education, and is enrolled in a job or employment-related program through a referral by an employer.

(iii) Is enrolled in an English as a second language program.

(iv) Is enrolled in a high school completion program.

(b) If the individual has not obtained a high school diploma or G.E.D. certificate, is at least 20 years of age on September 1 of the school year.

(3) The amount allocated under subsection (1) shall be distributed as follows:

(a) For districts and consortia that received payments for 1995-96 under former section 107f and that received payments for 1996-97 under subsection (4) of this section as in effect in 1996-97, the amount allocated to each ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and 2002-2003 shall be an amount each fiscal year equal to 36.76% of the amount the district or consortium received for 1995-96 under former section 107f.

(b) For districts and consortia that received payments under subsection (3) of this section as in effect for 1996-97, the amount allocated to each ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 shall be an amount each fiscal year equal to the product of the number of full-time equated participants actually enrolled and in attendance during the 1996-97 school fiscal year in the program funded under subsection (3) of this section as in effect for 1996-97 as reported to the department, audited, and adjusted according to subsection (10) of this section as in effect for 1996-97, multiplied by $2,750.00.

(c) For districts and consortia that meet the conditions of both subdivisions (a) and (b), the amount allocated each fiscal year ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, and for 2002-2003 shall be the sum of the allocations to the district or consortium under subdivisions (a) and (b).

(d) A district or consortium that received funding in 1996-97 under this section as in effect for 1996-97 may operate independently of a consortium or join or form a consortium ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, or for 2002-2003. The allocation ~~for 1999-2000,~~ for 2000-2001, for 2001-2002, or for 2002-2003 to the district or the newly formed consortium under this subsection shall be determined by the department and shall be based on the proportion of the amounts specified in subdivision (a) or (b), or both, that are attributable to the district or consortium that received funding in 1996-97. A district or consortium described in this subdivision shall notify the department of its intention with regard to ~~1999-2000,~~ 2000-2001, 2001-2002, or 2002-2003 by October 1 of the affected fiscal year.

(4) A district that operated an adult education program in 1996-97 and does not intend to operate a program in ~~1999-2000,~~ 2000-2001, 2001-2002, or 2002-2003 shall notify the department by October 1 of the affected fiscal year of its intention. The funds intended to be allocated under this section to a district that does not operate a program in ~~1999-2000,~~ 2000-2001, 2001-2002, or 2002-2003 and the unspent funds originally allocated under this section to a district or consortium that subsequently operates a program at less than the level of funding allocated under subsection (3) shall instead be proportionately reallocated to the other districts described in subsection (3)(a) that are operating an adult education program in ~~1999-2000,~~ 2000-2001, 2001-2002, or 2002-2003 under this section.

(5) The amount allocated under this section per full-time equated participant is $2,850.00 for a 450-hour program. The amount shall be proportionately reduced for a program offering less than 450 hours of instruction.

(6) An adult basic education program or an adult English as a second language program operated on a year-round or school year basis may be funded under this section, subject to all of the following:

(a) The program enrolls adults who are determined by an appropriate assessment to be below ninth grade level in reading or mathematics, or both, or to lack basic English proficiency.

(b) The program tests individuals for eligibility under subdivision (a) before enrollment and tests participants to determine progress after every 90 hours of attendance, using assessment instruments approved by the department.

(i) The participant's reading and mathematics proficiency are assessed at or above the ninth grade level.

(ii) The participant fails to show progress on 2 successive assessments after having completed at least 450 hours of instruction.

(d) A funding recipient enrolling a participant in an English as a second language program is eligible for funding according to subsection (10) until the participant meets 1 of the following:

(i) The participant is assessed as having attained basic English proficiency.

(ii) The participant fails to show progress on 2 successive assessments after having completed at least 450 hours of instruction. The department shall provide information to a funding recipient regarding appropriate assessment instruments for this program.

(7) A general education development (G.E.D.) test preparation program operated on a year-round or school year basis may be funded under this section, subject to all of the following:

(a) The program enrolls adults who do not have a high school diploma.

(b) The program shall administer a G.E.D. pre-test approved by the department before enrolling an individual to determine the individual's potential for success on the G.E.D. test, and shall administer other tests after every 90 hours of attendance to determine a participant's readiness to take the G.E.D. test.

(c) A funding recipient shall receive funding according to subsection (10) for a participant, and a participant may be enrolled in the program until 1 of the following occurs:

(i) The participant passes the G.E.D. test.

(ii) The participant fails to show progress on 2 successive tests used to determine readiness to take the G.E.D. test after having completed at least 450 hours of instruction.

(8) A high school completion program operated on a year-round or school year basis may be funded under this section, subject to all of the following:

(a) The program enrolls adults who do not have a high school diploma.

(b) A funding recipient shall receive funding according to subsection (10) for a participant in a course offered under this subsection until 1 of the following occurs:

(i) The participant passes the course and earns a high school diploma.

(ii) The participant fails to earn credit in 2 successive semesters or terms in which the participant is enrolled after having completed at least 900 hours of instruction.

(9) A job or employment-related adult education program operated on a year-round or school year basis may be funded under this section, subject to all of the following:

(a) The program enrolls adults referred by their employer who are less than 20 years of age, have a high school diploma, are determined to be in need of remedial mathematics or communication arts skills and are not attending an institution of higher education.

(b) An individual may be enrolled in this program and the grant recipient shall receive funding according to subsection (10) until 1 of the following occurs:

(i) The individual achieves the requisite skills as determined by appropriate assessment instruments administered at least after every 90 hours of attendance.

(ii) The individual fails to show progress on 2 successive assessments after having completed at least 450 hours of instruction. The department shall provide information to a funding recipient regarding appropriate assessment instruments for this program.

(10) A funding recipient shall receive payments under this section in accordance with the following:

(a) Ninety percent for enrollment of eligible participants.

(b) Ten percent for completion of the adult basic education objectives by achieving an increase of at least 1 grade level of proficiency in reading or mathematics; for achieving basic English proficiency; for passage of the G.E.D. test; for passage of a course required for a participant to attain a high school diploma; or for completion of the course and demonstrated proficiency in the academic skills to be learned in the course, as applicable.

(11) As used in this section, "participant" means the sum of the number of full-time equated individuals enrolled in and attending a department-approved adult education program under this section, using quarterly participant count days on the schedule described in section 6(7)(b).

(12) A person who is not eligible to be a participant funded under this section may receive adult education services upon the payment of tuition. In addition, a person who is not eligible to be served in a program under this section due to the program limitations specified in subsection (6), (7), (8), or (9) may continue to receive adult education services in that program upon the payment of tuition. The tuition level shall be determined by the local or intermediate district conducting the program.

(13) An individual who is an inmate in a state correctional facility shall not be counted as a participant under this section.

(14) A district shall not commingle money received under this section or from another source for adult education purposes with any other funds of the district. A district receiving adult education funds shall establish a separate ledger account for those funds. This subsection does not prohibit a district from using general funds of the district to support an adult education or community education program.

(15) The department shall work with the department of education to ensure that this section is administered in the same manner as in 1998-99.

(16) As used in this section and section 108, "department" means the department of career development.

Sec. 108. (1) From the general fund appropriation in section 11, there is allocated ~~for 2000-2001, 2001-2002, and 2002-2003~~ an amount not to exceed $20,000,000.00 ~~each fiscal year~~ FOR 2000-2001 AND THERE IS ALLOCATED $0.00 EACH FISCAL YEAR FOR 2001-2002 AND FOR 2002-2003 for partnership for adult learning programs authorized under this section.

(2) To be eligible to be enrolled as a participant in an adult learning program funded under this section, a person shall be at least 16 years of age as of September 1 of the immediately preceding state fiscal year and shall meet the following, as applicable:

(a) If the individual has obtained a high school diploma or a general education development (G.E.D.) certificate, the individual is determined to have English language proficiency, reading, writing, or math skills below workforce readiness standards as determined by department-approved tests and is not enrolled in a postsecondary institution. An individual who has obtained a high school diploma is not eligible for enrollment in a G.E.D. test preparation program funded under this section.

(b) If the individual has not obtained a high school diploma or a G.E.D. certificate, the individual has not attended a secondary institution for at least 6 months before enrollment in an adult learning program funded under this section and is not enrolled in a postsecondary institution.

(3) From the allocation under subsection (1), an amount not to exceed $19,800,000.00 is allocated ~~each fiscal year~~ for 2000-2001 , AND $0.00 IS ALLOCATED EACH FISCAL YEAR for 2001-2002 , and for 2002-2003 to local workforce development boards for the purpose of providing regional adult learning programs. An application for a grant under this subsection shall be in the form and manner prescribed by the department. Subject to subsections (4), (5), and (6), the amount allocated to each local workforce development board shall be as provided in this subsection, except that an eligible local workforce development board shall not receive an initial allocation under this section that is less than $70,000.00. The maximum amount of a grant awarded to an eligible local workforce development board shall be the sum of the following components:

(a) Thirty-four percent of the allocation under this subsection multiplied by the proportion of the family independence agency caseload in the local workforce development board region to the statewide family independence agency caseload.

(b) Thirty-three percent of the allocation under this subsection multiplied by the proportion of the number of persons in the local workforce development board region over age 17 who have not received a high school diploma compared to the statewide total of persons over age 17 who have not received a high school diploma.

(c) Thirty-three percent of the allocation under this subsection multiplied by the proportion of the number of persons in the local workforce development board region over age 17 for whom English is not a primary language compared to the statewide total of persons over age 17 for whom English is not a primary language.

(4) The amount of a grant to a local workforce development board under subsection (3) shall not exceed the cost for adult learning programs needed in the local workforce development board region, as documented in a manner approved by the department.

(5) Not more than 9% of a grant awarded to a local workforce development board may be used for program administration, including contracting for the provision of career and educational information, counseling services, and assessment services.

(6) In order to receive funds under this section, a local workforce development board shall comply with the following requirements in a manner approved by the department:

(a) The local workforce development board shall document the need for adult learning programs in the local workforce development region.

(b) The local workforce development board shall report participant outcomes and other measurements of program performance.

(c) The local workforce development board shall develop a strategic plan that incorporates adult learning programs in the region. ~~Beginning in 2001-2002, a local workforce development board is not eligible for state funds under this section without a department-approved strategic plan.~~

(d) The local workforce development board shall furnish to the department, in a form and manner determined by the department, the information the department determines is necessary to administer this section.

(e) The local workforce development board shall allow access for the department or the department's designee to audit all records related to adult learning programs for which it receives funds. The local workforce development board shall reimburse this state for all disallowances found in the audit in a manner determined by the department.

(7) Local workforce development boards shall distribute funds to eligible adult learning providers as follows:

(a) Not less than 85% of a grant award shall be used to support programs that improve reading, writing, and math skills to workforce readiness standards; English as a second language programs; G.E.D. preparation programs; high school completion programs; or workforce readiness programs in the local workforce development board region. These programs may include the provision of career and educational information, counseling services, and assessment services.

(b) Up to 15% of a grant award may be used to support workforce readiness programs for employers in the local workforce development board region as approved by the department. Employers or consortia of employers whose employees participate in these programs must provide matching funds in a ratio of at least $1.00 of private funds for each $1.00 of state funds.

(8) Local workforce development boards shall award competitive grants to eligible adult learning providers for the purpose of providing adult learning programs in the local workforce development board region. Applications shall be in a form and manner prescribed by the department. In awarding grants, local workforce development boards shall consider all of the following:

(a) The ability of the provider to assess individuals before enrollment using department-approved assessment tools and to develop individual adult learner plans from those assessments for each participant.

(b) The ability of the provider to conduct continuing assessments in a manner approved by the department to determine participant progress toward achieving the goals established in individual adult learner plans.

(c) The past effectiveness of an eligible provider in improving adult literacy skills and, beginning in 2001-2002, the success of an eligible provider in meeting or exceeding department-approved performance measures.

(d) Whether the program is of sufficient intensity and duration for participants to achieve substantial learning gains.

(e) Whether the program uses research-based instructional practices that have proven to be effective in teaching adult learners.

(f) Whether the program uses advances in technology, as appropriate, including computers.

(g) Whether the programs are staffed by well-trained teachers, counselors, and administrators.

(h) Whether the activities coordinate with other available resources in the community, such as schools, postsecondary institutions, job training programs, and social service agencies.

(i) Whether the provider offers flexible schedules and support services, such as child care and transportation, that enable participants, including individuals with disabilities or other special needs, to attend and complete programs.

(j) Whether the provider offers adequate job and postsecondary education counseling services.

(k) Whether the provider can maintain an information management system that has the capacity to report participant outcomes and monitor program performance against department-approved performance measures.

(l) Whether the provider will allow access for the local workforce development board or its designee to audit all records related to adult learning programs for which it receives funds. The adult learning provider shall reimburse the local workforce development board for all disallowances found in the audit.

(m) The cost per participant contact hour or unit of measurable outcome for each type of adult learning program for which the provider is applying.

~~(9) Beginning in 2001-2002, contracts awarded by local workforce development boards to adult learning providers shall comply with the priorities established in a department-approved strategic plan.~~

(9) ~~(10)~~ Adult learning providers that do not agree with the decisions of the local workforce development board in issuing or administering competitive grants may use the grievance procedure established by the department.

(10) ~~(11)~~ Local workforce development boards shall reimburse eligible adult learning providers under this section as follows:

(a) For a first-time provider, as follows:

(i) Fifty percent of the contract amount shall be allocated to eligible adult learning providers based upon enrollment of participants in adult learning programs. "Enrollment" means a participant enrolled in the program who received a preenrollment assessment using department-approved assessment tools and for whom an individual adult learner plan has been developed.

(ii) Fifty percent of the contract amount shall be allocated to eligible adult learning providers based upon the following performance standards as measured in a department-approved manner:

(A) The percentage of participants taking both a pretest and a posttest in English language proficiency, reading, writing, and math.

(B) The percentage of participants showing improvement toward goals identified in their individual adult learner plan.

(b) Beginning in 2001-2002, eligible providers that have provided adult learning programs previously under this section shall be reimbursed 100% of the contract amount based upon the performance standards in subdivision (a)(ii) as measured in a manner determined by the department.

(B) ~~(c)~~ A provider is eligible for reimbursement for a participant in an adult learning program until the participant's reading, writing, or math proficiency, as applicable, is assessed at workforce readiness levels or the participant fails to show progress on 2 successive assessments as determined by the department.

(C) ~~(d)~~ A provider is eligible for reimbursement for a participant in an English as a second language program until the participant is assessed as having attained basic English proficiency or the participant fails to show progress on 2 successive assessments as determined by the department.

(D) ~~(e)~~ A provider is eligible for reimbursement for a participant in a G.E.D. test preparation program until the participant passes the G.E.D. test or the participant fails to show progress on 2 successive assessments as determined by the department.

(E) ~~(f)~~ A provider is eligible for reimbursement for a participant in a high school completion program until the participant earns a high school diploma or the participant fails to show progress as determined by the department.

(11) ~~(12)~~ A person who is not eligible to be a participant funded under this section may receive adult learning services upon the payment of tuition or fees for service. The tuition or fee level shall be determined by the adult learning provider and approved by the local workforce development board.

(12) ~~(13)~~ Adult learning providers may collect refundable deposits from participants for the use of reusable equipment and supplies and may provide incentives for program completion.

(13) ~~(14)~~ A provider shall not be reimbursed under this section for an individual who is an inmate in a state correctional facility.

(14) ~~(15)~~ In order to administer the partnership for adult learning system under this section, the department shall do all of the following:

(a) Develop and provide guidelines to local workforce development boards for the development of strategic plans that incorporate adult learning.

(b) Develop and provide adult learning minimum program performance standards to be implemented by local workforce development boards.

(c) Identify approved assessment tools for assessing a participant's English language proficiency, reading, math, and writing skills.

(d) Approve workforce readiness standards for English language proficiency, reading, math, and writing skills that can be measured by department-approved, nationally recognized assessment tools.

(15) ~~(16)~~ Of the amount allocated in subsection (1), up to $200,000.00 is allocated to the department for the development and administration of a standardized data collection system. Beginning in 2001-2002, local workforce development boards and adult learning providers receiving funding under this section shall use the standardized data collection system for enrolling participants in adult learning programs, tracking participant progress, reporting participant outcomes, and reporting other performance measures.

(16) ~~(17)~~ A provider is not required to use certificated teachers or certificated counselors to provide instructional and counseling services in a program funded under this section.

(17) ~~(18)~~ As used in this section:

(a) "Adult education", for the purposes of complying with section 3 of article VIII of the state constitution of 1963, means a high school pupil receiving educational services in a nontraditional setting from a district or intermediate district in order to receive a high school diploma.

(b) "Adult learning program" means a department-approved program that improves reading, writing, and math skills to workforce readiness standards; an English as a second language program; a G.E.D. preparation program; a high school completion program; or a workforce readiness program that enhances employment opportunities.

(d) "Eligible adult learning provider" means a district, public school academy, intermediate district, community college, university, community-based organization, or other organization approved by the department that provides adult learning programs under a contract with a local workforce development board.

(e) "Participant" means an individual enrolled in an adult learning program and receiving services from an eligible adult learning provider.

(f) "Strategic plan" means a department-approved document that incorporates adult learning goals and objectives for the local workforce development board region and is developed jointly by the local workforce development board and the education advisory groups.

(g) "Workforce development board" means a local workforce development board established pursuant to the workforce investment act of 1998, Public Law 105-220, 112 Stat. 936, and the school-to-work opportunities act of 1994, Public Law 103-239, 108 Stat. 568, or the equivalent.

(h) "Workforce readiness standard" means a department-approved level of English language, reading, writing, or mathematics proficiency, or any and all of these, as determined by results from assessments approved for use by the department.

Sec. 147. (1) The allocations for ~~1999-2000,~~ 2000-2001, 2001-2002, and 2002-2003 for the public school employees' retirement system pursuant to the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to ~~38.1467~~ 38.1408, shall be made using the entry age normal cost actuarial method and risk assumptions adopted by the public school employees retirement board and the department of management and budget. The ~~annual level percentage of payroll contribution rate for the 1999-2000 state fiscal year is estimated at 11.66% and the~~ annual level percentage

of payroll contribution rate for the 2000-2001 state fiscal year is estimated at 12.16% AND THE ANNUAL LEVEL PERCENTAGE OF PAYROLL CONTRIBUTION RATE FOR THE 2001-2002 STATE FISCAL YEAR IS ESTIMATED AT 12.17%. The portion of the contribution rate assigned to districts and intermediate districts for each fiscal year is all of the total percentage points. This contribution rate reflects an amortization period of ~~37 years for 1999-2000 and~~ 36 years for 2000-2001 AND 35 YEARS FOR 2001-2002. The public school employees' retirement system board shall notify each district and intermediate district by February 28 of each fiscal year of the estimated contribution rate for the next fiscal year.

(2) It is the intent of the legislature that the amortization period described in section 41(2) of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, be reduced to 30 years by the end of the 2005-2006 state fiscal year by reducing the amortization period by not more than 1 year each fiscal year.

Enacting section 1. In accordance with section 30 of article IX of the state constitution of 1963, total state spending in this amendatory act and in 1999 PA 119 and 2000 PA 297 from state sources for fiscal year 2000-2001 is estimated at $10,724,335,000.00 state appropriations to be paid to local units of government for fiscal year 2000-2001 are estimated at $10,666,875,300.00; total state spending in this amendatory act and 2000 PA 297 from state sources for fiscal year 2001-2002 is estimated at $11,227,313,400.00 and state appropriations to be paid to local units of government for fiscal year 2001-2002 are estimated at $11,211,486,600.00; and total state spending in this amendatory act and 2000 PA 297 from state sources for fiscal year 2002-2003 is estimated at $11,438,573,800.00 and state appropriations to be paid to local units of government for fiscal year 2002-2003 are estimated at $11,422,560,100.00.

Enacting section 2. (1) Sections 11k and 35 of the state school aid act of 1979, 1979 PA 94, MCL 388.1611k and 388.1635, are repealed.

(2) Sections 20k and 98a of the state school aid act of 1979, 1979 PA 94, MCL 388.1620k and 388.1698a, are repealed effective October 1, 2001.

(3) Section 1282a of the revised school code, 1976 PA 451, MCL 380.1282a, is repealed.

(4) Section 221 of 2001 PA 42 is repealed.

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

A bill to amend 1979 PA 94, entitled "An act to make appropriations to aid in the support of the public schools and the intermediate school districts of the state; to make appropriations for certain other purposes relating to education; to provide for the disbursement of the appropriations; to supplement the school aid fund by the levy and collection of certain taxes; to authorize the issuance of certain bonds and provide for the security of those bonds; to prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to prescribe penalties; and to repeal acts and parts of acts," by amending sections 6, 11, 11f, 11g, 20, 20j, 22a, 22b, 22c, 24, 25b, 26a, 31a, 31d, 32a, 32b, 32c, 32d, 32e, 32f, 32g, 32h, 33, 41, 51a, 51c, 53a, 54, 56, 57, 61a, 62, 63, 67, 68, 74, 81, 94, 94a, 95, 96, 98, 99, 107, 108, and 147 (MCL 388.1606, 388.1611, 388.1611f, 388.1611g, 388.1620, 388.1620j, 388.1622a, 388.1622b, 388.1622c, 388.1624, 388.1625b, 388.1626a, 388.1631a, 388.1631d, 388.1632a, 388.1632b, 388.1632c, 388.1632d, 388.1632e, 388.1632f, 388.1632g, 388.1632h, 388.1633, 388.1641, 388.1651a, 388.1651c, 388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662, 388.1663, 388.1667, 388.1668, 388.1674, 388.1681, 388.1694, 388.1694a, 388.1695, 388.1696, 388.1698, 388.1699, 388.1707, 388.1708, and 388.1747), sections 6, 11, 11f, 11g, 20, 20j, 24, 26a, 31a, 31d, 33, 41, 51a, 53a, 54, 56, 57, 61a, 62, 63, 67, 68, 74, 81, 94, 99, 107, and 147 as amended and sections 22a, 22b, 22c, 25b, 32a, 32b, 32c, 32d, 32e, 32g, 32h, 51c, 94a, 95, 96, 98, and 108 as added by 2000 PA 297 and section 32f as amended by 2000 PA 388, and by adding sections 18d and 25c; and to repeal acts and parts of acts.

Ron Jelinek

Tony Stamas

Conferees for the House

Leon Stille

Dan L. DeGrow

Conferees for the Senate

The Speaker announced that under Joint Rule 9 the conference report would lie over one day.

Rep. Patterson moved pursuant to Joint Rule 9, that the Journal printing requirement be suspended, printed copies of the conference report having been placed on the members' desks.

The motion prevailed.

The question being on the adoption of the conference report,

The conference report was then adopted, a majority of the members serving voting therefor, by yeas and nays, as follows:

Roll Call No. 453 Yeas--62

Allen George Kuipers Sanborn

Birkholz Gilbert Lemmons Scranton

Bisbee Gosselin McConico Shackleton

Bishop Hager Meyer Sheltrown

Bradstreet Hart Middaugh Shulman

Brown, C. Howell Mortimer Stallworth

Cassis Hummel Newell Stamas

Caul Jansen Pappageorge Tabor

Daniels Jelinek Patterson Toy

DeRossett Johnson, Rick Pestka Van Woerkom

DeVuyst Johnson, Ruth Raczkowski Vander Roest

DeWeese Julian Reeves Vander Veen

Drolet Kilpatrick Richardville Vear

Ehardt Koetje Richner Voorhees

Faunce Kooiman Rocca Woronchak

Garza Kowall

Nays--44

Anderson Gieleghem Mans Rivet

Basham Godchaux Mead Schauer

Bernero Hale Minore Spade

Bogardus Hansen Murphy Stewart

Bovin Hardman Neumann Switalski

Brown, B. Jacobs O'Neil Waters

Brown, R. Jamnick Phillips Whitmer

Callahan Kolb Plakas Williams

Clark, I. LaSata Pumford Wojno

Dennis Lipsey Quarles Woodward

Frank Lockwood Rison Zelenko

In The Chair: Julian

Rep. Patterson moved that the bill be given immediate effect.

The motion prevailed, 2/3 of the members serving voting therefor.

Messages from the Governor

The following line items veto message from the Governor was received and read:

Executive Office, Lansing, July 23, 2001

Michigan House of Representatives

State Capitol Building

Lansing, Michigan 48909

Ladies and Gentlemen:

Today I have signed Enrolled House Bill 4254, the Fiscal Year 2002 Department of Community Health appropriation. However, I am returning it to you because of items of which I disapprove, pursuant to Article V, Section 19, of the Michigan Constitution. The specific items vetoed are contained within the attached copy of the bill that has been filed with the Secretary of State.

This bill appropriates over $8.6 billion, an amount that represents a significant commitment to the health of Michigan's citizens. Highlights of the bill include:

* The appropriation of over $5.6 billion to support the Medicaid program, which provides health care for 1.1 million low income residents of Michigan. I commend you for protecting this essential program from budgetary reductions, even in this constrained economy.

* The provision of nearly $2 billion to support mental health and substance abuse services. The continuance of this generous level of funding to Community Mental Health Service Programs will support quality care for those most in need.

* The Department of Community Health was given unprecedented flexibility to develop a plan to curtail prescription drug cost increases. My goal is to design pharmacy options that encourage "best practice" drug utilization and still obtain the savings assumed in this bill.

* A rate increase for the Children's Waiver Program that will bring its rates into alignment with those paid to other Medicaid providers.

* The appropriation of nearly $600 million for other public health and aging programs.

Several appropriations and policies included in this bill are inconsistent with my recommendations and I have directed the Department of Community Health to address them in the following manner:

* Summer Food Service Program I am instructing the Department to delay implementation of this federal program until it can be determined that the federal government will provide sufficient funding to support the administrative costs of the program.

* Home and Community Based Waiver Services This bill includes language, Section 1689, which will increase per recipient costs, but it fails to provide additional funding to finance these costs. I urge the Legislature to rescind this policy. In the interim, I have instructed the Department to reduce the number of participants in the program to insure that spending does not exceed the $126 million appropriation.

As members of the Legislature are aware, the State of Michigan is now experiencing a period of constrained revenue. More than ever, we need to be certain that we focus available funding on high priority programs that efficiently and effectively utilize taxpayer resources. While many of the new initiatives you included in this bill have merit, I am unwilling to begin new initiatives in this difficult economic period. Accordingly, I have found it necessary to veto the items discussed below.

I have vetoed the following appropriations because they inappropriately restrict funding to selected providers or specific areas of the state: Section 906, Section 1021, Section 1023, Section 1121, Section 1127, and Section 2203.

I am vetoing the following appropriations because they deviate unacceptably from my recommendation and divert funding from higher priority initiatives: the Senior Olympics line item, Section 419, Section 1008, Section 1115, Section 1125, the Early Childhood Collaborative Secondary Prevention line item (and associated boilerplate in Section 1126), and Section 1688.

I have vetoed Section 1686, which allows nursing homes to reduce licensed beds and maintain eliminated space as an allowable Medicaid cost, because it is unlikely that this policy will qualify for federal matching funds. However, I am instructing the Department to convene a workgroup with the industry to formulate a policy that addresses the industry's bed surplus problem and complies with federal regulations.

I have vetoed funding for refurbishing the Beaver Island medical clinic that is included in this bill in Section 1644. Fiscal constraints require that we focus our limited resources on the Mackinac Island upgrade, a facility with a much greater patient load. I will, however, consider supporting funding for the Beaver Island clinic in the Fiscal Year 2003 budget.

Finally, I am vetoing the following language sections because they inappropriately place restrictions on revenues not yet received by the state: Section 224 and Section 1124.

While I have found it necessary to make numerous modifications to the bill you sent me, I have concurred with the vast majority of your appropriation actions. I appreciate the Legislature's cooperation in the development of the Department of Community Health's appropriation bill.

Sincerely,

John Engler

Governor

This bill was signed by the Governor, July 23, 2001, at 1:40 p.m.

The bill was filed with the Secretary of State, July 24, 2001, at 10:12 a.m. and assigned Public Act No. 60, I.E.

The question being on the passage of the disapproved items, the objections of the Governor to the contrary notwithstanding,

Rep. Patterson moved that the bill be re-referred to the Committee on Appropriations.

The motion prevailed.

Rep. Patterson moved that House Committees be given leave to meet during the balance of today's session.

The motion prevailed.

By unanimous consent the House returned to the order of

Motions and Resolutions

Reps. Vander Roest, Julian, Hale, Middaugh, DeRossett, Richardville, Stewart, Ehardt, Shulman, Spade, Callahan, Wojno, Gieleghem, Kowall, Stamas, Faunce, Van Woerkom, Meyer, Lipsey, Jelinek, Howell, Dennis, Cassis, Voorhees, George, Tabor, Bishop, Jamnick, Mans, Basham, Whitmer, Woodward, Sheltrown, Bernero, Rich Brown, Vander Veen, Bradstreet, Hardman, Kolb, Shackleton, Kilpatrick, Pestka, Frank, Raczkowski, Rocca, Kuipers, Toy, Kooiman, LaSata, Murphy and Neumann offered the following resolution:

House Resolution No. 182.

A resolution to condemn the terrorist attacks of September 11, 2001, and to pledge Michigan's full support to the President and the recovery efforts.

Whereas, With suddenness and shock that have etched the events into the collective consciousness of the world, the terrorist attacks of September 11, 2001, have called the American people to action. The response of the country and much of the world, ranging from blood donations to monetary offerings to prayer, reflect a fact borne out repeatedly in the aftermath of this nightmare: terrorism cannot quell the spirit of this nation; and

Whereas, The painful realities of our vulnerability to massive-scale terrorism will undoubtedly herald many changes in how we conduct our daily affairs in commerce, recreation, and travel. The shattering of our sense of security, however, does not alter or threaten the essence of our country. Instead, the people of the United States will respond with the flexibility and sense of renewal in the face of challenge that mark the greatest strength of democracy; and

Whereas, The perpetrators of the death and devastation visited upon New York, Washington, and Pennsylvania clearly understand little about the true character of our people. They have miscalculated the effect of their deeds. Emerging from the ruins and rubble in Manhattan, the crumbled walls of the Pentagon, and a field southeast of Pittsburgh is a stronger nation, with its men, women, and institutions devoted to each other even more fervently than only a few days ago; now, therefore, be it

Resolved by the House of Representatives, That we condemn the terrorist attacks of September 11, 2001, and pledge Michigan's full support to the President and the recovery efforts; and be it further

Resolved, That copies of this resolution be transmitted to the Office of the President of the United States, the governors of Pennsylvania and New York, and the mayor of New York City.

The resolution was referred to the Committee on House Oversight and Operations.

Rep. Rocca offered the following resolution:

House Resolution No. 183.

A resolution commemorating the grand opening of the Philippine American Community Center of Michigan.

Whereas, We are proud to join with the members and officers of the Filipino-American Community Council of Michigan and their families and friends as they gather to mark the grand opening of their community center. This milestone is a reflection of the unselfishness and commitment to the common good that is most commendable. While the members of this distinguished organization celebrate almost 20 years of service, we offer our thanks for the contributions they have made within southeast Michigan and throughout the entire state; and

Whereas, The tremendous growth of its membership accurately reflects the success of this organization. These concerned citizens have truly made a difference, and their professional and civic involvement will continue to enrich our state far into the twenty-first century; and

Whereas, Due to the endeavors of the members who have channeled their efforts through this organization, we are confident that the Philippine American Community Center of Michigan will accomplish its goal to foster excellence through the development, promotion, and preservation of Philippine values, culture, and tradition; and

Whereas, The members of the Philippine American community give to the American people, and to the citizens of Michigan, a very important gift, a rich culture based on traditional values of family, religion, and strong work ethics. The American and Philippine people have had a strong bond for generations. The political, cultural, and economic bond that we have has been cemented by the mutual respect and admiration we have for one another; and

Whereas, The heritage of the Philippine people enriches our own culture, for America is a melting pot, and America's culture is a rich blend of many cultures. This legislative body welcomes the heritage, culture, and contributions of the Philippine American community to our state and nation; and

Whereas, It is with pride and gratitude that we welcome this opportunity to salute the many merits in which the Philippine American community has given their time and energies to help whenever the need arose; and

Whereas, With ceremonies to celebrate its history, the members, families, and friends of the Filipino-American Community Council of Michigan will remember the visions of many people and years of commitment that have brought the group to this point. Fittingly, as they look to the past, they will also be casting an eye to the future and to the many ways in which the Philippine American Community Center of Michigan will provide excellence in service to others; now, therefore, be it

Resolved by the House of Representatives, That the members of this legislative body commemorate the grand opening of the Philippine American Community Center of Michigan. We commend everyone who has contributed to its success and thank them for the manner in which their members have strengthened Michigan; and be it further

Resolved, That a copy of this resolution be transmitted to the Filipino-American Community Council of Michigan in commemoration of the grand opening of their community center.

Pending the reference of the resolution to a committee,

Rep. Patterson moved that Rule 77 be suspended and the resolution be considered at this time.

The motion prevailed, 3/5 of the members present voting therefor.

The question being on the adoption of the resolution,

The resolution was adopted.

The Speaker, on behalf of the entire membership of the House of Representatives, offered the following resolution:

House Resolution No. 184.

A resolution in recognition of the Honorable Louise Alderson for her years of service to the citizens of Michigan and upon the occasion of her investiture as Judge of the 54A District Court.

Whereas, In grateful recognition of her loyal service to the state of Michigan, we offer our sincere appreciation and congratulations to Judge Louise Alderson as she leaves her post as Governor Engler's Legislative Director and assumes her responsibilities as Judge of the 54A District Court; and

Whereas, The House of Representatives and the Legislature as a whole have had the pleasure of working closely with Judge Alderson over the past five years, first as Governor Engler's Deputy Legislative Director and for the last four years as his Legislative Director; and

Whereas, Judge Alderson served honorably and with distinction as Assistant Prosecuting Attorney for Clinton county from 1989 to 1993, acquiring valuable experience and knowledge of the criminal justice system. This make her an exceptional choice for the district court bench; and

Whereas, From 1993 to 1995, Judge Alderson provided loyal and knowledgeable service to the members of this very chamber as Legal Counsel to the House Judiciary and Public Utilities Committees and the Joint Committee on Administrative Rules; and

Whereas, Judge Alderson is well-known throughout state government for her professionalism, integrity, good temperament, and strong work ethic. It is these very qualities that have earned her the respect and trust of Representatives and Senators from both political parties. Outstanding individuals like Judge Alderson bring high regard and honor to a career in public service; and

Whereas, Judge Alderson is a lifelong resident of the Lansing area. She is active in many legal and community endeavors. She is a member of the State Bar Association, MSU Criminal Justice Alumni Board of Directors, Relief After Violence Encounter Board of Directors, Council Against Child Abuse and Neglect, Big Brothers Big Sisters, and the Lansing area Neighborhood Watch Program; now, therefore, be it

Resolved by the House of Representatives, That the members of this legislative body salute this talented and devoted public servant upon her departure from the halls of the state capitol to the courtroom. May she always reflect fondly upon her years of service to state government and take pride in her contributions to the welfare of the great state of Michigan; and be it further

Resolved, That a copy of this resolution be transmitted to the Honorable Louise Alderson as evidence of our sincere appreciation and esteem.

Pending the reference of the resolution to a committee,

Rep. Patterson moved that Rule 77 be suspended and the resolution be considered at this time.

The motion prevailed, 3/5 of the members present voting therefor.

The question being on the adoption of the resolution,

The resolution was adopted.

Reports of Select Committees

Senate Bill No. 233, entitled

A bill to make appropriations for the department of consumer and industry services and certain other state purposes for the fiscal year ending September 30, 2002; 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 Senate has adopted the report of the second Committee of Conference and ordered that the bill be given immediate effect.

The Conference Report was read as follows:

Second Conference Report

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

Senate Bill No. 233, entitled

Recommends:

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

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. The amounts listed in this part are appropriated for the department of consumer and industry services, subject to the conditions set forth in this act, for the fiscal year ending September 30, 2002, from the funds identified in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

APPROPRIATION SUMMARY:

Full-time equated unclassified positions 64.5

Full-time equated classified positions 4,178.4

GROSS APPROPRIATION $ 569,869,500

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 111,800

ADJUSTED GROSS APPROPRIATION $ 569,757,700

Federal revenues:

Total federal revenues 239,954,500

Special revenue funds:

Total local revenues 0

Total private revenues 740,000

Total other state restricted revenues 286,291,400

State general fund/general purpose $ 42,771,800

Sec. 102. EXECUTIVE DIRECTION

Full-time equated unclassified positions 64.5

Full-time equated classified positions 97.0

Unclassified salaries $ 5,621,300

Executive director programs--12.0 FTE positions 1,857,100

Policy development--13.0 FTE positions 1,661,400

Utility consumer representation 550,000

Regulatory efficiency improvements/backlog reduction initiative 750,000

MES board of review program--21.0 FTE positions 1,740,800

Bureau of hearings--41.0 FTE positions 4,226,400

Energy office--10.0 FTE positions 2,609,500

GROSS APPROPRIATION $ 19,016,500

Appropriated from:

Federal revenues:

DOE-OEERE, multiple grants 2,165,700

DOL-ETA, unemployment insurance 2,154,800

DOL, multiple grants for safety and health 158,400

Special revenue funds:

Bank fees 156,000

Boiler fees 31,300

Construction code fund 358,200

Consumer finance fees 59,400

Corporation fees 2,126,900

Credit union fees 117,700

Elevator fees 36,900

Fees and collections/asbestos 12,000

Health professions regulatory fund 1,299,900

Health systems fees and collections 75,700

Insurance regulatory fees 586,300

Licensing and regulation fees 602,600

Liquor license fees 100,000

Liquor purchase revolving fund 1,476,100

Manufactured housing commission fees 141,300

Michigan state housing development authority fees and charges 411,800

Motor carrier fees 35,200

Public utility assessments 2,017,600

Safety education and training fund 242,300

Second injury fund 81,400

Securities fees 1,751,100

Self-insurers security fund 21,500

Silicosis and dust disease fund 31,000

Tax tribunal fees 1,100

Utility consumer representation fund 550,000

Worker's compensation administrative revolving fund 90,000

State general fund/general purpose $ 2,124,300

Sec. 103. FIRE SAFETY

Full-time equated classified positions 57.0

Office of fire safety--57.0 FTE positions $ 4,474,800

GROSS APPROPRIATION $ 4,474,800

Appropriated from:

Interdepartmental grant revenues:

IDG from department of community health, inspection contract 111,800

Federal revenues:

Federal funds 828,500

Special revenue funds:

Fire alarm regulation fees 89,300

Fire services fees 1,846,700

State general fund/general purpose $ 1,598,500

Sec. 104. MANAGEMENT SERVICES

Full-time equated classified positions 187.0

Administrative services--84.0 FTE positions $ 5,896,800

Technology support--103.0 FTE positions 13,592,400

Health services information systems 750,000

Office of financial and insurance service automation 750,000

Rent 7,554,300

Building occupancy charges - property development services 7,731,600

Worker's compensation 952,800

Special project advances 740,000

GROSS APPROPRIATION $ 37,967,900

Appropriated from:

Federal revenues:

DOL-ETA, unemployment insurance 345,300

DOL, multiple grants for safety and health 491,700

Federal funds 394,000

HHS, federal funds 66,000

Special revenue funds:

Private - special project advances 740,000

Bank fees 468,100

Boiler fee revenue 286,000

Construction code fund 1,439,600

Consumer finance fees 190,300

Corporation fees 3,323,500

Credit union fees 340,800

Elevator fees 317,600

Fees and collections/asbestos 87,400

Health professions regulatory fund 2,833,900

Health systems fees and collections 612,300

Insurance regulatory fees 1,848,200

Licensing and regulation fees 1,963,000

Liquor purchase revolving fund 8,648,100

Manufactured housing commission fees 303,100

Michigan state housing development authority fees and charges 3,141,400

Motor carrier fees 287,000

Public utility assessments 2,580,300

Safety education and training fund 770,900

Second injury fund 526,600

Securities fees 1,817,600

Self-insurers security fund 139,100

Silicosis and dust disease fund 203,500

Tax tribunal fees 67,200

Worker's compensation administrative revolving fund 1,384,300

State general fund/general purpose $ 2,351,100

Sec. 105. OFFICE OF FINANCIAL AND INSURANCE SERVICES

Full-time equated classified positions 286.0

Administration--27.0 FTE positions $ 3,008,600

Policy and consumer services--29.0 FTE positions 2,291,300

Securities regulation--20.0 FTE positions 2,304,400

Bank regulation--49.0 FTE positions 5,475,200

Credit union regulation--43.0 FTE positions 3,802,400

Consumer finance regulation--21.0 FTE positions 1,953,500

Insurance financial evaluation--46.0 FTE positions 5,144,400

Insurance licensing and enforcement--36.0 FTE positions 3,549,000

Health plans--15.0 FTE positions 1,348,900

GROSS APPROPRIATION $ 28,877,700

Appropriated from:

Federal revenues:

Federal funds 50,600

Special revenue funds:

Bank fees 6,297,300

Consumer finance fees 2,282,500

Credit union fees 4,504,900

Insurance continuing education fees 543,300

Insurance licensing and regulation fees 2,690,800

Insurance regulatory fees 9,682,300

Multiple employer welfare arrangement 66,000

Securities fees 2,760,000

State general fund/general purpose $ 0

Sec. 106. PUBLIC SERVICE COMMISSION

Full-time equated classified positions 143.0

Administration, planning and regulation--143.0 FTE positions $ 15,824,300

Low-income/energy efficiency assistance 60,000,000

GROSS APPROPRIATION $ 75,824,300

Appropriated from:

Federal revenues:

DOE-OEERE, multiple grants 149,800

DOT-RSPA, gas pipeline safety 281,500

Special revenue funds:

Motor carrier fees 1,898,800

Public utility assessments 13,494,200

Low-income and energy efficiency fund 60,000,000

State general fund/general purpose $ 0

Sec. 107. LIQUOR CONTROL COMMISSION

Full-time equated classified positions 179.0

Management support services--39.0 FTE positions $ 2,927,700

Liquor licensing and enforcement--140.0 FTE positions 10,947,600

Liquor law enforcement grants 6,000,000

Grant to department of agriculture, wine industry council 457,200

GROSS APPROPRIATION $ 20,332,500

Appropriated from:

Special revenue funds:

Liquor license revenue 11,068,600

Liquor purchase revolving fund 8,806,700

Nonretail liquor license revenue 457,200

State general fund/general purpose $ 0

Sec. 108. MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY

Full-time equated classified positions 234.0

Payments on behalf of tenants $ 72,000,000

Housing and rental assistance program--227.0 FTE positions 23,224,500

Automatic data processing--7.0 FTE positions 1,006,900

Homeless program 5,290,800

GROSS APPROPRIATION $ 101,522,200

Appropriated from:

Federal revenues:

HUD, lower income housing assistance program 86,495,400

Special revenue funds:

Michigan state housing development authority fees and charges 15,026,800

State general fund/general purpose $ 0

Sec. 109. TAX TRIBUNAL

Full-time equated classified positions 14.0

Operations--14.0 FTE positions $ 1,479,600

GROSS APPROPRIATION $ 1,479,600

Appropriated from:

Special revenue funds:

Tax tribunal fees 635,500

State general fund/general purpose $ 844,100

Sec. 110. GRANTS

Fire protection grants $ 9,421,000

GROSS APPROPRIATION $ 9,421,000

Appropriated from:

Special revenue funds:

Liquor purchase revolving fund 9,421,000

State general fund/general purpose $ 0

Sec. 111. HEALTH REGULATORY SYSTEMS

Full-time equated classified positions 344.0

Health systems administration--181.0 FTE positions $ 17,175,100

Nursing home quality incentives grants--3.0 FTE positions 10,050,500

Emergency medical services program state staff--7.0 FTE positions 900,100

Radiological health administration and projects--24.0 FTE positions 1,997,700

Substance abuse program administration--4.0 FTE positions 412,100

Emergency medical services grants and contracts 1,062,100

Health services--125.0 FTE positions 13,300,500

GROSS APPROPRIATION $ 44,898,100

Appropriated from:

Federal revenues:

Federal funds 18,404,700

Special revenue funds:

Controlled substance license fees 1,353,000

Health professions regulatory fund 10,624,100

Health systems fees and collections 3,782,100

Nurse professional fund 452,000

State general fund/general purpose $ 10,282,200

Sec. 112. REGULATORY SERVICES

Full-time equated classified positions 313.0

AFC, children's welfare and day care licensure--313.0 FTE positions $ 26,254,900

GROSS APPROPRIATION $ 26,254,900

Appropriated from:

Federal revenues:

HHS, federal funds 10,762,500

Special revenue funds:

Health systems fees and collections 156,800

Licensing fees 495,500

State general fund/general purpose $ 14,840,100

Sec. 113. OCCUPATIONAL REGULATION

Full-time equated classified positions 332.0

Commissions and boards $ 49,700

Code enforcement--99.0 FTE positions 7,921,200

Code enforcement flexibility 1,181,200

Boiler inspection program--18.0 FTE positions 1,555,700

Elevator inspection program--23.0 FTE positions 1,870,800

Commercial services--154.0 FTE positions 13,668,900

Local manufactured housing communities inspections 250,000

Manufactured housing and land resources program--26.0 FTE positions 2,610,300

Property development group--12.0 FTE positions 1,328,300

Remonumentation grants 6,000,000

GROSS APPROPRIATION $ 36,436,100

Appropriated from:

Special revenue funds:

Boiler fee revenue 1,703,300

Construction code fund 9,488,200

Corporation fees 4,889,100

Elevator fees 1,979,300

Homeowner construction lien recovery fund 1,532,800

Licensing and regulation fees 7,341,700

Limited liability partnership revenue 10,000

Manufactured housing commission fees 2,258,100

Property development fees 239,500

Remonumentation fees 6,600,500

Real estate appraiser continuing education fund 45,000

Real estate education fund 217,500

State general fund/general purpose $ 131,100

Sec. 114. EMPLOYMENT RELATIONS

Full-time equated classified positions 28.0

Fact finding and arbitration $ 144,300

Employment and labor relations--28.0 FTE positions 2,956,400

GROSS APPROPRIATION $ 3,100,700

Appropriated from:

Federal revenues:

EEOC, federal funds 10,000

State general fund/general purpose $ 3,090,700

Sec. 115. SAFETY AND REGULATION

Full-time equated classified positions 281.0

Commissions and boards $ 21,400

Employment standards enforcement--39.0 FTE positions 2,621,900

Subgrantees 1,226,900

Occupational safety and health--242.0 FTE positions 21,289,500

GROSS APPROPRIATION $ 25,159,700

Appropriated from:

Federal revenues:

DOL, multiple grants for safety and health 10,946,000

Special revenue funds:

Fees and collections/asbestos 694,200

Safety education and training fund 6,009,800

State general fund/general purpose $ 7,509,700

Sec. 116. WORKER'S DISABILITY COMPENSATION

Full-time equated classified positions 171.4

Administration--119.0 FTE positions $ 8,567,300

Board of magistrates administration--8.0 FTE positions 1,864,700

Appellate commission administration--11.4 FTE positions 874,000

Supplemental benefit fund 1,300,000

Insurance funds administration--33.0 FTE positions 5,064,000

Automatic data processing 506,000

Grant to the department of career development - hire the handicapped program 50,000

GROSS APPROPRIATION $ 18,226,000

Appropriated from:

Special revenue funds:

Corporation fees 5,139,400

Second injury fund 3,341,800

Securities fees 5,317,900

Self-insurers security fund 911,400

Silicosis and dust disease fund 1,366,800

Worker's compensation administrative revolving fund 2,148,700

State general fund/general purpose $ 0

Sec. 117. UNEMPLOYMENT AGENCY

Full-time equated classified positions 1,512.0

Worker's compensation $ 706,200

Rent 6,127,100

Building occupancy charges - property development service 3,640,000

Unemployment programs--1,434.7 FTE positions 97,306,000

Advocacy assistance program--8.0 FTE positions 1,550,200

Special audit and collections program--34.0 FTE positions 2,225,600

Training program for agency staff--2.1 FTE positions 2,784,800

Expanded fraud control program--33.2 FTE positions 2,537,600

GROSS APPROPRIATION $ 116,877,500

Appropriated from:

Federal revenues:

DOL, employment and training administration 532,500

DOL, unemployment insurance 101,457,300

Federal Reed act funds 4,259,800

Special revenue funds:

Contingent fund, penalty and interest account 10,627,900

State general fund/general purpose $ 0

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 resources under part 1 for fiscal year 2001-2002 is $329,063,200.00 and state spending from state resources to be paid to local units of government for fiscal year 2001-2002 is $21,921,000.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:

DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

Fire protection grants $ 9,421,000

Liquor law enforcement 6,000,000

Local manufactured housing inspections 250,000

Remonumentation grants 6,000,000

Subgrantees 250,000

Total department of consumer and industry services $ 21,921,000

Sec. 202. The appropriations authorized under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 203. As used in this appropriation act:

(a) "AFC" means adult foster care.

(b) "Department" means the department of consumer and industry services.

(d) "DOE-OEERE" means the DOE office of energy efficiency and renewable energy.

(e) "DOL" means the United States department of labor.

(f) "DOL-ETA" means the DOL employment and training administration.

(g) "DOL-OSHA" means the DOL occupational safety and health administration.

(h) "DOT" means the United States department of transportation.

(i) "DOT-RSPA" means the DOT research and special programs administration.

(j) "EEOC" means equal employment opportunity commission.

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

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

(m) "HHS" means the United States department of health and human services.

(n) "HUD" means the United States department of housing and urban development.

(o) "IDG" means interdepartmental grant.

(p) "MES" means Michigan employment security.

(q) "OSHA" means the DOL occupational safety and health administration.

(r) "Subcommittees" means all members of the appropriate subcommittees of the house and senate appropriations committees.

Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.

Sec. 205. (1) 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.

(2) The state budget director shall grant exceptions to this hiring freeze when the state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services, cause a loss of revenue to the state, result in the inability of the state to receive federal funds, or would necessitate additional expenditures that exceed any savings from maintaining a vacancy. The state budget director shall report by the thirtieth of each month to the chairpersons of the senate and house of representatives standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous month and the reasons to justify the exception.

Sec. 206. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $23,500,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $12,200,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $180,800.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $50,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 207. At least 60 days before beginning any effort to privatize, the department shall submit a complete project plan to the subcommittees and the fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the fiscal agencies and to the subcommittees within 30 months.

Sec. 208. Unless otherwise specified, the department shall use the Internet to fulfill the reporting requirements of this act. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on the Internet or Intranet site. Quarterly, the department shall provide to the subcommittees, state budget office, and the fiscal agencies an electronic and paper copy listing of the reports submitted during the most recent 3-month period along with the Internet or Intranet site of each report, if any.

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.

Sec. 210. The director of each department receiving appropriations in part 1 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. Each 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. 211. Of the funds appropriated in part 1 that are in units other than the grants unit, the department shall not provide grants to local government agencies, institutions of higher education, or nonprofit organizations unless the department provides notice of the grant to the subcommittees at least 10 days before the grant is issued or at least 72 hours before any announcement to local governmental units or the public.

Sec. 212. The department shall establish and maintain affirmative action programs based on guidelines developed by the state equal opportunity workforce planning council which was created by Executive Order No. 1996-13 in order to receive general fund/general purpose dollars.

Sec. 213. The departments and state agencies receiving appropriations under this act shall receive and retain copies of all reports funded from appropriations in part 1. These departments and state agencies shall follow federal and state guidelines for short-term and long-term retention of these reports and records.

DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

Sec. 301. The appropriation in part 1 for fire protection grants from the liquor purchase revolving fund 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. 302. The funds collected by the office of financial and insurance services in connection with a conservatorship pursuant to section 32 of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1682, shall be appropriated for all expenses necessary to provide for the required services. Funds are available for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 303. The funds collected by the department from corporations being liquidated pursuant to the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302, shall be appropriated for all expenses necessary to provide for the required services. Funds are available for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 304. 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, and charge for this information as follows: base fee for 1 to 1,000 records at the cost to the department; 1,001 to 10,000 records at 2.5 cents per record; and 10,001 or more records at .5 cents per record. The revenue received from this service may be used to offset expenses of programs as appropriated in part 1. The balance of this revenue collected and unexpended at the end of the fiscal year shall revert to the appropriate restricted revenue account or fund or, in absence of such an account or fund, to the general fund. The department shall submit an annual report on or before June 1, 2002 to the state budget office and the subcommittees that states the amount of revenue received from the sale of information.

Sec. 305. The appropriation in part 1 may be used for per diem payments to the members of commissions or boards for a full day of committee work at which a quorum is present or for performing official business as authorized by each respective commission or board. The per diem payments shall be at a rate as follows:

(a) Michigan board of chiropractic medicine $50.00 per day

(b) Michigan board of dentistry $50.00 per day

(d) Board of nursing $50.00 per day

(e) Michigan board of optometry $50.00 per day

(f) Michigan board of osteopathic medicine and surgery $50.00 per day

(g) Michigan board of pharmacy $50.00 per day

(h) Michigan board of podiatric medicine and surgery $50.00 per day

(i) Michigan board of psychology $50.00 per day

(j) Michigan board of physical therapy $50.00 per day

(k) Physicians' assistants task force $50.00 per day

(l) Michigan board of veterinary medicine $50.00 per day

(m) Michigan board of occupational therapists $50.00 per day

(n) Michigan board of professional counselors $50.00 per day

(o) Health occupations council $50.00 per day

(p) Board of accountancy $50.00 per day

(q) Board of architects $50.00 per day

(r) Athletic board of control $50.00 per day

(s) Board of barber examiners $50.00 per day

(t) Residential builders' and maintenance and alteration contractor's board $50.00 per day

(u) Carnival-amusement safety board $50.00 per day

(v) Collection practices board $50.00 per day

(w) Board of cosmetology $50.00 per day

(x) Employment agency board $50.00 per day

(y) Board of professional engineers $50.00 per day

(z) Board of land surveyors $50.00 per day

(aa) Board of landscape architects $50.00 per day

(bb) Board of marriage counselors $50.00 per day

(cc) Board of examiners in mortuary science $50.00 per day

(dd) Nursing home administrators' board $50.00 per day

(ee) Board of real estate brokers and salespersons $50.00 per day

(ff) Ski area safety board $50.00 per day

(gg) Michigan board of social work $50.00 per day

(hh) Commission on professional and occupational licensure $50.00 per day

(ii) Board of real estate appraisers $50.00 per day

(jj) Utility consumer participation board $50.00 per day

(kk) Construction code commission $50.00 per day

(ll) Plumbing board $50.00 per day

(mm) Electrical board $50.00 per day

(nn) Barrier free design board $50.00 per day

(oo) Mechanical board $50.00 per day

(pp) Boiler board $50.00 per day

(qq) Elevator board $50.00 per day

(rr) General industry safety standards commission $50.00 per day

(ss) General industry safety standards advisory committees $50.00 per day

(tt) Construction safety standards commission $50.00 per day

(uu) Construction safety standards advisory committees $50.00 per day

(vv) Board of health and safety compliance appeals $50.00 per day

(ww) Occupation health standards commission $50.00 per day

(xx) Fire safety board $50.00 per day

(yy) Occupational health standards advisory committee $50.00 per day

Sec. 308. The Michigan state housing development authority shall annually present a report to the state budget office and the subcommittees on the status of the authority's housing production goals under all financing programs established or administered by the authority. The report shall give special attention to efforts to raise affordable multifamily housing production goals.

Sec. 309. The department shall assess and collect fees in the licensing and regulation of child care organizations as defined in 1973 PA 116, MCL 722.111 to 722.128, and adult foster care facilities as defined in the adult foster care facility licensing act, 1979 PA 218, MCL 400.701 to 400.737. Fees collected by the department shall be used exclusively for the purpose of licensing and regulating child care organizations and adult foster care facilities.

Sec. 310. The appropriation in part 1 for the department, bureau of safety and regulation, safety education and training division, includes funding for on-site consultation and education and training programs. The appropriation in part 1 anticipates that 90% of the on-site consultation program costs and 50% of the education and training program costs will be supported by federal OSHA funds and the remaining 10% and 50% respectively will be supported by safety education and training funds. If federal OSHA funding does not become available to cover up to 90% of the program costs for on-site consultation and 50% for education and training, up to 50% of the program costs for on-site consultation and 90% of the program costs for education and training may be paid from the safety education and training fund as a match for available federal funds.

Sec. 311. The funds collected by the department for licenses, permits, and other elevator regulation fees set forth in R 408.8151 of 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. The department shall submit a report on an annual basis to the state budget office and the subcommittees on the amount of funds available under this section.

Sec. 312. If the revenue collected by the department for occupational safety and health, 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. 313. Money appropriated under this act for fire safety programs 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. 314. The department shall furnish the clerk of the house, the secretary of the senate, the state budget office, and all members of the house and senate appropriations committees with a summary of any evaluation reports and subsequent approvals or disapprovals of juvenile residential facilities operated by the family independence agency, as required by section 6 of 1973 PA 116, MCL 722.116. If no evaluations are conducted during the fiscal year, the department shall notify the fiscal agencies and all members of the appropriate subcommittees of the house and senate appropriation committees.

Sec. 315. (1) From the amount appropriated in part 1 to health systems administration, the department shall provide funding for not less than 113 inspectors to annually survey and investigate the care and services delivered in nursing homes, county medical care facilities, and hospital long-term care units in accordance with provisions in the public health code, 1978 PA 368, MCL 333.1101 to 333.25211, and federal Medicare and Medicaid certification standards.

(2) The department, in keeping with the severity of the allegations, shall investigate complaints alleging poor care and services occurring on nights or weekends in nursing homes, county medical care facilities, and hospital long-term care units by conducting on-site investigations on nights or weekends.

Sec. 316. If the revenue collected by the department from licensing and regulation fees 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. 317. Funds earned or authorized by the United States department of labor in excess of the gross appropriation in part 1 for the Michigan unemployment agency from the United States department of labor are appropriated and may be expended for staffing and related expenses incurred in the operation of its programs. These funds may be spent after the department notifies the state budget office and the subcommittees of the purpose and amount of each grant award.

Sec. 318. 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. The funds are available for expenditure when they are received by the department of treasury and may only be used for costs directly related to the continued updating and distribution of the documents pursuant to this section. This section 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 subdivision control manual, the state boundary commission operations manual, and other local government assistance manuals.

(d) The mobile home commission act, 1987 PA 96, MCL 125.2301 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, 1964 PA 265, MCL 451.501 to 451.818.

(e) Labor law books.

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

(g) Minimum design standards for health care facilities.

Sec. 319. The department shall report to the state budget office, the fiscal agencies, and the subcommittees on March 1, 2002 and September 1, 2002 on the initial and follow-up surveys conducted on all nursing homes in this state. The report shall include all of the following information:

(a) The number of surveys conducted.

(b) The number requiring follow-up surveys.

(d) The number of citations per home.

(e) The number of night and weekend complaints filed.

(f) The number of night and weekend responses to complaints conducted by the department.

(g) The average length of time for the department to respond to a complaint filed against a nursing home.

(h) The number and percentage of citations appealed.

(i) The number and percentage of citations overturned and/or modified.

Sec. 320. The department, bureau of safety and regulation, shall provide an annual report by February 1 of each year to the state budget office, the fiscal agencies, and the subcommittees on the number of individuals killed and the number of individuals injured on the job within industries regulated by the bureau during the preceding calendar year.

Sec. 321. The department shall report by November 1, 2001 to the state budget office, the legislature, and the fiscal agencies the status of the nursing home complaint investigation backlog.

Sec. 322. As a condition for receiving the general fund/general purpose appropriations in part 1 for health systems administration, the department shall provide assistance to any person making an oral request for a nursing home investigation in putting his or her request into writing, shall initiate investigations on all written nursing home complaints filed with the department within 15 days of receipt of the complaint, and shall provide a written response to the complainant within 30 days of receipt of the written complaint.

Sec. 323. The unemployment agency, during its transition to the remote initial claims system, may operate a sufficient number of unemployment agency offices, including itinerant or satellite offices, within Michigan's Upper Peninsula to ensure that the citizens of the Upper Peninsula can access these offices without excessive travel or, in cases where unemployment claims are filed or renewed by phone, without excessive long-distance toll charges.

Sec. 324. The department shall continue to work with grantees supported through the appropriation in part 1 for emergency medical services grants and contracts to ensure that a sufficient number of qualified emergency medical services personnel exist to serve rural areas of the state.

Sec. 325. (1) Of the funds appropriated in part 1 to the office of financial and insurance services created under Executive Order No. 4 of 2000, the funds allocated to the office of financial and insurance services and the commissioner of the office of financial and insurance services under the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302, shall be accounted for separately by the department from any other funds of the office of financial and insurance services and shall be separated and allocated as restricted funds to be held and expended only in the manner provided for under section 225 of the insurance code of 1956, 1956 PA 218, MCL 500.225, and this act.

(2) The director shall report to the state budget office and the subcommittees by February 1, 2002 regarding the expenditures for the previous fiscal year from insurance regulatory fees for the following:

(a) The executive direction unit.

(b) The management services unit.

Sec. 326. From the funds appropriated in part 1 for utility consumer representation, the department shall produce and facilitate the airing of public service announcements that inform utility customers of the availability and purpose of these funds. The utility consumer participation board shall report to the subcommittees, fiscal agencies, and state budget office by September 30, 2002 on its efforts in this area, including the amount of expenditures made for this purpose.

Sec. 327. (1) The department in consultation with nursing home provider groups, the department of community health, the state long-term care ombudsman, and the federal health care finance administration shall continue to work to clarify the following terms as those terms are used in title XVIII and title XIX and applied by the department to provide more consistent regulation of nursing homes in Michigan:

(a) Immediate jeopardy.

(b) Harm.

(d) Avoidable.

(e) Unavoidable.

(2) The department shall semiannually provide for joint training with nursing home surveyors and providers on at least 1 of the 10 most frequently issued federal citations in this state during the past calendar year. The department shall provide a mechanism to measure the effect of the training and shall report to the legislature and the state budget office on the effect of the training by January 15, 2002.

Sec. 328. Of the funds appropriated in part 1 for nursing home quality incentive grants, funds shall not be distributed to a nursing home under the program unless that nursing home posts the executive summary of the nursing home's last annual inspection in a conspicuous place within the nursing home for public review.

Sec. 329. The unemployment agency shall work collaboratively with the department of career development to ensure each 1-stop center has the ability to assist individuals or respond to inquiries regarding unemployment benefits and the remote initial claims system.

Sec. 330. (1) The department shall post on the Internet the executive summary of the latest inspection for each licensed nursing home.

(2) The department shall work toward posting inspection summaries for licensed day care centers on the Internet.

Sec. 332. From the appropriations in part 1 for occupational safety and health, the department shall provide funding for 30 general industry safety inspectors, 20 construction industry safety inspectors, and 26 industrial hygienists. The department shall submit a report to the subcommittees, fiscal agencies, and state budget office by February 15, 2002 on the staffing levels for these categories. No budgetary savings shall be taken from the funding for inspection staffing.

Sec. 333. (1) The department shall maintain a nursing home quality care incentive program. The department shall post criteria for this grant program on the Internet and shall make the criteria available in written format upon request.

(2) In establishing criteria for the awarding of nursing home innovative grants authorized in part 1, the department shall allow every facility to apply for funds each year unless the facility has received a substandard quality of care citation on its last annual survey. If an annual survey is not complete by the time of the due date for grant applications, a facility's application will be held pending the outcome of that annual survey. No single annual survey may be used twice to deny a facility grant application.

Sec. 334. When hiring any new nursing home inspectors funded through appropriations in part 1, the department shall make every effort to hire individuals with past experience in the long-term care industry.

Sec. 335. It is the intent of this legislature that beginning January 1, 2004, the board of psychology shall require a licensee seeking renewal of a license to furnish the board with satisfactory evidence that during the 2 years before application for renewal the licensee has attended continuing education courses or programs approved by the board totaling not less than 36 credits. The applicant shall be responsible for maintaining records of continuing education attendance. The board is authorized to request verification of continuing education records at the time of renewal of application. Verification may be conducted periodically by sample or by means other than reviewing every application.

Sec. 336. The department shall work to promote the nursing scholarship program funded from appropriations in part 1 to health services. The department shall focus its promotional efforts on recruiting undergraduate students into the nursing field in order to address the current nursing shortage. The department shall also make every effort to utilize scholarship funds in a manner which encourages undergraduate students to enter the nursing field.

Sec. 337. (1) The unemployment agency shall include in the remote initial claims center (RICCS) automated phone system a choice to speak with an employee of the unemployment agency as an option. This option should be provided in the system as early as possible as deemed appropriate in the system design. The department shall monitor the system to ensure compliance with these guidelines.

(2) The unemployment agency should continue to provide training opportunities to employees affected with the implementation of the RICCS.

Sec. 338. Nursing facilities shall report in the quarterly staff report to the department, the total patient care hours provided each month, by state licensure and certification classification, and the percentage of pool staff, by state licensure and certification classification, used each month during the preceding quarter. The department shall make available to the public, the quarterly staff report compiled for all facilities including the total patient care hours and the percentage of pool staff used, by classification.

Sec. 339. It is the intent of the legislature that the department make every effort to hold administrative law hearings on actions initiated by the department against regulated businesses or against individuals in regulated occupations in locations that are within 150 miles of the regulated business or of the office of the individual in a regulated occupation. In addition, it is the intent of the legislature that the department make every effort to hold administrative law hearings on actions initiated by an individual outside the department in locations within 150 miles of the home of the individual bringing the action if that individual wishes to testify at the hearing.

Sec. 340. The department shall work cooperatively with the department of civil service to identify state employees who will lose their jobs as a result of an agency program being reorganized, modified, or eliminated and shall develop training programs and provide training to these individuals that will provide them with the opportunity and skills necessary to secure new employment within the state government or the private sector. It shall be a priority of the department to provide training and employment opportunities to these displaced state employees through Michigan's employment service locations.

Sec. 341. From the funds appropriated in part 1 for adult foster care, children's welfare, and day care licensure, the department shall maintain a day care facility to day care inspector ratio of no more than 210 to 1.

Sec. 342. (1) The funding appropriated in part 1 for the low-income/energy efficiency assistance program shall be distributed by the Michigan public service commission in accordance with section 10d(6) of 1939 PA 3, MCL 460.10d.

(2) The public service commission shall report by June 1 to the subcommittees, the state budget office, and the fiscal agencies on the distribution of these funds.

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

Loren Bennett

Leon Stille

Joe Young, Jr.

Conferees for the Senate

Marc Shulman

Patricia Lockwood

Conferees for the House

The Speaker announced that under Joint Rule 9 the second conference report would lie over one day.

Messages from the Senate

Senate Bill No. 371, entitled

A bill to amend 1967 PA 281, entitled "Income tax act of 1967," by amending section 274 (MCL 206.274), as amended by 1997 PA 82; and to repeal acts and parts of acts.

The Senate has passed the bill.

The bill was read a first time by its title and referred to the Committee on Appropriations.

______

Rep. Cameron Brown moved that the House adjourn.

The motion prevailed, the time being 3:05 p.m.

Associate Speaker Pro Tempore Julian declared the House adjourned until Tuesday, September 25, at 2:00 p.m.

GARY L. RANDALL

Clerk of the House of Representatives.

Type of Report	Facility	Report #	License #
Special Investigation	Green Oak Center	2001C0208028	CS470201159

GROSS APPROPRIATION	$	1,947,842,366
Total interdepartmental grants and intradepartmental transfers	$	0
ADJUSTED GROSS APPROPRIATION	$	1,947,842,366

Adamini	George	Lipsey	Sanborn
Allen	Gieleghem	Lockwood	Schauer
Anderson	Gilbert	Mans	Scranton
Basham	Godchaux	McConico	Shackleton
Bernero	Gosselin	Mead	Sheltrown
Birkholz	Hager	Meyer	Shulman
Bisbee	Hale	Middaugh	Spade
Bishop	Hansen	Minore	Stallworth
Bogardus	Hardman	Mortimer	Stamas
Bovin	Hart	Murphy	Stewart
Bradstreet	Howell	Neumann	Switalski
Brown, B.	Hummel	Newell	Tabor
Brown, C.	Jacobs	O'Neil	Thomas
Brown, R.	Jamnick	Pappageorge	Toy
Callahan	Jansen	Patterson	Van Woerkom
Cassis	Jelinek	Pestka	Vander Roest
Caul	Johnson, Rick	Phillips	Vander Veen
Clark, I.	Johnson, Ruth	Plakas	Vear
Daniels	Julian	Pumford	Voorhees
Dennis	Kilpatrick	Raczkowski	Waters
DeRossett	Kolb	Reeves	Whitmer
DeVuyst	Kooiman	Richardville	Williams
DeWeese	Kowall	Richner	Wojno
Ehardt	Kuipers	Rison	Woodward
Faunce	LaSata	Rivet	Woronchak
Frank	Lemmons	Rocca	Zelenko

Office of fire safety--57.0 FTE positions	$	4,474,800
GROSS APPROPRIATION	$	4,474,800

Grant to department of agriculture, wine industry council		457,200
GROSS APPROPRIATION	$	20,332,500

Operations--14.0 FTE positions	$	1,479,600
GROSS APPROPRIATION	$	1,479,600

Fire protection grants	$	9,421,000
GROSS APPROPRIATION	$	9,421,000

Health systems administration--181.0 FTE positions	$	17,175,100
Nursing home quality incentives grants--3.0 FTE positions		10,050,500

AFC, children's welfare and day care licensure--313.0 FTE positions	$	26,254,900
GROSS APPROPRIATION	$	26,254,900