No. 63

JOURNAL OF THE SENATE


Senate Chamber, Lansing, Thursday, September 17, 1998.

10:00a.m.

The Senate was called to order by the President pro tempore, Senator John J.H. Schwarz.

The roll was called by the Secretary of the Senate, who announced that a quorum was present.

Bennett--present Gast--present Posthumus--present

Berryman--present Geake--present Rogers--present

Bouchard--present Gougeon--present Schuette--present

Bullard--present Hart--present Schwarz--present

Byrum--present Hoffman--present Shugars--present

Cherry--present Jaye--present A. Smith--present

Cisky--present Koivisto--present V. Smith--excused

Conroy--present McManus--present Steil--present

DeBeaussaert--present Miller--present Stille--present

DeGrow--present North--present VanRegenmorter--present

Dingell--present O'Brien--excused Vaughn--present

Dunaskiss--present Peters--present Young--present

Emmons--present

Senator Glenn Steil of the 30th District offered the following invocation:

O Heavenly Father, we ask for Your guidance as we seek to do the people's work today. Guide us to make decisions. Guide us to be compassionate. Guide us to seek compromise, not conflict. And, Father, above all, guide us to be worthy leaders for the people of this great state. As Franklin Roosevelt once said, "It's a terrible thing to look over your shoulder while you are trying to lead and to find no one there." Thank You, Lord. Amen.

Motions and Communications

Senators Dunaskiss and Geake entered the Senate Chamber.

Senator DeGrow moved that Senator Bouchard be temporarily excused from today's session.

The motion prevailed.

Senator DeGrow moved that rule 3.902 be suspended to allow the guests of the Secretary of the Senate and Senator Shugars admittance to the Senate floor.

The motion prevailed, a majority of the members serving voting therefor.

Senator DeGrow moved that the Committee on Families, Mental Health and Human Services be discharged from further consideration of the following bills:

House Bill No.4786, entitled

A bill to amend 1939 PA 280, entitled "The social welfare act," (MCL 400.1 to 400.119b) by adding section 57k.

House Bill No.4038, entitled

A bill to amend 1939 PA 280, entitled "The social welfare act," (MCL 400.1 to 400.119b) by adding section 57i.

The motion prevailed, a majority of the members serving voting therefor, and the bills were placed on the order of General Orders.

Senator DeGrow moved that the bills be referred to the Committee on Economic Development, International Trade and Regulatory Affairs.

The motion prevailed.

Senator DeGrow moved that rule 3.901 be suspended to allow photographs to be taken from the center aisle.

The motion prevailed, a majority of the members serving voting therefor.

Senator Berryman moved that Senator Miller be temporarily excused from today's session.

The motion prevailed.

Senator Berryman moved that Senators V. Smith and O'Brien be excused from today's session.

The motion prevailed.

Recess

Senator DeGrow moved that the Senate recess subject to the call of the President.

The motion prevailed, the time being 10:04a.m.

10:14a.m.

The Senate was called to order by the President pro tempore, Senator Schwarz.

During the recess, Senators Hoffman and Cisky introduced Dr.Odeen Ishmael, Ambassador of the Republic of Guyana.

Ambassador Ishmael spoke briefly.

During the recess, Senator Miller entered the Senate Chamber.

The following communication was received:

Department of Community Health

September 11, 1998

It is my pleasure to transmit to you the 1997 Annual Report for the Crime Victim Services Commission. Pursuant to MCL 18.353, this report details the significant program achievements and activities from October 1, 1996 through September 30, 1997.

We continue to focus on prompt and consistent determination of compensation claims, public and private cooperation in direct service provision, the acquisition and use of advanced technologies for local agencies that expend service grants, and enhanced skills training for victim advocates in our communities. We are also beginning an expanded public awareness effort for victims compensation whereby we hope to reach and assist more eligible victims.

I especially want you to know that the action you took in transferring the Commission to our Department pursuant to Executive Order 1997-10 is being successfully translated into better coordinated and more efficient services for victims of crime throughout the state.

Cordially,

James K. Haveman, Jr.

Director

The communication was referred to the Secretary for record.

The Secretary announced that the following House bills were received in the Senate and filed on Wednesday, September 16:

House Bill Nos. 4388 4389 4390 5874 5898

The Secretary announced the printing and placement in the members' files on Wednesday, September 16 of:

Senate Bill Nos. 1282 1283

House Bill Nos. 6016 6017 6040 6045

Messages from the House

Senator DeGrow moved that consideration of the following bills be postponed for today:

Senate Bill No.752

Senate Bill No.386

Senate Bill No.866

Senate Bill No.874

House Bill No.4259

House Bill No.5261

House Bill No.5317

House Bill No.4044

The motion prevailed.

Senator Bouchard entered the Senate Chamber.

Conference Reports

House Bill No.5596, entitled

A bill to make appropriations for the judicial branch for the fiscal years ending September 30, 1998 and September 30, 1999; to provide for the expenditure of these appropriations; to place certain restrictions on the expenditure of these appropriations; to prescribe the powers and duties of certain officials and employees; to require certain reports; and to provide for the disposition of fees and other income received by the judicial branch.

The House of Representatives has adopted the report of the Committee of Conference.

The Conference Report was read as follows:

FIRST CONFERENCE REPORT

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

House Bill No. 5596, entitled

A bill to make appropriations for the judicial branch for the fiscal years ending September 30, 1998 and September30, 1999; to provide for the expenditure of these appropriations; to place certain restrictions on the expenditure of these appropriations; to prescribe the powers and duties of certain officials and employees; to require certain reports; and to provide for the disposition of fees and other income received by the judicial branch.

Recommends:

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

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

A bill to make appropriations for the judicial branch for the fiscal year ending September 30, 1999; to provide for the expenditure of these appropriations; to place certain restrictions on the expenditure of these appropriations; to prescribe the powers and duties of certain officials and employees; to require certain reports; and to provide for the disposition of fees and other income received by the judicial branch.

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 the judicial branch for the fiscal year ending September 30, 1999, from the funds indicated in this part. The following is a summary of the appropriations in this part:

JUDICIARY

APPROPRIATION SUMMARY:

Full-time equated exempted positions 602.0

GROSS APPROPRIATION $ 215,432,400

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 3,571,400

ADJUSTED GROSS APPROPRIATION $ 211,861,000

Federal revenues:

Total federal revenues 1,294,500

Special revenue funds:

Total local revenues 1,946,500

Total private revenues 1,217,600

Total other state restricted revenues 56,058,900

State general fund/general purpose $ 151,343,500

Sec. 102. SUPREME COURT

Full-time equated exempted positions 277.0

Supreme court administration--136.0 FTE positions $ 15,360,800

State court administrative office--80.0 FTE positions 9,417,300

Judicial information systems--21.0 FTE positions 2,572,700

Direct trial court automation support--24.0 FTE positions 1,946,500

Foster care review board--12.0 FTE positions 1,160,400

Community dispute resolution--4.0 FTE positions 2,318,400


GROSS APPROPRIATION $ 32,776,100

Appropriated from:

Interdepartmental grant revenues:

IDG from FIA-title IV-D child support program 419,100

IDG from FIA-title IV-E foster care program 276,700

IDG from MFIA-HHS access and visitation grant 380,200

IDG from MFIA-TANF 500,000

IDG from state police-criminal justice improvement 1,443,900

IDG from state police-Michigan justice training fund 208,000

Federal revenues:

DAG, agriculture mediation grant 469,900

Federal - special education grant 90,000

Federal highway safety planning revenue 115,300

HHS, court improvement project 619,300

For Fiscal Year

Ending Sept. 30,

1999

Special revenue funds:

Local-user fees $ 1,946,500

Private 419,000

Private-interest on lawyers trust accounts 668,600

Private-state justice institute 130,000

Community dispute resolution fees 1,628,400

Law exam fees 327,200

Miscellaneous revenue 216,800

State court fund 319,000

State general fund/general purpose $ 22,598,200

Sec. 103. COURT OF APPEALS

Full-time equated exempted positions 245.5

Court of Appeals operations--223.5 FTE positions $ 17,879,200

Delay reduction--22.0 FTE positions 1,500,000


GROSS APPROPRIATION $ 19,379,200

Appropriated from:

Special revenue funds:

Court filing/motion fees 1,517,800

Miscellaneous revenue 75,200

State general fund/general purpose $ 17,786,200

Sec. 104. JUSTICES' AND JUDGES' COMPENSATION

Full-time judges positions 611.0

Supreme court justices' salaries--7.0 judges $ 893,000

Court of appeals judges' salaries--28.0 judges 3,286,400

District court judges' state base salaries--259.0 judges 15,913,300

District court judicial salary standardization 11,842,500

Probate court judges' state base salaries--107.0 judges 6,188,600

Probate court judicial salary standardization 4,332,800

Circuit court judges' state base salaries--210.0 judges 13,715,900

Circuit court judicial salary standardization 9,228,000

OASI, social security 3,654,300


GROSS APPROPRIATION $ 69,054,800

Appropriated from:

Special revenue funds:

Court fee fund 6,384,000

State general fund/general purpose $ 62,670,800

Sec. 105. JUDICIAL AGENCIES

Full-time equated exempted positions 10.0

Judicial tenure commission--10.0 FTE positions $ 916,800


GROSS APPROPRIATION $ 916,800

Appropriated from:

State general fund/general purpose $ 916,800

Sec. 106. INDIGENT DEFENSE - CRIMINAL

Full-time equated exempted positions 69.5

Appellate Public Defender Program--61.5 FTE positions $ 5,176,000

Appellate Assigned Counsel Administration--8.0 FTE Positions 852,100


GROSS APPROPRIATION $ 6,028,100

Appropriated from:

Interdepartmental grant revenues:

IDG from state police-Michigan justice training fund 343,500

Special revenue funds:

Miscellaneous revenue 109,500

State general fund/general purpose $ 5,575,100

Sec. 107. INDIGENT CIVIL LEGAL LEGAL ASSISTANCE

Indigent civil legal assistance $ 7,337,000


GROSS APPROPRIATION $ 7,337,000

For Fiscal Year

Ending Sept. 30,

1999

Appropriated from:

Special revenue funds:

State court fund $ 7,337,000

State general fund/general purpose $ 0

Sec. 108. TRIAL COURT OPERATIONS

Court equity fund reimbursements $ 65,840,400

Hold harmless fund reimbursements 12,000,000


GROSS APPROPRIATION $ 77,840,400

Appropriated from:

Special revenue funds:

Court equity fund 36,044,000

State general fund/general purpose $ 41,796,400

Sec. 109. GRANTS AND REIMBURSEMENTS TO LOCAL GOVERNMENT

Drunk driving caseflow program $ 1,900,000

Drug caseflow program 200,000


GROSS APPROPRIATION $ 2,100,000

Appropriated from:

Special revenue funds:

Drug fund 200,000

Drunk driving fund 1,900,000

State general fund/general purpose $ 0

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS


Sec. 201. (1) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources for fiscal year 1998-99 is estimated at $207,402,400.00 in this act and state spending from state sources paid to local units of government for fiscal year 1998-99 is estimated at $112,044,200.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:

SUPREME COURT

State court administrative office - administration $ 511,900

TRIAL COURT OPERATIONS

Court equity fund reimbursements $ 65,840,400

Hold harmless fund reimbursement $ 12,000,000

JUSTICES' AND JUDGES' COMPENSATION

District court judicial salary standardization $ 11,842,500

Probate court judges state base salaries 6,188,600

Probate court judicial salary standardization 4,332,800

Circuit court judicial salary standardization 9,228,000

GRANTS AND REIMBURSEMENTS TO LOCAL GOVERNMENT

Drunk driving caseflow program $ 1,900,000

Drug caseflow program 200,000


TOTAL $ 112,044,200

(2) If it appears to the principal executive officer of a department or branch that state spending to local units of government will be less than the amount that was projected to be expended under subsection (1), the principal executive officer shall immediately give notice of the approximate shortfall to the state budget director.

Sec. 202. (1) The expenditures and funding sources authorized under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

(2) Funds appropriated in part 1 to an entity within the judicial branch shall not be expended or transferred to another account without written approval of the authorized agent of the judicial entity. If the authorized agent of the judicial entity notifies the state budget director of its approval of an expenditure or transfer, the state budget director shall immediately make the expenditure or transfer. The authorized judicial entity agent shall be designated by the chief justice of the supreme court.

Sec. 203. As used in this act:

(a) "DAG" means the United States department of agriculture.

(b) "FIA" means the family independence agency.

(c) "FTE" means full-time equated position.

(d) "HHS" means the United States department of health and human services.

(e) "IDG" means interdepartmental grant.

(f) "MDSP" means the department of state police.

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

(h) "TANF" means temporary assistance for needy families.

Sec. 204. Funds appropriated in this act shall not be used for the purchase of foreign goods or services when competitively priced American goods and services are available.

Sec. 205. (1) The chief justice of the supreme court 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, for the judicial branch.

(2) The chief justice shall strongly encourage firms with which the courts of this state contract to subcontract with certified businesses in depressed and deprived communities for services or supplies, or both.

Sec. 206. (1) The judicial branch shall provide to the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies a monthly report on all personal service contracts awarded without competitive bidding, pricing, or rate setting. The notification shall include all of the following:

(a) The total dollar amount of the contract.

(b) The duration of the contract.

(c) The name of the vendor.

(d) The type of service to be provided.

(2) For personal service contracts of $100,000.00 or more, the judicial branch shall provide a monthly report on all of the following:

(a) The total dollar amount of the contract.

(b) The duration of the contract.

(c) The name of the vendor.

(d) The type of service to be provided.

Sec. 207. Sixty days prior to beginning any effort to privatize, the judicial branch shall submit a complete project plan to the appropriate house and senate appropriations subcommittees and the house and senate 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 appropriate house and senate appropriations subcommittees and the house and senate fiscal agencies within 30 months.

Sec. 212. If the judicial branch enters into a personal services contract with any temporary service agency or similar contractor that hires or subcontracts with a person who retired from employment in the judicial branch under the early retirement program under section 19f of the state employees' retirement act, 1943 PA 240, MCL 38.19f, the retired state employee shall be limited to 500 hours for professional, technical, or clerical services and 250 hours for management services. This limitation does not apply to computer technology services. This provision only applies during a 24-month period after the date of retirement. This section applies to each principal executive department, agency, and the judicial branch.

JUDICIAL BRANCH


Sec. 301. (1) The direct trial court automation support program of the state court administrative office shall recover direct and overhead costs from trial courts by charging for services rendered. The fee shall cover the actual costs incurred to the direct trial court automation support program in providing the service. A report of amounts collected in excess of funds identified as user service charges in part 1 shall be submitted to the state budget director and to the house and senate appropriations subcommittees on judiciary and general government, respectively, 30 days before expenditure by the direct trial court automation support program.

(2) From funds appropriated in part 1, the direct trial court automation support program of the state court administrative office shall provide to the senate and house appropriations committees and the senate and house fiscal agencies before January 1 of each year, a detailed list of user service charges collected during the immediately preceding state fiscal year.

Sec. 303. Funds appropriated within the judicial branch shall not be expended by any component within the judicial branch without the approval of the supreme court.

Sec. 304. Of the amount appropriated in part 1 for the judicial branch, $325,000.00 is allocated for circuit court reimbursement under section 3 of 1978 PA 16, MCL 800.453, and $186,900.00 is allocated for court of claims reimbursement under section 6413 of the revised judicature act of 1961, 1961 PA 236, MCL 600.6413.

Sec. 305. The judicial branch shall cooperate with the auditor general regarding audits of the judicial branch conducted pursuant to section 53 of article IV of the state constitution of 1963.

Sec. 306. The supreme court shall report to the judiciary subcommittee of the house appropriations committee and the general government subcommittee of the senate appropriations committee regarding the current status of the accounts set forth in part 1 if it appears that the judiciary's expenditures will exceed funds appropriated under this act.

Sec. 307. From funds appropriated under part 1, forms required to be developed by the state court administrative office pursuant to section 2950b of the revised judicature act of 1961, 1961 PA 236, MCL 600.2950b, shall be provided in the quantity requested by each county clerk.

Sec. 308. The supreme court shall continue to implement and enforce an appropriate antinepotism policy, which shall include provisions that prohibit a judge from hiring or employing a member of his or her immediate family as a court employee or in any judicial support related capacity.

Sec. 309. (1) The state supreme court and the state court administrative office shall consider and analyze the various methods of providing necessary travel for judges, and shall then adopt as policy for all judicial agencies the most efficient and cost-effective method.

(2) This analysis and policy shall be submitted to the house and senate fiscal agencies.

Sec. 310. Funds appropriated in part 1 shall not be used to pay directly or by reimbursement the annual dues for membership in the state bar of Michigan of a judge, justice, or other employee of the judicial branch.

Sec. 311. (1) The chief financial officer of a funding unit for a court, in cooperation with the local court, shall provide to the state treasurer and state court administrative office by January 1, 1999 audited accounts of all money due and owing the court as of September 30, 1998. Where audited accounts are not available, the chief financial officer of a funding unit for a court may provide estimates as long as they are clearly marked as "estimated".

(2) The state treasurer shall report to the legislature a compilation of the estimated accounts receivable of all courts and cumulative totals by March 1, 1999. This report is a public record.

Sec. 312. The state court administrative office, from funds appropriated in part 1, shall assist the court of appeals and trial courts to meet American bar association model standards on case processing, including the standard that 95% of all civil appellate cases be disposed within 12 months of filing.

Sec. 314. If sufficient funds are not available from the court fee fund to pay judges' compensation, the difference between the appropriated amount from that fund for judges' compensation and the actual amount available after the amount appropriated for trial court reimbursement is made shall be appropriated from the state general fund for judges' compensation.

Sec. 315. Funds appropriated in part 1 for indigent defense shall be used in accordance with terms and conditions of section 1485(11)(b) of the revised judicature act of 1961, 1961 PA 236, MCL 600.1485, including reference to federal prohibitions against providing legal assistance with respect to any proceeding or litigation which seeks to procure an abortion.

Sec. 316. The legislature urges the supreme court to examine court rules and consider changes which would:

(a) Allow candidates for judge to express opinions on political issues.

(b) Allow judges to preside over cases even though they have publicly expressed political opinions on issues generally related to the case.

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

A bill to make appropriations for the judicial branch for the fiscal year ending September 30, 1999; to provide for the expenditure of these appropriations; to place certain restrictions on the expenditure of these appropriations; to prescribe the powers and duties of certain officials and employees; to require certain reports; and to provide for the disposition of fees and other income received by the judicial branch.

Nick Ciaramitaro

Patricia Godchaux

Conferees for the House

Dan L. DeGrow

Glenn Steil

Alma Wheeler Smith

Conferees for the Senate

Pending the order that, under joint rule 9, the conference report be laid over one day,

Senator DeGrow moved that the rule be suspended.

The motion prevailed.

The question being on the adoption of the conference report,

The first conference report was adopted, a majority of the members serving voting therefor, as follows:

Roll Call No.680 Yeas--34

Bennett DeGrow Koivisto Shugars

Berryman Dingell McManus Smith, A.

Bouchard Dunaskiss Miller Steil

Bullard Emmons North Stille

Byrum Gast Peters VanRegenmorter

Cherry Geake Posthumus Vaughn

Cisky Gougeon Rogers Young

Conroy Hart Schuette

DeBeaussaert Hoffman Schwarz

Nays--1

Jaye

Excused--2

O'Brien Smith, V.

Not Voting--0

In The Chair: Schwarz

Senator Geake submitted the following:

FIRST CONFERENCE REPORT

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

Senate Bill No. 908, entitled

A bill to make appropriations for the department of community health and certain state purposes related to mental health, public health, and medical services for the fiscal year ending September 30, 1999; to provide for the expenditure of such appropriations; to create funds; to provide for reports; to prescribe the powers and duties of certain local and state agencies and departments; and to provide for disposition of fees and other income received by the various state agencies.

Recommends:

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

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

A bill to make appropriations for the department of community health and certain state purposes related to mental health, public health, and medical services for the fiscal years ending September 30, 1998 and September 30, 1999; to provide for the expenditure of such appropriations; to create funds; to provide for reports; to prescribe the powers and duties of certain local and state agencies and departments; and to provide for disposition of fees and other income received by the various state agencies.

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 the department of community health for the fiscal year ending September 30, 1999, from the funds indicated in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF COMMUNITY HEALTH

Full-time equated unclassified positions 7.0

Full-time equated classified positions 6,298.3

Average population 1,478.0

GROSS APPROPRIATION $ 7,484,077,800

For Fiscal Year

Ending Sept. 30,

1999

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers $ 69,711,600

ADJUSTED GROSS APPROPRIATION $ 7,414,366,200

Federal revenues:

Total federal revenues 3,682,772,100

Special revenue funds:

Total local revenues 846,448,200

Total private revenues 46,284,900

Total other state restricted revenues 297,568,400

State general fund/general purpose $ 2,541,292,600

Sec. 102. DEPARTMENTWIDE ADMINISTRATION

Full-time equated unclassified positions 7.0

Full-time equated classified positions 489.7

Director and other unclassified--7.0 FTE positions $ 540,200

Community health advisory council 28,900

Departmental administration and management--479.7 FTE positions 45,131,000

Worker's compensation program--1.0 FTE position 13,277,900

Rent 3,803,300

Building occupancy charges 3,153,300

Developmental disabilities council and projects--9.0 FTE positions 2,259,700


GROSS APPROPRIATION $ 68,194,300

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant from the department of treasury, Michigan state hospital
finance authority 92,600

Intradepartmental transfer - automated data processing charges 3,510,400

Federal revenues:

Total federal revenues 14,080,200

Special revenue funds:

Private funds 20,800

Total other state restricted revenues 3,280,500

State general fund/general purpose $ 47,209,800

Sec. 103. MENTAL HEALTH/SUBSTANCE ABUSE SERVICES
ADMINISTRATION AND SPECIAL PROJECTS

Full-time equated classified positions 123.2

Mental health/substance abuse program administration--114.2 FTE positions $ 9,639,600

Consumer involvement program 291,600

Gambling addiction 3,000,000

Southwest community partnership 1,997,200

Protection and advocacy services support 1,318,300

Mental health initiatives for older persons 1,165,800

Purchase of psychiatric residency training 3,635,100

Community residential and support services--9.0 FTE positions 8,450,900

Highway safety projects 2,337,200

Program enhancement, evaluation, and data services 1,137,600

Federal and other special projects 7,427,200


GROSS APPROPRIATION $ 40,400,500

Appropriated from:

Federal revenues:

Total federal revenues 14,787,500

Special revenue funds:

Total private revenues 125,000

Total other state restricted revenues 3,682,300

State general fund/general purpose $ 21,805,700

For Fiscal Year

Ending Sept. 30,

1999

Sec. 104. COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES
PROGRAMS

Full-time equated classified positions 14.0

Community mental health programs $ 1,389,995,100

Respite services 3,000,000

CMHSP-purchase of state services contracts 157,407,400

Civil service charges 2,606,400

Omnibus reconciliation act implementation--9.0 FTE positions 12,388,700

Federal mental health block grant--2.0 FTE positions 10,847,000

Pilot projects in prevention for adults and children--2.0 FTE positions 1,516,200

Homelessness formula grant program--1.0 FTE position 1,251,800

Chemically-dependent pregnant women and children program 2,100,000

State disability assistance program substance abuse services 6,600,000

Community substance abuse prevention, education and treatment programs 79,540,400


GROSS APPROPRIATION $ 1,667,253,000

Appropriated from:

Federal revenues:

Total federal revenues 619,793,000

Special revenue funds:

Total other state restricted revenues 6,242,400

State general fund/general purpose $ 1,041,217,600

Sec. 105. STATE PSYCHIATRIC HOSPITALS, CENTERS FOR PERSONS WITH
DEVELOPMENTAL DISABILITIES, AND FORENSIC AND PRISON MENTAL
HEALTH SERVICES

Total average population 1,478.0

Full-time equated classified positions 4,753.0

Caro regional mental health center-psychiatric hospital-adult--512.0 FTE positions $ 30,038,900

Average population 180.0

Kalamazoo psychiatric hospital-adult--402.0 FTE positions 26,325,200

Average population 130.0

Northville psychiatric hospital-adult--860.0 FTE positions 59,815,300

Average population 350.0

Walter P. Reuther psychiatric hospital-adult--432.0 FTE positions 31,201,000

Average population 210.0

Hawthorn center-psychiatric hospital-children and adolescents--325.0 FTE positions 21,010,900

Average population 118.0

Mount Pleasant center-developmental disabilities--510.0 FTE positions 30,086,100

Average population 210.0

Southgate center-developmental disabilities--256.0 FTE positions 15,928,600

Average population 70.0

Center for forensic psychiatry--482.0 FTE positions 32,021,300

Average population 210.0

Center for forensic psychiatry-outpatient evaluation--40.0 FTE positions 3,201,500

Forensic mental health services provided to the department of corrections--921.0 FTE

positions 65,283,100

Revenue recapture 750,000

IDEA, federal special education 92,000

Special maintenance and equipment 959,000

Purchase of medical services for residents of hospitals and centers 2,374,000

Closed site, transition, and related costs--13.0 FTE positions 455,500

Severance pay 1,896,000

Maintenance of property being leased or rented 95,000

Therapeutic work training program 345,600

Gifts and bequests for patient living and treatment environment 2,000,000


GROSS APPROPRIATION $ 323,879,000

For Fiscal Year

Ending Sept. 30,

1999

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant from the department of corrections $ 65,283,100

Federal revenues:

Total federal revenues 28,953,100

Special revenue funds:

CMHSP-Purchase of state services contracts 157,407,400

Other local revenues 15,389,000

Private funds 2,000,000

Total other state restricted revenues 15,987,800

State general fund/general purpose $ 38,858,600

Sec. 106. PUBLIC HEALTH ADMINISTRATION

Full-time equated classified positions 88.3

Executive administration--15.5 FTE positions $ 1,271,300

Minority health grants and contracts 650,000

Vital records and health statistics--72.8 FTE positions 5,606,700


GROSS APPROPRIATION $ 7,528,000

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant from family independence agency 133,300

Federal revenues:

Total federal revenues 2,719,300

Special revenue funds:

Total other state restricted revenues 1,704,600

State general fund/general purpose $ 2,970,800

Sec. 107. INFECTIOUS DISEASE CONTROL

Full-time equated classified positions 44.3

AIDS prevention, testing and care programs--9.8 FTE positions $ 19,459,800

Immunization local agreements 16,137,100

Immunization program management and field support--7.7 FTE positions 1,849,100

Sexually transmitted disease control local agreements 6,805,700

Sexually transmitted disease control management and field support--26.8 FTE positions 2,678,700


GROSS APPROPRIATION $ 46,930,400

Appropriated from:

Federal revenues:

Total federal revenues 30,631,100

Special revenue funds:

Local funds 242,700

Private funds 710,000

Total other state restricted revenues 11,783,200

State general fund/general purpose $ 3,563,400

Sec. 108. LABORATORY SERVICES

Full-time equated classified positions 118.2

Laboratory services administration--98.7 FTE positions $ 7,894,900

EPSDT blood lead screening--6.0 FTE positions 667,700

Lyme disease 75,000

Newborn screening services--13.5 FTE positions 1,765,700


GROSS APPROPRIATION $ 10,403,300

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant from corrections 232,600

Interdepartmental grant from environmental quality 379,000

Federal revenues:

Total federal revenues 1,139,700

Special revenue funds:

Total other state restricted revenues 2,467,900

State general fund/general purpose $ 6,184,100

For Fiscal Year

Ending Sept. 30,

1999

Sec. 109. EPIDEMIOLOGY

Full-time equated classified positions 31.5

AIDS surveillance and prevention program--7.0 FTE positions $ 2,234,800

Disease surveillance--3.4 FTE positions 568,000

Epidemiology administration--21.1 FTE positions 3,628,000

Tuberculosis control and recalcitrant AIDS program 699,500


GROSS APPROPRIATION $ 7,130,300

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant from the department of environmental quality 80,600

Federal revenues:

Total federal revenues 4,873,700

Special revenue funds:

Total other state restricted revenues 281,000

State general fund/general purpose $ 1,895,000

Sec. 110. LOCAL HEALTH ADMINISTRATION AND GRANTS

Full-time equated classified positions 3.0

Implementation of 1993 PA 133 $ 100,000

Lead abatement program--3.0 FTE positions 4,900,000

Local health services 142,300

Local public health operations 38,712,600

Medical services cost reimbursement to local health departments 1,800,000

Special populations health care 620,600

Training and evaluation 320,000


GROSS APPROPRIATION $ 46,595,500

Appropriated from:

Federal revenues:

Total federal funds 6,855,500

Special revenue funds:

Total other state restricted revenues 243,500

State general fund/general purpose $ 39,496,500

Sec. 111. CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH
PROMOTION

Full-time equated classified positions 33.7

AIDS and risk reduction clearinghouse and media campaign $ 1,700,000

Alzheimer's information network 250,000

Cancer prevention and control program--13.6 FTE positions 13,393,700

Chronic disease prevention 1,496,800

Diabetes local agreements 3,229,900

Employee wellness program grants (includes $50.00 per diem and expenses for the risk
reduction and AIDS policy commission) 4,250,000

Health education, promotion, and research programs--11.9 FTE positions 2,409,400

Injury control intervention project 1,017,300

Physical fitness, nutrition, and health 1,250,000

Public health traffic safety coordination 152,600

School health and education programs 2,080,000

Smoking prevention program--6.2 FTE positions 7,176,700

Violence prevention--2.0 FTE positions 2,846,600


GROSS APPROPRIATION $ 41,253,000

Appropriated from:

Federal revenues:

Total federal funds 12,029,700

Special revenue funds:

Total other state restricted revenues 26,452,400

State general fund/general purpose $ 2,770,900

For Fiscal Year

Ending Sept. 30,

1999

Sec. 112. COMMUNITY LIVING, CHILDREN, AND FAMILIES

Full-time equated classified positions 119.8

Adolescent health care services $ 2,892,300

Community living, children, and families administration--114.3 FTE positions 13,249,300

Dental programs 260,400

Dental program for persons with developmental disabilities 151,000

Family planning local agreements 7,392,600

Family support subsidy 14,014,400

Lead paint program 491,800

Local MCH services 8,354,200

Maternal and child health outreach and advocacy programs 6,200,000

Migrant health care 166,100

Newborn screening follow-up and treatment services 1,729,400

Pediatric AIDS prevention and control 800,000

Pregnancy prevention program 7,296,100

Prenatal care outreach and service delivery support 7,987,900

Special projects--5.5 FTE positions 4,271,400

Sudden infant death syndrome program 521,300

Women, infants, and children program local agreements and food costs 145,679,200


GROSS APPROPRIATION $ 221,457,400

Appropriated from:

Federal revenues:

Total federal revenue 146,657,800

Special revenue funds:

Private funds 41,954,100

Total other state restricted revenues 9,172,200

State general fund/general purpose $ 23,673,300

Sec. 113. CHILDREN'S SPECIAL HEALTH CARE SERVICES

Full-time equated classified positions 66.6

Program administration--66.6 FTE positions $ 4,983,200

Amputee program 184,600

Bequests for care and services 1,104,600

Case management services 3,923,500

Conveyor contract 559,100

Medical care and treatment 117,433,700


GROSS APPROPRIATION $ 128,188,700

Appropriated from:

Federal revenues:

Total federal revenue 57,934,300

Special revenue funds:

Private bequests 750,000

Total other state restricted revenues 3,898,500

State general fund/general purpose $ 65,605,900

Sec. 114. OFFICE OF DRUG CONTROL POLICY

Full-time equated classified positions 15.0

Drug control policy--15.0 FTE positions $ 1,533,900

Anti-drug abuse grants 33,400,000


GROSS APPROPRIATION $ 34,933,900

Appropriated from:

Federal revenues:

Total federal revenue 34,760,200

State general fund/general purpose $ 173,700

Sec. 115. CRIME VICTIM SERVICES COMMISSION

Full-time equated classified positions 9.0

Grants administration services--9.0 FTE positions $ 775,400

Justice assistance grants 9,000,000

For Fiscal Year

Ending Sept. 30,

1999

Crime victim rights services grants $ 6,274,600


GROSS APPROPRIATION $ 16,050,000

Appropriated from:

Federal revenues:

Total federal revenue 9,871,300

Special revenue funds:

Total other state restricted revenues 5,684,700

State general fund/general purpose $ 494,000

Sec. 116. OFFICE OF SERVICES TO THE AGING

Full-time equated classified positions 36.5

Commission (per diem $50.00) $ 10,500

Office of services to aging administration--36.5 FTE positions 3,641,400

Community services 26,863,400

Nutrition services 28,185,700

Senior volunteer services 4,220,800

Senior citizen centers staffing and equipment 1,140,700

Employment assistance 2,632,700

DAG commodity supplement 6,978,800

Michigan pharmaceutical program 6,000,000

Respite care program 3,500,000


GROSS APPROPRIATION $ 83,174,000

Appropriated from:

Federal revenues:

Total federal revenue 39,171,400

Special revenue funds:

Total private revenue 125,000

Total other state restricted revenue 10,000,700

State general fund/general purpose $ 33,876,900

Sec. 117. MEDICAL SERVICES ADMINISTRATION

Full-time equated classified positions 352.5

Salaries and wages--352.5 FTE positions $ 20,226,200

Contractual services, supplies, and materials 21,661,600

Travel and equipment 193,200

Data processing contractual services 100

Facility inspection contract - state police 132,800

MIChild administration 3,327,800

Michigan essential health care provider 1,229,100

Primary care services 2,140,600


GROSS APPROPRIATION $ 48,911,400

Appropriated from:

Federal revenues:

Total federal revenues 31,250,000

Special revenue funds:

Private funds 100,000

Total other state restricted revenues 752,600

State general fund/general purpose $ 16,808,800

Sec. 118. MEDICAL SERVICES

Hospital services and therapy $ 618,412,100

Hospital disproportionate share payments 45,000,000

Physician services 162,532,900

Medicare premium payments 104,372,400

Pharmaceutical services 205,054,400

Home health services 34,407,500

Transportation 4,358,900

Auxiliary medical services 48,999,700

Long-term care services 942,969,200

For Fiscal Year

Ending Sept. 30,

1999

Health plan services $ 1,253,274,700

Medicaid outreach 5,000,000

MIChild outreach 3,327,800

MIChild program 57,567,100

Personal care services 24,262,000

Maternal and child health 9,234,500

Adult home help 138,479,200

Social services to the physically disabled 1,344,900

Subtotal basic medical services program 3,658,597,300

Outpatient hospital adjustor 44,012,800

Indigent medical care program 27,431,300

School based services 142,782,300

Special adjustor payments 818,971,400

Subtotal special medical services payments 1,033,197,800


GROSS APPROPRIATION $ 4,691,795,100

Appropriated from:

Federal revenues:

Total federal revenues 2,627,264,300

Special revenue funds:

Local revenues 673,409,100

Private funds 500,000

Tobacco company litigation fund 50,000

Total other state restricted revenues 195,884,100

State general fund/general purpose $ 1,194,687,600

PART 1A

LINE-ITEM APPROPRIATIONS

Sec. 151. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for the department of community health for the fiscal year ending September 30, 1998, from the funds indicated in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF COMMUNITY HEALTH

GROSS APPROPRIATION $ 500,000

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers $ 0

ADJUSTED GROSS APPROPRIATION $ 500,000

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 500,000

State general fund/general purpose $ 0

Sec. 153. INFECTIOUS DISEASE CONTROL

Disease surveillance $ 500,000


GROSS APPROPRIATION $ 500,000

Appropriated from:

Special revenue funds:

Total other state restricted revenues 500,000

State general fund/general purpose $ 0

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS


Sec. 201. (1) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending in part 1 from state sources for fiscal year 1998-99 is estimated at $2,838,861,000.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:

DEPARTMENTWIDE ADMINISTRATION

Departmental administration and management $ 1,618,000

COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES PROGRAMS

Homelessness formula grant program-state match $ 708,800

Pilot projects in prevention for adults and children 1,516,200

Community substance abuse prevention, education, and treatment programs 19,419,700

Community mental health programs 829,927,300

Respite services 3,000,000

OBRA implementation 2,459,100

INFECTIOUS DISEASE CONTROL

AIDS prevention, testing, and care programs 1,466,800

Sexually transmitted disease control programs 452,900

LOCAL HEALTH ADMINISTRATION AND GRANTS

Special population health care 29,600

Local public health operations 38,712,600

CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH PROMOTION

Cancer prevention and control program 397,000

Diabetes local agreements 1,275,000

Employee wellness program grants 1,545,100

School health curriculum 2,000,000

Smoking prevention program 2,880,000

COMMUNITY LIVING, CHILDREN, AND FAMILIES

Adolescent health care services 1,358,000

Family planning local agreements 1,230,300

Family support subsidy 7,006,900

Local MCH services 246,100

Pregnancy prevention program 2,511,800

Prenatal care outreach and service delivery support 3,190,000

CHILDREN'S SPECIAL HEALTH CARE SERVICES

Case management services 1,433,200

MEDICAL SERVICES

Indigent medical program 1,383,800

Hospital disproportionate share payments 18,000,000

Hospital services and therapy 17,559,300

Physician services 5,305,100

Pharmaceutical services 7,265,000

Home health services 1,195,200

Transportation 184,500

Health plan services 54,575,700

OFFICE OF SERVICES TO THE AGING

Community services 13,681,400

Nutrition services 12,363,000

Senior volunteer services 3,845,300

Michigan emergency pharmaceutical program 140,000

Respite care program 3,500,000

CRIME VICTIMS SERVICES COMMISSION

Crime victims' rights services grants 3,400,000


TOTAL OF PAYMENTS TO LOCAL UNITS OF GOVERNMENT $ 1,066,782,700

(2) If it appears to the principal executive officer of a department or branch that state spending to local units of government will be less than the amount that was projected to be expended under subsection (1), the principal executive officer shall immediately give notice of the approximate shortfall to the state budget director.

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

Sec. 203. Funds for which the state is acting as the custodian or agent are not subject to annual appropriation.

Sec. 204. As used in this act:

(a) "AIDS" means acquired immunodeficiency syndrome.

(b) "CMH" means community mental health.

(c) "CMHSP" means a community mental health service program as that term is defined in section 100a of the mental health code, 1974 PA 258, MCL 330.1100a.

(d) "DAG" means the United States department of agriculture.

(e) "Department" or "MDCH" means the Michigan department of community health.

(f) "DSH" means disproportionate share hospital.

(g) "EPSDT" means early and periodic screening, diagnosis, and treatment.

(h) "FTE" means full-time equated position.

(i) "GME" means graduate medical education.

(j) "HIV" means human immunodeficiency virus.

(k) "HMO" means health maintenance organization.

(l) "IDEA" means individuals with disabilities education act.

(m) "IDG" means interdepartmental grant.

(n) "IDT" means intradepartmental transfer.

(o) "MCH" means maternal and child health.

(p) "Qualified health plan" means, at a minimum, an organization that meets the criteria for delivering the comprehensive package of services under the department's comprehensive health plan.

(q) "Title X" means title X of the public health services act, 300 U.S.C. 1001.

(r) "Title XVIII" means title XVIII of the social security act, chapter 531, 49 Stat. 620, 42 U.S.C. 1395 to 1395b, 1395b-2, 1395c to 1395i, 1395i-2 to 1395i-4, 1395j to 1395t, 1395u to 1395w-2, 1395w-4 to 1395zz, and 1395bbb to 1395ccc.

(s) "Title XIX" means title XIX of the social security act, chapter 531, 49 Stat. 620, 42 U.S.C. 1396 to 1396d, 1396f to 1396g, and 1396i to 1396s.

(t) "Title XX" means title XX of the social security act, chapter 531, 49 Stat. 620, 42 U.S.C. 1397 to 1397f.

Sec. 206. (1) Beginning October 1, 1998, there is a hiring freeze 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 or to positions that are funded with 80% or more federal or restricted funds.

(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 the state department or agency being unable to deliver basic services. The state budget director shall report by the fifteenth of each month to the chairpersons of the senate and house appropriations committees the number of exclusions to the hiring freeze approved during the previous month and the justification for the exclusion.

Sec. 207. If the revenue collected by the department 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. 208. Except as provided in section 111b(11) of the social welfare act, 1939 PA 280, MCL 400.111b, relative to medical services providers, the department shall not pay for a billing received from a contractor or service provider that is submitted more than 12 months after the bill for a good or service is provided.

Sec. 209. (1) From the amounts appropriated in part 1, no greater than the following amounts are supported with federal maternal and child health, preventive health and health services, substance abuse block grant, healthy Michigan fund, and Michigan health initiative funds:

(a) Maternal and child health block grant $ 20,552,000.

(b) Preventive health and health services block grant $ 4,982,300.

(c) Substance abuse block grant $ 62,857,700.

(d) Healthy Michigan funds $ 44,768,100.

(e) Michigan health initiative $ 9,600,000.

(2) On or before February 1, 1999, the department shall report to the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director on the detailed name and amounts of federal, restricted, private, and local sources of revenue that support the appropriations in each of the line items in part 1 of this act.

(3) Upon the release of the fiscal year 1999-2000 executive budget recommendation, the department shall report to the same parties in subsection (2) on the amounts and detailed sources of federal, restricted, private, and local revenue proposed to support the total funds appropriated in each of the line items in part 1 of the fiscal year 1999-2000 executive budget proposal.

(4) The department shall provide to the same parties in subsection (2) all revenue source detail for consolidated revenue line item detail upon request to the department.

Sec. 210. The state departments, agencies, and commissions receiving tobacco tax funds from part 1 shall report by October 1, 1998, to the senate and house appropriations committees, the senate and house fiscal agencies, and the state budget director on the following:

(a) Detailed spending plan by appropriation line item including description of programs.

(b) Allocations from funds appropriated under these sections.

(c) Description of allocations or bid processes including need or demand indicators used to determine allocations.

(d) Eligibility criteria for program participation and maximum benefit levels where applicable.

(e) Outcome measures to be used to evaluate programs.

(f) Any other information deemed necessary by the house or senate appropriations committees or the state budget director.

Sec. 211. The use of state restricted tobacco tax revenue received for the purpose of tobacco prevention, education, and reduction efforts and deposited in the healthy Michigan fund shall not be used for lobbying as defined in 1978 PA472, MCL 4.411 to 4.431.

Sec. 212. The department of civil service shall bill departments and/or agencies at the end of the first fiscal quarter for the 1% charges 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. 213. On October 1, 1998 and April 1, 1999, the department shall make a list available of reports to be prepared pursuant to the provisions of this act. The list shall be distributed to house and senate appropriations subcommittees on community health, house and senate fiscal agencies, house and senate central staffs, and the state budget director. The listed parties may request copies of reports from the list and submit the request back to the department. The department shall provide copies of the requested reports no later than the date the report is due to those persons requesting the reports.

Sec. 214. The source of funding for the part 1 appropriation for the Arab-American and Chaldean council, and ACCESS primary care services is the federal preventive health and health services block grant.

Sec. 215. (1) In addition to funds appropriated in part 1 for all programs and services, there is appropriated for write-offs of accounts receivable, deferrals, and for prior year obligations in excess of applicable prior year appropriations, an amount equal to total write-offs and prior year obligations, but not to exceed amounts available in prior year revenues.

(2) The department's ability to satisfy appropriation deductions in part 1 shall not be limited to collections and accruals pertaining to services provided in fiscal year 1998-99, but shall also include reimbursements, refunds, adjustments, and settlements from prior years.

(3) The department shall report promptly to the house and senate appropriations subcommittees on community health on all reimbursements, refunds, adjustments, and settlements from prior years.

Sec. 216. (1) The director shall take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies, or both, for the department.

(2) The director shall strongly encourage firms with which the department contracts to subcontract with certified businesses in depressed and deprived communities for services or supplies, or both.

Sec. 217. Funds appropriated in part 1 shall not be used for the purchase of foreign goods and/or services when competitively priced and of comparable quality American goods and/or services are available.

Sec. 218. The department shall provide a report on the progress of Medicaid managed mental health services to the members of the senate and house appropriations subcommittees on community health, the senate committee on families, mental health, and human services, and the house committee on mental health by September 30, 1999. The report shall summarize actions taken by the department community mental health services programs and substance abuse coordinating agency networks to implement these specialized managed care programs, and shall include summary information on inpatient and partial hospitalization and costs, access to services, and summary information on consumer satisfaction measures.

Sec. 220. (1) The department shall submit to the department of management and budget, the house and senate appropriations committees, the house and senate fiscal agencies and the house and senate standing committees having jurisdiction over technology issues, quarterly reports on the department's efforts to change the department's computer software and hardware as necessary to perform properly in the year 2000 and beyond. These reports shall identify actual progress in comparison to the department's approved work plan for these efforts. These reports also shall identify and forward as appropriate the funding sources that should support the work performed.

(2) The department may present progress billings to the department of management and budget for the costs incurred in changing computer software and hardware as necessary to perform properly in the year 2000 and beyond. At the time progress billings are presented for reimbursement, the department shall identify and forward as appropriate the funding sources that should support the work performed.

Sec. 222. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $100,000,000.00 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 $10,000,000.00 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 $10,000,000.00 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 $10,000,000.00 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. 223. Basic health services for the fiscal year beginning October 1, 1998, for the purpose of part 23 of the public health code, 1978 PA 368, MCL 333.2301 to 333.2321, are those described by the department in its proposed program statement dated October 16, 1981, and in the "prenatal postpartum care, proposed basic health service program statement" included in the department document entitled "A Study of Prenatal Care as a Basic Service," dated March1, 1986, and for which the legislature has made funds available in amounts necessary to ensure their availability and accessibility. The services described in the statement are: immunizations, communicable disease control, venereal disease control, tuberculosis control, prevention of gonorrhea eye infection in newborns, screening newborns for phenylketonuria, screening newborns for hypothyroidism, health/medical annex of emergency preparedness plan, licensing and surveillance of agricultural labor camps, and prenatal care.

Sec. 224. The department may contract with the Michigan public health institute for the design and implementation of projects and for other public health related activities prescribed in section 2611 of the public health code, 1978 PA368, MCL 333.2611. The department may develop a master agreement with the institute for up to a 3-year period to carry out these purposes. The department shall report on projects to be carried out by the institute, expected project duration, and project cost by November 1, 1998 and May 1, 1999 to the house and senate appropriations subcommittees on community health, senate and house fiscal agencies, and the state budget director. If the reports are not received by the specified dates, no funds shall be disbursed. For the purposes of this section, the Michigan public health institute shall be considered a public health agency.

Sec. 225. No funds appropriated in part 1 shall be expended for media activities regarding the alleged dangers of naturally occurring radon gas.

Sec. 227. The department may receive and expend funds dedicated to the establishment of programs for education, research and treatment services related to pathological gambling addictions.

Sec. 228. By November 1, 1998, the department shall report to the senate and house appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director the budget detail for the line items that have been consolidated in the fiscal year 1998-99 appropriation bill. The budget detail shall include the amounts allocated for program elements that correspond to the line items as contained in the fiscal year 1997-98 appropriation bill as well as planned allocations to local agencies by program element. On a quarterly basis, the department shall report expenditures in the same format as the budgeted detail, and provide copies of any allocation changes made during the course of the fiscal year.

Sec. 229. The department shall receive and retain copies of all reports funded from the appropriations in part 1.

Sec. 230. (1) The department of management and budget and each principal executive department and agency shall provide to the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies a monthly report on all personal service contracts awarded without competitive bidding, pricing, or ratesetting. The notification shall include all of the following:

(a) The total dollar amount of the contract.

(b) The duration of the contract.

(c) The name of the vendor.

(d) The type of service to be provided.

(2) For personal service contracts of $100,000.00 or more, the department of management and budget shall provide a monthly report including all of the following:

(a) The total dollar amount of the contract.

(b) The duration of the contract.

(c) The name of the vendor.

(d) The type of service to be provided.

(3) The department of management and budget shall provide a monthly listing of all bid requests or requests for proposal that were issued.

(4) Each principal executive department and agency shall provide a monthly summary listing of information that identifies any authorizations for personal service contracts that are provided to the department of civil service pursuant to delegated authority granted to each principal executive department and agency related to personal service contracts.

Sec. 231. Within 10 working days after formal presentation of the executive budget, the state budget director shall report to the members of the senate and house appropriations committees and the senate and house fiscal agencies on the amounts and sources of all capped federal funds, special revenue funds as defined in the state of Michigan's comprehensive annual financial report, and the healthy Michigan fund, and an accounting of the state departments or agencies in which the executive budget proposes to spend the funds.

Sec. 232. Sixty days before beginning any effort to privatize, the department shall submit a complete project plan to the appropriate house and senate appropriations subcommittees and the house and senate 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 appropriate house and senate appropriations subcommittees and the house and senate fiscal agencies within 30 months.

Sec. 233. If a department enters into a personal services contract with any temporary service agency or similar contractor that hires or subcontracts with a person who retired from employment in the department under the early retirement program under section 19f of the state employees' retirement act, 1943 PA 240, MCL 38.19f, the retired state employee shall be limited to 500 hours for professional, technical, or clerical services and 250 hours for management services. This limitation does not apply to computer technology services. This provision only applies during a 24-month period after the date of retirement. This section applies to each principal executive department and agency.

Sec. 235. The department shall require that providers of Medicaid and non-Medicaid services, such as nursing home providers, community mental health service programs, and other health related services, maintain waiting lists for service needs not met, preserving the confidentiality of clients as required by law. The waiting lists shall include data by type of service and provide an average length of time persons have been waiting for services. No later than April 1, 1999, the department shall provide a report on the information required by this section to the members of the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director.

DEPARTMENTWIDE ADMINISTRATION


Sec. 302. From funds appropriated for worker's compensation, the department may make payments in lieu of worker's compensation payments for wage/salary and related fringe benefits for employees who return to work under limited duty assignments. Employees returning to work under limited duty assignments who are funded under this section will be in addition to the facility's existing staffing authorization.

Sec. 303. Funds appropriated in part 1 for the community health advisory council may be used for member per diems of $50.00 and other council expenditures.

Sec. 305. The department shall provide quarterly reports concerning the department's revenue and expenditure status to the senate and house appropriations committees, the house and senate fiscal agencies, and the state budget director.

Sec. 309. The department is prohibited from requiring first-party payment from individuals or families with a taxable income of $9,000.00 or less for mental health services.

Sec. 310. The specific amounts indicated in sections 103, 104, and 105 of this act as restricted revenue for financing appropriations from federal, state restricted, local, private, and CMHSP - purchase of state services contracts are estimates of the proportion of the total amounts expected to be collected, and the department may satisfy any individual restricted revenue deduct amount from the total revenues of all of those revenue sources. A report shall be provided by April 15 to the fiscal agencies and the state budget director on actual collections by revenue source for each appropriation unit during the previous fiscal year.

Sec. 311. The department shall make application for funding under the medicare rural hospital flexibility program for planning, network development and critical access hospital designation activities.

Sec. 312. The department shall seek a Medicaid waiver from the requirement that prohibits reimbursement for psychiatric services to persons between the ages of 21 and 65 provided by institutions for mental disease. The waiver request shall be for both public and private hospitals providing such services. A copy of the federal waiver request shall be provided to the house and senate appropriations subcommittees on community health, and to the house and senate fiscal agencies at the time of submission.

Sec. 313. In implementing appropriated services pursuant to the pilot projects in prevention for adults and children and the maternal and child health outreach and advocacy program line items, the department shall work cooperatively with the department of education and the family independence agency to address issues and coordinate activities for community-based collaborative prevention services.

MENTAL HEALTH/SUBSTANCE ABUSE SERVICES ADMINISTRATION AND SPECIAL PROJECTS


Sec. 350. The department shall not enter into new contracts with private attorneys for legal services for the purposes of gaining and maintaining occupancy to a community living arrangement. The department may enter into a contract with the protection and advocacy service, authorized under section 931 of the mental health code, 1974 PA 258, MCL 330.1931, or a similar organization to provide legal services for purposes of gaining and maintaining occupancy in a community living arrangement which is under lease or contract with the department or a community mental health services program board to provide services to persons with mental illness or developmental disability. State funds shall not be used for legal services to represent private investors purchasing homes for these purposes.

Sec. 351. The funds appropriated in part 1 for community residential services programs may be used for basic care in cases where individuals are not eligible to receive social security benefits and are not otherwise capable of supporting themselves out of their own resources. Funds may be used for aftercare services or to prevent admissions to state hospitals and centers through residential and support services. Expenditures and allocations may be authorized for CMHSPs and state hospitals, centers, and placement agencies.

Sec. 352. Five hundred thousand dollars is appropriated in part 1 from the healthy Michigan fund to the agency designated by the governor pursuant to section 931 of the mental health code, 1974 PA 258, MCL 330.1931, for the purpose of providing protection and advocacy services for individuals with substance abuse disorders. The agency shall provide information and referral services, written materials for consumers, and monitoring of facilities providing care or treatment and investigate complaints. Evaluation of substance abuse services provided by the department of corrections shall be provided by this agency in cooperation with other entities.

COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES PROGRAMS


Sec. 401. (1) Funds appropriated in section 104 are intended to support a system of comprehensive community mental health services under the full authority and responsibility of local CMHSPs. The department shall ensure that each board provides all of the following:

(a) A system of single entry and single exit.

(b) A complete array of mental health services which shall include, but shall not be limited to, all of the following services: residential and other individualized living arrangements, outpatient services, acute inpatient services, and long-term, 24-hour inpatient care in a structured, secure environment.

(c) The coordination of inpatient and outpatient hospital services through agreements with state-operated psychiatric hospitals, units, and centers in facilities owned or leased by the state, and privately-owned hospitals, units, and centers licensed by the state pursuant to sections 134 through 149b of the mental health code, 1974 PA 258, MCL 330.1134 to 330.1149b.

(d) Individualized plans of service that are sufficient to meet the needs of individuals, including those discharged from psychiatric hospitals or centers, and that ensure the full range of recipient needs is addressed through the CMHSP's program or through assistance with locating and obtaining services to meet these needs.

(e) A system of case management to monitor and ensure the provision of services consistent with the individualized plan of services or supports.

(f) A system of continuous quality improvement.

(g) A system to monitor and evaluate the mental health services provided.

(2) In partnership with CMHSPs, the department shall establish a process to ensure the long-term viability of a single entry and exit and locally controlled community mental health system.

(3) A contract between a CMHSP and the department shall not be altered or modified without a prior written agreement of the parties to the contract.

Sec. 402. (1) From funds appropriated in section 104, final authorizations to CMHSPs shall be made upon the execution of contracts between the department and CMHSPs. The contracts shall contain an approved plan and budget as well as policies and procedures governing the obligations and responsibilities of both parties to the contracts.

(2) The funds appropriated in section 104 for the purchase of state service contracts are for the purchase of state hospital and center services, or for approved community-based programs that reduce utilization of state provided services. These funds shall be authorized to CMHSPs based on estimates approved by the department as part of the negotiated contract.

(3) Funds that are authorized to CMHSPs, when used to purchase state services, shall be provided to state hospitals, centers, and placement agencies based on the per diem and billing arrangements approved by the department in the negotiated contract.

(4) Current billing and collection procedures for the net cost of state provided services shall continue as specified in chapter 3 of the mental health code, 1974 PA 258, MCL 330.1302 to 330.1320.

(5) The department may access funds from the appropriation directly for patients who have no county affiliation or for whom county charges are exempted.

(6) The funds appropriated in section 104 from purchase of state service contracts shall not result in increased costs to counties in excess of the local match required under section 302 and section 308 of the mental health code, 1974 PA 258, MCL 330.1302 and 330.1308.

Sec. 405. Funds appropriated in part 1 for CMHSP services and community demand may be reserved and carried forward pursuant to provisions in the mental health code, 1974 PA 258, MCL 330.1001 to 330.2106.

Sec. 406. From the funds appropriated for CMHSP, $3,360,000.00 will be directed toward providing multicultural special needs projects.

Sec. 407. (1) Not later than April 10 of each fiscal year, the department shall provide a report on the community mental health services programs to the members of the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director which shall include information required by this section. This report will be updated to the extent possible, based on available data, by September 30.

(2) The report shall contain information for each community mental health services board and a statewide summary, each of which shall include at least the following information:

(a) A demographic description of service recipients which, minimally, shall include reimbursement eligibility, client population, age, ethnicity, housing arrangements, and diagnosis.

(b) Per capita expenditures by client population group.

(c) Financial information which, minimally, shall include a description of funding authorized; expenditures by client group and fund source; and cost information by service category, including administration. Service category shall include all department approved services.

(d) Data describing service outcomes which shall include but not be limited to an evaluation of consumer satisfaction, consumer choice, and quality of life concerns including but not limited to housing and employment.

(e) Information about access to community mental health services programs which shall include but not be limitedto:

(i) The number of people receiving requested services.

(ii) The number of people who requested services but did not receive services.

(f) The number of second opinions requested under the code and the determination of any appeals.

(g) An analysis of information provided by community mental health service programs in response to the needs assessment requirements of the mental health code, including information about the number of persons in the service delivery system who have requested and are clinically appropriate for different services.

Sec. 408. (1) By April 10, 1999, the department shall report the following data from fiscal year 1997-98 on community mental health services programs to the senate and house appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director:

(a) An estimate of the number of FTEs employed or contracted directly by the CMHSPs as of September 30, 1998 and an estimate of the number of FTEs employed through contracts with provider organizations as of September 30, 1998.

(b) Lapses and carryforwards for CMHSPs, including historical lapse and carryforward data.

(c) Contracts for mental health services entered into by CMHSPs with providers, including amounts and rates, organized by type of service provided.

(2) The department shall include these data reporting requirements in the annual contract with individual CMHSPs.

(3) The department shall take all reasonable actions to ensure that the requested data reported are complete and consistent among all CMHSPs.

(4) Agencies contracting with CMHSPs shall provide 3 days' notice to the CMHSP of all committee and full board meetings and shall conduct all portions of meetings pertaining to CMHSPs funded programs in the same manner as required for meetings of public bodies under the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

Sec. 409. (1) The 75 cents per hour per employee wage pass-through for workers in residential services settings that was funded to CMHSPs beginning January 1, 1998, shall continue to be paid to direct care workers in fiscal year 1998-99.

(2) From the funds appropriated in part 1 for community mental health services programs, money shall be utilized to establish a pool of funds available to local community mental health services programs, sufficient to provide for increasing the wages and the employer's share of federal insurance contributions act costs of direct care staff by 50 cents per hour per direct care worker in local residential settings and for paraprofessional and other nonprofessional direct care workers in day programs, supported employment, and other vocational service programs, effective April 1, 1999.

(3) From the funds appropriated in part 1 for community mental health services programs, money shall be utilized to establish a pool of funds available to local community mental health services programs, sufficient to provide for increasing the wages of direct care staff by 25 cents per hour for paraprofessional and other nonprofessional direct care workers in day programs, supported employment, and other vocational service programs, effective April 1, 1999.

(4) Each CMHSP may make application to the department to receive funds for the direct care worker wage pass-through fund, not to exceed their proportionate share of the money allocated for this purpose. The application shall specify the amount of funds requested and the agencies/programs to receive the wage pass-through funds requested.

(5) Each CMHSP awarded wage pass-through funds shall report on the actual expenditures of such funds in the format to be determined by the department. Any funds not utilized by the CMHSP for the purpose specified in the wage pass-through application shall be deducted from the base allocation to the CMHSP in the subsequent fiscal year.

Sec. 410. The department shall take steps to ensure that the administrative costs of purchase of service residential contracts do not exceed previous levels. The department shall report annually to the house and senate appropriations subcommittees on community health information about administrative and other provider costs.

Sec. 411. (1) The funds appropriated in section 104 for the state disability assistance substance abuse services program shall be used to support per diem room and board payments in substance abuse residential facilities. Eligibility of clients for the state disability assistance substance abuse services program shall include needy persons 18 years of age or older, or emancipated minors, who reside in a substance abuse treatment center.

(2) The department shall reimburse all licensed substance abuse programs eligible to participate in the program at a rate equivalent to that paid by the family independence agency to adult foster care providers. Programs accredited by department-approved accrediting organizations shall be reimbursed at the personal care rate, while all other eligible programs shall be reimbursed at the domiciliary care rate.

Sec. 412. (1) The amount appropriated in section 104 for substance abuse prevention, education, and treatment grants shall be expended for contracting with coordinating agencies or designated service providers.

(2) The department shall establish a fee schedule for providing substance abuse services and charge participants in accordance with their ability to pay. The mechanisms and fee schedule shall be developed by the department with input from substance abuse coordinating agencies.

Sec. 413. (1) By April 15, 1999, the department shall report the following data from fiscal year 1997-98 on substance abuse prevention, education, and treatment programs to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies:

(a) Expenditures stratified by coordinating agency, by central diagnosis and referral agency, by fund source, by subcontractor, by population served, and by service type. Additionally, data on administrative expenditures by coordinating agency and by subcontractor shall be reported.

(b) Expenditures per state client, with data on the distribution of expenditures reported using a histogram approach.

(c) Number of services provided by central diagnosis and referral agency, by subcontractor, and by service type. Additionally, data on length of stay, referral source, and participation in other state programs.

(d) Collections from other first- or third-party payers, private donations, or other state or local programs, by coordinating agency, by subcontractor, by population served, and by service type.

(2) The department shall take all reasonable actions to ensure that the required data reported are complete and consistent among all coordinating agencies.

Sec. 414. The funding in section 104 for substance abuse services shall be distributed in a manner so as to provide priority to service providers which furnish child care services to clients with children.

Sec. 415. If the state's fiscal year 1998-99 federal block grant allocation for substance abuse services is increased by $1,900,000.00 or more from the prior fiscal year and federal funding is not awarded to the Odyssey House residential substance abuse treatment program, the department shall allocate no less than $1,900,000.00 to the Odyssey House residential substance abuse treatment program.

Sec. 416. By September 30, 1999, the department shall report to the house and senate appropriations subcommittees on community health and the house and senate fiscal agencies on how the existing and new substance abuse funding was utilized, the amount of services provided, and their impact on reducing substance abuse problems.

Sec. 418. If a person licensed to provide substance abuse services receives federal substance abuse prevention block grant funds, any priority positions established under state statute for recipients of their services shall apply only after serving those priority positions granted under the conditions of the federal block grant.

Sec. 419. The department shall require that CMHSPs assure access to the consumer grievance and appeal rights and protections contained in the signed fiscal year 1998-99 DCH-CMHSP contract for managed specialty supports and services, including the grievance and appeal technical requirement labeled attachment 4.7.4.1 effective October 1, 1998.

Sec. 421. The department shall assure that substance abuse treatment is provided to applicants and recipients of public assistance through the family independence agency who are required to obtain substance abuse treatment as a condition of eligibility for public assistance.

Sec. 422. (1) The department shall ensure that each contract with a CMHSP shall require the CMHSP to implement programs to encourage diversions of persons with serious mental illness, serious emotional disturbance, or developmental disability from possible jail incarceration when appropriate.

(2) Each CMHSP shall have jail diversion services and shall work toward establishing working relationships with representative staff of local law enforcement agencies. Such agencies include the county prosecutors' offices, county sheriffs' offices, county jails, municipal police agencies, municipal detention facilities, and the courts. Written interagency agreements describing what services each participating agency is prepared to commit to the local jail diversion effort and the procedures to be used by local law enforcement agencies to access mental health jail diversion services are strongly encouraged.

Sec. 423. The department shall contract directly with the Salvation Army harbor light program for the provision of substance abuse services at not less than the amount provided in fiscal year 1997-1998.

STATE PSYCHIATRIC HOSPITALS, CENTERS FOR PERSONS WITH DEVELOPMENTAL


DISABILITIES, AND FORENSIC AND PRISON MENTAL HEALTH SERVICES


Sec. 601. (1) In funding of staff in the financial support division, reimbursement, and billing and collection sections, priority shall be given to obtaining third-party payments for services. Collection from individual recipients of services and their families shall be handled in a sensitive and nonharassing manner.

(2) The department shall continue a revenue recapture project to generate additional revenues from third parties related to cases which have been closed or are inactive. Revenues collected through project efforts are appropriated to the department for departmental costs and contractual fees associated with these retroactive collections and to improve ongoing departmental reimbursement management functions so that the need for retroactive collections will be reduced or eliminated.

Sec. 602. Unexpended and unencumbered amounts and accompanying expenditure authorizations up to $2,000,000.00 remaining on September 30, 1999 from pay telephone revenues and the amounts appropriated in section 105 for gifts and bequests for patient living and treatment environments shall be carried forward for 1 fiscal year. The purpose of gifts and bequests for patient living and treatment environments is to use additional private funds to provide specific enhancements for individuals residing at state-operated facilities. Use of the gifts and bequests shall be consistent with the stipulation of the donor. The expected completion date for the use of gifts and bequests donations is within 3 years unless otherwise stipulated by the donor.

Sec. 603. The funds appropriated in section 105 for forensic mental health services provided to the department of corrections are in accordance with the interdepartmental plan developed in cooperation with the department of corrections. The department is authorized to receive and expend funds from the department of corrections in addition to the appropriations in section 105 to fulfill the obligations outlined in the interdepartmental agreements.

Sec. 604. (1) Subject to the funds appropriated in section 105 for hospitals and centers, the department shall authorize FTEs and funds to each hospital and center on the basis of the actual utilization of each of the hospitals and centers.

(2) Funds that become available as a result of reductions in the utilization of state-operated hospitals and centers are intended to be retained by CMHSP to support community-based services.

Sec. 605. (1) The department shall not implement any closures or consolidations of state hospitals, centers, or agencies until CMHSPs have programs and services in place for those persons currently in those facilities and a plan for service provision for those persons who would have been admitted to those facilities.

(2) All closures or consolidations are dependent upon adequate department-approved CMHSP plans which include a discharge and aftercare plan for each person currently in the facility. A discharge and aftercare plan shall address the person's housing needs. A homeless shelter or similar temporary shelter arrangements are inadequate to meet the person's housing needs.

(3) Four months after the certification of closure required in section 19(6) of 1943 PA 240, MCL 38.19, the department shall provide a closure plan to the house and senate appropriations subcommittees.

(4) Upon the closure of state-run operations and after transitional costs have been paid, the remaining balances of funds appropriated for that operation shall be transferred to CMHSPs responsible for providing services for persons previously served by the operations.

Sec. 606. (1) The department, in conjunction with the CMHSPs, will continue to assure the provision of a complete array of services on a statewide basis. Such an array of services shall include, but is not limited to, residential and other individualized living arrangements, outpatient services, acute inpatient services, and long-term, 24-hour inpatient care in a structured, secure environment.

(2) Long-term psychiatric beds, whether occupied or unoccupied, whether operated by the state or an agency with whom the department or a CMHSP contracts, will be available at various locations across the state.

(3) The department and CMHSPs shall continue to develop and facilitate community placement opportunities for persons with developmental disabilities, adults with mental illness, and children with emotional disturbance for whom such placement is clinically appropriate.

(4) The department and CMHSPs shall not discriminate against the placement of an individual in a state psychiatric hospital when long-term psychiatric inpatient care is appropriate. This subsection does not prohibit the department and CMHSPs from considering consumer choice, quality of care, and cost of care in making the hospital referral.

PUBLIC HEALTH ADMINISTRATION


Sec. 701. Of the amount appropriated in section 106 from revenues from fees and collections, not more than $250,000.00 received from the sale of vital records death data shall be used for improvements in the vital records and health statistics program. The amount described in this section shall not revert to the general fund at the end of the fiscal year ending September 30, 1999. Not later than December 1, 1999, the amount of any unexpended balances and the proposed uses for those balances shall be reported to the senate and house fiscal agencies.

INFECTIOUS DISEASE CONTROL


Sec. 801. State funds appropriated in any other account in part 1 may be used to supplant not more than $350,000.00 in federal funds projected for immunization, if the federal funds are unavailable. The department shall inform the senate and house appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director of the specific line items reduced pursuant to this section.

Sec. 802. In the expenditure of funds appropriated in section 107 for AIDS programs, the department and its subcontractors shall ensure that adolescents receive priority for prevention, education, and outreach services.

Sec. 803. In developing and implementing AIDS provider education activities, the department may provide funding to the Michigan state medical society to continue to serve as lead agency to convene a consortium of health care providers, to design needed educational efforts, to fund other statewide provider groups, and to assure implementation of these efforts, in accordance with a plan approved by the department.

Sec. 804. If an employee of the department of corrections comes in contact with a prisoner and that contact involves the risk of exposure to the prisoner's blood or bodily fluids, upon the employee's request the department of corrections shall inform the employee of the results of the prisoner's HIV test if known by the department.

Sec. 807. From the funds appropriated in part 1, $100,000.00 shall be used to support a pilot project to vaccinate 2-year-old children countywide with hepatitis A vaccine, for the prevention of future outbreaks of hepatitis A in Calhoun County.

Sec. 808. From the funds appropriated in part 1 for AIDS prevention, testing, and care programs, the department shall continue the AIDS drug assistance program at no less than the fiscal year 1997-98 eligibility criteria and drug formulary.

Sec. 809. Of the funds appropriated in part 1, $4,600,000.00 from the sexually transmitted disease control local agreements line shall be allocated to the hepatitis B vaccine program for the purpose of testing and vaccination of individuals attending sexually transmitted disease, family planning, and adolescent health clinics in an effort to reduce the spread of hepatitis B, and for administration of the program by the local clinics.

LOCAL HEALTH ADMINISTRATION AND GRANTS


Sec. 903. The amount appropriated in section 110 for implementation of the 1993 amendments to sections 9161, 16221, 16226, 17014, 17015, and 17515 of the public health code, 1978 PA 368, MCL 333.9161, 333.16221, 333.16226, 333.17014, 333.17015, and 333.17515, shall reimburse local health departments for costs incurred related to implementation of section 17015(15) of the public health code, 1978 PA 368, MCL 333.17015.

Sec. 905. If a county receiving funding from the amount appropriated in section 110 for local public health infrastructure is part of a district health department or in an associated arrangement with other local health departments on June 1, 1992 and then ceases to be part of such an arrangement, the allocation to that county from the local public health infrastructure appropriation shall be reduced by 50% from the amount originally allocated.

Sec. 908. The department shall provide a report quarterly to the house and senate appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director on the expenditures and activities undertaken by the lead abatement program. The report shall include but not be limited to a funding allocation schedule, expenditures by category of expenditure and by subcontractor, revenues received, description of program elements, and description of program accomplishments and progress.

Sec. 909. (1) Funds appropriated in part 1 for local public health operations shall be prospectively allocated to local health departments to support immunizations, infectious disease control, sexually transmitted diseases, hearing screening, vision services, food protection, public water supply, private groundwater supply, and on-site sewage management.

(2) Local public health departments will be held to contractual standards for the services in subsection (1).

(3) Distributions in subsection (1) shall be made only to counties that maintain local spending in fiscal year 1998-99 of at least the amount expended in fiscal year 1992-93 for cost shared services.

(4) By April 1, 1999, the department shall report to the senate and house appropriation subcommittees on community health, the senate and house fiscal agencies, and the state budget director on the planned allocation of the funds appropriated for local public health operations.

(5) It is the intent of the legislature that this appropriation be fully expended in fiscal year 1998-99.

Sec. 910. The department shall ensure compliance with applicable state certification requirements and protection of the workers and public health and safety at lead abatement project sites for which the department receives written notice of lead-based paint abatement activity.

CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH PROMOTION


Sec. 1001. (1) From the state funds appropriated in section 111, the department shall allocate funds to promote awareness, education, and early detection of breast, cervical, and prostate cancer, and provide for other health promotion media activities.

(2) The department shall increase funds allocated to promote awareness, education, and early detection of breast, cervical, and prostate cancer by $750,000.00 above the amount allocated for this purpose in fiscal year 1996-97.

(3) Any excess funds not authorized or allocated in the cancer prevention and control line item in part 1 shall be utilized for prostate cancer prevention programs.

Sec. 1002. (1) The amount appropriated in section 111 for school health and education programs shall be allocated in 1998-99 to provide grants to or contract with certain districts and intermediate districts for the provision of a school health education curriculum. Provision of the curriculum, such as the Michigan model or another comprehensive school health education curriculum, shall be in accordance with the health education goals established by the Michigan model for the comprehensive school health education state steering committee. The state steering committee shall be comprised of a representative from each of the following offices and departments:

(a) The department of education.

(b) The department of community health.

(c) The public health agency in the department of community health.

(d) The office of substance abuse services in the department of community health.

(e) The family independence agency.

(f) The department of state police.

(2) Upon written or oral request, a pupil not less than 18 years of age or a parent or legal guardian of a pupil less than 18 years of age, within a reasonable period of time after the request is made, shall be informed of the content of a course in the health education curriculum and may examine textbooks and other classroom materials that are provided to the pupil or materials that are presented to the pupil in the classroom. This subsection does not require a school board to permit pupil or parental examination of test questions and answers, scoring keys, or other examination instruments or data used to administer an academic examination.

Sec. 1003. Funds appropriated in section 111 for the Alzheimer's information network shall be used to provide information and referral services through regional networks for persons with Alzheimer's disease or related disorders, their families, and health care providers.

Sec. 1004. From the amounts appropriated in section 111 for the cancer prevention and control program, the department shall allocate funds to the Hurley and Harper hospitals' prostate cancer demonstration projects in fiscal year 1998-99.

Sec. 1005. From the funds appropriated in section 111 for physical fitness, nutrition, and health, up to $1,000,000.00 may be allocated to the Michigan physical fitness and sports foundation. The allocation to the Michigan physical fitness and sports foundation is contingent upon the foundation providing at least a 20% cash match.

Sec. 1006. In spending the funds appropriated in section 111 for the smoking prevention program, priority shall be given to prevention and smoking cessation programs for pregnant women, women with young children, and adolescents.

Sec. 1007. (1) The funds appropriated in section 111 for violence prevention shall be used for, but not be limited to, the following:

(a) Programs aimed at the prevention of spouse, partner, or child abuse and rape.

(b) Programs aimed at the prevention of workplace violence.

(2) In awarding grants from the amounts appropriated in part 1 for violence prevention, the department shall give equal consideration to public and private nonprofit applicants.

(3) From the funds appropriated in section 111 for violence prevention, the department may include local school districts as recipients of the funds for family violence prevention programs.

Sec. 1008. (1) From the amount appropriated in section 111 for the cancer prevention and control program, funds shall be allocated to the Karmanos cancer institute/Wayne State University, to the Michigan interactive health kiosk/University of Michigan, and to Michigan State University for cancer prevention activities.

(2) The department shall provide a report to the house and senate appropriations subcommittees on community health and the house and senate fiscal agencies by January 1, 1999, on how these funds were allocated and spent in fiscal year 1997-98. Also, the report shall detail outcomes resulting from the use of such funds.

Sec. 1009. From the funds appropriated in section 111 for diabetes local agreements, a portion of the funds may be allocated to the national kidney foundation of Michigan for kidney disease prevention programming including early identification and education programs and kidney disease prevention demonstration projects.

Sec. 1011. Of the funds appropriated in section 111 for the health education, promotion, and research programs, the department shall allocate $650,000.00 to implement the osteoporosis prevention and treatment education program targeting women and school health education. As part of the program, the department shall design and implement strategies for raising public awareness on the causes and nature of osteoporosis, personal risk factors, value of prevention and early detection, and options for diagnosing and treating osteoporosis.

Sec. 1012. From the funds appropriated in part 1 for diabetes local agreements, $320,000.00 shall be allocated for improving the health of African-American men in Michigan. The funds shall be used for screening and patient self-care activities for diabetes, hypertension, stroke, and glaucoma and other eye diseases.

COMMUNITY LIVING, CHILDREN, AND FAMILIES


Sec. 1101. The department shall review the basis for the distribution of funds to local health departments and other public and private agencies for the women, infants, and children food supplement program; family planning; early and periodic screening, diagnosis, and treatment program; and prenatal care outreach and service delivery support program and indicate the basis upon which any projected underexpenditures by local public and private agencies shall be reallocated to other local agencies that demonstrate need.

Sec. 1102. (1) Agencies receiving funds appropriated from section 112 for adolescent health care services shall meet all of the following criteria:

(a) Require each adolescent health clinic funded by the agency to report to the department on an annual basis all of the following information:

(i) Funding sources of the adolescent health clinic.

(ii) Demographic information of populations served including sex, age, and race.

(iii) Utilization data that reflects the number of visits and repeat visits and types of services provided per visit.

(iv) Types and number of referrals to other health care agencies.

(b) Require each local school board funded by the agency to establish a local advisory committee before the planning phase of an adolescent health clinic intended to provide services within that school district. The advisory committee shall be comprised of not less than 50% residents of the local school district, and shall not be comprised of more than 50% health care providers. A person who is employed by the sponsoring agency shall not have voting privileges as a member of the advisory committee. All advisory committee meetings shall be open to the public with at least a 1-week notice of the meeting date published in the local newspaper.

(c) Not allow an adolescent health clinic funded by the agency, as part of the services offered, to provide abortion counseling or services or make referrals for abortion services.

(d) If a local advisory committee established under subdivision (b) recommends that family planning be provided as a service, require that any public information brochure include family planning in its description of the entire array of services provided by the adolescent health clinic.

(e) Require each adolescent health clinic funded by the agency to have a written policy on parental consent, developed by the local advisory committee and submitted to the local school board for approval if the services are provided in a public school building where instruction is provided in grades kindergarten through 12.

(2) A local advisory committee established under subsection (1)(b), in cooperation with the sponsoring agency, shall submit written recommendations regarding the implementation and types of services rendered by an adolescent health clinic to the local school board for approval of adolescent health services rendered in a public school building where instruction is provided in grades kindergarten through 12.

(3) The department shall submit a report to the members of the senate and house fiscal agencies based on the information provided under subsection (1)(a). The report is due 90 days after the end of the calendar year.

Sec. 1103. Of the funds appropriated in section 112 for adolescent health care services, $1,840,830.00 shall be allocated to teen centers as follows: $90,000.00 base funding, and of the remaining funding 25% distributed on the number of users, 50% distributed on the number of visits, and 25% distributed on the number of services. This formula does not apply to the alternative models.

Sec. 1104. Before April 1, 1999, the department shall submit a report to the house and senate fiscal agencies on planned allocations from the amounts appropriated in section 112 for local MCH services, prenatal care outreach and service delivery support, family planning local agreements, and pregnancy prevention programs. Using applicable federal definitions, the report shall include information on all of the following:

(a) Funding allocations.

(b) Basis for grantee selection.

(c) Expected cost per client served by grantee.

(d) Number of women, children, and/or adolescents expected to be served.

(e) Expected first- and third-party collections by source of payment.

(f) The extent to which grantees meet federal indicators, when applicable.

(g) Actual numbers served and amounts expended in the categories described in subdivisions (a) to (e) for the fiscal year 1997-98.

Sec. 1105. For all programs for which an appropriation is made in section 112, the department shall contract with those local public and private nonprofit agencies best able to serve clients. Factors to be used by the department in evaluating agencies under this section shall include ability to serve high-risk population groups; ability to serve low-income clients, where applicable; availability of, and access to, service sites; management efficiency; and ability to meet federal standards, where applicable.

Sec. 1106. Each family planning program receiving federal title X family planning funds shall be in compliance with all performance and quality assurance indicators that the United States bureau of community health services specifies in the family planning annual report. An agency not in compliance with the indicators shall not receive supplemental or reallocated funds.

Sec. 1107. Of the amount appropriated in section 112 for prenatal care outreach and service delivery support, not more than 10% shall be expended for local administration, data processing, and evaluation.

Sec. 1109. The department shall maintain comprehensive health care programs to communicate to preteens the importance of delaying sexual activity and to address teen sexual activity, teenage pregnancy, and sexually transmitted diseases.

Sec. 1110. The funds appropriated in section 112 for pregnancy prevention programs shall not be used to provide abortion counseling, referrals, or services.

Sec. 1111. (1) From the amounts appropriated in section 112 for dental programs, funds shall be allocated to the Michigan dental association for the administration of a volunteer dental program that would provide dental services to the uninsured in an amount that is no less than the amount allocated to that program in fiscal year 1996-97.

(2) Not later than November 1, 1998, the department shall report to the senate and house appropriations subcommittees on community health and the senate and house standing committees on public health the number of individual patients treated, the number of procedures performed, and approximate total market value of those procedures through September 30, 1998.

Sec. 1113. Agencies that currently receive pregnancy prevention funds and either receive or are eligible for other family planning funds shall have the option of receiving all of their family planning funds directly from the department of community health and be designated as delegate agencies.

Sec. 1114. The department shall allocate no less than 86% of the funds appropriated in section 112 for family planning local agreements and the pregnancy prevention program for the direct provision of family planning/pregnancy prevention services.

Sec. 1117. From the funds appropriated for prenatal care outreach and service delivery support, the department shall allocate at least $1,000,000.00 to communities with high infant mortality rates.

Sec. 1118. From the funds appropriated in part 1, the department shall allocate no less than $200,000.00 to provide education and outreach to targeted populations on the dangers of neonatal addiction and fetal alcohol syndrome and further develop its infant support services to target families with infants with fetal alcohol syndrome or suffering from drug addiction.

Sec. 1119. In addition to the amounts appropriated in part 1 for the family support subsidy, there shall be appropriated $10,000,000.00 from the general fund to the family support subsidy line item if House Bill No. 4753 of the 89th Legislature is enacted into law.

CHILDREN'S SPECIAL HEALTH CARE SERVICES


Sec. 1201. Money appropriated in section 113 for medical care and treatment of children with special health care needs shall be paid according to reimbursement policies determined by the Michigan medical services program. Exceptions to these policies may be taken with the prior approval of the state budget director.

Sec. 1202. The department may do 1 or more of the following:

(a) Provide special formula for eligible clients with specified metabolic and allergic disorders.

(b) Provide medical care and treatment to eligible patients with cystic fibrosis who are 21 years of age or older.

(c) Provide genetic diagnostic and counseling services for eligible families.

(d) Provide medical care and treatment to eligible patients with hereditary coagulation defects, commonly known as hemophilia, who are 21 years of age or older.

Sec. 1203. All children who are determined medically eligible for the children's special health care services program shall be referred to the appropriate locally based services program in their community.

OFFICE OF DRUG CONTROL POLICY


Sec. 1250. The purpose of the office of drug control policy is to serve as coordinating office for all agencies of the executive branch of government which are responsible for drug-abuse prevention, drug-abuse treatment, and drug law enforcement and to develop a state drug-abuse prevention, drug-abuse treatment, and drug law enforcement plan. The office of drug control policy shall receive, administer, and distribute funds received by the office of drug control policy under or through titles III and VI of the federal anti-drug abuse act.

Sec. 1251. The office of drug control policy is required to approve grants for the federal safe and drug free schools program within 90 days from the grant application submission deadline date.

CRIME VICTIM SERVICES COMMISSION


Sec. 1301. The per diem amount authorized for the crime victim services commission is $100.00.

OFFICE OF SERVICES TO THE AGING


Sec. 1401. The appropriation in section 116 to the office of services to the aging, for community and nutrition services and home services, shall be restricted to eligible individuals at least 60 years of age who fail to qualify for home care services under title XVIII, XIX, or XX of the social security act, chapter 531, 49 Stat. 620.

Sec. 1402. (1) The office of services to the aging may receive and expend funds in addition to those authorized in section 116 for the additional purposes described in this section.

(2) The office of services to the aging may establish and collect fees for publications, videos, and related materials. Collected fees shall be used to pay for the printing and mailing costs of the publications, videos, and related materials, which costs shall not exceed the revenues collected.

(3) Money appropriated in section 116 for the Michigan pharmaceutical program shall be used to purchase generic medicine when available and medically practicable.

Sec. 1403. The office of services to the aging shall require each region to report to the office of services to the aging home delivered meals waiting lists based upon standard criteria. Determining criteria shall include all of the following:

(a) The recipient's degree of frailty.

(b) The recipient's inability to prepare his or her own meals safely.

(c) Whether the recipient has another care provider available.

(d) Any other qualifications normally necessary for the recipient to receive home delivered meals.

Sec. 1404. The office of services to the aging may receive and expend fees for the provision of day care, care management, and respite care. The office of services to the aging shall base the fees on a sliding scale taking into consideration the client income. The office of services to the aging shall use the fees to expand services.

Sec. 1405. The office of services to the aging may receive and expend Medicaid funds for care management services.

Sec. 1406. (1) Of the amount appropriated in section 116 to the office of services to the aging for community services, sufficient funds shall be allocated to fund statewide care management or case coordination projects in the following regions:

Region 1A $ 903,700

Region 1B 1,084,400

Region 1C 632,600

Region 2 271,100

Region 3 451,900

Region 4 271,100

Region 5 451,900

Region 6 271,100

Region 7 542,200

Region 8 542,200

Region 9 542,200

Region 10 542,200

Region 11 542,200

Region 14 271,100

(2) The office of services to the aging shall provide a report to the senate and house appropriations subcommittees on community health, and the senate and house fiscal agencies by November 1, 1998, summarizing the accomplishments of each program in the 1997-98 fiscal year.

Sec. 1407. The office of services to the aging shall award contracts and distribute funds only to those projects that are cost effective, meet minimum operational standards, and serve the greatest number of eligible people.

Sec. 1408. The office of services to the aging shall provide that funds appropriated under this act shall be awarded on a local level in accordance with locally determined needs.

Sec. 1409. From the additional funds appropriated in the community services line, a total of $200,000.00 shall be used for providing in-home services for seniors.

Sec. 1410. (1) The department shall increase annual funding for the long-term care ombudsman program by no less than $40,000.00.

(2) By October 15, 1998, the department shall award no less than an 18-month contract for the long-term care ombudsman program.

MEDICAL SERVICES ADMINISTRATION


Sec. 1501. The funds appropriated in section 117 for the Michigan essential health care provider program may also provide loan repayment for dentists that fit the criteria established by part 27 of the public health code, 1978 PA 368, MCL 333.2701 to 333.2727.

Sec. 1502. The department is directed to continue support of multicultural agencies which provide primary care services from the funds appropriated in section 117.

MEDICAL SERVICES


Sec. 1601. The department of community health shall provide an administrative procedure for the review of grievances by medical services providers with regard to reimbursement under the medical services program. Settlements of properly submitted cost reports shall be paid not later than 9 months from receipt of the final report.

Sec. 1602. (1) For care provided to medical services recipients with other third-party sources of payment, medical services reimbursement shall not exceed, in combination with such other resources, including medicare, those amounts established for medical services-only patients. The medical services payment rate shall be accepted as payment in full. Other than an approved medical services copayment, no portion of a provider's charge shall be billed to the recipient or any person acting on behalf of the recipient. Nothing in this section shall be deemed to affect the level of payment from a third-party source other than the medical services program. The department shall require a nonenrolled provider to accept medical services payments as payment in full.

(2) Notwithstanding subsection (1), medical services reimbursement for hospital services provided to dual Medicare/medical services recipients with Medicare Part B coverage only shall equal, when combined with payments for Medicare and other third-party resources, if any, those amounts established for medical services-only patients, including capital payments.

Sec. 1603. (1) Effective October 1, 1998, the pharmaceutical dispensing fee shall be $3.72 or the usual and customary cash charge, whichever is less. If a recipient is 21 years of age or older, the department shall require a $1.00 per prescription client copayment, except as prohibited by federal or state law or regulation.

(2) The department shall require copayments on dental, podiatric, chiropractic, vision, and hearing aid services provided to recipients of medical assistance except as excluded by law.

(3) The copayments in subsections (1) and (2) may be waived for recipients who participate in a program of medical case management such as enrollment in a health maintenance organization or the primary physician sponsor plan program.

(4) Usual and customary charges for pharmacy providers are defined as the pharmacy's charges to the general public for like or similar services.

Sec. 1605. The cost of remedial services incurred by residents of licensed adult foster care homes and licensed homes for the aged shall be used in determining financial eligibility for the medically needy. Remedial services means those services which produce the maximum reduction of physical and mental limitations and restoration of an individual to his or her best functional level. At a minimum, remedial services include basic self-care and rehabilitation training for a resident.

Sec. 1606. Medicaid adult dental services, podiatric services, and chiropractic services shall continue at not less than the level in effect on October 1, 1996, except that reasonable utilization limitations may be adopted in order to prevent excess utilization. The department shall not impose utilization restrictions on chiropractic services unless a recipient has exceeded 18 office visits within 1 year.

Sec. 1609. (1) From the funds appropriated in section 118 for the indigent medical care program, the department shall establish a program which provides for the basic health care needs of indigent persons as delineated in the following subsections.

(2) Eligibility for this program is limited to the following:

(a) Persons currently receiving cash grants under either the family independence program or state disability assistance programs who are not eligible for any other public or private health care coverage.

(b) Any other resident of this state who currently meets the income and asset requirements for the state disability assistance program and is not eligible for any other public or private health care coverage.

(3) All potentially eligible persons, except those defined in subsection (2)(a), who shall be automatically enrolled, may apply for enrollment in this program at local family independence agency offices or other designated sites.

(4) The program shall provide for the following minimum level of services for enrolled individuals:

(a) Physician services provided in private, clinic, or outpatient office settings.

(b) Diagnostic laboratory and x-ray services.

(c) Pharmaceutical services.

(5) Notwithstanding subsection (2)(b), the state may continue to provide nursing facility coverage, including medically necessary ancillary services, to individuals categorized as permanently residing under color of law and who meet either of the following requirements:

(a) The individuals were medically eligible and residing in such a facility as of August 22, 1996 and qualify for emergency medical services.

(b) The individuals were Medicaid eligible as of August 22, 1996, and admitted to a nursing facility before a new eligibility determination was conducted by the family independence agency.

Sec. 1610. (1) The department may require medical services recipients to receive psychiatric services through a managed care system.

(2) The department may implement managed care programs for specialty mental health, substance abuse, and developmental disabilities services. Such programs shall be operated through CMHSPs and substance abuse coordinating agencies as specialty service carve-outs to maintain accountability for the system to local units of government and to preserve the services and supports for persons with severe and persistent mental illnesses, for persons with substance abuse addictions, and for persons with developmental disabilities.

(3) The substance abuse coordinating agencies shall arrange for clinical reviews to assure appropriate continuity of care for recipients of substance abuse treatment services.

Sec. 1611. (1) The department may continue to implement managed care and may require medical services recipients residing in counties offering managed care options to choose the particular managed care plan in which they wish to be enrolled. Persons not expressing a preference may be assigned to a managed care provider.

(2) Persons to be assigned a managed care provider shall be informed in writing of the criteria for exceptions to capitated managed care enrollment, their right to change health plans for any reason within the initial 30 days of enrollment, the toll-free telephone number for problems and complaints, and information regarding grievance and appeals rights.

(3) The criteria for medical exceptions to qualified health plans shall be based on submitted documentation that indicates a recipient has a serious medical condition, and is undergoing active treatment for that condition with a physician who does not participate in 1 of the qualified health plans. If the person meets the criteria established by this subsection, the department shall grant an exception to mandatory enrollment at least through the current prescribed course of treatment, subject to periodic review of continued eligibility.

Sec. 1612. (1) The department shall not preauthorize or in any way restrict single-source pharmaceutical products except those single-source pharmaceuticals that have been subject to prior authorization by the department prior to January 1, 1992 and those single-source pharmaceuticals within the categories specified in section 1927(d)(2) of the social security act, 42 U.S.C. 1396s(d), or for the reasons delineated in section 1927(d)(3) of the social security act.

(2) The department may implement drug utilization review and monitoring programs that may cover renewals of prescriptions of anti-ulcer agents; these programs shall not be expanded to other therapeutic classes. Such programs shall have physician oversight through the drug utilization and review board to ensure proper determination.

Sec. 1613. The department shall not implement a mail-order pharmacy program for the noncapitated portion of the Medicaid program.

Sec. 1614. (1) The department shall assure that all Medicaid children have timely access to early and periodic screening, diagnosis, and treatment (EPSDT) services as required by federal law. Medicaid managed care plans will provide EPSDT services in accordance with EPSDT policy. Requirements for objective hearing and vision screening may be met by referral to local health departments.

(2) The primary responsibility of assuring a child's hearing and vision screening is with the child's primary care provider. The primary care provider will provide age appropriate screening or arrange for these tests through referrals to local health departments. Local health departments shall provide preschool hearing and vision screening services and accept referrals for these tests from physicians or from Head Start programs in order to assure all preschool children have appropriate access to hearing and vision screening. Local health departments will be reimbursed for the cost of providing these tests for Medicaid eligible children by the Medicaid program.

Sec. 1615. (1) The department of community health is authorized to pursue reimbursement for eligible services provided in Michigan schools from the federal Medicaid program. The department and the department of management and budget are authorized to negotiate and enter into agreements, together with the department of education, with local and intermediate school districts regarding the sharing of federal Medicaid services funds received for these services. The department is authorized to receive and disburse funds to participating school districts pursuant to such agreements and state and federal law.

(2) From the funds appropriated in section 118 for medical services school services payments, the department is authorized to do all of the following:

(a) Finance activities within the medical services administration related to this project.

(b) Reimburse participating school districts pursuant to the fund sharing ratios negotiated in the state-local agreements authorized in subsection (1).

(c) Offset general fund costs associated with the medical services program.

(3) The department shall not make distributions from the funds provided for this purpose in section 118 until it has filed the necessary state plan amendments, made required notifications, received an indication of approval from the health care financing administration, and received approval from the state budget director.

Sec. 1616. The special adjustor appropriation in section 118 may be increased if the department submits a medical services state plan amendment pertaining to this line item at a level higher than the appropriation and receives an indication of approval of the amendment from the health care financing administration. The department is authorized to appropriately adjust financing sources in accordance with the increased appropriation.

Sec. 1616a. From the funds appropriated in fiscal year 1998-99 for health plan services, $8,248,700.00 gross, $3,900,000.00 general fund/general purpose shall be allocated to increase the transportation per member per month payment to qualified health plans that had submitted bids under the comprehensive health plan and signed contracts with the department before January 1, 1998.

Sec. 1617. The department of community health shall obtain from those health maintenance organizations and clinic plans with which the department contracts patient-based utilization data, including immunizations, early and periodic screenings, diagnoses, and treatments, substance abuse services, blood lead level testing, and maternal and infant support services referrals. The department shall submit annual reports on patient-based utilization data to the members of the senate and house appropriations subcommittees on community health, the senate and house fiscal agencies, the state budget director, and the director of each local health department.

Sec. 1618. It is the intent of the legislature that payment increases for enhanced wages shall be provided to those facilities which make application for it to fund the Medicaid program share of wage increases up to 50 cents per employee hour. The pass-through shall only be used to increase wages and the employer's share of federal insurance contributions act costs. Nursing facilities shall be required to document that these wage increases were actually provided.

Sec. 1619. Medical services shall be provided to elderly and disabled persons with incomes less than or equal to 100% of the official poverty line, pursuant to the state's option to elect such coverage set out at section 1902(a)(10)(A)(ii) and (m) of title XIX of the social security act, chapter 531, 49 Stat. 620, 42 U.S.C. 1396a.

Sec. 1620. The department may fund home and community-based services in lieu of nursing home services, for individuals seeking long-term care services, from the nursing home or personal care in-home services line items.

Sec. 1621. The department of community health shall distribute $695,000.00 to children's hospitals that have a high indigent care volume. The amount to be distributed to any given hospital shall be based on a formula determined by the department of community health.

Sec. 1622. (1) The department shall implement enforcement actions as specified in the nursing facility enforcement provisions of 42 U.S.C. 1396r.

(2) The department is authorized to receive and spend penalty money received as the result of noncompliance with medical services certification regulations. Penalty money, characterized as private funds, received by the department shall increase authorizations and allotments in the long-term care accounts.

(3) Any unexpended penalty money, at the end of the year, shall carry forward to the following year.

Sec. 1624. (1) Medical services patients who are enrolled in qualified health plans or capitated clinic plans have the choice to elect hospice services or other services for the terminally ill that are offered by the qualified health plan or clinic plan. If the patient elects hospice services, those services shall be provided in accordance with part 214 of the public health code, 1978 PA 368, MCL 333.21401 to 333.21420.

(2) The department shall not amend the medical services hospice manual in a manner that would allow hospice services to be provided without making available all comprehensive hospice services described in 42 C.F.R. part 418.

Sec. 1626. (1) From the funds appropriated in part 1 for outpatient hospital indigent adjustor, the department, subject to the requirements and limitations in this section, shall establish a funding pool of up to $44,012,800.00 for the purpose of enhancing the aggregate payment for medical services hospital outpatient services. Such payments, if any, may be made as a gross adjustment to hospital outpatient payments or by another mechanism or schedule as determined by the department, which meets the intent of this section.

(2) For counties with populations in excess of 2,000,000 persons, the department shall distribute $44,012,800.00 to hospitals if $15,026,700.00 is received by the state from such counties, which meets the criteria of an allowable state matching share as determined by applicable federal laws and regulations. If the state receives a lesser sum of an allowable state matching share from these counties, the amount distributed shall be reduced accordingly.

(3) The department may establish county-based, indigent health care programs that are at least equal in eligibility and coverage to the fiscal year 1996 state medical program.

(4) The department is authorized to establish similar programs in additional counties if the expenditures for the programs do not increase state general fund/general purpose costs and local funds are provided.

(5) If a locally administered indigent health care program replaces the state medical program authorized by section 1609 for a given county on or before October 1, 1998, the state general fund/general purpose dollars allocated for that county under this section shall not be less than the general fund/general purpose expenditures for the state medical program in that county in the previous fiscal year.

Sec. 1627. An institutional provider that is required to submit a cost report under the medical services program shall submit cost reports completed in full within 5 months after the end of its fiscal year.

Sec. 1634. (1) The department may establish a program for persons who work their way off welfare to purchase medical coverage at a rate determined by the department.

(2) The department may receive and expend premiums for the buy-in of medical coverage in addition to the amounts appropriated in part 1.

(3) The premiums described in this section shall be classified as private funds.

Sec. 1635. The implementation of all Medicaid managed care plans by the department are subject to the following conditions:

(a) Continuity of care is assured by allowing enrollees to continue receiving required medically necessary services from their current providers for a period not to exceed 1 year if enrollees meet the managed care medical exception criteria.

(b) A contract for an independent evaluation is in place to measure cost, access, quality, and patient satisfaction.

(c) The department shall require contracted health plans to submit data determined necessary for the evaluation on a timely basis. A report of the independent evaluation shall be provided to the house and senate appropriations subcommittees on community health and the house and senate fiscal agencies no later than September 30, 1999.

(d) A health plans advisory council is functioning which meets all applicable federal and state requirements for a medical care advisory committee. The council shall review at least quarterly the implementation of the department's managed care plans.

(e) Contracts for enrollment services and beneficiary services, and the complaint/grievance procedures are in place for the geographic area and populations affected. An annual report on enrollment services and beneficiary services and recipient problems/complaints shall be provided to the house and senate appropriations subcommittees on community health and the house and senate fiscal agencies.

(f) Mandatory enrollment is prohibited until there are at least 2 qualified health plans with the capacity to adequately serve each geographic area affected. Exceptions may be considered in areas where at least 85% of all area providers are in 1 plan.

(g) Maternal and infant support services shall continue to be provided through state-certified providers. The department shall continue to reimburse state-certified maternal and infant support services providers on a fee-for-service basis to be charged back to health plans until such time as health plans have contracts with state-certified providers.

(h) The department shall develop a case adjustment to its rate methodology that considers the costs of persons with HIV/AIDS, end stage renal disease, organ transplants, epilepsy, and other high-cost diseases or conditions and shall implement the case adjustment when it is proven to be actuarially and fiscally sound. Implementation of the case adjustment must be budget neutral.

(i) The department may encourage bids for multicounty regions through the use of preference points but shall not initially require a plan provider to submit a bid for a multicounty region.

(j) Enrollment of recipients of children's special health care services in qualified health plans shall be voluntary during fiscal year 1998-99.

Sec. 1637. (1) Medicaid qualified health plans shall establish an ongoing internal quality assurance program for health care services provided to Medicaid recipients which includes:

(a) An emphasis on health outcomes.

(b) Establishment of written protocols for utilization review based on current standards of medical practice.

(c) Review by physicians and other health care professionals of the process followed in the provision of such health care services.

(d) Evaluation of the continuity and coordination of care that enrollees receive.

(e) Mechanisms to detect overutilization and underutilization of services.

(f) Actions to improve quality and assess the effectiveness of such action through systematic follow-up.

(g) Provision of information on quality and outcome measures to facilitate enrollee comparison and choice of health coverage options.

(h) Ongoing evaluation of the plans' effectiveness.

(i) Consumer involvement in the development of the quality assurance program and consideration of enrollee complaints and satisfaction survey results.

(2) Medicaid qualified health plans shall apply for accreditation by an appropriate external independent accrediting organization requiring standards recognized by the department once those plans have met the application requirements. The state shall accept accreditation of a plan by an approved accrediting organization as proof that the plan meets some or all of the state's requirements, if the state determines that the accrediting organization's standards meet or exceed the state's requirements.

(3) Medicaid qualified health plans shall report encounter data, including data on inpatient and outpatient hospital care, physician visits, pharmaceutical services, and other services specified by the department.

(4) Medicaid qualified health plans shall assure that all covered services are available and accessible to enrollees with reasonable promptness and in a manner which assures continuity. Medically necessary services shall be available and accessible 24 hours a day and 7 days a week.

(5) Medicaid qualified health plans shall provide for reimbursement of plan covered services delivered other than through the plan's providers if medically necessary and approved by the plan, immediately required, and which could not be reasonably obtained through the plan's providers on a timely basis. Such services shall be deemed approved if the plan does not respond to a request for authorization within 24 hours of the request. Reimbursement shall not exceed the Medicaid fee-for-service payment for such services.

(6) Medicaid qualified health plans shall provide access to appropriate providers, including qualified specialists for all medically necessary services.

(7) Medicaid qualified health plans shall provide the department with a demonstration of the plan's capacity to adequately serve the plan's expected enrollment of Medicaid enrollees.

(8) Medicaid qualified health plans shall provide assurances to the department that it will not deny enrollment to, expel, or refuse to reenroll any individual because of the individual's health status or need for services, and that it will notify all eligible persons of such assurances at the time of enrollment.

(9) Medicaid qualified health plans shall provide procedures for hearing and resolving grievances between the plan and members enrolled in the plan on a timely basis.

(10) Medicaid qualified health plans shall meet other standards and requirements contained in state laws, administrative rules, and policies promulgated by the department. The department may establish alternative standards and requirements that specify financial safeguards for organizations not otherwise covered by existing law which assure that the organization has the ability to accept financial risk.

(11) Medicaid qualified health plans shall develop written plans for providing nonemergency medical transportation services funded through supplemental payments made to the plans by the department, and shall include information about transportation in their member handbook.

Sec. 1638. From the funds appropriated in section 118 for health plan services, the department may contract for the assessment of quality in qualified health plans which enroll Medicaid recipients. Organizations providing such quality reviews shall meet the requirements of the department and include the following functions:

(a) Review of plan performance based on accepted quality performance criteria.

(b) Utilization of quality indicators and standards developed specifically for the Medicaid population.

(c) Promote accountability for improved plan performance.

Sec. 1639. (1) Medicaid qualified health plans shall not directly market their services to or enroll Medicaid eligible persons. The department shall provide or arrange for assistance to Medicaid enrollees in understanding, electing, and using the managed care plans available. Upon request of the Medicaid recipient, such assistance shall be provided in person through a face-to-face interview prior to enrollment, when practicable.

(2) Information regarding the available health plans and enrollment materials shall be provided through local family independence agency offices during the eligibility determination and redetermination process, and at other locations specified by the department. The enrollment materials shall clearly explain covered services, recipient rights, grievance and appeal procedures, exception criteria to mandatory enrollment, and information regarding managed care enrollment broker and beneficiary services.

Sec. 1640. (1) The department may require a 6-month lock-in to the qualified health plan selected by the recipient during the initial and subsequent open enrollment periods, but allow for good cause exceptions during the lock-in period.

(2) Medicaid recipients shall be allowed to change health plans for any reason within the initial 30 days of enrollment.

Sec. 1641. (1) The department shall provide an expedited complaint review procedure for Medicaid eligible persons enrolled in qualified health plans for situations where failure to receive any health care service would result in significant harm to the enrollee.

(2) The department shall provide for a toll-free telephone number for Medicaid recipients enrolled in managed care to assist with resolving problems and complaints. If warranted, the department shall immediately disenroll persons from managed care and approve fee-for-service coverage.

(3) Quarterly reports summarizing the problems and complaints reported and their resolution shall be provided to the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the department's health plans advisory council.

Sec. 1642. (1) The department shall require the enrollment contractor to provide beneficiary services. These services shall include:

(a) Contacting eligible Medicaid beneficiaries.

(b) Providing education on managed care.

(c) Providing information through a toll-free number regarding available health plans and their primary care providers available in the Medicaid beneficiaries area.

(d) Entering the beneficiaries health plan choice in the information system for communication to the state and the health plan, written notification to the beneficiary regarding their health plan choice, and notice of their right to change plans consistent with federal guidelines.

(e) Guiding beneficiaries through both health plan and state complaint and fair hearing processes, including helping the beneficiary fill out required forms.

(f) Being available to attend a hearing with a beneficiary if requested by the beneficiary to provide objective information regarding events that have occurred pertinent to the beneficiary.

(2) The department shall not contract for enrollment counseling services unless the contract complies with and includes provisions for all beneficiary services defined in subsection (1).

Sec. 1643. (1) The department may develop a program for providing services to medical assistance recipients under a risk sharing capitation arrangement, through contracts with provider-sponsored networks, health maintenance organizations, and other organizations. The department shall award contracts under the program at least every 5 years based on a competitive bidding process. In developing a program under this section, the department shall consult with providers, medical assistance recipients, and other interested parties. The following provisions shall be considered in any program:

(a) In determining eligible contractors, the department shall consider provider-sponsored networks, along with health maintenance organizations, and other organizations. All eligible contractors shall meet the same standards for quality, access, benefits, financial, and organizational capability.

(b) The department may make separate payments directly to qualifying hospitals serving a disproportionate share of indigent patients, and to hospitals providing graduate medical education training programs. If direct payment for GME and DSH is made to qualifying hospitals for services to Medicaid clients, hospitals will not include GME costs or DSH payments in their contracts with HMOs.

(2) Whenever economical and feasible, the department shall give preference to programs that provide a choice of qualified contractors and at least an annual open enrollment in the program.

Sec. 1644. The mother of an unborn child shall be eligible for medical services benefits for herself and her child if all other eligibility factors are met. To be eligible for these benefits, the applicant shall provide medical evidence of her pregnancy. If she is unable to provide the documentation, payment for the examination may be at state expense. The department of community health shall undertake such measures as may be necessary to ensure that necessary prenatal care is provided to medical services eligible recipients.

Sec. 1645. (1) The protected income level for Medicaid coverage determined pursuant to section 106(1)(b)(iii) of the social welfare act, 1939 PA 280, MCL 400.106, shall be 100% of the related public assistance standard.

(2) The department shall notify the senate and house appropriations subcommittees on community health of any proposed revisions to the protected income level for Medicaid coverage related to the public assistance standard 90 days prior to implementation.

(3) The department shall prepare a report analyzing the options that exist under state and federal law to expand the Medicaid protected income level, including expansion to the maximum allowed under federal law. The analysis shall include an estimate of the number of people likely to be affected and the costs associated with each option. The report shall be submitted to the house and senate appropriations subcommittees on community health and the house and senate fiscal agencies by January 1, 1999.

Sec. 1646. For the purpose of guardian and conservator charges, the department of community health may deduct up to $60.00 per month as an allowable expense against a recipient's income when determining medical services eligibility and patient pay amounts.

Sec. 1654. A qualified health plan that requires a Medicaid recipient to designate a participating primary care provider shall permit a female Medicaid recipient to access a participating obstetrician-gynecologist for annual "well-woman" examinations and routine obstetrical and gynecologic services. This access would not require prior authorization or referral, but may be limited by participation of obstetricians-gynecologists in the plan network. A referral to an out-of-plan physician will require plan approval.

Sec. 1656. The department shall promote activities that preserve the dignity and rights of terminally ill and chronically ill individuals. Priority shall be given to programs, such as hospice, that focus on individual dignity and quality of care provided persons with terminal illness and programs serving persons with chronic illnesses that reduce the rate of suicide through the advancement of the knowledge and use of improved, appropriate pain management for these persons; and initiatives that train health care practitioners and faculty in managing pain, providing palliative care and suicide prevention.

Sec. 1657. (1) The department shall develop a written long-term care plan in consultation with the legislature. The department shall establish a long-term care working group to develop the plan. The long-term care working group shall consist of 2 members of the house, 2 members of the senate, and 4 representatives of the department. Senate members shall be appointed by the senate majority leader. House members shall be appointed by the speaker of the house of representatives. The director shall appoint department representatives. The department shall consult with the long-term care industry, consumers, and other interested parties during the workgroup process. The plan shall consider the following:

(a) A budget-neutral expansion of the home and community based services (HCBs) as alternatives to nursing homes.

(b) Payment methodologies that are aligned to maintain eligible beneficiaries in the most homelike setting at reasonable cost.

(c) A budget-neutral expansion of home and community based services program to other non-nursing home settings.

(d) Coordination, to the degree possible, with the federal Medicare program.

(e) Administrative simplicity to the degree possible, while maintaining flexibility in financing and service delivery configurations, such as common claim forms and data reporting requirements.

(2) Once the plan is developed, the long-term care workgroup shall conduct public hearings in at least 5 regions of the state to obtain public comment.

(3) The department may enroll beneficiaries in a long-term care plan if the following requirements are met:

(a) An eligibility screening/enrollment component is in place at community hospitals, in-home for persons who are homebound, as well as at convenient community locations.

(b) The eligibility screening/enrollment counseling service is performed by an independent entity selected through a request for proposal.

(c) Enrollment counselor services are available to the clients and their families to ensure clients or the legally authorized representatives have the information necessary to make an informed choice of plans, to appropriately access care within the plan, to file grievances with the plan and the state, and to access care out of network if appropriate.

(d) Quality outcome measures are developed based on the minimum data sets for home care and nursing home care. The department will develop quality outcome measures that utilize Zimmerman's quality of care principles.

(e) Services offered shall include a range of home and community services including adult day care, respite care homemaker, chore, personal care, personal care supervision, personal emergency response systems, community living supports, and services in nursing home settings.

(f) There shall be 2 long-term care plan contractors in all areas of the state except in areas with sparse population and when the long-term care plan network includes at least 85% of the LTC providers of the region.

(g) Long-term care plans are selected through a request for proposal process that identifies organizations capable of organizing and operating a continuum of services.

(h) The department reviews and approves provider contracts used by the plan to ensure that the plan's risk/incentive arrangements do not provide incentives to withhold appropriate medical services.

(i) The department establishes criteria for the plan's provider network that take into consideration the unique needs of the population to be enrolled and ensure that the network has adequate capacity to provide home and community-based service alternatives and is in place before enrollment begins.

(j) The department establishes requirements for encounter data collection and reporting that ensure the department has the ability to closely monitor care provided to enrollees to assure quality and appropriate access to care.

(k) The department contracts for an independent, external quality review of the services provided through the long-term care plans. The protocols used in the review shall be appropriate for the specialized population enrolled in the plan and shall be at least as rigorous as those used by the national committee on quality assurance.

(l) The department conducts annual patient satisfaction surveys using statistically valid sampling techniques that focus on this population and a survey tool that is appropriate to the population being served. These surveys shall include a resident and family experience survey for all plan members.

(m) The department maintains an expedited grievance process that provides a response to urgent requests within 1 business day.

(n) Eligibility for the long-term plan is based on Medicaid financial eligibility criteria and medical/functional determination of necessity to qualify for nursing facility level of care. The initial eligible group shall include those persons eligible for Medicaid now in licensed nursing facilities and those eligible for the Medicaid home and community-based waiver. Eligible persons (and their families in incapacitated cases), in conjunction with the long-term care organization and medical caregivers, shall choose their preferred care setting, to live at home, in other homelike settings, or in a skilled nursing facility. Eligible persons shall be offered choices by the long-term care plan that emphasize the individual's dignity, independence, and quality of life and reflect the principles of person-centered care.

(o) The department shall design a long-term care fee-for-service reimbursement methodology based on resource utilization group methodology principles. The department will conduct an evaluation regarding the adequacy of payments made to providers of care in the long-term care plans to ensure quality of care and compliance with state and federal regulators.

(p) The department shall initiate a review, together with the department of consumer and industry services, other state departments, the long-term care industry, and consumers, of current law and regulations impacting care for the populations to be served by the long-term care plan and will make recommendations to the administration, the legislature, the federal health care financing administration, and congress to change law and regulation to enhance the principles of the long-term care plan. Whenever possible, the contract between the department of community health and long-term care plans should resolve policy and clarify policy contradictions. Contract language will be finalized before implementation.

(q) The department, in consultation with the long-term care industry and consumer representatives, shall have processes in place to resolve implementation issues and make adjustments, if necessary, in the long-term care plan based on implementation experiences, on a timely basis. An implementation group including the long-term care industry will meet with the department at least bimonthly during implementation.

(r) Joint long-term care plan and department/provider implementation sessions shall be held on a regional basis to explain the long-term care plan contract language with the department and how this impacts the provisions of services before enrollment begins.

(s) The plan shall not be implemented in fiscal year 1998-99.

(4) The plan shall include provisions that require participation in the plan by Medicaid beneficiaries be voluntary for the first 5 years of implementation.

Sec. 1658. Funds appropriated for substance abuse services through the Medicaid program in the amount of at least $23,328,300.00 shall be contracted in full to coordinating agencies through CMHSPs unless such a pass-through is held to be in violation of federal or state law or rules. If such a pass-through is not permissible, the department shall contract directly with coordinating agencies. CMHSPs shall not assume any contractual or financial liability associated with the pass-through of substance abuse services funds provided to eligible recipients with these funds. The coordinating agencies shall retain financial program responsibilities and liabilities consistent with contract requirements.

Sec. 1659. From the amounts appropriated from section 118 for hospital services, the department shall allocate for graduate medical education no less than was allocated for graduate medical education in fiscal year 1997-98.

Sec. 1660. The following sections are the only ones which shall apply to the following Medicaid managed care programs, including the comprehensive plan, children's special health care services plan, MI Choice long-term care plan, and the mental health, substance abuse, and developmentally disabled services program: 1610, 1611, 1614, 1617, 1624, 1635, 1637, 1638, 1639, 1640, 1641, 1642, 1643, 1654, 1657, and 1658.

Sec. 1662. (1) The department shall include provision in the contracts with health plans for full responsibility for well child visits and maternal and infant support services as described in Medicaid policy. This responsibility will also be included in the information distributed by the health plans to the members.

(2) The department shall require reporting from the health plans on their performance in the delivery services for well child visits and referrals for maternal and infant support services.

(3) The department shall develop and implement a budget neutral enrollment based incentive program to encourage qualified health plans to improve infant and children's health outcomes by improving access to maternal and infant support services (MSS/ISS) and to well child examinations. Qualified health plans with the most improved performance will be eligible for automatic beneficiary enrollment and those plans who fail to improve will be ineligible for new enrollment. Qualified health plans will refund to the department any unexpended MSS/ISS capitation below the fee for service equivalent MSS/ISS capitation in fiscal year 1996-97.

(4) The department shall revise appropriate standards of care used for well child visits based upon recognized national authorities of care, such as the American academy of pediatrics.

Sec. 1663. The department shall establish a workgroup on EPSDT and maternal and infant support services. The workgroup shall be made up of consumers, advocates, health care providers, and health plan representatives. The workgroup shall, at a minimum, establish an outreach program to educate providers on the requirements of EPSDT screening, and advise the department on providing targeted assistance to health plans that are screening less than 60% of the child members that are eligible for EPSDT services and recommend strategies to improve access to maternal and infant support services.

Sec. 1670. (1) The appropriation in part 1 for the MIChild program is to be used to provide comprehensive health care to all children under age 19 who reside in families with income at or below 200% of the federal poverty level, who are uninsured and have not had coverage by other comprehensive health insurance within 6 months of making application for MIChild benefits, and who are residents of this state. The department shall develop detailed eligibility criteria through the medical services administration public concurrence process, consistent with the provisions of this act. Health care coverage for children in families below 150% of the federal poverty level shall be provided through expanded eligibility under the state's Medicaid program. Health coverage for children in families between 150% and 200% of the federal poverty level shall be provided through a state-based private health care program.

(2) The department shall enter into a contract to obtain MIChild services from any health maintenance organization, dental care corporation, or any other entity that offers to provide the managed health care benefits for MIChild services at the MIChild capitated rate. As used in this subsection:

(a) "Dental care corporation", "health care corporation", "insurer", and "prudent purchaser agreement" mean those terms as defined in section 2 of the prudent purchaser act, 1984 PA 233, MCL 550.52.

(b) "Entity" means a health care corporation or insurer operating in accordance with a prudent purchaser agreement.

(3) The department may enter into contracts to obtain certain MIChild services from community mental health service programs.

(4) The department may make payments on behalf of children enrolled in the MIChild program from the line-item appropriation associated with the program as described in the MIChild state plan approved by the United States department of health and human services, or from other medical services line-item appropriations providing for specific health care services.

Sec. 1671. For families applying for a MIChild benefit, the department shall do all of the following:

(a) Provide a single application for determining family eligibility for MIChild, Medicaid, and other health programs offered by the state.

(b) Allow families to submit applications for the program by mail.

(c) Provide immediate and simultaneous determinations of a family's eligibility for MIChild or Medicaid benefits.

(d) Provide MIChild or Medicaid coverage when eligibility is established under subdivision (c).

Sec. 1672. (1) The department may seek a waiver from the United States department of health and human services that would allow the state to conduct demonstrations on expanding health coverage to families whose income is at or below 200% of poverty by allowing those families to purchase private health insurance through the use of vouchers or other cost sharing mechanisms.

(2) From the funds appropriated under part 1 for a medical services buy-in program, the department shall provide coverage to adults in MIChild eligible families no longer receiving transitional Medicaid coverage due to employment.

Sec. 1673. (1) From the funds appropriated in part 1, the department shall develop a comprehensive approach to the marketing and outreach of the MIChild program. The marketing and outreach required under this section shall be coordinated with current outreach, information dissemination, and marketing efforts and activities conducted by the department.

(2) The department shall fund allowable education and outreach activities for Medicaid eligibility determinations authorized by the personal responsibility and work opportunity reconciliation act of 1996, Public Law 104-193, 110 Stat. 2105.

Sec. 1674. The department may provide up to 1 year of continuous eligibility to a family made eligible for the MIChild program unless the family's status changes and its members no longer meet the eligibility criteria as specified in the federally approved MIChild state plan.

Sec. 1675. The department shall continue eligibility for all beneficiaries in the caring program for children until their eligibility for the MIChild program is established.

Sec. 1676. The department may establish premiums for MIChild eligible persons in families with income above 150% of the federal poverty level. The monthly premiums shall not exceed $5.00 for a family.

Sec. 1677. The department shall not require copayments under the MIChild program.

Sec. 1678. Families whose category of eligibility changes between the Medicaid and MIChild programs shall be assured of keeping their current health care providers through the current prescribed course of treatment for up to 1 year, subject to periodic reviews by the department if the beneficiary has a serious medical condition and is undergoing active treatment for that condition.

Sec. 1679. A department employee shall determine eligibility for each MIChild applicant.

Sec. 1680. Within 120 days after the health care financing administration's approval of the state's MIChild plan, the department shall implement the MIChild program in each county of the state in which a MIChild provider is willing to provide the MIChild benefits at or below the regionally adjusted capitation rate.

Sec. 1681. To be eligible for the MIChild program, a child must be residing in a family with an adjusted gross income of less than or equal to 200% of the federal poverty level. The Medicaid healthy kids program eligibility criteria and verifications for determining family group composition shall be used. The following verification shall be used:

(a) For annual income, a W-2 form or most recent pay stub.

(b) For child support, a court order. However, the custodial parent shall supply the department with proof of efforts to obtain that court-ordered support. Verification from the friend of the court will be considered proof of this effort. If the child support is not paid to the parent after this effort, the unpaid child support income shall not be considered for purposes of determining eligibility for MIChild.

(c) For SSI/RSDI income, a yearly statement or bank statements.

(d) For self-employed persons, a completed internal revenue service 1040 form, first page, line 31, showing gross adjusted income.

Sec. 1682. The MIChild program shall provide all benefits available under the state employee insurance plan that are delivered through the qualified health plans and consistent with federal law, including but not limited to the following medically necessary services:

(a) Inpatient mental health services, other than substance abuse treatment services, including services furnished in a state-operated mental hospital and residential or other 24-hour therapeutically planned structured services.

(b) Outpatient mental health services, other than substance abuse services, including services furnished in a state-operated mental hospital and community-based services.

(c) Durable medical equipment and prosthetic and orthotic devices.

(d) Dental services as outlined in the approved MIChild state plan.

(e) Substance abuse treatment services that may include inpatient, outpatient, and residential substance abuse treatment services.

(f) Care management services for mental health diagnoses.

(g) Physical therapy, occupational therapy, and services for individuals with speech, hearing, and language disorders.

(h) Emergency ambulance services.

Sec. 1683. The MIChild program shall be the payer of last resort for children who have coverage through other state or federal programs or private or commercial health insurance programs.

Sec. 1686. The department shall prepare and make available to health care providers a pamphlet identifying patient rights and responsibilities described in section 20201 of the public health code, 1978 PA 368, MCL 333.20201.

Sec. 1687. All nursing home rates, class I and class III, must have their respective fiscal year rate set 30 days prior to the beginning of their rate year. Rates may take into account the most recent cost report prepared and certified by the preparer, provider corporate owner or representative as being true and accurate, and filed timely, within 5 months of the fiscal year end in accordance with Medicaid policy. If the audited version of the last report is available, it shall be used. Any rate factors based on the filed cost report may be retroactively adjusted upon completion of the audit of that cost report.

Sec. 1688. In addition to the amounts appropriated in part 1 for long-term care services, there shall be appropriated $10,000,000.00 gross, $5,272,000.00 federal and $4,728,000.00 from the general fund, to the long-term care services line item if House Bill No. 4176 of the 89th Legislature is enacted into law.

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

A bill to make appropriations for the department of community health and certain state purposes related to mental health, public health, and medical services for the fiscal years ending September 30, 1998 and September 30, 1999; to provide for the expenditure of such appropriations; to create funds; to provide for reports; to prescribe the powers and duties of certain local and state agencies and departments; and to provide for disposition of fees and other income received by the various state agencies.

R. Robert Geake

John J.H. Schwarz

Joe Conroy

Conferees for the Senate

Nick Ciaramitaro

Bob Emerson

Shirley Johnson

Conferees for the House

Pending the order that, under joint rule 9, the conference report be laid over one day,

Senator DeGrow moved that the rule be suspended.

The motion prevailed.

The question being on the adoption of the conference report,

The first conference report was adopted, a majority of the members serving voting therefor, as follows:

Roll Call No.681 Yeas--33

Bennett DeGrow McManus Smith, A.

Berryman Dingell Miller Steil

Bouchard Dunaskiss North Stille

Bullard Gast Peters VanRegenmorter

Byrum Geake Posthumus Vaughn

Cherry Gougeon Rogers Young

Cisky Hart Schuette

Conroy Hoffman Schwarz

DeBeaussaert Koivisto Shugars

Nays--2

Emmons Jaye

Excused--2

O'Brien Smith, V.

Not Voting--0

In The Chair: Schwarz

The question being on concurring in the committee recommendation to give the bill immediate effect,

The recommendation was concurred in, 2/3 of the members serving voting therefor.

Protest

Senator Emmons, under her constitutional right of protest (Art. 4, Sec. 18), protested against the adoption of the first conference report on Senate Bill No.908.

Senator Emmons' statement is as follows:

I voted "no" on this budget because for a year and a half we have tried to get some equity for two health departments who were expected to have money from the state. Then after the fact were told no, you're not going to get it. It made great disruption in those two health departments. They serve a great many people. This budget has some improvements, but I would expect that my red vote is going to continue to be up there unless we straighten out what figures mean and what they do to services. That is a very, very important task for the bureaucrats in that community health to communicate clearly, so that we don't get into this Catch-22 that we have had for a year and a half.

By unanimous consent the Senate returned to the order of

Motions and Communications

Senator DeGrow moved that the Committee on Transportation and Tourism be discharged from further consideration of the following bill:

Senate Bill No.869, entitled

A bill to amend 1949 PA 300, entitled "Michigan vehicle code," (MCL 257.1 to 257.923) by adding sections 811d and 811e.

The motion prevailed, a majority of the members serving voting therefor, and the bill was placed on the order of General Orders.

Senator DeGrow moved that the rules be suspended and that the following bill, now on the order of General Orders, be placed on its immediate passage:

Senate Bill No.869

The motion prevailed, a majority of the members serving voting therefor.

By unanimous consent the Senate returned to the order of

Third Reading of Bills

Senator DeGrow moved that consideration of the following bills and joint resolution be postponed for today:

Senate Bill No.256

Senate Joint Resolution A

House Bill No.4875

House Bill No.4884

House Bill No.4886

House Bill No.5006

Senate Bill No.1196

Senate Bill No.1197

Senate Bill No.776

Senate Bill No.778

The motion prevailed.

The following bill was read a third time:

Senate Bill No.1095, entitled

A bill to amend 1931 PA 328, entitled "The Michigan penal code," (MCL 750.1 to 750.568) by adding section 223a.

The question being on the passage of the bill,

The bill was passed, a majority of the members serving voting therefor, as follows:

Roll Call No.682 Yeas--35

Bennett DeGrow Jaye Schwarz

Berryman Dingell Koivisto Shugars

Bouchard Dunaskiss McManus Smith, A.

Bullard Emmons Miller Steil

Byrum Gast North Stille

Cherry Geake Peters VanRegenmorter

Cisky Gougeon Posthumus Vaughn

Conroy Hart Rogers Young

DeBeaussaert Hoffman Schuette

Nays--0

Excused--2

O'Brien Smith, V.

Not Voting--0

In The Chair: Schwarz

The Senate agreed to the title of the bill.

The following bill was read a third time:

Senate Bill No.1049, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," (MCL 324.101 to 324.90106) by adding subpart VI to part 487.

The question being on the passage of the bill,

The bill was passed, a majority of the members serving voting therefor, as follows:

Roll Call No.683 Yeas--35

Bennett DeGrow Jaye Schwarz

Berryman Dingell Koivisto Shugars

Bouchard Dunaskiss McManus Smith, A.

Bullard Emmons Miller Steil

Byrum Gast North Stille

Cherry Geake Peters VanRegenmorter

Cisky Gougeon Posthumus Vaughn

Conroy Hart Rogers Young

DeBeaussaert Hoffman Schuette

Nays--0

Excused--2

O'Brien Smith, V.

Not Voting--0

In The Chair: Schwarz

The Senate agreed to the title of the bill.

The following bill was read a third time:

Senate Bill No.235, entitled

A bill to amend 1978 PA 368, entitled "Public health code," by amending sections 16131 and 16263 (MCL 333.16131 and 333.16263), as amended by 1995 PA 126, and by adding section 16350 and part 189.

The question being on the passage of the bill,

The bill was passed, a majority of the members serving voting therefor, as follows:

Roll Call No.684 Yeas--35

Bennett DeGrow Jaye Schwarz

Berryman Dingell Koivisto Shugars

Bouchard Dunaskiss McManus Smith, A.

Bullard Emmons Miller Steil

Byrum Gast North Stille

Cherry Geake Peters VanRegenmorter

Cisky Gougeon Posthumus Vaughn

Conroy Hart Rogers Young

DeBeaussaert Hoffman Schuette

Nays--0

Excused--2

O'Brien Smith, V.

Not Voting--0

In The Chair: Schwarz

The Senate agreed to the title of the bill.

The following bill was read a third time:

Senate Bill No.869, entitled

A bill to amend 1949 PA 300, entitled "Michigan vehicle code," (MCL 257.1 to 257.923) by adding sections 811d and 811e.

The question being on the passage of the bill,

The bill was passed, a majority of the members serving voting therefor, as follows:

Roll Call No.685 Yeas--35

Bennett DeGrow Jaye Schwarz

Berryman Dingell Koivisto Shugars

Bouchard Dunaskiss McManus Smith, A.

Bullard Emmons Miller Steil

Byrum Gast North Stille

Cherry Geake Peters VanRegenmorter

Cisky Gougeon Posthumus Vaughn

Conroy Hart Rogers Young

DeBeaussaert Hoffman Schuette

Nays--0

Excused--2

O'Brien Smith, V.

Not Voting--0

In The Chair: Schwarz

The Senate agreed to the title of the bill.

By unanimous consent the Senate proceeded to the order of

Resolutions

The question was placed on the adoption of the following resolution consent calendar:

Senate Resolution No.224

The resolution consent calendar was adopted.

Senator DeBeaussaert offered the following resolution:

Senate Resolution No.224.

A resolution to honor L'Anse Creuse Middle School - South for being selected as a National Blue Ribbon Exemplary School.

Whereas, It is indeed a pleasure to congratulate the students, parents, teachers, staff, and administrators of L'Anse Creuse Middle School - South in Harrison Township in recognition of the selection of the school as a National Blue Ribbon Exemplary School. On behalf of the young people of this community, we thank everyone who has contributed to this success. Clearly, their diligent and conscientious efforts have made a difference; and

Whereas, The people of L'Anse Creuse Middle School - South are enjoying the benefits of their successful campaign to advance their educational abilities. With innovative programs, a sincere concern for young people, and a total commitment to the goals of education, the teachers and staff have made the school most deserving of this recognition. The impressive achievements readily attest to the careful planning and dedicated involvement of the entire school community; and

Whereas, The teachers and students of L'Anse Creuse Middle School - South are only partly responsible for this honor. Parents, administrators, school board members, and community residents have done their part to ensure that students at L'Anse Creuse Middle School - South are prepared for the twenty-first century. The teachers, students, and parents have established a strong partnership at the school, and this teamwork has certainly contributed to the outstanding success. We salute everyone's efforts and thank them for making L'Anse Creuse Middle School - South one of the 14 exemplary secondary schools in the state and one of two to be awarded national recognition; now, therefore, be it

Resolved by the Senate, That this document is signed and dedicated to commend and congratulate the students, parents, teachers, staff, and administrators at L'Anse Creuse Middle School - South in Harrison Township in recognition of the selection of the school as a National Blue Ribbon Exemplary School. May they continue to excel in this crucial pursuit far into the future; and be it further

Resolved, That a copy of this resolution be transmitted to Patrick Mulcahy, principal of the school, and John Armstrong, Superintendent of L'Anse Creuse Public Schools, as evidence of our respect and admiration for this successful program.

Senators McManus, Young, Stille, Vaughn and Shugars were named co-sponsors of the resolution.

Introduction and Referral of Bills

Senators Conroy, Cherry, Peters, Koivisto, A. Smith, Young, Dingell, V. Smith and Berryman introduced

Senate Bill No.1298, entitled

A bill to amend 1979 PA 152, entitled "State license fee act," by amending section 39 (MCL 338.2239), as amended by 1988 PA 461.

The bill was read a first and second time by title and referred to the Committee on Economic Development, International Trade and Regulatory Affairs.

Senators Conroy, Cherry, Peters, Koivisto, A. Smith, Young, Dingell, V. Smith and Berryman introduced

Senate Bill No.1299, entitled

A bill to amend 1980 PA 299, entitled "Occupational code," by amending sections 2401, 2402, 2404, 2407, 2411, and 2412 (MCL 339.2401, 339.2402, 339.2404, 339.2407, 339.2411, and 339.2412), sections 2401 and 2411 as amended by 1991 PA 166, sections 2404 and 2407 as amended by 1985 PA 463, and section 2412 as amended by 1980 PA 496.

The bill was read a first and second time by title and referred to the Committee on Economic Development, International Trade and Regulatory Affairs.

Senators North, McManus, Young and Stille introduced

Senate Bill No.1300, entitled

A bill to amend 1967 PA 150, entitled "Michigan military act," by amending section 411 (MCL 32.811), as amended by 1996 PA 497.

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

Senator DeBeaussaert introduced

Senate Bill No.1301, entitled

A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," (MCL 388.1601 to 388.1772) by adding section 165.

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

Senators DeBeaussaert, Miller, Hart and Peters introduced

Senate Bill No.1302, entitled

A bill to amend 1956 PA 218, entitled "The insurance code of 1956," (MCL 500.100 to 500.8302) by adding section 2111f.

The bill was read a first and second time by title and referred to the Committee on Financial Services.

Senators Miller, Geake, Hoffman, DeBeaussaert, Peters and Jaye introduced

Senate Bill No.1303, entitled

A bill to amend 1949 PA 300, entitled "Michigan vehicle code," by amending section 722 (MCL 257.722), as amended by 1993 PA 22.

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

Senator Emmons introduced

Senate Bill No.1304, entitled

A bill to amend 1931 PA 328, entitled "The Michigan penal code," by amending section 349 (MCL 750.349).

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

Senator Emmons introduced

Senate Bill No.1305, entitled

A bill to amend 1893 PA 206, entitled "The general property tax act," by amending section 7e (MCL 211.7e).

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

Senator North introduced

Senate Bill No.1306, entitled

A bill to amend 1956 PA 218, entitled "The insurance code of 1956," by amending section 3109 (MCL 500.3109).

The bill was read a first and second time by title and referred to the Committee on Financial Services.

Senators McManus, Stille and Koivisto introduced

Senate Bill No.1307, entitled

A bill to amend 1995 PA 279, entitled "Horse racing law of 1995," by amending sections 10, 17, and 18 (MCL 431.310, 431.317, and 431.318).

The bill was read a first and second time by title and referred to the Committee on Farming, Agribusiness and Food Systems.

Senators Jaye and Shugars introduced

Senate Bill No.1308, entitled

A bill to amend 1893 PA 206, entitled "The general property tax act," (MCL 211.1 to 211.157) by adding section 7gg.

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

Senator Jaye introduced

Senate Bill No.1309, entitled

A bill to amend 1972 PA 382, entitled "Traxler-McCauley-Law-Bowman bingo act," by amending section 8 (MCL 432.108), as amended by 1981 PA 229.

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

Senator Jaye introduced

Senate Bill No.1310, entitled

A bill to amend 1927 PA 372, entitled "An act to regulate and license the selling, purchasing, possessing, and carrying of certain firearms and gas ejecting devices; to prohibit the buying, selling, or carrying of certain firearms and gas ejecting devices without a license; to provide for the forfeiture of firearms possessed in violation of this act; to provide immunity from civil liability under certain circumstances; to prescribe the powers and duties of certain state and local agencies; and to repeal all acts and parts of acts inconsistent with the provisions of this act," by amending section 1 (MCL 28.421), as amended by 1992 PA 219.

The bill was read a first and second time by title and referred to the Committee on Hunting, Fishing and Forestry.

Senator Jaye introduced

Senate Bill No.1311, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending section 74117 (MCL 324.74117), as added by 1995 PA 58.

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

Senator Jaye introduced

Senate Bill No.1312, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending sections 36505 and 40114 (MCL 324.36505 and 324.40114), section 36505 as added by 1995 PA 59 and section 40114 as added by 1995 PA 57.

The bill was read a first and second time by title and referred to the Committee on Hunting, Fishing and Forestry.

Senator Jaye introduced

Senate Bill No.1313, entitled

A bill to amend 1943 PA 240, entitled "State employees' retirement act," (MCL 38.1 to 38.69) by adding section 18a.

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

Senators Stille and McManus introduced

Senate Bill No.1314, entitled

A bill to amend 1951 PA 90, entitled "An act to regulate the conducting of racing meets in the state of Michigan; to provide for the possession, control and disposition of funds held by licensees for the payment of outstanding winning tickets not claimed or demanded by the lawful owners of such funds; and to prescribe penalties for violations of the provisions of this act," by amending sections 2, 3, and 4 (MCL 431.252, 431.253, and 431.254); and to repeal acts and parts of acts.

The bill was read a first and second time by title and referred to the Committee on Farming, Agribusiness and Food Systems.

Senator Bullard introduced

Senate Bill No.1315, entitled

A bill to amend 1937 PA 94, entitled "Use tax act," by amending section 5 (MCL 205.95).

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

Senator Bullard introduced

Senate Bill No.1316, entitled

A bill to amend 1933 PA 167, entitled "General sales tax act," by amending section 4a (MCL 205.54a), as amended by 1996 PA 435.

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

House Bill No.4388, entitled

A bill to amend 1979 PA 152, entitled "State license fee act," (MCL 338.2201 to 338.2277) by adding section 28.

The House of Representatives has passed the bill and ordered that it be given immediate effect.

The bill was read a first and second time by title and referred to the Committee on Economic Development, International Trade and Regulatory Affairs.

House Bill No.4389, entitled

A bill to amend 1895 PA 3, entitled "The general law village act," by amending section 1 of chapter VII (MCL 67.1), as amended by 1994 PA 314.

The House of Representatives has passed the bill and ordered that it be given immediate effect.

The bill was read a first and second time by title and referred to the Committee on Economic Development, International Trade and Regulatory Affairs.

House Bill No.4390, entitled

A bill to amend 1895 PA 215, entitled "The fourth class city act," by amending section 1 of chapter XI (MCL 91.1), as amended by 1994 PA 19.

The House of Representatives has passed the bill and ordered that it be given immediate effect.

The bill was read a first and second time by title and referred to the Committee on Economic Development, International Trade and Regulatory Affairs.

House Bill No.5874, entitled

A bill to amend 1980 PA 299, entitled "Occupational code," by amending section 303a (MCL 339.303a), as amended by 1995 PA 183, and by adding article 28; and to repeal acts and parts of acts.

The House of Representatives has passed the bill and ordered that it be given immediate effect.

The bill was read a first and second time by title and referred to the Committee on Committee on Economic Development, International Trade and Regulatory Affairs.

House Bill No.5898, entitled

A bill to amend 1949 PA 300, entitled "Michigan vehicle code," by amending section 675 (MCL 257.675), as amended by 1998 PA 68.

The House of Representatives has passed the bill and ordered that it be given immediate effect.

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

By unanimous consent the Senate returned to the order of

Third Reading of Bills

Senator DeGrow moved to reconsider the vote by which the following bills were postponed for today:

Senate Bill No.776

Senate Bill No.778

The motion prevailed.

The question being on the motion that further consideration of the bills be postponed for today,

Senator DeGrow withdrew the motion.

The following bill was read a third time:

Senate Bill No.776, entitled

A bill to amend 1893 PA 206, entitled "The general property tax act," by amending section 107 (MCL 211.107), as amended by 1982 PA 539.

The question being on the passage of the bill,

Senator Emmons offered the following substitute:

Substitute (S-1).

The question being on the adoption of the substitute,

Senators Emmons and V. Smith offered the following amendments to the substitute:

1. Amend page 3, line 7, after "(4)" by striking out "EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION,".

2. Amend page 3, line 17, by striking out "HAS ALSO PURCHASED" and inserting "HOLDS".

3. Amend page 3, line 20, after "INTEREST" by inserting "AND PENALTIES".

4. Amend page 5, following line 2, by inserting:

"(8) A CITY THAT DOES NOT RETURN ITS DELINQUENT TAXES TO THE COUNTY FOR COLLECTION PURSUANT TO ITS CHARTER SHALL COMMENCE A CIVIL ACTION TO FORECLOSE ITS LIEN FOR ANY DELINQUENT TAXES, ASSESSMENTS, AND CHARGES SUBJECT TO COLLECTION BY THE CITY ON REAL PROPERTY FOR WHICH A PRIOR LIEN HAS BEEN OBTAINED FROM THE CITY PURSUANT TO THE MICHIGAN TAX LIEN SALE AND COLLATERALIZED SECURITIES ACT. FORECLOSURE PROCEEDINGS REQUIRED UNDER THIS SUBSECTION SHALL COMMENCE WITHIN 3 YEARS AFTER THE DATE THE TAXES, ASSESSMENTS, AND CHARGES SUBJECT TO COLLECTION BY THE CITY BECOME DELINQUENT. FORECLOSURE PROCEEDINGS ON A LIEN SHALL NOT BE REQUIRED UNDER THIS SUBSECTION IF EITHER OF THE FOLLOWING CIRCUMSTANCES EXISTS:

(A) THE SUBSEQUENT TAX LIEN ON THE SAME PROPERTY IS CONVEYED PURSUANT TO THE MICHIGAN TAX LIEN SALE AND COLLATERALIZED SECURITIES ACT.

(B) THE PRIOR TAX LIEN CONVEYED PURSUANT TO THE MICHIGAN TAX LIEN SALE AND COLLATERALIZED SECURITIES ACT HAS BEEN SATISFIED OR EXTINGUISHED." and renumbering the remaining subsection.

The amendments to the substitute were adopted.

The substitute, as amended, was adopted, a majority of the members serving voting therefor.

The question being on the passage of the bill,

The bill was passed, a majority of the members serving voting therefor, as follows:

Roll Call No.686 Yeas--19

Berryman Emmons Peters Steil

Bullard Geake Posthumus Stille

Byrum Hart Rogers Vaughn

Cherry Hoffman Schwarz Young

Conroy Miller Smith, A.

Nays--15

Bennett Dingell Jaye Schuette

Bouchard Dunaskiss Koivisto Shugars

DeBeaussaert Gast McManus VanRegenmorter

DeGrow Gougeon North

Excused--2

O'Brien Smith, V.

Not Voting--1

Cisky

In The Chair: Schwarz

The Senate agreed to the title of the bill.

The following bill was read a third time:

Senate Bill No.778, entitled

A bill to authorize municipalities to collect delinquent property taxes and other delinquent assessments and charges by selling the liens related to delinquent property taxes and other delinquent assessments and charges; to authorize municipalities to establish procedures for collecting delinquent taxes and enforcing tax liens; to authorize the imposition of fees, charges, interest, and penalties upon delinquent property taxes and other delinquent assessments and charges; to authorize municipalities to create certain entities or to utilize certain existing entities to facilitate the sale and purchase of liens related to delinquent property taxes and other delinquent assessments and charges; to authorize municipalities to issue certain obligations secured by liens related to delinquent property taxes and other delinquent assessments and charges; to provide for the issuance of, and terms and conditions for, obligations secured by liens related to delinquent property taxes and other delinquent assessments and charges; and to exempt the property, income, operation bonds, notes, and interest on bonds and notes of certain entities from certain taxes.

The question being on the passage of the bill,

Senator Emmons offered the following substitute:

Substitute (S-1).

The question being on the adoption of the substitute,

Senators Emmons and V. Smith offered the following amendments to the substitute:

1. Amend page 3, line 14, after "entity" by inserting "of the municipality".

2. Amend page 3, line 14, after "means" by striking out the balance of the line through "An" on line 15 and inserting "an".

3. Amend page 3, line 20, by striking out all of subparagraph (ii).

4. Amend page 4, line 20, after "entity" by inserting "of the municipality".

5. Amend page 5, line 5, after "the" by striking out the balance of the line through "a" on line 6.

6. Amend page 8, line 17, after "entity" by inserting "of the municipality".

7. Amend page 8, line 25, after "the" by striking out the balance of the line.

8. Amend page 9, line 21, after "entity" by inserting "of the municipality or the third party".

9. Amend page 11, line 11, after the first "entity" by inserting "of the municipality".

10. Amend page 11, line 20, after "entity" by inserting "of the municipality".

11. Amend page 13, line 1, after the first "entity" by inserting "of the municipality".

12. Amend page 15, line 13, after "entity" by inserting "of the municipality".

13. Amend page 15, following line 17, by inserting:

"(12) A tax lien entity of the municipality that is created pursuant to section 9 is subject to the following restrictions in issuing tax lien collateralized securities under this act:

(a) The net present value of the principal and interest to be paid on tax lien collateralized securities issued to refund outstanding tax lien collateralized securities of the authority, excluding that portion of the refunding obligation used to pay the costs of issuance, shall be less than the net present value of the principal and interest to be paid on the obligation being refunded as calculated using a method approved by the state treasurer.

(b) A tax lien collateralized security shall not appreciate, in whole or in part, in principal amount, or be sold at a discount of, more than 10%.".

14. Amend page 15, line 24, after "the" by striking out the balance of the line.

15. Amend page 16, line 9, by inserting "of the municipality".

The amendments to the substitute were adopted.

Senators Emmons and V. Smith offered the following amendment to the substitute:

1. Amend page 8, following line 18, by inserting:

"(5) A municipality that sells tax liens related to a levy by a governmental unit other than the municipality shall use the proceeds of those tax liens as payment of the taxes due from the levy by the other governmental unit or, to the extent authorized by an agreement with the municipality, to fund costs of collecting delinquent taxes in excess of any property tax collection fee imposed pursuant to law or charter. A school district and a municipality may enter into any agreement relating to the allocation of costs of collecting delinquent taxes in excess of any property tax collection fee imposed pursuant to law or charter.".

The amendment to the substitute was adopted.

The substitute, as amended, was adopted, a majority of the members serving voting therefor.

The question being on the passage of the bill,

The bill was passed, a majority of the members serving voting therefor, as follows:

Roll Call No.687 Yeas--19

Berryman Emmons Peters Steil

Bullard Geake Posthumus Stille

Byrum Hart Rogers Vaughn

Cherry Hoffman Schwarz Young

Conroy Miller Smith, A.

Nays--16

Bennett DeGrow Gougeon North

Bouchard Dingell Jaye Schuette

Cisky Dunaskiss Koivisto Shugars

DeBeaussaert Gast McManus VanRegenmorter

Excused--2

O'Brien Smith, V.

Not Voting--0

In The Chair: Schwarz

Senator Emmons offered to amend the title to read as follows:

A bill to authorize municipalities to collect delinquent property taxes and other delinquent assessments and charges by selling the liens related to delinquent property taxes and other delinquent assessments and charges; to authorize municipalities to establish procedures for collecting delinquent taxes and enforcing tax liens; to authorize the imposition of fees, charges, interest, and penalties upon delinquent property taxes and other delinquent assessments and charges; to authorize municipalities to create certain entities or to utilize certain existing entities to facilitate the sale and purchase of liens related to delinquent property taxes and other delinquent assessments and charges; to authorize municipalities to issue certain obligations secured by liens related to delinquent property taxes and other delinquent assessments and charges; to provide for the issuance of, and terms and conditions for, obligations secured by liens related to delinquent property taxes and other delinquent assessments and charges; and to exempt the property, income, bonds, notes, and interest on bonds and notes of certain entities from certain taxes.

The amendment to the title was adopted.

The Senate agreed to the title as amended.

By unanimous consent the Senate proceeded to the order of

Statements

Senators Conroy, Hart, Schuette, Emmons, Stille and Cherry asked and were granted unanimous consent to make statements and moved that the statements be printed in the Journal.

The motion prevailed.

Senator Conroy's statement is as follows:

Today in Joint Capital Outlay, the committee voted to lease the old Civic Center here in Lansing, and they are going to consolidate the employees, which I think is a good idea--the consolidation of employees in central areas in this city to make this city more prosperous. Of course, those 1,100 employees would bring with them income tax payments and buying purchasing power that will be very helpful to this city. So, I support the concept of doing it; however, I think it is a total fiasco that the proposal that was presented to the committee that we indeed passed, that was going to require us to spend nearly $300 million on this one building over a 25-year period. At which time, we would then own the building. Twenty-five years leasing this building, 25 years of paying property taxes--the state virtually never pays property taxes on properties that we have for a long period of time.

Three hundred million dollars. This was a sole source contract. There was no bidding on this contract. This local developer is going to become not only a millionaire, he's going to be working on becoming a billionaire. Three hundred million dollars over 25 years. We could build this building for $65 million from scratch, on land that we own that's vacant, that's available, that we could use. There is land that the park group owns just a couple of blocks away from where we are sitting, that would be a great place to build a nice building. The price that we are paying on this lease is exorbitant. This developer was the only person involved in the transaction other than the Department of Management and Budget. We over-payed in the most dramatic fashion that I can think of. I wonder why we are going to lease for 25 years, rather than own. I wonder why we are going to lease instead of build. We have the cash if we wanted to spend it. Even if we didn't want to spend and bond, we could do all of that for about $100 million. So, it just amazes me how this got through. But, I guess when you are talking about $300 million, that does make a difference; money does talk. This is probably the worse decision I've seen made in terms of dollars, particularly when in the years ahead when we are going to be fighting for money for education, public health, mental health, and transportation. But, this $300 million will not be available.

The proposal was defeated twice back in June and July, but they got the votes together over the summer and passed it this morning. It's something that I think is a huge mistake and something that maybe the courts will have to decide. I would be hopeful that the state would change its mind, decide to build the building for these employees, do that for the $65 million that it would cost, and forego spending the $300 million that the taxpayers are going to get charged. We have people that don't want to pay income tax. We have members here that want to cut the income tax. But, they are most willing to spend the money--spend it with a flourish, spend it like I've never seen it spent in the private sector. Why didn't they bid on this project? Why aren't we buying it instead of leasing it?

Senator Hart's statement is as follows:

This week commemorates National Kids On-Line Week, a week dedicated to teach children how to navigate the Internet safely. On Monday night, I met with parents and educators in my district and talked with them about this technological wonder that has literally brought the world right into our homes and classrooms. These people understand that the Internet will be a major part of their children's lives. Children today use the Internet for recreation, education, and will certainly use it when they join the workforce. Some of these people clearly admit they don't know half as much about computers and the Internet as their children do. But, they recognize its importance, and this week dedicated to the Internet has helped them learn more. You and I would probably never have the facility with computers that our young people have. But, we still need to address the benefits and dangers of the Internet. The benefits of the Internet are too valuable to allow it to be taken over by those who would misuse it. The people I talked to know that cannot keep their children off line. They are warning their children about Internet predators, just as they warn them about the predators when they stalk them on our streets. During this week, about our children and Internet safety, they are looking to their legislators and law enforcement officials for help.

I appreciate your support for my bill and the Internet crime package that we passed before summer break. A recent 12-country raid was one of the biggest efforts ever taken to break an Internet child pornography ring, and that raid reached right up here into Michigan. This Internet safety legislation is now more important than ever. I hope that we can see the Internet safety package, Michigan's first Internet safety laws, passed before the end of this legislative session.

Senator Schuette's statement is as follows:

This week, we received great news in my hometown of Midland, where a teacher named Kathie Grzesiak was one of the recipients of the Milken National Educator Award. And Kathie Grzesiak, a fifth grade elementary teacher at Eastlawn Elementary in Midland, Michigan, received a $25,000 prize--an award for the wonderful things she does for young girls and young boys in the elementary school in my hometown. And Kathie, who came with her class last year, visited our Senate Chambers and spent a day at the Capitol here in Lansing. I am just so proud, and I know my home community of Midland is so proud of the outstanding teacher in the name of Kathie Grzesiak and what she does to help form young minds. There is no greater responsibility and no higher calling than being a teacher, and certainly Kathie Grzesiak is an outstanding one from Midland, Michigan. I extend our heartiest, warmest congratulations to this outstanding teacher, one of the many outstanding teachers we have in our state of Michigan.

Senator Hoffman moved that the written statement of Dr.Odeen Ishmael, Ambassador of the Republic of Guyana, be printed in the Journal.

The motion prevailed.

Ambassador Ishmael's statement is as follows:

Mr.President, I thank you and the distinguished members of the Senate of the state of Michigan for allowing me to address this august body on the occasion of my visit to your Capitol. My good friend, Senator Hoffman, a worthy representative of your beautiful state, has constantly extended an invitation to me to visit, and now that I have come, I have already been enticed by the warmth of the people to make future visits, hopefully for longer periods.

Mr.President, I take this opportunity to express the gratitude of the government and people of Guyana for the tribute this Senate paid to the late President of my country, Dr.Cheddi Jagan, who passed away in March last year. This kind tribute, in the form of Senate Resolution No. 55, was adopted in this Senate on May 13, 1997.

It may interest you to note that my country has a long economic linkage with the state of Michigan. This is evidenced by the number of automobiles and farm machinery imported into my country over the years from this region of the United States.

What is of additional interest is that the current President of Guyana, President Janet Jagan, received some of her education in this very state--at the University of Detroit, Wayne State University, and Michigan State University. That itself is a significant linkage that Guyana and Michigan have--a linkage I propose to expand during my short visit to Lansing when I discuss with representatives of the Office of the Governor, with your institutions of higher learning, and with some of you, concrete terms for economic and cultural partnerships between my country and the state of Michigan.

Mr.President, my country, located on the northeastern shoulder of South America, is ideally situated at an economic bridging point linking the Caribbean region and South America. As an English-speaking nation, we present an advantageous base position for American enterprises that want to gain new or additional footholds in the markets of the South American continent. Despite having a land area of 83,000 square miles, my country has a population of just over three-quarters of a million. However, Guyana does possess vast areas of tropical rain forests with abundant plant and animal species and also vast water and mineral resources and great eco-tourism potential. We invite Michigan business enterprises to visit Guyana and to examine the possibility of assisting in the development of these resources.

Like other Ambassadors accredited to the United States, I meet from time to time with politicians on Capitol Hill. Nevertheless, I am keenly aware that the power of politicians in Washington is rooted in a greater power which exerts itself within the various states of this vast country. It must be emphasized that people of the states elect representatives to Washington, and, as such, those representatives must not only provide leadership but also represent the interests and aspirations of the people who sent them there. I believe that the individual state along with its legislature should be a key player in the development of political, economic, and cultural relations with different countries and economies. Since the states created the federal government, they themselves are laboratories of democracy from which developing nations of the world can take examples and learn.

I believe, too, that political, economic, and cultural partnerships should be developed between state governments and those of other countries. In this respect, I am pleased to note that trade missions led by your Governor to a number of countries have been successful in expanding international trade and business agreements. I hope that my visit here will help to promote a visit of a trade delegation from my country to Michigan in the not too distant future.

While some are of the opinion that it is the exclusive domain of the federal government to deal with international issues, I argue that state legislatures must show greater interest in foreign affairs. After all, a position taken by the federal government eventually has an impact one way or the other on the welfare of individual states of this union. As you are fully aware, all of your constituents are very sensitive over how their tax dollar is spent, particularly when it goes to defense, foreign aid, and U.N. programs.

Mr.President, my government shares some common aspirations with the members of this Senate. We all want to implement programs and policies for the improvement of the lives of our respective peoples. We are concerned over international crises situations such as the expansion of terrorism; the escalating international economic problems, abject poverty, and political instability in some parts of the world; expanding ethnic tensions; growing indebtedness of poor nations; and the drug menace, among other existing problems. Surely, these will have a detrimental impact on the lives of our peoples--on human development--unless actions are taken to reduce them or eliminate them totally. If efforts are not made in this direction, the very fabric of democracy may be undermined.

The post-Cold War period has built hopes that a new global human order can be established based on mutual respect, equal opportunities for all peoples, and a consolidation of democracy and human development. We must strive to achieve international cooperation in solving international problems of an economic, social, cultural, or humanitarian nature. By doing so, the lasting foundations for international peace and security will be established, and our peoples will have more contented lives.

I look forward to working with you to establish a dynamic partnership between the state of Michigan and my country.

Senator Emmons' statement is as follows:

I have introduced two resolutions that deal with what is going on in Washington, with two different urgings in them. Number one, I'm urging the President to resign. Secondly, I am asking that Congress would begin the procedure for impeachment. I think it's important for us to send a direction to our Representatives and the President of what we believe needs to be done to clear this matter off our televisions, off the news media, and begin the process of putting our federal government, our presidency back together.

Some people have suggested that I'm doing this because it's a political thing. I am outraged that anyone would suggest that. My constituents believe this is a necessary thing. They are communicating with me. They expect me to take a leadership role in this matter, and that is exactly what I think this Senate and this Legislature needs to do.

I am hopeful that we can put this behind us, regain our respect across this world. A friend recently came back from London. The front pages of the paper were full of what's happening here--none of it good. We are a world leader. Our leaders need to act like world-class people. When they don't, there needs to be consequences, and we need to repair our house. This is the statement that I think we need to send, both to the President and the Congress, that this needs to get over and done.

Senator Stille's statement is as follows:

Last year, I had the opportunity to offer the invocation on this particular day, and I would like to make a comment relative to some of the same elements of that prayer that I offered. Eighty-six years ago today, a young girl was born in Olive Township, Hattie Louise Heimstra, which turned out to be my mom. And this is my small way of keeping her memory alive.

Senator Cherry's statement is as follows:

I listened very closely to my good colleague from the 23rd District as she explained and announced her resolution and her hope that her efforts will single-handedly put this matter behind us. I wonder is there any doubt or any question that Congress is shirking its duty here? My impression has been that they are, quite frankly, very focused on the matter--that, in fact, they are intending to deal with it in a bipartisan way.

It's clear to me that they have, first of all, stressed its importance to the country. They have stressed the need to deal with this in a Constitutional fashion. They have stressed the need to be serious and deliberate. There has not been any question in my mind that Congress is focused on this question of how we ought to proceed with Bill Clinton.

In that context, an understanding to the extent to which it dominates national news and the degree to which both Democrats and Republicans are commenting on it on a regular basis, it would seem to me that, in fact, the resolution is very political; that really the state of Michigan has not a Constitutional role in this process. It's clear that members of our delegation are focused and are active in carrying out their responsibility as Congress fulfills its. So, in light that no one is shirking their duty, I'm not convinced that we are a better body to try the President than the Congress is. In fact, what they have told us is that they must be deliberate because the information they have is voluminous, that any responsible public official needs to sort through that information in a deliberate fashion, and I respect that because I do believe that it's a serious matter that Congress needs to be deliberate and focused as they pursue their responsibilities.

We, here, are being asked to simply dispose of this without the value of that information, without the benefit of the process that the Congress will undergo, without the benefit of the time of deliberation that the Congress is looking at.

I can appreciate the Senator from the 23rd District's concern here. I think all of us, Democrats and Republicans, have concern with the state of affairs that now confronts our country. But, in those moments, we do well to depend upon our constitutional process, and we do well to depend upon our spirit of bipartisanship to carry us through these kinds of proceedings. To simply propose to deal with it in the fashion of the resolution introduced by the Senator from the 23rd District, it strikes me, runs counter to that spirit and that effort. So, while I do appreciate her concern, I would advise her to do as I do ­ talk to my Congressman, get his advise, provide my input, pay attention to what's going on, and have confidence that our national institutions will dispose of this in the appropriate way.

By unanimous consent the Senate returned to the order of

Messages from the House

Senate Bill No.908, entitled

A bill to make appropriations for the department of community health and certain state purposes related to mental health, public health, and medical services for the fiscal year ending September 30, 1999; to provide for the expenditure of such appropriations; to create funds; to provide for reports; to prescribe the powers and duties of certain local and state agencies and departments; and to provide for disposition of fees and other income received by the various state agencies.

(For Conference Report, see p. 1685.)

The House of Representatives has adopted the report of the Committee of Conference and ordered that the bill be given immediate effect.

The bill was referred to the Secretary for enrollment printing and presentation to the Governor.

Committee Reports

The Committee on Natural Resources and Environmental Affairs reported

House Bill No.4611, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending section 11510 (MCL 324.11510), as amended by 1996 PA 358.

With the recommendation that the bill pass.

The committee further recommends that the bill be given immediate effect.

Loren N. Bennett

Chairperson

To Report Out:

Yeas: Senators Bennett, Dingell and DeBeaussaert

Nays: None

The bill was referred to the Committee of the Whole.

The Committee on Natural Resources and Environmental Affairs reported

House Bill No.5717, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," (MCL 324.101 to 324.90106) by adding sections 82126a, 82126b, and 82126c.

With the recommendation that the bill pass.

Loren N. Bennett

Chairperson

To Report Out:

Yeas: Senators Bennett, Dingell and DeBeaussaert

Nays: None

The bill was referred to the Committee of the Whole.

COMMITTEE ATTENDANCE REPORT

The Committee on Natural Resources and Environmental Affairs submits the following:

Meeting held on Tuesday, September 15, 1998, at 3:00p.m., 8th Floor Conference Room, Farnum Building

Present: Senators Bennett (C), Dingell and DeBeaussaert

Excused: Senators Dunaskiss and Gast

The Committee on Judiciary reported

Senate Bill No.1264, entitled

A bill to amend 1927 PA 175, entitled "The code of criminal procedure," by amending sections 26 and 28 of chapter V (MCL 765.26 and 765.28).

With the recommendation that the bill pass.

The committee further recommends that the bill be given immediate effect.

William VanRegenmorter

Chairperson

To Report Out:

Yeas: Senators VanRegenmorter, Rogers, Cisky, Dingell, Peters and V. Smith

Nays: None

The bill was referred to the Committee of the Whole.

The Committee on Judiciary reported

House Bill No.5268, entitled

A bill to amend 1956 PA 5, entitled "Michigan uniform municipal court act," by amending sections 22 and 30 (MCL 730.522 and 730.530).

With the recommendation that the bill pass.

The committee further recommends that the bill be given immediate effect.

William VanRegenmorter

Chairperson

To Report Out:

Yeas: Senators VanRegenmorter, Rogers, Geake, Dingell, Peters and V. Smith

Nays: None

The bill was referred to the Committee of the Whole.

The Committee on Judiciary reported

House Bill No.5271, entitled

A bill to amend 1927 PA 175, entitled "The code of criminal procedure," by amending sections 2 and 3 of chapter X and sections 34, 43, and 44 of chapter XIV (MCL 770.2, 770.3, 774.34, 774.43, and 774.44), section 2 of chapter X as amended by 1981 PA 205, section 3 of chapter X as amended by 1994 PA 374, and sections 34, 43, and 44 of chapter XIV as amended by 1980 PA 506.

With the recommendation that the bill pass.

The committee further recommends that the bill be given immediate effect.

William VanRegenmorter

Chairperson

To Report Out:

Yeas: Senators VanRegenmorter, Rogers, Geake, Dingell, Peters and V. Smith

Nays: None

The bill was referred to the Committee of the Whole.

COMMITTEE ATTENDANCE REPORT

The Committee on Judiciary submits the following:

Meeting held on Tuesday, September 15, 1998, at 1:00p.m., Rooms 402 and 403, Capitol Building

Present: Senators VanRegenmorter (C), Rogers, Cisky, Geake, Dingell, Peters and V. Smith

The Committee on Economic Development, International Trade and Regulatory Affairs reported

Senate Bill No.1167, entitled

A bill to amend 1966 PA 225, entitled "Carnival-amusement safety act of 1966," by amending section 2 (MCL 408.652), as amended by 1982 PA 35.

With the recommendation that the bill pass.

The committee further recommends that the bill be given immediate effect.

Bill Schuette

Chairperson

To Report Out:

Yeas: Senators Schuette, Jaye, O'Brien and Peters

Nays: None

The bill was referred to the Committee of the Whole.

The Committee on Economic Development, International Trade and Regulatory Affairs reported

Senate Bill No.1266, entitled

A bill to amend 1893 PA 206, entitled "The general property tax act," by amending section 7o (MCL 211.7o), as amended by 1996 PA 469.

With the recommendation that the bill pass.

The committee further recommends that the bill be given immediate effect.

Bill Schuette

Chairperson

To Report Out:

Yeas: Senators Schuette, Jaye, O'Brien and Peters

Nays: None

The bill was referred to the Committee of the Whole.

The Committee on Economic Development, International Trade and Regulatory Affairs reported

House Bill No.5867, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," (MCL 324.101 to 324.90106) by adding section 61506c.

With the recommendation that the bill pass.

The committee further recommends that the bill be given immediate effect.

Bill Schuette

Chairperson

To Report Out:

Yeas: Senators Schuette, O'Brien and Peters

Nays: None

The bill was referred to the Committee of the Whole.

COMMITTEE ATTENDANCE REPORT

The Committee on Economic Development, International Trade and Regulatory Affairs submits the following:

Meeting held on Wednesday, September 16, 1998, at 1:10p.m., Room 210, Farnum Building

Present: Senators Schuette (C), Jaye, O'Brien and Peters

Excused: Senator Shugars

The Committee on Financial Services reported

House Bill No.5796, entitled

A bill to amend 1989 PA 292, entitled "Metropolitan council act," by amending the title and sections 1, 3, 5, 7, 9, 11, 13, 15, 17, 19, 21, 23, 25, 27, 29, 31, 33, and 35 (MCL 124.651, 124.653, 124.655, 124.657, 124.659, 124.661, 124.663, 124.665, 124.667, 124.669, 124.671, 124.673, 124.675, 124.677, 124.679, 124.681, 124.683, and 124.685) and by adding sections 65, 67, 69, 71, 73, 75, 77, and 79.

With the recommendation that the bill pass.

The committee further recommends that the bill be given immediate effect.

Michael J. Bouchard

Chairperson

To Report Out:

Yeas: Senators Bouchard, Bullard and Miller

Nays: Senator Bennett

The bill was referred to the Committee of the Whole.

The Committee on Financial Services reported

House Bill No.5800, entitled

A bill to amend 1962 PA 174, entitled "Uniform commercial code," (MCL 440.1101 to 440.11102) by adding section 1210.

With the recommendation that the bill pass.

The committee further recommends that the bill be given immediate effect.

Michael J. Bouchard

Chairperson

To Report Out:

Yeas: Senators Bouchard, Bennett and Bullard

Nays: None

The bill was referred to the Committee of the Whole.

The Committee on Financial Services reported

House Bill No.5783, entitled

A bill to amend 1987 PA 173, entitled "Mortgage brokers, lenders, and servicers licensing act," by amending section 25 (MCL 445.1675), as amended by 1996 PA 210, and by adding section 25a.

With the recommendation that the bill pass.

The committee further recommends that the bill be given immediate effect.

Michael J. Bouchard

Chairperson

To Report Out:

Yeas: Senators Bouchard, Bennett and Bullard

Nays: None

The bill was referred to the Committee of the Whole.

The Committee on Financial Services reported

House Bill No.5784, entitled

A bill to amend 1981 PA 125, entitled "The secondary mortgage loan act," by amending section 29a (MCL 493.79a), as added by 1994 PA 261.

With the recommendation that the bill pass.

The committee further recommends that the bill be given immediate effect.

Michael J. Bouchard

Chairperson

To Report Out:

Yeas: Senators Bouchard, Bennett and Bullard

Nays: None

The bill was referred to the Committee of the Whole.

The Committee on Financial Services reported

House Bill No.5835, entitled

A bill to amend 1962 PA 174, entitled "Uniform commercial code," (MCL 440.1101 to 440.11102) by adding section 1211.

With the recommendation that the bill pass.

The committee further recommends that the bill be given immediate effect.

Michael J. Bouchard

Chairperson

To Report Out:

Yeas: Senators Bouchard, Bennett and Bullard

Nays: None

The bill was referred to the Committee of the Whole.

COMMITTEE ATTENDANCE REPORT

The Committee on Financial Services submits the following:

Meeting held on Wednesday, September 16, 1998, at 1:00p.m., 8th Floor Conference Room, Farnum Building

Present: Senators Bouchard (C), Bennett, Bullard and Miller

Excused: Senator Berryman

The Committee on Economic Development, International Trade and Regulatory Affairs reported

House Bill No.5365, entitled

A bill to amend 1996 PA 376, entitled "Michigan renaissance zone act," by amending section 10 (MCL 125.2690).

With the recommendation that the substitute (S-3) be adopted and that the bill then pass.

The committee further recommends that the bill be given immediate effect.

Bill Schuette

Chairperson

To Report Out:

Yeas: Senators Schuette, Jaye, O'Brien and Peters

Nays: None

The bill and the substitute recommended by the committee were referred to the Committee of the Whole.

The Committee on Financial Services reported

House Bill No.5692, entitled

A bill to amend 1956 PA 218, entitled "The insurance code of 1956," by amending section 3020 (MCL 500.3020), as amended by 1996 PA 77.

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

The committee further recommends that the bill be given immediate effect.

Michael J. Bouchard

Chairperson

To Report Out:

Yeas: Senators Bouchard, Bennett and Bullard

Nays: None

The bill and the substitute recommended by the committee were referred to the Committee of the Whole.

COMMITTEE ATTENDANCE REPORT

The Committee on Health Policy and Senior Citizens submits the following:

Meeting held on Tuesday, September 15, 1998, at 3:00p.m., Room 100, Farnum Building

Present: Senators Shugars (C), Schwarz, Jaye and Byrum

Excused: Senator O'Brien

COMMITTEE ATTENDANCE REPORT

The Senate Fiscal Agency Board of Governors submits the following:

Meeting held on Wednesday, September 16, 1998, at 2:30p.m., Room S324, Capitol Building

Present: Senators Gast (C), Geake, Conroy and Cherry

Absent: Senator Posthumus

Scheduled Meetings

Appropriations Committee - Wednesday, September 23, at 2:00p.m., Senate Appropriations Room, 3rd Floor, Capitol Building (3-6960).

Government Operations Committee - Wednesday, September 23, at 1:00p.m., Rooms 402 and 403, Capitol Building (3-1758).

Hunting, Fishing and Forestry Committee - Tuesday, September 22, at 1:00p.m., Room 110, Farnum Building (3-7670).

Judiciary Committee - Tuesday, September 22, at 1:00p.m., Rooms 402 and 403, Capitol Building (3-6920).

Senator DeGrow moved that the Senate adjourn.

The motion prevailed, the time being 11:23a.m.

The President pro tempore, Senator Schwarz, declared the Senate adjourned until Tuesday, September 22, at 10:00a.m.

CAROL MOREY VIVENTI

Secretary of the Senate.