No. 56

STATE OF MICHIGAN

JOURNAL

OF THE

House of Representatives

90th Legislature


REGULAR SESSION OF 2000


House Chamber, Lansing, Tuesday, June 20, 2000.

12:00 Noon.

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

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

Allen--present

Baird--present

Basham--present

Birkholz--present

Bisbee--present

Bishop--present

Bogardus--present

Bovin--present

Bradstreet--present

Brater--present

Brewer--present

Brown, Bob--present

Brown, Cameron--present

Byl--present

Callahan--present

Cassis--present

Caul--present

Cherry--present

Clark--e/d/s

Clarke--present

Daniels--present

DeHart--present

Dennis--present

DeRossett--present

DeVuyst--present

DeWeese--present

Ehardt--present

Faunce--present

Frank--present

Garcia--present

Garza--present

Geiger--present

Gieleghem--present

Gilbert--present

Godchaux--present

Gosselin--present

Green--present

Hager--present

Hale--present

Hanley--present

Hansen--present

Hardman--e/d/s

Hart--present

Howell--present

Jacobs--present

Jamnick--present

Jansen--present

Jelinek--present

Jellema--present

Johnson, Rick--present

Johnson, Ruth--present

Julian--present

Kelly--present

Kilpatrick--present

Koetje--present

Kowall--present

Kuipers--present

Kukuk--present

LaForge--present

LaSata--present

Law--present

Lemmons--excused

Lockwood--present

Mans--present

Martinez--present

Mead--present

Middaugh--present

Minore--present

Mortimer--present

Neumann--present

O'Neil--present

Pappageorge--present

Patterson--present

Perricone--e/d/s

Pestka--present

Price--present

Prusi--present

Pumford--present

Quarles--present

Raczkowski--present

Reeves--present

Richardville--present

Richner--present

Rison--present

Rivet--present

Rocca--present

Sanborn--present

Schauer--present

Schermesser--present

Scott--present

Scranton--present

Shackleton--present

Sheltrown--present

Shulman--present

Spade--present

Stallworth--e/d/s

Stamas--present

Switalski--present

Tabor--present

Tesanovich--present

Thomas--present

Toy--present

Vander Roest--present

Van Woerkom--present

Vaughn--present

Vear--present

Voorhees--present

Wojno--present

Woodward--present

Woronchak--present

e/d/s = entered during session

Rev. David Hansen, Pastor of Immanuel Baptist Church in Roscommon, offered the following invocation:

"Our Heavenly Father, I love America but I do not love what she is becoming. I am ashamed for my country. This sweet land of liberty is slowly, reproachfully becoming a land where right is labeled wrong, where wrong is labeled right. We are losing our way. We are losing our direction. We are losing our moral compass. Something is terribly wrong in our nation when I am invited to stand here and open this House in prayer and yet in our public school districts across this state, because of another recent Supreme Court ruling, the same prayer would not be allowed.

Something is wrong in America when our children are slowly being indoctrinated into the alternative lifestyles of perversion, sinfulness and immorality that America has forsaken for so many years. In my lifetime, in these last 34 years, I have watched America take a landslide that I don't think we ever dreamed would happen. Father, I beg You to help us take America back. Until 30 years ago, the Bible was a guidebook--not only for the White House and the state House, but also for the neighbor's house and our house. In this generation we have forsaken the God of our fathers and look where we are at now. Oh, we are rich, we are increased with goods, we are very wealthy. We have everything that we want, and yet, we are lacking what I believe is the one thing that we so desperately need. We need God in America again.

Dear God, our patriotic hymns speak of You but yet as I walk around this country, and even as I go overseas, I am amazed to see how Americans have a conscience void of God. And when a conscience is void of God it becomes void of good. May we return to the straight paths of the Bible. May we realize that the Bible tells us, 'blessed is that nation whose God is the Lord.' What a shame it would be if we had a cure for cancer and we are not willing to share it. Dear God, we have a cure for all that ails America--it is found in God's holy word. Our prayer is that we would see a revival in this land. It will not begin at the White House. No, it will not begin at the courthouse. I don't believe that it will begin at the state House. Dear God, if it is going to take place, it will take place in the church house and it will take place at our house.

God, save America--for my eight year old and my six year old and my two year old. May they be able to grow up in a land that is still free in the midst of freedoms that are being stripped away from us. Dear God, why are our public schools war zones? Why are our children being taught that abortion without parental consent is ok? Why are we ignoring all the things that made America great. May this body realize, and may each American who claims to be patriotic realize that until we return to the God of Heaven, to the Bible as our guide book, we will not see America succeed as she could. I pray that You will help America to thrive because now I'm afraid that she simply survives. In the midst of all the prosperity, we forget who gave it to us.

Father, I pray that You bless these men and women today as they work. They are employees of the people of Michigan. They have a high, sacred responsibility and I pray that they would not shirk it nor take it lightly. I pray that these men and these women would not be found wanton when it comes to following decisions based upon the word of God.

It is probably a good thing that George Washington, Alexander Hamilton and those men are not here today in this country or I fear that they would not tolerate what we have seen. May we see a revival in this country and may it begin in our homes with our children--with discipline and character. May the Godly men and women of this country rise up like an army and may God bless our country. Thank You for Michigan. Bless this state and these people as they do our work. In Jesus' name, Amen."

______

Rep. Scott moved that Rep. Lemmons be excused from today's session.

The motion prevailed.

Messages from the Senate

Senate Bill No. 694, entitled

A bill to amend 1956 PA 218, entitled "The insurance code of 1956," by amending section 2006 (MCL 500.2006).

The Senate has nonconcurred in the House substitute (H-1) and appointed Senators Schuette, DeGrow and Murphy as conferees.

The Speaker appointed as conferees, on the part of the House of Representatives, Reps. Law, Perricone and Schauer.

The message was referred to the Clerk for record.

Senate Bill No. 964, 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 years ending September 30, 2000 and September 30, 2001; to provide for the expenditure of those appropriations; to create funds; to require and provide for reports; to prescribe the powers and duties of certain local and state agencies and departments; to provide for disposition of fees and other income received by the various state agencies; and to repeal acts and parts of acts.

The Senate has nonconcurred in the House substitute (H-1) and appointed Senators Gougeon, Schwarz and Emerson as conferees.

The Speaker appointed as conferees, on the part of the House of Representatives, Reps. Geiger, Scranton and Martinez.

The message was referred to the Clerk for record.

Senate Bill No. 968, entitled

A bill to make, supplement, and adjust appropriations for various state departments and agencies for the fiscal year ending September 30, 2000; to provide for the expenditure of the appropriations; and to repeal acts and parts of acts.

The Senate has nonconcurred in the House substitute (H-1) and appointed Senators Gast, McManus and A. Smith as conferees.

The Speaker appointed as conferees, on the part of the House of Representatives, Reps. Geiger, Jellema and Price.

The message was referred to the Clerk for record.

Notices

The Speaker appointed as second conferees, on the part of the House of Representatives for House Bill No. 5275, Reps. Kukuk, Jellema and Prusi.

By unanimous consent the House returned to the order of

Messages from the Senate

House Bill No. 5275, entitled

A bill to make appropriations for the department of consumer and industry services and certain other state purposes for the fiscal year ending September 30, 2001; to provide for the expenditure of those appropriations; to provide for the imposition of certain fees; to provide for the disposition of fees and other income received by the state agencies; to provide for reports to certain persons; and to prescribe powers and duties of certain state departments and certain state and local agencies and officers.

The Senate has appointed Senators Bennett, Stille and Young as second conferees to join with Reps. Kukuk, Jellema and Prusi.

The bill was referred to the second Conference Committee on June 13, 2000.

Notices

June 16, 2000

I hereby replace Rep. Kukuk with Rep. Jellema as Chair on the second conference committee for House Bill No.5275.

Sincerely,

Charles R. Perricone

Speaker of the House

The Speaker appointed as conferees, on the part of the House of Representatives for Senate Bill No. 1044, Reps.Jelinek, Stamas and Kelly.

By unanimous consent the House returned to the order of

Reports of Standing Committees

The Committee on Tax Policy, by Rep. Cassis, Chair, reported

Senate Bill No. 988, entitled

A bill to amend 1933 PA 167, entitled "General sales tax act," by amending section 1 (MCL 205.51), as amended by 1999 PA 116.

With the recommendation that the bill pass.

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

Favorable Roll Call

SB 988 To Report Out:

Yeas: Reps. Cassis, Woronchak, Allen, Faunce, Gilbert, Gosselin, Vander Roest, Vear, Quarles, Basham, Jamnick, Minore, O'Neil, Switalski,

Nays: None.

The Committee on Tax Policy, by Rep. Cassis, Chair, reported

Senate Bill No. 989, entitled

A bill to amend 1937 PA 94, entitled "Use tax act," by amending section 2 (MCL 205.92), as amended by 1998 PA 366.

With the recommendation that the bill pass.

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

Favorable Roll Call

SB 989 To Report Out:

Yeas: Reps. Cassis, Woronchak, Allen, Faunce, Gilbert, Gosselin, Vander Roest, Vear, Quarles, Basham, Jamnick, Minore, O'Neil, Switalski,

Nays: None.

COMMITTEE ATTENDANCE REPORT

The following report, submitted by Rep. Cassis, Chair of the Committee on Tax Policy, was received and read:

Meeting held on: Tuesday, June 20, 2000, at 8:30 a.m.,

Present: Reps. Cassis, Woronchak, Allen, Faunce, Gilbert, Gosselin, Vander Roest, Vear, Quarles, Basham, Jamnick, Minore, O'Neil, Switalski,

Absent: Reps. Koetje, Patterson, Garza,

Excused: Reps. Koetje, Patterson, Garza.

The Committee on Employment Relations, Training and Safety, by Rep. Gosselin, Chair, reported

Senate Bill No. 451, entitled

A bill to amend 1969 PA 317, entitled "Worker's disability compensation act of 1969," by amending section 405 (MCL 418.405), as amended by 1980 PA 457.

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

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

Favorable Roll Call

SB 451 To Report Out:

Yeas: Reps. Gosselin, Kuipers, Dennis, Switalski,

Nays: None.

The Committee on Employment Relations, Training and Safety, by Rep. Gosselin, Chair, reported

Senate Bill No. 1173, entitled

A bill to amend 1969 PA 317, entitled "Worker's disability compensation act of 1969," by amending section 230 (MCL 418.230), as amended by 1994 PA 271.

The committee recommended that the bill be referred to the Committee on Insurance and Financial Services.

Favorable Roll Call

SB 1173 To Report Out:

Yeas: Reps. Gosselin, Kuipers, Dennis, Switalski,

Nays: None.

The recommendation was concurred in and the bill was referred to the Committee on Insurance and Financial Services.

COMMITTEE ATTENDANCE REPORT

The following report, submitted by Rep. Gosselin, Chair of the Committee on Employment Relations, Training and Safety, was received and read:

Meeting held on: Tuesday, June 20, 2000, at 9:00 a.m.,

Present: Reps. Gosselin, Kuipers, Dennis, Switalski,

Absent: Reps. DeWeese, Raczkowski, LaForge,

Excused: Reps. DeWeese, Raczkowski, LaForge.

______

Rep. Vander Roest moved that Rep. Garcia be excused temporarily from today's session.

The motion prevailed.

By unanimous consent the House returned to the order of

Reports of Select Committees

The Speaker laid before the House the conference report relative to

House Bill No. 5274, entitled

A bill to make appropriations for the department of career development and certain other state purposes for the fiscal year ending September 30, 2001; to provide for the expenditure of the appropriations; and to provide for the disposition of fees and other income received by the state agencies.

(The conference report was reported by the conference committee on June 7, consideration of which, under the rules, was postponed until June 8.)

(For conference report, see House Journal No. 54, p. 1607.)

The question being on the adoption of the conference report,

The conference report was not adopted, a majority of the members serving not voting therefor, by yeas and nays, as follows:

Roll Call No. 801 Yeas--2

Godchaux Middaugh

Nays--98

Allen Ehardt Kowall Rison

Baird Faunce Kuipers Rivet

Basham Frank Kukuk Rocca

Birkholz Garza LaForge Sanborn

Bisbee Geiger LaSata Schauer

Bishop Gieleghem Law Schermesser

Bogardus Gilbert Lockwood Scott

Bovin Gosselin Mans Shackleton

Bradstreet Green Martinez Sheltrown

Brater Hager Mead Shulman

Brewer Hale Minore Spade

Brown, B. Hanley Mortimer Stamas

Brown, C. Hansen Neumann Switalski

Byl Hart O'Neil Tabor

Callahan Howell Pappageorge Tesanovich

Cassis Jacobs Patterson Thomas

Caul Jamnick Pestka Van Woerkom

Cherry Jelinek Price Vander Roest

Clarke, H. Jellema Prusi Vaughn

Daniels Johnson, Rick Pumford Vear

DeHart Johnson, Ruth Raczkowski Voorhees

Dennis Julian Reeves Wojno

DeRossett Kelly Richardville Woodward

DeVuyst Kilpatrick Richner Woronchak

DeWeese Koetje

In The Chair: Birkholz

The Speaker appointed as second conferees, on the part of the House of Representatives for House Bill No. 5274, Reps. Kukuk, Godchaux and Prusi.

Second Reading of Bills

Senate Bill No. 988, entitled

A bill to amend 1933 PA 167, entitled "General sales tax act," by amending section 1 (MCL 205.51), as amended by 1999 PA 116.

The bill was read a second time.

Rep. Raczkowski moved that the bill be placed on the order of Third Reading of Bills.

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

Rep. Raczkowski moved that the bill be placed on its immediate passage.

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

By unanimous consent the House returned to the order of

Third Reading of Bills

Senate Bill No. 988, entitled

A bill to amend 1933 PA 167, entitled "General sales tax act," by amending section 1 (MCL 205.51), as amended by 1999 PA 116.

Was read a third time and passed, a majority of the members serving voting therefor, by yeas and nays, as follows:

Roll Call No. 802 Yeas--98

Allen Ehardt Koetje Richner

Baird Faunce Kowall Rison

Basham Frank Kuipers Rivet

Birkholz Garcia Kukuk Rocca

Bisbee Garza LaForge Sanborn

Bishop Geiger LaSata Schermesser

Bogardus Gieleghem Law Scott

Bovin Gilbert Lockwood Shackleton

Bradstreet Godchaux Mans Sheltrown

Brater Gosselin Martinez Shulman

Brewer Green Mead Spade

Brown, B. Hager Middaugh Stamas

Brown, C. Hale Minore Switalski

Byl Hanley Mortimer Tabor

Callahan Hansen Neumann Tesanovich

Cassis Hart O'Neil Thomas

Caul Howell Patterson Van Woerkom

Cherry Jacobs Pestka Vander Roest

Clarke, H. Jamnick Price Vaughn

Daniels Jelinek Prusi Vear

DeHart Jellema Pumford Voorhees

Dennis Johnson, Rick Raczkowski Wojno

DeRossett Johnson, Ruth Reeves Woodward

DeVuyst Julian Richardville Woronchak

DeWeese Kelly

Nays--0

In The Chair: Birkholz

Pursuant to Joint Rule 20, the full title of the act shall be inserted to read as follows:

"An act to provide for the raising of additional public revenue by prescribing certain specific taxes, fees, and charges to be paid to the state for the privilege of engaging in certain business activities; to provide, incident to the enforcement thereof, for the issuance of licenses to engage in such occupations; to provide for the ascertainment, assessment and collection thereof; to appropriate the proceeds thereof; and to prescribe penalties for violations of the provisions of this act,".

The House agreed to the full title.

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

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

Second Reading of Bills

Senate Bill No. 989, entitled

A bill to amend 1937 PA 94, entitled "Use tax act," by amending section 2 (MCL 205.92), as amended by 1998 PA 366.

The bill was read a second time.

Rep. Raczkowski moved that the bill be placed on the order of Third Reading of Bills.

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

Rep. Raczkowski moved that the bill be placed on its immediate passage.

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

______

Rep. Clark entered the House Chambers.

By unanimous consent the House returned to the order of

Third Reading of Bills

Senate Bill No. 989, entitled

A bill to amend 1937 PA 94, entitled "Use tax act," by amending section 2 (MCL 205.92), as amended by 1998 PA 366.

Was read a third time and passed, a majority of the members serving voting therefor, by yeas and nays, as follows:

Roll Call No. 803 Yeas--97

Allen DeWeese Kilpatrick Rison

Baird Ehardt Kuipers Rivet

Basham Faunce Kukuk Rocca

Birkholz Frank LaSata Sanborn

Bisbee Garcia Law Schauer

Bishop Garza Lockwood Schermesser

Bogardus Gieleghem Mans Scott

Bovin Gilbert Martinez Shackleton

Bradstreet Godchaux Mead Sheltrown

Brater Gosselin Middaugh Shulman

Brewer Green Minore Spade

Brown, B. Hager Mortimer Stamas

Brown, C. Hale Neumann Switalski

Byl Hanley O'Neil Tabor

Callahan Hansen Pappageorge Tesanovich

Cassis Hart Patterson Thomas

Caul Howell Pestka Van Woerkom

Cherry Jacobs Price Vander Roest

Clark, I. Jamnick Prusi Vaughn

Clarke, H. Jelinek Pumford Vear

Daniels Jellema Raczkowski Voorhees

DeHart Johnson, Rick Reeves Wojno

Dennis Johnson, Ruth Richardville Woodward

DeRossett Julian Richner Woronchak

DeVuyst

Nays--0

In The Chair: Birkholz

Pursuant to Joint Rule 20, the full title of the act shall be inserted to read as follows:

"An act to provide for the levy, assessment and collection of a specific excise tax on the storage, use or consumption in this state of tangible personal property and certain services; to appropriate the proceeds thereof; and to prescribe penalties for violations of the provisions of this act,".

The House agreed to the full title.

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

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

By unanimous consent the House returned to the order of

Reports of Select Committees

First Conference Report

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

House Bill No. 5278, entitled

A bill to make appropriations for the departments of attorney general, civil rights, civil service, management and budget, state, and treasury, the executive office, and the legislative branch for the fiscal year ending September 30, 2001; to provide for the expenditure of these appropriations; to provide for the funding of certain work projects; to provide for the imposition of certain fees; to establish or continue certain funds, programs, and categories; to transfer certain funds; to prescribe certain requirements for bidding on state contracts; to provide for disposition of year-end balances for the fiscal year ending September 30, 2001; to prescribe the powers and duties of certain principal executive departments and state agencies, officials, and employees; and to provide for the disposition of fees and other income received by the various principal executive departments and state agencies.

Recommends:

First: That the House and Senate agree to the Substitute of the Senate as passed by the Senate and to the following amendments:

1. Amend page 2, line 1, by striking out all of part 1 and inserting:

"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 departments of attorney general, civil rights, civil service, management and budget, state, and treasury, the executive office, the legislative branch, and certain other state purposes, for the fiscal year ending September 30, 2001, from the funds indicated in this part. The following is a summary of the appropriations in this part:

TOTAL GENERAL GOVERNMENT

Full-time equated unclassified positions 42.0

Full-time equated classified positions 6,063.0

GROSS APPROPRIATION $ 2,671,546,200

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers $ 150,579,200

ADJUSTED GROSS APPROPRIATION $ 2,520,967,000

Federal revenues:

Total federal revenues 54,450,500

Special revenue funds:

Total local revenues 3,545,900

Total private revenues 2,275,800

Total other state restricted revenues 1,968,415,300

State general fund/general purpose $ 492,279,500

Sec. 102. DEPARTMENT OF ATTORNEY GENERAL

(1) APPROPRIATION SUMMARY:

Full-time equated unclassified positions 6.0

Full-time equated classified positions 595.0

GROSS APPROPRIATION $ 61,393,500

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 9,473,700

ADJUSTED GROSS APPROPRIATION $ 51,919,800

Federal revenues:

Total federal revenues 7,124,800

Special revenue funds:

Total local revenues 0

Total private revenues 1,149,200

Total other state restricted revenues 8,374,800

State general fund/general purpose $ 35,271,000

(2) ATTORNEY GENERAL OPERATIONS

Full-time equated unclassified positions 6.0

Full-time equated classified positions 595.0

Attorney general $ 124,900

Unclassified positions--5.0 FTE positions 457,800

Attorney general operations--576.5 FTE positions 58,901,400

Prosecuting attorneys coordinating council--18.5 FTE positions 1,609,400

PACC, training project 300,000


GROSS APPROPRIATION $ 61,393,500

Appropriated from:

Interdepartmental grant revenues:

IDG from FIA 2,539,100

IDG from MDA, bovine research 295,100

IDG from MDCIS, financial and insurance services 98,400

IDG from MDCIS, health services 1,127,800

IDG from MDCIS, public utility assessments 1,603,300

IDG from MDSP, Michigan justice training fund 300,000

IDG from MDOT, comprehensive transportation fund 127,500

IDG from MDOT, Michigan transportation fund 10,000

IDG from MDOT, state aeronautics fund 119,800

IDG from MDOT, state trunkline fund 2,452,900

IDG from Michigan gaming control board 799,800

Federal revenues:

DAG, state administrative match grant/food stamps 1,028,800

DED-OPSE, student loan, federal lender allowance 281,500

DOL-ETA, unemployment insurance 1,333,600

DOL-OSHA, occupational safety and health 262,000

EPA, multiple grants 234,800

Federal funds 703,100

HHS-OS, state Medicaid fraud control units 2,746,400

HHS, medical assistance, medigrant 534,600

Special revenue funds:

Private - accident fund company revenue 1,149,200

Antitrust enforcement collections 293,500

Auto repair facilities fees 186,600

Collections revenue 571,000

Corporate fees and security fees 122,500

Environmental response fund 620,100

Franchise fees 234,100

Game and fish protection fund 660,900

Liquor purchase revolving fund 840,300

Manufactured housing fees 182,600

Michigan state housing development authority fees 469,400

Michigan underground storage tank financial assurance fund 154,200

Oil and gas privilege fee revenue 138,500

Prisoner reimbursement 289,700

Prosecuting attorneys training fees 236,800

Retirement funds 596,900

Second injury fund 909,000

Self-insurers security fund 155,900

Silicosis and dust disease fund 464,200

State building authority revenue 78,300

State hospital authority 304,300

State lottery fund 198,700

Utility consumers fund 461,000

Waterways fund 80,100

Worker's compensation administrative revolving fund 126,200

State general fund/general purpose $ 35,271,000

Sec. 103. DEPARTMENT OF CIVIL RIGHTS

(1) APPROPRIATION SUMMARY:

Full-time equated unclassified positions 5.0

Full-time equated classified positions 166.5

GROSS APPROPRIATION $ 15,272,500

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 15,272,500

Federal revenues:

Total federal revenues 934,000

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 0

State general fund/general purpose $ 14,338,500

(2) CIVIL RIGHTS OPERATIONS

Full-time equated unclassified positions 5.0

Full-time equated classified positions 166.5

Commission (per diem $75.00) $ 16,200

Unclassified positions--5.0 FTE positions 374,100

Civil rights operations--166.5 FTE positions 14,882,200


GROSS APPROPRIATION $ 15,272,500

Appropriated from:

Federal revenues:

EEOC, state and local antidiscrimination agency contracts 800,000

HUD, grant 134,000

State general fund/general purpose $ 14,338,500

Sec. 104. DEPARTMENT OF CIVIL SERVICE

(1) APPROPRIATION SUMMARY:

Full-time equated classified positions 230.5

GROSS APPROPRIATION $ 30,405,600

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 3,300,000

ADJUSTED GROSS APPROPRIATION $ 27,105,600

Federal revenues:

Total federal revenues 4,779,100

Special revenue funds:

Total local revenues 1,700,000

Total private revenues 150,000

Total other state restricted revenues 9,257,600

State general fund/general purpose $ 11,218,900

(2) CIVIL SERVICE OPERATIONS

Full-time equated classified positions 230.5

Civil service operations--230.5 FTE positions $ 30,405,600


GROSS APPROPRIATION $ 30,405,600

Appropriated from:

Interdepartmental grant revenues:

IDG, training charges 2,000,000

IDG, 1% special funds 1,300,000

Federal revenues:

Federal funds 1% 4,779,100

Special revenue funds:

Local funds 1% 1,700,000

Private funds 1% 150,000

Freedom of information fees 1,100

State sponsored group insurance 2,650,000

State restricted funds 1% 6,606,500

State general fund/general purpose $ 11,218,900

Sec. 105. EXECUTIVE OFFICE

(1) APPROPRIATION SUMMARY:

Full-time equated unclassified positions 10.0

Full-time equated classified positions 75.0

GROSS APPROPRIATION $ 5,679,600

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 5,679,600

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 0

State general fund/general purpose $ 5,679,600

(2) EXECUTIVE OFFICE OPERATIONS

Full-time equated unclassified positions 10.0

Full-time equated classified positions 75.0

Governor $ 154,800

Lieutenant governor 103,100

Executive office--75.0 FTE positions 4,588,600

Unclassified positions--8.0 FTE positions 833,100


GROSS APPROPRIATION $ 5,679,600

Appropriated from:

State general fund/general purpose $ 5,679,600

Sec. 106. LEGISLATIVE AUDITOR GENERAL

(1) APPROPRIATION SUMMARY:

GROSS APPROPRIATION $ 15,059,700

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 1,609,600

ADJUSTED GROSS APPROPRIATION $ 13,450,100

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 266,600

State general fund/general purpose $ 13,183,500

(2) OFFICE OF THE AUDITOR GENERAL

Legislative auditor general $ 124,900

Unclassified positions 135,700

Field operations 14,799,100


GROSS APPROPRIATION $ 15,059,700

Appropriated from:

Interdepartmental grant revenues:

IDG from MDCIS, liquor purchase revolving fund 85,300

IDG from MDCS 84,600

IDG from MDOT, comprehensive transportation fund 47,600

IDG from MDOT, Michigan transportation fund 132,400

IDG from MDOT, state aeronautics fund 31,100

IDG from MDOT, state trunkline fund 362,100

IDG, single audit act 866,500

Special revenue funds:

Construction lien fund 12,000

Contract audit administration fees 63,900

Correctional industries revolving fund 37,100

Game and fish protection fund 20,000

Marine safety fund 1,800

Michigan state housing development authority fees 47,700

Michigan veterans trust fund 21,100

Motor transport revolving fund 29,900

Office services revolving fund 27,800

Waterways fund 5,300

State general fund/general purpose $ 13,183,500

Sec. 107. LEGISLATURE

(1) APPROPRIATION SUMMARY:

GROSS APPROPRIATION $ 106,420,700

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 106,420,700

Federal revenues:

Total federal revenues 0

Special revenue funds:

Total local revenues 0

Total private revenues 400,000

Total other state restricted revenues 1,041,800

State general fund/general purpose $ 104,978,900

(2) LEGISLATURE

Senate $ 28,429,300

Senate automated data processing 2,265,200

Senate fiscal agency 3,346,300

House of representatives 39,510,300

House automated data processing 2,048,800

House fiscal agency 3,151,100


GROSS APPROPRIATION $ 78,751,000

Appropriated from:

State general fund/general purpose $ 78,751,000

(3) LEGISLATIVE COUNCIL

Legislative council $ 11,147,000

Legislative service bureau automated data processing 1,589,400

e-Law, legislative council technology enhancement project 1,000

Legislative corrections ombudsman 581,300

Worker's compensation 154,800

National association dues 388,400


GROSS APPROPRIATION $ 13,861,900

Appropriated from:

Special revenue funds:

Private - gifts and bequests revenues 400,000

State general fund/general purpose $ 13,461,900

(4) LEGISLATIVE RETIREMENT SYSTEM

General nonretirement expenses $ 4,389,400


GROSS APPROPRIATION $ 4,389,400

Appropriated from:

Special revenue funds:

Court fees 1,041,800

State general fund/general purpose $ 3,347,600

(5) PROPERTY MANAGEMENT

Capitol building $ 1,912,100

House of representatives office building 6,826,100

Farnum building 680,200


GROSS APPROPRIATION $ 9,418,400

Appropriated from:

State general fund/general purpose $ 9,418,400

Sec. 108. LIBRARY OF MICHIGAN

(1) APPROPRIATION SUMMARY:

GROSS APPROPRIATION $ 39,916,700

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 39,916,700

Federal revenues:

Total federal revenues 4,557,400

Special revenue funds:

Total local revenues 0

Total private revenues 75,000

Total other state restricted revenues 86,900

State general fund/general purpose $ 35,197,400

(2) LIBRARY OF MICHIGAN

Operations $ 8,408,100

Michigan library and historical center operations 2,843,900

Library automation 750,300

Statewide database access 1,079,900

Collected gifts and fees 161,900

State aid to libraries 14,350,700

Grant to the Detroit public library 5,871,600

Grand Rapids public library 406,400

Subregional state aid 604,300

Wayne County library for the blind & physically handicapped 49,200

Book distribution centers 332,000

Library services and technology act 4,557,400

Renaissance zone reimbursement 501,000


GROSS APPROPRIATION $ 39,916,700

Appropriated from:

Federal revenues:

Library services and technology act 4,557,400

Special revenue funds:

Private - gifts and bequests revenues 75,000

User fees 86,900

State general fund/general purpose $ 35,197,400

Sec. 109. DEPARTMENT OF MANAGEMENT AND BUDGET

(1) APPROPRIATION SUMMARY:

Full-time equated unclassified positions 6.0

Full-time equated classified positions 961.5

GROSS APPROPRIATION $ 163,529,800

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 72,113,300

ADJUSTED GROSS APPROPRIATION $ 91,416,500

Federal revenues:

Total federal revenues 550,500

Special revenue funds:

Total local revenues 0

Total private revenues 0

Total other state restricted revenues 43,905,200

State general fund/general purpose $ 46,960,800

(2) MANAGEMENT AND BUDGET SERVICES

Full-time equated unclassified positions 6.0

Full-time equated classified positions 782.0

Unclassified positions--6.0 FTE positions $ 548,600

Departmentwide services--62.0 FTE positions 15,017,000

Statewide administrative services--256.0 FTE positions 25,537,600

Statewide support services--353.0 FTE positions 67,207,800

Michigan administrative information network--111.0 FTE positions 25,177,100


GROSS APPROPRIATION $ 133,488,100

Appropriated from:

Interdepartmental grant revenues:

IDG from building occupancy and parking charges 65,843,500

IDG from MDCH 235,000

IDG from MDOT, comprehensive transportation fund 50,200

IDG from MDOT, state aeronautics fund 26,600

IDG from MDOT, state trunkline fund 889,500

IDG from department of career development 100,000

IDG from user fees 3,713,500

Federal revenues:

Federal - MESA, administration fund 550,500

Special revenue funds:

Game and fish protection fund 188,300

Health management funds 1,245,900

Marine safety fund 22,800

MAIN user charges 4,624,600

Special revenue, internal service, and pension trust funds 7,209,300

State building authority revenue 459,900

State lottery fund 192,600

State sponsored group insurance, flexible spending accounts and COBRA 4,772,300

Waterways fund 44,800

State general fund/general purpose $ 43,318,800

(3) STATEWIDE APPROPRIATIONS

Professional development fund - MPES $ 105,000

Professional development fund - MSC 150,000

Professional development fund - UAW 900,000

Professional development fund - local 31-M 50,000

Professional development fund - nonexclusively represented employees 50,000


GROSS APPROPRIATION $ 1,255,000

Appropriated from:

Interdepartmental grant revenues:

IDG from employer contributions 1,255,000

State general fund/general purpose $ 0

(4) SPECIAL PROGRAMS

Full-time equated classified positions 179.5

Building occupancy charges - property management services for executive/legislative

building occupancy $ 1,820,400

Retirement services--165.5 FTE positions 25,346,800

Office of children's ombudsman--14.0 FTE positions 1,207,300

Health insurance reserve fund payment 412,200


GROSS APPROPRIATION $ 28,786,700

Appropriated from:

Special revenue funds:

Deferred compensation 2,841,900

Pension trust funds 22,302,800

State general fund/general purpose $ 3,642,000

Sec. 110. DEPARTMENT OF STATE

(1) APPROPRIATION SUMMARY:

Full-time equated unclassified positions 6.0

Full-time equated classified positions 2,048.0

GROSS APPROPRIATION $ 186,385,200

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 54,904,200

ADJUSTED GROSS APPROPRIATION $ 131,481,000

Federal revenues:

Total federal revenues 2,704,700

Special revenue funds:

Total local revenues 0

Total private revenues 501,600

Total other state restricted revenues 63,144,500

State general fund/general purpose $ 65,130,200

(2) EXECUTIVE DIRECTION

Full-time equated unclassified positions 6.0

Full-time equated classified positions 28.2

Secretary of state $ 124,900

Unclassified positions--5.0 FTE positions 457,800

Operations--28.2 FTE positions 1,931,300


GROSS APPROPRIATION $ 2,514,000

Appropriated from:

Interdepartmental grant revenues:

IDG from MDOT, Michigan transportation fund 552,000

Special revenue funds:

Auto repair facilities fees 49,100

Driver fees 82,300

Expedient service fees 42,200

Look-up fees 387,200

Parking ticket court fines 6,600

Personal identification card fees 9,900

Reinstatement fees - operator licenses 87,800

Vehicle theft prevention fees 29,000

State general fund/general purpose $ 1,267,900

(3) DEPARTMENT SERVICES

Full-time equated classified positions 272.3

Operations--162.8 FTE positions $ 18,188,700

Data processing--103.0 FTE positions 24,739,500

Assigned claims assessments--6.5 FTE positions 625,700


GROSS APPROPRIATION $ 43,553,900

Appropriated from:

Interdepartmental grant revenues:

IDG from MDOT, Michigan transportation fund 15,922,300

Federal revenues:

Federal funds 104,800

Special revenue funds:

Administrative order processing fees 10,400

Assigned claims assessments 625,700

Auto repair facilities fees 535,600

Child support clearance fees 45,700

Driver fees 1,096,500

Expedient service fees 676,300

Look-up fees 9,235,400

Marine safety fund 66,000

Off-road vehicle title fees 6,900

Parking ticket court fines 124,100

Personal identification card fees 99,100

Reinstatement fees - operator licenses 876,900

Scrap tire fund 60,700

Snowmobile registration fee revenue 15,800

Vehicle theft prevention fees 388,800

State general fund/general purpose $ 13,662,900

(4) REGULATORY SERVICES

Full-time equated classified positions 198.6

Operations--96.9 FTE positions $ 7,863,600

Auto regulation--101.7 FTE positions 7,195,200


GROSS APPROPRIATION $ 15,058,800

Appropriated from:

Interdepartmental grant revenues:

IDG from MDOT, Michigan transportation fund 3,383,100

Federal revenues:

Federal funds 82,900

Special revenue funds:

Auto repair facilities fees 3,806,400

Driver fees 543,300

Expedient service fees 27,000

Look-up fees 2,269,500

Parking ticket court fines 7,400

Personal identification card fees 37,000

Reinstatement fees - operator licenses 477,000

Vehicle theft prevention fees 1,281,900

State general fund/general purpose $ 3,143,300

(5) CUSTOMER DELIVERY SERVICES

Full-time equated classified positions 1,442.7

Branch operations--1,001.8 FTE positions $ 65,798,100

Central records--339.1 FTE positions 24,370,700

Service delivery operations--85.6 FTE positions 6,189,500

Commemorative license plates--16.2 FTE positions 2,853,300

Specialty license plates 4,215,000

Olympic center plate 75,700

Organ donor program 104,100


GROSS APPROPRIATION $ 103,606,400

Appropriated from:

Interdepartmental grant revenues:

IDG from MDOT, Michigan transportation fund 32,447,800

Federal revenues:

Federal funds 1,086,200

Special revenue funds:

Private funds 100

Auto repair facilities fees 76,500

Child support clearance fees 331,500

Commercial driver training school fees 57,200

Driver fees 11,336,500

Expedient service fees 1,602,000

Look-up fees 15,869,600

Marine safety fund 945,700

Mobile home commission fees 392,500

Motorcycle safety fund 125,100

Off-road vehicle title fees 101,100

Olympic center training fund 75,700

Parking ticket court fines 1,357,000

Personal identification card fees 1,267,900

Reinstatement fees - operator licenses 1,924,000

Snowmobile registration fee revenue 276,900

Vehicle theft prevention fees 174,800

State general fund/general purpose $ 34,158,300

(6) ELECTION REGULATION

Full-time equated classified positions 31.5

Election administration and services--28.5 FTE positions $ 2,949,600

Fees to local units 69,800

Qualified voter file--3.0 FTE positions 1,408,700


GROSS APPROPRIATION $ 4,428,100

Appropriated from:

State general fund/general purpose $ 4,428,100

(7) HISTORICAL PROGRAM

Full-time equated classified positions 74.7

Historical administration and services--64.3 FTE positions $ 5,093,800

Federal programs--8.9 FTE positions 1,430,800

Mann house--0.5 FTE position 101,500

Lighthouse program--1.0 FTE position 152,700

Heritage publications 700,000

Private grants and gifts 400,000


GROSS APPROPRIATION $ 7,878,800

Appropriated from:

Federal revenues:

DOI-NPS, historic preservation grants-in-aid 924,900

Federal funds 505,900

Special revenue funds:

Private - grants and gifts 400,000

Private - Mann house trust fund 101,500

Heritage publication fund 700,000

State general fund/general purpose $ 5,246,500

(8) DEPARTMENTWIDE APPROPRIATIONS

Building occupancy charges/rent $ 8,476,200

Worker's compensation 869,000


GROSS APPROPRIATION $ 9,345,200

Appropriated from:

Interdepartmental grant revenues:

IDG from MDOT, Michigan transportation fund 2,599,000

Special revenue funds:

Auto repair facilities fees 160,800

Driver fees 494,600

Expedient service fees 16,100

Look-up fees 2,318,300

Parking ticket court fines 533,200

State general fund/general purpose $ 3,223,200

Sec. 111. DEPARTMENT OF TREASURY

(1) APPROPRIATION SUMMARY:

Full-time equated unclassified positions 9.0

Full-time equated classified positions 1,986.5

GROSS APPROPRIATION $ 2,047,482,900

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 9,178,400

ADJUSTED GROSS APPROPRIATION $ 2,038,304,500

Federal revenues:

Total federal revenues 33,800,000

Special revenue funds:

Total local revenues 1,845,900

Total private revenues 0

Total other state restricted revenues 1,842,337,900

State general fund/general purpose $ 160,320,700

(2) EXECUTIVE DIRECTION

Full-time equated unclassified positions 9.0

Full-time equated classified positions 4.0

Unclassified positions--9.0 FTE positions $ 770,400

Office of the director--4.0 FTE positions 478,000


GROSS APPROPRIATION $ 1,248,400

Appropriated from:

Special revenue funds:

State lottery fund 118,200

State services fee fund 133,200

State general fund/general purpose $ 997,000

(3) DEPARTMENTWIDE APPROPRIATIONS

Travel $ 1,815,900

Rent and building occupancy charges - property management services 3,699,300

Worker's compensation insurance premium 579,600


GROSS APPROPRIATION $ 6,094,800

Appropriated from:

Interdepartmental grant revenues:

IDG from MDOT, state aeronautics fund 2,700

IDG, state agency collection fees 17,900

Special revenue funds:

Delinquent property tax administration fund 127,000

Delinquent tax collection revenue 3,228,500

Municipal finance fees 11,200

Treasury fees 18,900

Waterways fund 2,300

State general fund/general purpose $ 2,686,300

(4) LOCAL GOVERNMENT PROGRAMS

Full-time equated classified positions 104.0

Supervision of the general property tax law--49.0 FTE positions $ 3,587,300

Property tax assessor training--4.0 FTE positions 357,600

Local property tax services--22.5 FTE positions 2,771,700

Local finance--28.5 FTE positions 2,016,500

State compliance audits 60,000

Pari-mutuel audits 240,000


GROSS APPROPRIATION $ 9,033,100

Appropriated from:

Special revenue funds:

Local - assessor training fees 357,600

Local - audit charges 688,300

Local - equalization study charge-backs 50,000

Local - revenue from local government 50,000

Delinquent property tax administration fund 2,447,400

Municipal finance fees 243,300

State general fund/general purpose $ 5,196,500

(5) TAX PROGRAMS

Full-time equated classified positions 758.5

Administration--229.0 FTE positions $ 18,349,900

Enforcement--521.5 FTE positions 34,312,100

Technology investment plan 5,000,000

Home heating assistance 1,600,000

Senior prescription drug credit processing 182,500

Michigan underground storage tank assurance fund--4.0 FTE positions 206,200

Tobacco tax collection--4.0 FTE positions 208,100

Sales and use tax multi-state cooperative initiative 200,000

Joint federal/state motor fuel compliance project 100,000

Bottle bill implementation 250,000

New hire reporting 1,545,000

FARSTAR tax audit system 4,242,400


GROSS APPROPRIATION $ 66,196,200

Appropriated from:

Interdepartmental grant revenues:

IDG, data/collection services fees 250,900

IDG from FIA 1,545,000

IDG from MDCH 208,100

IDG from MDOT, state aeronautics fund 41,800

Federal revenues:

DOT-FHA, intermodal surface transportation efficiency act 410,000

HHS-SSA, low-income energy assistance 1,600,000

Special revenue funds:

Bottle deposit fund 250,000

Delinquent tax collection revenue 37,672,400

Michigan pharmaceutical 182,500

Michigan underground storage tank financial assurance revenue 206,200

Tobacco tax revenue 325,000

Waterways fund 54,400

State general fund/general purpose $ 23,449,900

(6) MANAGEMENT PROGRAMS

Full-time equated classified positions 528.5

Administrative services--114.5 FTE positions $ 7,678,600

Controller operations--224.0 FTE positions 14,661,600

Information technology services--171.0 FTE positions 12,347,900

Unclaimed property services--8.0 FTE positions 3,031,300

Receipt, warrant and cash processing 3,736,300

Fiscal agent--3.0 FTE positions 144,300

Child support order offsets--8.0 FTE positions 522,300


GROSS APPROPRIATION $ 42,122,300

Appropriated from:

Interdepartmental grant revenues:

IDG, fiscal agent service fees 144,300

IDG from FIA, title IV D 492,700

IDG from MDOT, state aeronautics fund 16,500

IDG, levy/warrant cost assessment fees 1,792,100

IDG, receipt, warrant and cash processing fees 3,736,300

IDG, state agency collection fees 437,600

IDG, user services 492,500

Special revenue funds:

Children's trust fund 6,400

Delinquent property tax administration fund 17,900

Delinquent tax collection revenue 14,157,000

Escheats revenue 3,031,300

Garnishment fees 407,200

Treasury fees 156,600

Waterways fund 17,700

State general fund/general purpose $ 17,216,200

(7) FINANCIAL PROGRAMS

Full-time equated classified positions 297.5

Retirement investments--86.5 FTE positions $ 9,132,000

Common cash investments and debt management--10.5 FTE positions 818,400

Student financial assistance programs--174.5 FTE positions 33,549,900

Michigan merit award board/MEAP administration--26.0 FTE positions 18,870,600

Michigan education savings program 10,000,000


GROSS APPROPRIATION $ 72,370,900

Appropriated from:

Federal revenues:

DED-OPSE, federal lenders allowance 9,487,900

DED-OPSE, higher education act of 1965, insured loans 22,302,100

Special revenue funds:

College work study 46,300

Michigan merit award trust fund 18,870,600

Tobacco settlement trust fund 10,000,000

Retirement funds 9,132,000

School bond fees 330,200

Treasury fees 243,800

State general fund/general purpose $ 1,958,000

(8) DEBT SERVICE

Water pollution control bond and interest redemption $ 2,627,100

School bond loan 28,402,000

Quality of life bond 50,581,700

Clean Michigan initiative 9,959,700


GROSS APPROPRIATION $ 91,570,500

Appropriated from:

Special revenue funds:

Local - school bond loan repayments by school districts 700,000

State general fund/general purpose $ 90,870,500

(9) GRANTS

Grants to counties in lieu of taxes $ 10,000

Convention facility development distribution 44,000,000

Michigan education trust fund challenge grants 50,000

Senior citizen cooperative housing tax exemption program 13,700,600

Constitutional state general revenue sharing grants 661,400,000

Statutory state general revenue sharing grants 939,200,000

Commercial mobile radio service payments 16,000,000

Health and safety fund grants 23,175,000

City of Benton Harbor - enterprise zone 170,600

Tax increment finance authority payments 4,000,100

Revenue sharing reimbursement -- Marenisco Township 15,000


GROSS APPROPRIATION $ 1,701,721,300

Appropriated from:

Special revenue funds:

Commercial mobile radio service fees 16,000,000

Convention facility development fund 44,000,000

Sales tax 1,600,600,000

Health and safety fund 23,175,000

State general fund/general purpose $ 17,946,300

(10) STATE LOTTERY

Full-time equated classified positions 202.0

Lottery operations--164.0 FTE positions $ 13,327,100

Promotion and advertising 18,372,000

Lottery data processing--38.0 FTE positions 4,959,500


GROSS APPROPRIATION $ 36,658,600

Appropriated from:

Special revenue funds:

State lottery fund 36,658,600

State general fund/general purpose $ 0

(11) CASINO GAMING

Full-time equated classified positions 92.0

Michigan gaming control board $ 500,000

Casino gaming control administration--92.0 FTE positions 19,966,800


GROSS APPROPRIATION $ 20,466,800

Appropriated from:

Special revenue funds:

Casino gambling agreements 383,500

State services fee fund 20,083,300

State general fund/general purpose $ 0".

2. Amend page 32, line 11, after "is" by striking out "$2,465,969,400.00" and inserting "$2,460,694,800.00".

3. Amend page 32, line 13, after "is" by striking out "$1,715,774,300.00" and inserting "$1,714,724,300.00".

4. Amend page 33, following line 9, by striking out

"Grant to the City of Center Line, emergency vehicle exhaust systems 50,000".

5. Amend page 33, line 13, by striking out all of line 13.

6. Amend page 33, line 14, by striking out "1,693,921,300" and inserting "1,692,871,300".

7. Amend page 33, line 15, by striking out "1,715,774,300" and inserting "1,714,724,300".

8. Amend page 50, following line 5, by striking out all of section 634.

9. Amend page 51, following line 16, by inserting:

"Sec. 656. (1) The Detroit and Grand Rapids public libraries shall each submit a report that specifies all of the following:

(a) From the funds appropriated in section 108 to the Detroit and Grand Rapids public libraries, all of the unique services that each library provides to the public.

(b) From the funds appropriated in section 108 to the Detroit and Grand Rapids public libraries, all of the unique services that each library provides to the state of Michigan.

(c) From the funds appropriated in section 108 to the Detroit and Grand Rapids public libraries, the amount of funding expended by each library for providing the services described in subdivisions (a) and (b).

(2) The reports required under this section shall be submitted by April 1 to the senate and house of representatives standing committees on appropriations subcommittees on general government.".

10. Amend page 58, following line 22, by striking out all of section 719 and inserting:

"Sec. 719. The department of management and budget shall create a privacy policy that addresses the use of technologies to better serve individuals. The retention of information beyond the current web session shall not take place unless approved by those individuals. Information collected shall not be disseminated to businesses or private individuals that would use this information for third party surveys, marketing, or solicitations.".

11. Amend page 64, line 25, by striking out "$502,700.00" and inserting "$152,700.00".

12. Amend page 65, line 11, after "exceeds" by striking out "$50,000.00" and inserting "$20,000.00".

13. Amend page 69, line 6, by striking out all of sections 825 and 826.

14. Amend page 85, line 24, by striking out all of subsections (3) and (4) and renumbering the remaining subsections.

15. Amend page 87, line 21, by striking out all of section 937.

16. Amend page 90, following line 2, by inserting:

"Sec. 956. County treasurers shall comply with section 151 of the state school aid act of 1979, 1979 PA 94, MCL 388.1751, to receive funds under section 111 for the statutory state general revenue sharing grant payments in excess of the constitutional state general revenue sharing grant payments. The payment of funds under section 111 for the statutory state general revenue sharing grant payments in excess of the constitutional state general revenue sharing grant payments shall not be withheld if a local unit of government fails to provide a county treasurer with information necessary to comply with section 151 of the state school aid act of 1979, 1979 PA 94, MCL 388.1751.".

17. Amend page 90, line 12, by striking out all of section 959.

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

A bill to make appropriations for the departments of attorney general, civil rights, civil service, management and budget, state, and treasury, the executive office, and the legislative branch for the fiscal year ending September 30, 2001; to provide for the expenditure of these appropriations; to provide for the funding of certain work projects; to provide for the imposition of certain fees; to establish or continue certain funds, programs, and categories; to transfer certain funds; to prescribe certain requirements for bidding on state contracts; to provide for disposition of year-end balances for the fiscal year ending September 30, 2001; to prescribe the powers and duties of certain principal executive departments and state agencies, officials, and employees; and to provide for the disposition of fees and other income received by the various principal executive departments and state agencies.

John Pappageorge

Janet Kukuk

Lynne Martinez

Conferees for the House

John J.H. Schwarz, M.D.

Shirley Johnson

Joe Young, Jr.

Conferees for the Senate

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

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

The motion prevailed.

The question being on the adoption of the conference report,

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

Roll Call No. 804 Yeas--103

Allen Ehardt Kilpatrick Rison

Baird Faunce Koetje Rivet

Basham Frank Kowall Sanborn

Birkholz Garcia Kuipers Schauer

Bisbee Garza Kukuk Schermesser

Bishop Geiger LaForge Scott

Bogardus Gieleghem LaSata Scranton

Bovin Gilbert Law Shackleton

Bradstreet Godchaux Lockwood Sheltrown

Brater Gosselin Mans Shulman

Brewer Green Martinez Spade

Brown, B. Hager Mead Stamas

Brown, C. Hale Middaugh Switalski

Byl Hanley Minore Tabor

Callahan Hansen Mortimer Tesanovich

Cassis Hart Neumann Thomas

Caul Howell O'Neil Toy

Cherry Jacobs Pappageorge Van Woerkom

Clark, I. Jamnick Patterson Vander Roest

Clarke, H. Jansen Pestka Vaughn

Daniels Jelinek Price Vear

DeHart Jellema Prusi Voorhees

Dennis Johnson, Rick Pumford Wojno

DeRossett Johnson, Ruth Raczkowski Woodward

DeVuyst Julian Richardville Woronchak

DeWeese Kelly Richner

Nays--1

Rocca

In The Chair: Birkholz

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

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

First Conference Report

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

House Bill No. 5276, entitled

A bill to make appropriations for the department of environmental quality for the fiscal year ending September 30, 2001; to provide for the expenditure of those appropriations; to create funds and accounts; to require reports; to prescribe certain powers and duties of certain state agencies and officials; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by the various state agencies.

Recommends:

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

A bill to make appropriations for the department of environmental quality for the fiscal year ending September 30, 2001; to provide for the expenditure of those appropriations; to create funds and accounts; to require reports; to prescribe certain powers and duties of certain state agencies and officials; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by the various state agencies.

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 environmental quality for the fiscal year ending September 30, 2001, from the funds indicated in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF ENVIRONMENTAL QUALITY

APPROPRIATION SUMMARY:

Full-time equated unclassified positions 6.0

Full-time equated classified positions 1,631.7

GROSS APPROPRIATION $ 409,510,800

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 17,511,700

ADJUSTED GROSS APPROPRIATION $ 391,999,100

Federal revenues:

Total federal revenues 129,737,500

Special revenue funds:

Total local revenues 1,103,900

Total private revenues 419,900

Total other state restricted revenues 160,831,600

State general fund/general purpose $ 99,906,200


FUND SOURCE SUMMARY:

GROSS APPROPRIATION $ 409,510,800

Interdepartmental grant revenues:

IDG from MDOT, Michigan transportation fund 855,700

IDG-MSP 609,400

IDG-MDCH, local public health operations 10,267,200

IDT, interdivisional charges 5,779,400

Total interdepartmental grants and intradepartmental transfers 17,511,700

ADJUSTED GROSS APPROPRIATION $ 391,999,100

Federal revenues:

DOC, federal 1,500,000

DOC-NOAA, federal 1,547,700

DOD, federal 850,600

DOI, federal 51,300

DOI-USGS, federal 101,300

DOI-OSMRE, federal 303,700

EPA, federal 25,137,500

EPA-GWDW 3,715,600

EPA, radon 309,100

EPA, superfund 8,428,800

EPA-UST 267,600

EPA-LUST trust 2,067,400

FEMA, federal 456,900

Federal revenues 85,000,000

Total federal revenues 129,737,500

Special revenue funds:

Local funds 1,103,900

Total local revenues 1,103,900

Private funds 333,700

Private - oil company overcharge settlement 86,200

Total private revenues 419,900

Aboveground storage tank fees 705,800

Clean Michigan initiative - administration 2,372,500

Clean Michigan initiative - clean water fund 2,500,000

Community pollution prevention fund 250,000

Hazardous waste facility closure revenue 1,000,000

Solid waste facility closure revenue 1,000,000

Air emissions fees 11,611,100

CESARS service fee 25,500

Cleanup and redevelopment fund 8,200,000

Drinking water revolving fund 6,023,600

Environmental response fund 8,483,000

Environmental education fund 178,900

Environmental pollution prevention fund 1,269,800

Environmental protection fund 6,000,000

Environmental training revenue 284,900

Fees and collections 750,200

Great Lakes protection fund 2,000,000

Hazardous materials transportation permit fund 82,400

Land and water permit fees 2,966,100

Landfill maintenance trust fund 46,500

Medical waste fees 411,800

Metallic mining surveillance fee revenue 65,900

Mineral well regulatory fee revenue 408,500

Michigan underground storage tank financial assurance fund 62,321,600

Oil and gas regulatory fund 9,410,100

Orphan well fund 1,314,200

Publication revenue 100,000

Public utility assessments 773,300

Public water supply fees 4,110,500

Revitalization revolving loan fund 1,000,000

Settlement funds 3,383,200

Saginaw Bay and River restoration revenue 150,000

Sand extraction fee revenue 184,100

Scrap tire regulatory fund 1,759,200

Septage waste license fees 200,000

Sewage sludge land application fee 722,600

Solid waste program fees 1,245,200

Stormwater permit fees 1,317,000

Underground storage tank fees 6,378,500

Water analysis fees 2,353,500

Waste reduction fee revenue 4,131,400

Water pollution control revolving fund 3,120,500

Wastewater operator training fees 162,100

Water use reporting fees 58,100

Total other state restricted revenues 160,831,600

State general fund/general purpose $ 99,906,200

Sec. 102. EXECUTIVE

Full-time equated unclassified positions 6.0

Full-time equated classified positions 13.0

Unclassified salaries--6.0 FTE positions $ 485,400

Executive direction--7.0 FTE positions 1,069,500

Office of the Great Lakes--6.0 FTE positions 790,500


GROSS APPROPRIATION $ 2,345,400

Appropriated from:

Federal revenues:

EPA, federal 223,200

DOI, federal 51,300

Special revenue funds:

Environmental response fund 41,700

Environmental education fund 178,900

Oil and gas regulatory fund 86,700

Settlement funds 208,400

State general fund/general purpose $ 1,555,200

Sec. 103. FINANCIAL AND BUSINESS SERVICES

Full-time equated classified positions 83.0

Financial support services--28.0 FTE positions $ 1,709,800

Field operations support--20.0 FTE positions 1,443,300

Automated data processing--12.0 FTE positions 6,130,700

Office of special environmental projects--6.0 FTE positions 591,600

Personnel--13.0 FTE positions 790,500

Administrative hearings--4.0 FTE positions 402,900


GROSS APPROPRIATION $ 11,068,800

Appropriated from:

Interdepartmental grant revenues:

IDT, interdivisional charges 5,779,400

Federal revenues:

DOD, federal 1,000

EPA, federal 200,000

EPA, superfund 56,400

Special revenue funds:

Aboveground storage tank fee revenue 24,100

Clean Michigan initiative - administration 154,500

Environmental response fund 811,000

Land and water permit fees 33,300

Michigan underground storage tank financial assurance fund 172,200

Oil and gas regulatory fund 434,100

Public water supply fees 165,000

Scrap tire regulatory fund 33,200

Settlement funds 183,900

State general fund/general purpose $ 3,020,700

Sec. 104. DEPARTMENTAL OPERATION SUPPORT

Building occupancy charges $ 2,652,900

Rent-privately owned property 4,913,700

Publications 100,000


GROSS APPROPRIATION $ 7,666,600

Appropriated from:

Special revenue funds:

Air emissions fees 341,200

Environmental pollution prevention fund 37,900

Environmental response fund 428,700

Fees and collections 52,700

Land and water permit fees 62,600

Medical waste fees 18,600

Michigan underground storage tank financial assurance fund 132,300

Oil and gas regulatory fund 269,300

Publication revenue 100,000

Public utility assessments 11,600

Public water supply fees 167,000

Stormwater permit fees 44,500

Solid waste program fees 41,900

Scrap tire regulatory fund 35,000

Waste reduction revenue 52,000

Water analysis fees 92,900

Water pollution control revolving fund 79,400

Water use reporting fees 4,200

Underground storage tank fees 177,400

State general fund/general purpose $ 5,517,400

Sec. 105. GEOLOGICAL SURVEY

Full-time equated classified positions 79.5

Services to oil and gas programs--70.0 FTE positions $ 8,689,700

Well plugging - orphan wells--2.5 FTE positions 1,314,200

Coal and sand dune management--3.0 FTE positions 589,100

Mineral wells management--3.0 FTE positions 408,500

Metallic mining reclamation program--1.0 FTE position 65,900


GROSS APPROPRIATION $ 11,067,400

Appropriated from:

Federal revenues:

DOI-USGS, federal 101,300

DOI-OSMRE, federal 303,700

Special revenue funds:

Environmental response fund 73,600

Metallic mining surveillance fee revenue 65,900

Mineral well regulatory fee revenue 408,500

Orphan well fund 1,314,200

Oil and gas regulatory fund 8,486,500

Sand extraction fee revenue 184,100

State general fund/general purpose $ 129,600

Sec. 106. LAND AND WATER MANAGEMENT

Full-time equated classified positions 152.0

Land and water program direction--14.0 FTE positions $ 1,153,400

Field permitting and project assistance--81.0 FTE positions 6,854,400

Water management--26.0 FTE positions 2,286,800

Great Lakes shorelands--31.0 FTE positions 3,246,000


GROSS APPROPRIATION $ 13,540,600

Appropriated from:

Interdepartmental grant revenues:

IDG, Michigan transportation fund 855,700

Federal revenues:

EPA, federal 681,800

DOC-NOAA, federal 1,547,700

FEMA, federal 246,900

Special revenue funds:

Land and water permit fees 2,870,200

State general fund/general purpose $ 7,338,300

Sec. 107. AIR QUALITY

Full-time equated classified positions 221.5

Air quality programs--221.5 FTE positions $ 18,744,800


GROSS APPROPRIATION $ 18,744,800

Appropriated from:

Federal revenues:

EPA, federal 3,243,900

Special revenue funds:

Air emissions fees 8,968,500

Environmental response fund 86,100

State general fund/general purpose $ 6,446,300

Sec. 108. SURFACE WATER QUALITY

Full-time equated classified positions 211.5

Compliance and permits--109.0 FTE positions $ 9,705,400

Surface water surveillance program--36.5 FTE positions 7,467,900

Watershed management and non-point source--42.0 FTE positions 4,719,500

Volunteer river, stream, and creek cleanup program 50,000

Fish contaminant monitoring contracts 321,000

Sewage sludge land application program--9.5 FTE positions 722,600

Stormwater discharge program--14.5 FTE positions 1,195,600


GROSS APPROPRIATION $ 24,182,000

Appropriated from:

Federal revenues:

EPA, federal 7,172,300

Special revenue funds:

Local funds 1,103,900

CESARS service fee 25,500

Clean Michigan initiative - administration 540,700

Clean Michigan initiative - clean water fund 2,500,000

Environmental response fund 143,400

Saginaw Bay and River restoration revenue 150,000

Sewage sludge land application fee 722,600

State water pollution control revolving fund 584,100

Stormwater permit fees 1,189,200

State general fund/general purpose $ 10,050,300

Sec. 109. DRINKING WATER AND RADIOLOGICAL PROTECTION

Full-time equated classified positions 209.7

Environmental health--34.0 FTE positions $ 3,639,100

Laboratory services administration--69.0 FTE positions 6,153,000

Drinking water--88.2 FTE positions 12,131,400

Radiological protection--18.5 FTE positions 1,651,200

Groundwater use reporting 100,000


GROSS APPROPRIATION $ 23,674,700

Appropriated from:

Interdepartmental grant revenues

IDG-MSP 609,400

Federal revenues:

EPA, federal 890,600

EPA-GWDW 3,556,000

EPA, radon 219,100

Special revenue funds:

Drinking water revolving fund 3,430,500

Great Lakes protection fund 100,000

Medical waste fees 393,200

Public water supply fees 2,378,500

Settlement funds 283,100

Water analysis fees 2,260,600

Water use reporting fees 53,900

Fees and collections 697,500

State general fund/general purpose $ 8,802,300

Sec. 110. LOW-LEVEL RADIOACTIVE WASTE AUTHORITY

Full-time equated classified positions 2.0

Low-level radioactive waste authority--2.0 FTE positions $ 761,700


GROSS APPROPRIATION $ 761,700

Appropriated from:

Special revenue funds:

Public utility assessments 761,700

State general fund/general purpose $ 0

Sec. 111. ENVIRONMENTAL RESPONSE

Full-time equated classified positions 257.0

Environmental cleanup and redevelopment program $ 16,352,600

Contaminated site investigations, cleanup, and revitalization--206.0 FTE positions 16,209,100

State cleanup (part 201 of 1994 PA 451) 3,397,700

Emergency cleanup actions 2,000,000

Federal cleanup project management--51.0 FTE positions 5,302,600

Revitalization revolving loan program 7,000,000

Superfund cleanup 7,250,000


GROSS APPROPRIATION $ 57,512,000

Appropriated from:

Federal revenues:

DOD, federal 849,600

EPA, federal 1,411,000

EPA, superfund 8,372,400

Special revenue funds:

Private funds 133,700

Clean Michigan initiative - administration 1,000,000

Cleanup and redevelopment fund 5,234,000

Environmental response fund 5,819,500

Environmental protection fund 6,000,000

Landfill maintenance trust fund 46,500

Revitalization revolving loan fund 1,000,000

Settlement funds 2,640,700

State general fund/general purpose $ 25,004,600

Sec. 112. STORAGE TANKS

Full-time equated classified positions 120.5

MI underground storage tank financial assurance program--36.5 FTE positions $ 61,908,900

Underground storage tank program--45.0 FTE positions 6,670,700

Aboveground storage tank program--9.0 FTE positions 681,700

Leaking underground storage tank cleanup program 5,966,000

Emergency cleanup actions 2,000,000

Leaking underground storage tank program--30.0 FTE positions 4,373,800


GROSS APPROPRIATION $ 81,601,100

Appropriated from:

Federal revenues:

EPA-LUST trust 2,067,400

EPA-UST 267,600

Special revenue funds:

Aboveground storage tank fees 681,700

Clean Michigan initiative - administration 600,000

Cleanup and redevelopment fund 2,966,000

Environmental response fund 1,079,000

Michigan underground storage tank financial assurance fund 61,908,900

Underground storage tank fees 6,201,100

State general fund/general purpose $ 5,829,400

Sec. 113. WASTE MANAGEMENT

Full-time equated classified positions 149.0

Administration and technical support--20.0 FTE positions $ 1,549,000

Compliance and enforcement--72.0 FTE positions 4,809,900

Hazardous waste permits--25.0 FTE positions 2,128,700

Groundwater permits--18.0 FTE positions 1,366,700

Solid waste program--14.0 FTE positions 1,367,900

Hazardous waste program support 605,000

Hazardous waste disposal facility closures 1,000,000

Solid waste disposal facility closures 1,000,000


GROSS APPROPRIATION $ 13,827,200

Appropriated from:

Federal revenues:

EPA, federal 2,903,000

Special revenue funds:

Hazardous waste facility closure revenue 1,000,000

Hazardous materials transportation permit fund 82,400

Solid waste facility closure revenue 1,000,000

Environmental pollution prevention fund 1,231,900

Scrap tire regulatory fund 934,800

Solid waste program fees 1,203,300

Waste reduction fee revenue 60,000

State general fund/general purpose $ 5,411,800

Sec. 114. ENVIRONMENTAL ASSISTANCE DIVISION

Full-time equated classified positions 109.0

Municipal assistance--39.5 FTE positions $ 3,198,900

Pollution prevention--37.0 FTE positions 3,387,500

Low-income community wastewater assistance 90,000

Environmental services--12.0 FTE positions 1,408,300

Pollution prevention outreach 200,000

Technical assistance--20.5 FTE positions 2,600,400


GROSS APPROPRIATION $ 10,885,100

Appropriated from:

Federal revenues:

EPA, federal 783,300

EPA-GWDW 159,600

Special revenue funds:

Private funds 200,000

Private - oil company overcharge settlement 86,200

Air emissions fees 636,600

Clean Michigan initiative - administration 77,300

Settlement funds 67,100

Drinking water revolving fund 1,263,100

Environmental training revenue 284,900

State water pollution control revolving fund 2,457,000

Stormwater permit fees 83,300

Waste reduction fee revenue 4,019,400

Wastewater operator training fees 162,100

State general fund/general purpose $ 605,200

Sec. 115. CRIMINAL INVESTIGATIONS

Full-time equated classified positions 22.0

Environmental investigations--22.0 FTE positions $ 1,888,200


GROSS APPROPRIATION $ 1,888,200

Appropriated from:

Federal revenues:

EPA, federal 128,400

Special revenue funds:

MUSTFA fund 108,200

Oil and gas regulatory fund 133,500

Scrap tire regulatory fund 56,200

State general fund/general purpose $ 1,461,900

Sec. 116. GRANTS

Grants to counties--air pollution $ 2,854,900

Water pollution control and drinking water revolving fund 102,353,500

Noncommunity water grants 1,400,000

Land resource program grants 1,800,000

Federal - nonpoint source water pollution grants 6,500,000

Federal - Great Lakes remedial action plan grants 700,000

Great Lakes research and protection grants 1,900,000

Pollution prevention local grants 250,000

Radon grants 135,000

Septage waste compliance grants 200,000

Scrap tire grants 700,000

Drinking water revolving fund implementation 1,330,000

Local health department operations 10,267,200

GIS, floodplain mapping 210,000


GROSS APPROPRIATION $ 130,600,600

Appropriated from:

Interdepartmental grant revenues

IDG-MDCH, local public health operations 10,267,200

Federal revenues:

DOC, federal 1,500,000

EPA, federal 7,500,000

EPA, radon 90,000

FEMA, federal 210,000

Federal revenues 85,000,000

Special revenue funds:

Air emissions fees 1,664,800

Community pollution prevention fund 250,000

Drinking water revolving fund 1,330,000

Great Lakes protection fund 1,900,000

Public water supply fees 1,400,000

Scrap tire regulatory fund 700,000

Septage waste license fees 200,000

State general fund/general purpose $ 18,588,600

Sec. 118. BOND WASTE MANAGEMENT

Full-time equated classified positions 2.0

Solid waste implementation staff--2.0 FTE positions $ 144,600


GROSS APPROPRIATION $ 144,600

Appropriated from:

Special revenue funds:

State general fund/general purpose $ 144,600

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2000-2001 is $260,737,800.00 and state spending from state resources to be paid to local units of government for fiscal year 2000-2001 is $6,529,900.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:

DEPARTMENT OF ENVIRONMENTAL QUALITY

GRANTS

Grants to counties - air pollution $ 2,854,900

Septage waste compliance program 200,000

Scrap tire grants 700,000

Noncommunity water grants 1,400,000

Radon grants 45,000

Drinking water grants 1,330,000


TOTAL $ 6,529,900

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

Sec. 203. As used in this act:

(a) "CESARS" means chemical evaluation search and retrieval system.

(b) "CMI" means clean Michigan initiative.

(c) "Department" means the department of environmental quality.

(d) "DOC" means the United States department of commerce.

(e) "DOC-NOAA" means the DOC national oceanic and atmospheric administration.

(f) "DOD" means the United States department of defense.

(g) "DOE" means the United States department of energy.

(h) "DOI" means the United States department of interior.

(i) "DOI-OSMRE" means the DOI office of surface mine reclamation.

(j) "DOI-USGS" means the DOI United States geological survey.

(k) "EPA" means the United States environmental protection agency.

(l) "EPA-GWDW" means the EPA groundwater drinking water.

(m) "EPA-LUST trust" means the EPA leaking underground storage tank trust fund.

(n) "EPA, radon" means the EPA radon grants.

(o) "EPA-UST" means the EPA underground storage tank.

(p) "FEMA" means the federal emergency management agency.

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

(r) "GIS" means geographic information system.

(s) "IDG" means interdepartmental grant.

(t) "IDT" means intradepartmental transfer.

(u) "MDCH" means the Michigan department of community health.

(v) "MDSP" means the Michigan department of state police.

(w) "MI" means Michigan.

(x) "MUSTFA" means the Michigan underground storage tank financial assurance fund.

(y) "NPL" means the federal national priority list.

Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.

Sec. 205. (1) Beginning October 1, a hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department 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 rendering a state department or agency 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 of representatives standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous month and the justification for the exception.

Sec. 206. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $30,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under 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 $5,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under 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 $100,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under 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 $100,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 207. At least 60 days before beginning any effort to privatize, the department shall submit a complete project plan to the appropriate senate and house of representatives appropriations subcommittees and the senate and house 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 senate and house of representatives appropriations subcommittees and the senate and house fiscal agencies within 30 months.

Sec. 208. The department shall continue to pilot the use of the Internet to fulfill the reporting requirements of this act. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on the Internet or legislative Intranet site. The senate and house of representatives appropriations subcommittees and senate and house fiscal agencies shall be notified in writing of the Internet or Intranet site of any such report. Quarterly, the department shall provide a cumulative listing of the reports submitted during the most recent 3-month period along with the Internet or Intranet site of each report, and a list of those reports expected to be transmitted in the following quarter.

Sec. 209. Funds appropriated in part 1 shall not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods or services, or both, are available.

Sec. 210. The director of each department receiving appropriations in part 1 shall take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies, or both. Each director shall strongly encourage firms with which the department contracts to subcontract with certified businesses in depressed and deprived communities for services, supplies, or both.

Sec. 211. (1) From funds appropriated under part 1, the department shall prepare a report that lists all of the following regarding grant or loan or grant and loan programs administered by the department for the fiscal year ending on September 30, 2001:

(a) The name of each program.

(b) The goals of the program, the criteria, eligibility, process, filing fees, nominating procedures, and deadlines for each program.

(c) The maximum and minimum grant and loan available and whether there is a match requirement for each program.

(d) The amount of any required match, and whether in-kind contributions may be used as part or all of a required match.

(e) Information pertaining to the application process, timeline for each program, and the contact people within the department.

(f) The source of funds for each program, including the citation of pertinent authorizing acts.

(g) Information regarding plans for the next fiscal year for the phaseout, expansion, or changes for each program.

(h) A listing of all recipients of grants or loans awarded by the department by type and amount of grant or loan.

(2) The reports required under this section shall be submitted to the senate and house of representatives appropriations committees and senate and house fiscal agencies by January 1, 2001.

Sec. 212. By February 15, 2001, the department shall provide the state budget director, the subcommittees on natural resources and environmental quality of the house and senate appropriations committees, and the senate and house fiscal agencies with an annual report on restricted fund balances, projected revenues, and expenditures for the fiscal years ending September 30, 2000 and September 30, 2001.

Sec. 213. The department shall provide an annual report on the total amount of funds received from responsible parties and legal settlements, and the disposition of these funds. Included in the report shall be a listing of the individual settlement cases, the location of the facilities involved, the type of violation committed, and the amount of funds received.

Sec. 214. The department shall notify the legislature and offer a public meeting and public comment opportunity with respect to any request received by the state of Michigan to divert water from the Great Lakes pursuant to the water resources development act of 1986, Public Law 99-665, 100 Stat. 4082.

Sec. 215. The department shall provide a report prepared by the department's internal auditor on the activities of the internal auditor for the prior fiscal year. This report shall include a listing of each audit or investigation performed by the internal auditor pursuant to sections 486(4) and 487 of the management and budget act, 1984 PA 431, MCL 18.1486 and 18.1487. The report shall identify the proportion of time spent on each of the statutory responsibilities listed in sections 485(4), 486(4), and 487 of the management and budget act, 1984 PA 431, MCL 18.1485, 18.1486, and 18.1487, and the time spent on all other activities performed in the internal audit function. The first report shall be due March 1, 2000, and biennially thereafter beginning on May 1 and shall be submitted to the governor, auditor general, the senate and house appropriations committees, the senate and house fiscal agencies, and the director.

Sec. 216. The departments and state agencies receiving appropriations under this act shall receive and retain copies of all reports funded from appropriations in part 1. These departments and state agencies shall follow federal and state guidelines for short-term and long-term retention of these reports and records.

Sec. 217. The state budget director shall provide a list of proposed work projects funded, in whole or in part, from appropriations in this act to the house and senate appropriations committees on November 15, 2000. This list shall provide detailed information including a description of project activities and services, the total work project funding level, spending for the fiscal year ending September 30, 1999, and the amount of budget authority required to complete the project.

Sec. 218. A joint legislative work group on court settlements is established. This work group shall consist of representatives of the house and senate standing committees and the house and senate appropriations subcommittees on natural resources and environmental quality. Members shall be appointed on a bipartisan basis by the speaker of the house of representatives and the senate majority leader. Assistance and staff support to the work group may be provided by the house and senate fiscal agencies. The work group shall issue a report on December 15, 2000 to the members of the legislature that includes a strategy for disbursing settlement revenue to impacted local governmental units in a manner consistent with court settlement agreements.

Sec. 219. (1) The department shall report all of the following information relative to allocations made in part 1 for the environmental cleanup and redevelopment program, state cleanup, emergency actions, superfund cleanup, the revitalization revolving loan program, the brownfield grants and loans program, the leaking underground storage tank cleanup program, the contaminated lake and river sediments cleanup program, and the environmental protection bond projects under section 19508(7) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.19508, to the state budget director, the senate and house of representatives appropriations subcommittees on environmental quality, and the senate and house fiscal agencies:

(a) The name and location of the site for which an allocation is made.

(b) The nature of the problem encountered at the site.

(c) A brief description of how the problem will be resolved if the allocation is made for a response activity.

(d) The estimated date that site closure activities will be completed.

(e) The amount of the allocation, or the anticipated financing for the site.

(f) A summary of the sites and the total amount of funds expended at the sites at the conclusion of the fiscal year.

(g) The number of sites that would qualify as brownfields that were redeveloped.

(2) The report prepared under subsection (1) shall also include all of the following:

(a) The status of all state-owned facilities that are on the list compiled under part 201 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20101 to 324.20142.

(b) The report shall include the total amount of funds expended during the fiscal year and the total amount of funds awaiting expenditure.

(c) The total amount of bonds issued for the environmental protection bond program pursuant to part 193 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.19301 to 324.19306, and bonds issued pursuant to the clean Michigan initiative act, 1998 PA 284, MCL 324.95101 to 324.95108.

(3) The report shall be made available by March 31 of each year.

Sec. 220. By September 30, 2001, the department shall make electronically available via the department web site, a report of its efforts to implement the recommendations contained in the Michigan environmental science board report entitled "Analysis of the Michigan Department of Environmental Quality Administered Environmental Standard to Protect Children's Health" dated February 2000, which shall include the following efforts to include scientific and risk assessment staff from other state agencies to address children's health issues that cross agency jurisdictional boundaries, initiatives to evaluate exposure concerns resulting from contaminated soils, and data collection and risk assessment development processes for hazardous indoor and outdoor air pollutants.

Sec. 221. Of the money appropriated from the environmental education fund in section 102, $5,000.00 shall be allocated to Michigan State University Extension Service - 4H Youth Programs to fund the Michigan Youth Conservation Council.

LAND AND WATER MANAGEMENT


Sec. 301. The department shall collect Great Lakes bottomland permit fees uniformly and fairly from commercial and noncommercial users of the Great Lakes bottomlands.

Sec. 303. By July 1, 2001, the department shall make or cause to be made a grant request to the Michigan Great Lakes protection fund for the purpose of an inventory of Michigan wetlands in counties contiguous to the Great Lakes and their connecting waters. The grant request may also include plans for the inventory of all remaining wetlands in this state on a county-by-county basis. Upon completion, the inventory shall be filed with the agricultural extension office, register of deeds, and county clerk as required by section 30321 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.30321.

AIR QUALITY


Sec. 401. The department shall report quarterly, via the department's Internet website, on air quality program expenditures and revenues. The report shall include expenditures and revenues by fund source, and by program function.

SURFACE WATER QUALITY


Sec. 501. Of the funds appropriated in section 108 for surface water surveillance, a minimum of $250,000.00 shall be designated for grants to local organizations for water quality monitoring activities.

Sec. 502. (1) The department, in conjunction with the department of natural resources, shall provide a report on the impact of non-native, aquatic nuisance species and other non-native species on the natural resources and environment of the state. The report shall include recommendations for reducing or eliminating the negative impacts of such species on the natural resources and the environment of the state, and recommendations on how to prohibit new introductions of non-native aquatic nuisance species and other non-native species.

(2) The report required in subsection (1) may be included as a part of any report the department is required to prepare that assesses the status of and trends related to the overall state of the natural environment in the state. The report shall be submitted to the governor, to the standing committees of the legislature with jurisdiction over issues primarily related to natural resources and the environment, and to the senate and house appropriations subcommittees on environmental quality and natural resources. The report shall be submitted not later than October 1, 2001.

DRINKING WATER


Sec. 601. The department shall provide quarterly reports to the legislature on the revenues received and expenditures made by the drinking water and environmental units within the laboratory services appropriation line. The information shall include the types of tests conducted, the number of tests conducted at no charge, and the allocation of the general fund appropriation for each unit.

Sec. 602. The appropriation in part 1 for groundwater use reporting shall support the cost of developing a groundwater database needed to model the demands of irrigation wells on groundwater aquifers and the impacts of irrigation well systems on domestic water supplies.

ENVIRONMENTAL RESPONSE


Sec. 701. From the appropriations in part 1 for the environmental cleanup and redevelopment program under part 201 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20101 to 324.20142, the department shall continue to make authorizations for response activities at environmental contamination sites and for the administration of the environmental cleanup and redevelopment program.

Sec. 702. The unexpended portion of the appropriation in part 1 for the state cleanup program, environmental cleanup and redevelopment program, emergency cleanup action, NPL - municipal landfill match grants, state cleanup, and superfund cleanup projects is considered work project appropriations and any unencumbered or unallotted funds are carried forward into the succeeding fiscal year. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the projects to be carried forward is to provide contaminated site cleanup.

(b) The projects will be accomplished by contract.

(c) The total estimated cost of all projects is identified in each line-item appropriation.

(d) The tentative completion date is September 30, 2005.

Sec. 703. Of the funds appropriated in section 111 as state match for the superfund cleanup program, an amount not to exceed $250,000.00 shall be expended as state match for the hazardous substance research center.

Sec. 705. The funds appropriated in section 111 for the environmental cleanup and redevelopment program shall be used to fund redevelopment and cleanup activities on the following sites:

Allegan: Sunrise LF

Alpena: 1000 Highland Court

Antrim: Portside Cleaners

Arenac: Sappington Oil

Barry: Kavco LF

Bay: Kuhlman Electric

Calhoun: Brooks Foundry

Calhoun: McLeieer Oil/Elm Street

Clare: Agnes Gleason #1

Clare: City of Clare Sanitary LF

Crawford: Old Mill Property

Grand Traverse: Norton & Woods 1-20A

Gratiot: Velsicol Chemical Corporation

Hillsdale: Heinz Oil Company

Ingham: Kings Auto Property

Ingham: Laundry and Dry Cleaning Village

Ingham: Mobil Oil, Richard TE #1

Ionia: Whites Bridge Rd Area

Isabella: Vernon Township Ground Water Contamination

Jackson: Smith Petroleum Henry W. Zaremba et al.##A-1

Leelanau: Commercial Well W. Bayshore

Leelanau: Grand Traverse Overall Supply

Livingston: Main Street Gregory

Livingston: Marcy's Laundry Center

Manistee: Morton International Merkey 13

Monroe: Lor-San Oil

Montcalm: Greenville Drums

Montmorency: Lowell St Hillman Twp

Muskegon: Ruddiman Drums

Oakland: Cedar Creek Chloride Contamination

Oakland: Hi-Mill Mfg Co

Osceola: Richmond Sanitary Landfill

Roscommon: State B-1

Saginaw: L.A. Davidson

Shiawassee: Helena St & Frederick St Res Wells (Shiawassee Sanitary LF)

Van Buren: Commercial Street Industrial Area

Wexford: Yuma Tar

Various: Multisite Well Plugging

STORAGE TANKS


Sec. 801. (1) The funds appropriated in part 1 from the Michigan underground storage tank financial assurance fund for the purpose of carrying out the duties and responsibilities as specified in part 215 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.21501 to 324.21551, are considered work project appropriations and any unencumbered funds are carried forward into the succeeding fiscal year. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the projects to be carried forward is to carry out the responsibilities of part 215 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.21501 to 324.21551.

(b) The projects will be accomplished by contract and state employees.

(c) The total estimated cost is identified in a line-item appropriation.

(d) The tentative completion date is September 30, 2005.

(2) The Michigan underground storage tank financial assurance policy board shall allocate the amount of the underground storage tank financial assurance fund to be distributed to the department. If the amount recommended by the board is less than that appropriated in section 112, expenditures shall be adjusted accordingly.

(3) Included in the amounts appropriated in part 1 from the Michigan underground storage tank financial assurance fund are amounts sufficient to pay debt service costs on the bonds or notes issued pursuant to part 215 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.21501 to 324.21551.

Sec. 802. The department shall report to the state budget director, the senate and house of representatives appropriations subcommittees on environmental quality, and the senate and house fiscal agencies no later than October 31, 2001 on the Michigan underground storage tank financial assurance fund. The report shall include the fund balance, estimate of available revenues, number and dollar value of claims processed through September 30, 2000, and total estimated claims liability through December 22, 2002.

Sec. 803. The unexpended portion of the appropriation in part 1 for the leaking underground storage tank cleanup program is considered work project appropriations and any unencumbered or unallotted funds are carried over into the succeeding fiscal year. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the projects to be carried over is to provide for redevelopment and contaminated site cleanup.

(b) These projects will be accomplished by contract.

(c) The total estimated costs of all projects is identified in each line-item appropriation.

(d) The tentative completion date for these projects is September 30, 2005.

Sec. 804. The funds appropriated in section 112 for the leaking underground storage tank cleanup program shall be used to fund redevelopment and cleanup activities on the following sites:

Branch: Archer Lake Marina

Branch: Holiday Harbor

Calhoun: Hooks Automotive

Calhoun: H.B. Sherman

Cass: Riggs Corner Store

Cass: Indian Lake Mini Super

Gladwin: Margaret Cearbaugh

Gratiot: Total Equipment Service

Hillsdale: Oakhaven

Ingham: Super Stop #9

Ionia: Haight's Garage

Iosco: Lansky Amoco

Iosco: Rainbow Shell

Kalamazoo: Vicksburg DPW

Kalamazoo: Titus Construction

Kalamazoo: Ro-Dad's Total

Kalamazoo: McLeieer Oil Company

Kalamazoo: Micro Machine

Kent: SXT, Inc.

Kent: Dwar Oil Company

Kent: Huck's Corners

Kent: Burlingame Partnership 2741 Burlingame

Kent: Burlingame Partnership 2743 Burlingame

Livingston: Millie's Market

Livingston: Kennedy Residence

Manistee: Wellston Hardware

Monroe: Country Club USA

Montcalm: J. I. S. Tire Service

Montcalm: Rockford Market

Montcalm: Geller Auto Service

Montcalm: Thelma Franklin

Oakland: Little Caesar's

Ogemaw: Lovewell's Corner

Ogemaw: Shady Shores Store

Ogemaw: Rose City Feed & Tack

Ogemaw: TJ's Restaurant

Ogemaw: Skidway Car Care

Osceola: Ralph's Marathon

Presque Isle: Village of Millersburg

Roscommon: Edgewater Marine

Saginaw: Treasure Island

Saginaw: Dale M. Seltzer/Kenneth Grieb

St. Clair: Anady Property

St. Clair: Former Gulf Station

St. Joseph: Broker Services

Van Buren: Joe's Mini Mart

Washtenaw: S & S Auto

WASTE MANAGEMENT


Sec. 901. The appropriation in part 1 for pollution prevention includes authorization for 1.0 FTE position and $60,000.00 to provide technical assistance to organizations and businesses involved in recycling and composting.

Sec. 902. The department shall provide a report by September 30, 2001 to the house and senate appropriations subcommittees on environmental quality, and the house and senate fiscal agencies that summarizes the projects awarded, and related expenditures under the solid wastes alternatives program portion of the environmental protection bond implementation, of the natural resources and environmental protection act, 1994 PA 451, MCL 324.101 to 324.90106. The report shall include an assessment of the accomplishments of the solid wastes alternatives program and its components.

ENVIRONMENTAL ASSISTANCE


Sec. 1001. With funds appropriated in part 1, the department shall continue to implement a community right-to-know project to facilitate convenient public access to information about the performance of individual facilities in complying with requirements of air, surface water, waste management, storage tank, and environmental response programs, and with any permits issued pursuant to these programs. The project shall also facilitate convenient public access to information about the overall quality of Michigan's air, water, groundwater, and drinking water and the generation of municipal solid waste and regulated hazardous waste. In implementing this section, the department shall consult with interested stakeholders on a periodic basis, including, but not limited to, industrial and environmental group representatives.

Sec. 1002. The appropriation in part 1 for low-income community wastewater assistance shall be provided to the Michigan community action agency association. This appropriation enables the association to expand and maintain rural community assistance program services to all Michigan counties.

Sec. 1003. The department shall develop a strategy to expand the use of tire-derived fuels by public utilities, governmental units, and private industry as a means of eliminating accumulated scrap tires. The tire-derived fuel strategy shall be submitted to the house and senate appropriations subcommittees on environmental quality on or before March 1, 2001.

CRIMINAL INVESTIGATIONS


Sec. 1101. The department shall provide training in support of local efforts to regulate solid waste disposal. Department environmental conservation officers shall be directed to help train law enforcement officers and other enforcement personnel to develop community partnerships to combat illegal dumping at the local level.

GRANTS


Sec. 1201. If a certified health department does not exist in a city, county, or district or does not fulfill its responsibilities under part 117 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.11701 to 324.11719, then the department may spend funds appropriated in part 1 under the septage waste compliance program in accordance with section 11716 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.11716.

Sec. 1202. Loans provided by the water pollution control revolving fund pursuant to the appropriation in part 1 are to be repaid on schedule, and penalties shall be assigned for delinquent repayment as provided in part 53 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.5301 to 324.5316.

Sec. 1203. Of the amount of money appropriated in part 1 for scrap tire grants, $100,000.00 shall be available for grants to communities to cover scrap tire fire suppression costs, provided owner liability bonds and other available funding sources have been exhausted.

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

A bill to make appropriations for the department of environmental quality for the fiscal year ending September 30, 2001; to provide for the expenditure of those appropriations; to create funds and accounts; to require reports; to prescribe certain powers and duties of certain state agencies and officials; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by the various state agencies.

William Byl

David Mead

Deborah Cherry

Conferees for the House

Loren Bennett

Harry Gast

Kenneth DeBeaussaert

Conferees for the Senate

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

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

The motion prevailed.

The question being on the adoption of the conference report,

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

Roll Call No. 805 Yeas--102

Allen Faunce Kuipers Rivet

Baird Frank Kukuk Rocca

Basham Garcia LaForge Sanborn

Birkholz Garza LaSata Schauer

Bisbee Geiger Law Schermesser

Bishop Gieleghem Lockwood Scott

Bogardus Gilbert Mans Scranton

Bovin Godchaux Martinez Shackleton

Bradstreet Green Mead Sheltrown

Brater Hager Middaugh Shulman

Brown, B. Hale Minore Spade

Brown, C. Hanley Mortimer Stamas

Byl Hansen Neumann Switalski

Callahan Hart O'Neil Tabor

Cassis Howell Pappageorge Tesanovich

Caul Jacobs Patterson Thomas

Cherry Jamnick Pestka Toy

Clark, I. Jansen Price Van Woerkom

Clarke, H. Jelinek Prusi Vander Roest

Daniels Jellema Pumford Vaughn

DeHart Johnson, Rick Raczkowski Vear

Dennis Julian Reeves Voorhees

DeRossett Kelly Richardville Wojno

DeVuyst Kilpatrick Richner Woodward

DeWeese Koetje Rison Woronchak

Ehardt Kowall

Nays--2

Gosselin Johnson, Ruth

In The Chair: Birkholz

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

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

______

Rep. Perricone entered the House Chambers.

Messages from the Senate

The Speaker laid before the House

House Bill No. 4260, entitled

A bill to amend 1893 PA 206, entitled "The general property tax act," by amending section 53b (MCL 211.53b), as amended by 1995 PA 74.

(The bill was received from the Senate on June 8, with substitute (S-1), full title inserted and immediate effect given by the Senate, consideration of which, under the rules, was postponed until today, see House Journal No. 55, p. 1766.)

The question being on concurring in the substitute (S-1) made to the bill by the Senate,

The substitute (S-1) was concurred in, a majority of the members serving voting therefor, by yeas and nays, as follows:

Roll Call No. 806 Yeas--103

Allen Faunce Kowall Rison

Baird Frank Kuipers Rivet

Basham Garcia Kukuk Rocca

Birkholz Garza LaForge Sanborn

Bisbee Geiger LaSata Schermesser

Bishop Gieleghem Law Scott

Bogardus Gilbert Lockwood Scranton

Bovin Godchaux Mans Shackleton

Bradstreet Gosselin Martinez Sheltrown

Brater Green Mead Shulman

Brewer Hager Middaugh Spade

Brown, B. Hale Minore Stamas

Brown, C. Hansen Mortimer Switalski

Byl Hart Neumann Tabor

Callahan Howell O'Neil Tesanovich

Cassis Jacobs Pappageorge Thomas

Caul Jamnick Patterson Toy

Clark, I. Jansen Perricone Van Woerkom

Clarke, H. Jelinek Pestka Vander Roest

Daniels Jellema Price Vaughn

DeHart Johnson, Rick Prusi Vear

Dennis Johnson, Ruth Pumford Voorhees

DeRossett Julian Raczkowski Wojno

DeVuyst Kelly Reeves Woodward

DeWeese Kilpatrick Richardville Woronchak

Ehardt Koetje Richner

Nays--0

In The Chair: Birkholz

The House agreed to the full title of the bill.

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

The Speaker laid before the House

House Bill No. 5017, entitled

A bill to amend 1893 PA 206, entitled "The general property tax act," by amending section 154 (MCL 211.154), as amended by 1996 PA 476.

(The bill was received from the Senate on June 8, with substitute (S-1), full title inserted and immediate effect given by the Senate, consideration of which, under the rules, was postponed until today, see House Journal No. 55, p. 1766.)

The question being on concurring in the substitute (S-1) made to the bill by the Senate,

The substitute (S-1) was concurred in, a majority of the members serving voting therefor, by yeas and nays, as follows:

Roll Call No. 807 Yeas--105

Allen Faunce Kowall Rison

Baird Frank Kuipers Rivet

Basham Garcia Kukuk Rocca

Birkholz Garza LaForge Sanborn

Bisbee Geiger LaSata Schauer

Bishop Gieleghem Law Schermesser

Bogardus Gilbert Lockwood Scott

Bovin Godchaux Mans Scranton

Bradstreet Gosselin Martinez Shackleton

Brater Green Mead Sheltrown

Brewer Hager Middaugh Shulman

Brown, B. Hale Minore Spade

Brown, C. Hanley Mortimer Stamas

Byl Hansen Neumann Switalski

Callahan Hart O'Neil Tabor

Cassis Howell Pappageorge Tesanovich

Caul Jacobs Patterson Thomas

Cherry Jamnick Perricone Toy

Clark, I. Jansen Pestka Van Woerkom

Clarke, H. Jelinek Price Vander Roest

Daniels Jellema Prusi Vaughn

DeHart Johnson, Rick Pumford Vear

Dennis Johnson, Ruth Raczkowski Voorhees

DeRossett Julian Reeves Wojno

DeVuyst Kelly Richardville Woodward

DeWeese Koetje Richner Woronchak

Ehardt

Nays--0

In The Chair: Birkholz

The House agreed to the full title of the bill.

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

______

Rep. Stallworth entered the House Chambers.

Third Reading of Bills

Senate Bill No. 1013, entitled

A bill to amend 1974 PA 258, entitled "Mental health code," by amending section 226 (MCL 330.1226), as amended by 1998 PA 417.

(The bill was returned from the Senate in accordance with the request of the House, Rule 67 suspended, motion made to reconsider the vote by which the House passed the bill and motion postponed for the day on June 8, see House Journal No. 55, p. 1763.)

The question being on the motion made previously by Rep. Raczkowski,

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

Rep. Raczkowski moved to reconsider the vote by which the House placed the bill on the order of Third Reading of Bills.

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

Second Reading of Bills

Senate Bill No. 1013, entitled

A bill to amend 1974 PA 258, entitled "Mental health code," by amending section 226 (MCL 330.1226), as amended by 1998 PA 417.

Rep. Geiger moved to amend the bill as follows:

1. Amend page 5, line 4, after "2001," by striking out "2002, AND 2003." and by inserting "AND 2002.".

The motion prevailed and the amendment was adopted, a majority of the members serving voting therefor.

Rep. Raczkowski moved that the bill be placed on the order of Third Reading of Bills.

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

Rep. Raczkowski moved that the bill be placed on its immediate passage.

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

______

Rep. Minore moved that Rep. Rison be excused temporarily from today's session.

The motion prevailed.

Rep. Vander Roest moved that Rep. Perricone be excused temporarily from today's session.

The motion prevailed.

By unanimous consent the House returned to the order of

Third Reading of Bills

Senate Bill No. 1013, entitled

A bill to amend 1974 PA 258, entitled "Mental health code," by amending section 226 (MCL 330.1226), as amended by 1998 PA 417.

The question being on the passage of the bill,

The bill was then passed, a majority of the members serving voting therefor, by yeas and nays, as follows:

Roll Call No. 808 Yeas--103

Allen Faunce Koetje Rocca

Baird Frank Kowall Sanborn

Basham Garcia Kuipers Schauer

Birkholz Garza Kukuk Schermesser

Bisbee Geiger LaForge Scott

Bishop Gieleghem LaSata Scranton

Bogardus Gilbert Law Shackleton

Bovin Godchaux Lockwood Sheltrown

Bradstreet Gosselin Mans Shulman

Brater Green Mead Spade

Brown, B. Hager Middaugh Stallworth

Brown, C. Hale Minore Stamas

Byl Hanley Mortimer Switalski

Callahan Hansen Neumann Tabor

Cassis Hart O'Neil Tesanovich

Caul Howell Pappageorge Thomas

Cherry Jacobs Patterson Toy

Clark, I. Jamnick Pestka Van Woerkom

Clarke, H. Jansen Price Vander Roest

Daniels Jelinek Prusi Vaughn

DeHart Jellema Pumford Vear

Dennis Johnson, Rick Raczkowski Voorhees

DeRossett Johnson, Ruth Reeves Wojno

DeVuyst Julian Richardville Woodward

DeWeese Kelly Richner Woronchak

Ehardt Kilpatrick Rivet

Nays--0

In The Chair: Birkholz

Pursuant to Joint Rule 20, the full title of the act shall read as follows:

"An act to codify, revise, consolidate, and classify the laws relating to mental health; to prescribe the powers and duties of certain state and local agencies and officials and certain private agencies and individuals; to regulate certain agencies and facilities providing mental health services; to provide for certain charges and fees; to establish civil admission procedures for individuals with mental illness or developmental disabilities; to establish guardianship procedures for individuals with development disability; to establish procedures regarding individuals with mental illness or developmental disability who are in the criminal justice system; to provide for penalties and remedies; and to repeal acts and parts of acts,".

The House agreed to the full title.

Second Reading of Bills

House Bill No. 5537, entitled

A bill to authorize and provide the terms and conditions under which information and signatures can be transmitted, received, and stored by electronic means.

The bill was read a second time.

Rep. Richner moved to amend the bill as follows:

1. Amend page 4, line 11, after "(b)" by striking out "The" and inserting "Except as otherwise provided in subsection (3), the".

2. Amend page 4, following line 12, by inserting:

"(3) This act does apply to a transaction to the extent it is governed by section 1107 or 1206 or article 2 or 2A of the uniform commercial code, 1962 PA 174, MCL 440.1107, 440.1206, and 440.2101 to 440.2982." and renumbering the remaining subsection.

The motion prevailed and the amendments were adopted, a majority of the members serving voting therefor.

Rep. Richner moved that the bill be placed on the order of Third Reading of Bills.

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

Rep. Raczkowski moved that the bill be placed on its immediate passage.

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

______

Rep. LaForge moved that Rep. Kelly be excused temporarily from today's session.

The motion prevailed.

By unanimous consent the House returned to the order of

Third Reading of Bills

House Bill No. 5537, entitled

A bill to authorize and provide the terms and conditions under which information and signatures can be transmitted, received, and stored by electronic means.

Was read a third time and passed, a majority of the members serving voting therefor, by yeas and nays, as follows:

Roll Call No. 809 Yeas--103

Allen Ehardt Kowall Rocca

Baird Faunce Kuipers Sanborn

Basham Frank Kukuk Schauer

Birkholz Garcia LaForge Schermesser

Bisbee Garza LaSata Scott

Bishop Geiger Law Scranton

Bogardus Gieleghem Lockwood Shackleton

Bovin Gilbert Mans Sheltrown

Bradstreet Gosselin Martinez Shulman

Brater Green Mead Spade

Brewer Hager Middaugh Stallworth

Brown, B. Hale Minore Stamas

Brown, C. Hanley Mortimer Switalski

Byl Hansen Neumann Tabor

Callahan Hart O'Neil Tesanovich

Cassis Howell Pappageorge Thomas

Caul Jacobs Patterson Toy

Cherry Jamnick Pestka Van Woerkom

Clark, I. Jansen Price Vander Roest

Clarke, H. Jelinek Prusi Vaughn

Daniels Jellema Pumford Vear

DeHart Johnson, Rick Raczkowski Voorhees

Dennis Johnson, Ruth Reeves Wojno

DeRossett Julian Richardville Woodward

DeVuyst Kilpatrick Richner Woronchak

DeWeese Koetje Rivet

Nays--0

In The Chair: Birkholz

The House agreed to the title of the bill.

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

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

Second Reading of Bills

Pending the Second Reading of

Senate Bill No. 698, entitled

A bill to amend 1978 PA 368, entitled "Public health code," (MCL 333.1101 to 333.25211) by adding section 21095.

Rep. Raczkowski moved that the bill be re-referred to the Committee on Health Policy.

The motion prevailed.

______

Rep. Raczkowski moved that the House Legislative Council Committee be given leave to meet during the balance of today's session.

The motion prevailed.

By unanimous consent the House returned to the order of

Messages from the Senate

House Bill No. 5274, entitled

A bill to make appropriations for the department of career development and the Michigan strategic fund and certain other state purposes for the fiscal year ending September 30, 2001; to provide for the expenditure of the appropriations; and to provide for the disposition of fees and other income received by the state agencies.

The Senate has appointed Senators Johnson, Stille and Emerson as second conferees to join with Reps. Kukuk, Godchaux and Prusi.

The bill was referred to the second Conference Committee on June 20, 2000.

______

Rep. Middaugh moved that House Committees be given leave to meet during the balance of today's session.

The motion prevailed.

Rep. Hardman entered the House Chambers.

Second Reading of Bills

House Bill No. 5228, entitled

A bill to amend 1962 PA 174, entitled "Uniform commercial code," by amending sections 1105, 1201, 2103, 2210, 2326, 2502, 2716, 2A103, 2A303, 2A307, 2A309, 4210, 7503, 8103, 8106, 8110, 8301, 8302, 8510, 9102, 9103, 9104, 9105, 9106, 9107, 9108, 9109, 9110, 9201, 9202, 9203, 9204, 9205, 9206, 9207, 9208, 9301, 9302, 9303, 9304, 9305, 9306, 9307, 9308, 9309, 9310, 9311, 9312, 9313, 9314, 9315, 9316, 9317, 9318, 9401, 9402, 9403, 9404, 9405, 9406, 9407, 9408, 9409, 9501, 9502, 9503, 9504, 9505, 9506, and 9507 (MCL 440.1105, 440.1201, 440.2103, 440.2210, 440.2326, 440.2502, 440.2716, 440.2803, 440.2903, 440.2907, 440.2909, 440.4210, 440.7503, 440.8103, 440.8106, 440.8110, 440.8301, 440.8302, 440.8510, 440.9102, 440.9103, 440.9104, 440.9105, 440.9106, 440.9107, 440.9108, 440.9109, 440.9110, 440.9201, 440.9202, 440.9203, 440.9204, 440.9205, 440.9206, 440.9207, 440.9208, 440.9301, 440.9302, 440.9303, 440.9304, 440.9305, 440.9306, 440.9307, 440.9308, 440.9309, 440.9310, 440.9311, 440.9312, 440.9313, 440.9314, 440.9315, 440.9316, 440.9317, 440.9318, 440.9401, 440.9402, 440.9403, 440.9404, 440.9405, 440.9406, 440.9407, 440.9408, 440.9409, 440.9501, 440.9502, 440.9503, 440.9504, 440.9505, 440.9506, and 440.9507), sections 1105, 9203, and 9402 as amended by 1998 PA 489, section 1201 as amended and sections 2A103, 2A303, 2A307, and 2A309 as added by 1992 PA 101, section 2326 as amended by 1982 PA 397, section 4210 as amended by 1993 PA 130, sections 8103, 8106, 8301, 8302, 9301, 9302, 9303, 9306, 9309, and 9312 as amended and sections 8110 and 8510 as added by 1998 PA 278, sections 9103, 9104, 9105, 9106, 9304, and 9305 as amended by 1998 PA 488, section 9307 as amended by 1985 PA 199, section 9313 as amended by 1980 PA 53, section 9401 as amended by 1990 PA 288, sections 9403 and 9404 as amended by 1992 PA 186, sections 9405 and 9407 as amended by 1988 PA 130, and section 9406 as amended by 1989 PA 216, and by adding sections 5118, 9103a, 9209, 9210, 9319, 9320, 9321, 9322, 9323, 9324, 9324a, 9325, 9326, 9327, 9328, 9329, 9330, 9331, 9332, 9333, 9334, 9335, 9336, 9337, 9338, 9339, 9340, 9341, 9342, 9508, 9509, 9510, 9511, 9512, 9513, 9514, 9515, 9516, 9517, 9518, 9519, 9520, 9521, 9522, 9523, 9524, 9525, 9526, 9527, 9601, 9602, 9603, 9604, 9605, 9606, 9607, 9608, 9609, 9610, 9611, 9612, 9613, 9614, 9615, 9616, 9617, 9618, 9619, 9620, 9621, 9622, 9623, 9624, 9625, 9626, 9627, 9628, 9701, 9702, 9703, 9704, 9705, 9706, 9707, and 9708; and to repeal acts and parts of acts.

Was read a second time, and the question being on the adoption of the proposed substitute (H-1) previously recommended by the Committee on Family and Civil Law,

The substitute (H-1) was adopted, a majority of the members serving voting therefor.

Rep. Richner moved to amend the bill as follows:

1. Amend page 298, line 2, after "BEFORE" by striking out the balance of the line through "SECTION" on line 3 and inserting "THIS AMENDATORY ACT".

2. Amend page 298, line 4, after "AFTER" by striking out "THE AMENDATORY ACT ADDING THIS SECTION" and inserting "THIS AMENDATORY ACT".

3. Amend page 298, line 16, after "AFTER" by striking out "THE AMENDATORY ACT ADDING THIS SECTION" and inserting "THIS AMENDATORY ACT".

4. Amend page 299, line 8, by striking out "THE AMENDATORY ACT ADDING THIS SECTION" and inserting "THIS AMENDATORY ACT".

The motion prevailed and the amendments were adopted, a majority of the members serving voting therefor.

Rep. Richner moved to amend the bill as follows:

1. Amend page 160, following line 25, by inserting:

"(6) SUBSECTIONS (7) TO (14) SHALL APPLY IN THE CASE OF A PERSON BUYING FARM PRODUCTS FROM A PERSON ENGAGED IN FARMING OPERATIONS.

(7) IF REQUESTED BY THE SECURED PARTY, A DEBTOR ENGAGED IN FARMING OPERATIONS WHO GIVES A SECURITY INTEREST IN FARM PRODUCTS SHALL PROVIDE TO THE SECURED PARTY A WRITTEN LIST IDENTIFYING POTENTIAL BUYERS AND POINTS OF DELIVERY OF THE FARM PRODUCTS. EXCEPT AS OTHERWISE PROVIDED BY SUBSECTION (8), THE NUMBER OF POTENTIAL BUYERS FOR EACH COMMODITY SHALL NOT EXCEED 5. IF A POTENTIAL BUYER HAS MORE THAN 1 POINT OF DELIVERY, EACH ADDITIONAL POINT OF DELIVERY SHALL BE COUNTED AS A POTENTIAL BUYER.

(8) A DEBTOR ENGAGED IN FARMING OPERATIONS WHO PROVIDES A WRITTEN LIST OF POTENTIAL BUYERS TO A SECURED PARTY PURSUANT TO SUBSECTION (7) SHALL NOT SELL FARM PRODUCTS THAT SECURE THE DEBT TO A BUYER WHO IS NOT IDENTIFIED ON THE LIST WITHOUT THE PRIOR WRITTEN CONSENT OF THE SECURED PARTY. A PERSON WHO KNOWINGLY OR INTENTIONALLY VIOLATES THIS SUBSECTION IS GUILTY OF A FELONY, PUNISHABLE BY IMPRISONMENT FOR NOT MORE THAN 3 YEARS OR A FINE OF NOT MORE THAN $10,000.00, OR BOTH. IF APPROPRIATE GIVEN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE COURT SHALL PLACE THE PERSON ON PROBATION UPON THE CONDITION THAT RESTITUTION BE MADE TO THE SECURED PARTY. PAYMENT OF, OR APPLICATION OF THE PROCEEDS TO, THE DEBT UPON WHICH THE SECURITY INTEREST IS BASED IS AN ABSOLUTE DEFENSE TO A PROSECUTION UNDER THIS SUBSECTION IF THE PAYMENT OR APPLICATION IS MADE PRIOR TO COMMENCEMENT OF PROSECUTION.

(9) A SECURED PARTY WHO IS PROVIDED WITH A WRITTEN LIST OF POTENTIAL BUYERS PURSUANT TO SUBSECTION (7) MAY NOTIFY BUYERS IDENTIFIED ON THE LIST OF THE SECURITY INTEREST AS PROVIDED IN THIS SUBSECTION. A SECURED PARTY SHALL NOT NOTIFY A PERSON NOT IDENTIFIED ON THE LIST, EXCEPT THAT THE SECURED PARTY MAY NOTIFY A BUYER CONCERNING WHOM THE SECURED PARTY HAS GIVEN PRIOR WRITTEN CONSENT PURSUANT TO SUBSECTION (8) OR TO WHOM THE SECURED PARTY HAS REASONABLE CAUSE TO BELIEVE THE DEBTOR IS ABOUT TO SELL THE FARM PRODUCTS. A NOTICE PROVIDED PURSUANT TO THIS SUBSECTION SHALL BE IN WRITING AND SHALL BE MAILED BY CERTIFIED MAIL OR DELIVERED BY ANOTHER METHOD BY WHICH RECEIPT CAN BE VERIFIED. THE NOTICE MAY BE IN A FORM AGREED UPON IN WRITING BY THE BUYER AND THE SECURED PARTY, BUT IN ABSENCE OF SUCH AN AGREEMENT THE NOTICE SHALL BE AN ORIGINAL FINANCING STATEMENT OR A CARBON, PHOTOGRAPHIC, OR OTHER REPRODUCTION OF AN ORIGINAL OR A STATEMENT THAT CONTAINS ALL OF THE FOLLOWING:

(A) THE FULL NAME AND ADDRESS OF THE DEBTOR.

(B) THE FULL NAME AND ADDRESS OF THE SECURED PARTY.

(C) A DESCRIPTION OF THE COLLATERAL.

(D) THE DATE AND LOCATION OF THE FILING OF THE SECURITY INTEREST.

(E) THE DATE AND SIGNATURE OF THE SECURED PARTY.

(10) IF THE DEBT THAT IS THE BASIS OF THE SECURITY INTEREST IS SATISFIED, THE SECURED PARTY SHALL NOTIFY IN WRITING EACH POTENTIAL BUYER TO WHOM THE SECURED PARTY SENT NOTICE UNDER SUBSECTION (9). THE NOTICE MAY BE GIVEN WITHIN A TIME PERIOD AGREED UPON IN WRITING BY THE BUYER AND THE SECURED PARTY, BUT IN ABSENCE OF SUCH AN AGREEMENT THE NOTICE SHALL BE GIVEN WITHIN 11 DAYS AFTER THE DEBT IS SATISFIED.

(11) A SECURED PARTY WHO DOES ANY OF THE FOLLOWING IS GUILTY OF A MISDEMEANOR, PUNISHABLE BY IMPRISONMENT FOR NOT MORE THAN 90 DAYS OR A FINE OF NOT MORE THAN $1,000.00, OR BOTH:

(A) KNOWINGLY OR INTENTIONALLY GIVES FALSE OR MISLEADING INFORMATION IN A NOTICE PROVIDED PURSUANT TO SUBSECTION (9).

(B) SENDS NOTICE TO A POTENTIAL BUYER OTHER THAN AS PERMITTED IN SUBSECTION (9).

(C) FAILS TO NOTIFY A POTENTIAL BUYER OF THE SATISFACTION OF A DEBT WITHIN THE TIME PERIOD PRESCRIBED BY SUBSECTION (10).

(12) A BUYER OF FARM PRODUCTS WHO RECEIVES NOTICE PURSUANT TO SUBSECTION (9) OF A SECURITY INTEREST IN THE FARM PRODUCTS SHALL MAKE PAYMENT FOR THE FARM PRODUCTS BY CHECK OR OTHER INSTRUMENT MADE PAYABLE TO THE SELLER AND THE SECURED PARTY JOINTLY, EXCEPT THAT PAYMENT MAY BE MADE DIRECTLY TO THE SECURED PARTY IF AUTHORIZED IN WRITING BY THE SELLER. THIS SUBSECTION DOES NOT APPLY TO ANY PAYMENT OR PARTIAL PAYMENT MADE BEFORE NOTICE UNDER SUBSECTION (9) HAS BEEN RECEIVED BY THE BUYER. A BUYER OF FARM PRODUCTS WHO VIOLATES THIS SUBSECTION IS GUILTY OF A MISDEMEANOR, PUNISHABLE BY IMPRISONMENT FOR NOT MORE THAN 90 DAYS OR A FINE OF NOT MORE THAN $1,000.00, OR BOTH. PAYMENT OF THE DEBT UPON WHICH THE SECURITY INTEREST IS BASED IS AN ABSOLUTE DEFENSE TO A PROSECUTION UNDER THIS SUBSECTION IF PAYMENT IS MADE PRIOR TO COMMENCEMENT OF PROSECUTION.

(13) AS USED IN SUBSECTIONS (6) TO (12), "PERSON BUYING FARM PRODUCTS" OR "BUYER" INCLUDES A COMMISSION MERCHANT OR SELLING AGENT WHO SELLS FARM PRODUCTS IN THE ORDINARY COURSE OF BUSINESS FOR A PERSON ENGAGED IN FARMING OPERATIONS.

(14) A BUYER IN ORDINARY COURSE OF BUSINESS WHO RECEIVES NOTICE PURSUANT TO SUBSECTION (9), WHO BUYS FARM PRODUCTS FROM A PERSON ENGAGED IN FARMING OPERATIONS, AND WHO WITHHOLDS ALL OR PART OF THE PROCEEDS OF THE SALE FROM THE SELLER IN ORDER TO SATISFY A DEBT OWED BY THE SELLER TO THE BUYER, TAKES SUBJECT TO A SECURITY INTEREST IN THOSE FARM PRODUCTS CREATED BY THE SELLER, UNLESS THE DEBT OWED BY THE SELLER TO THE BUYER WAS SECURED BY A PRIOR PERFECTED SECURITY INTEREST. FOR PURPOSES OF THIS SUBSECTION, "DEBT" DOES NOT INCLUDE THE COST OF HARVESTING; PROCESSING, INCLUDING PACKAGING, FREEZING, CANNING, AND DRYING; STORING; MARKETING; OR TRANSPORTING FARM PRODUCTS TO MARKET.

(15) EXCEPT AS OTHERWISE PROVIDED BY SUBSECTION (16), A COMMISSION MERCHANT OR SELLING AGENT WHO SELLS FARM PRODUCTS, IN THE ORDINARY COURSE OF BUSINESS, FOR A PERSON ENGAGED IN FARMING OPERATIONS IS NOT LIABLE TO THE HOLDER OF A SECURITY INTEREST IN THOSE FARM PRODUCTS EVEN THOUGH THE SECURITY INTEREST IS PERFECTED AND EVEN THOUGH THE COMMISSION MERCHANT OR SELLING AGENT KNOWS OF ITS EXISTENCE.

(16) A COMMISSION MERCHANT OR SELLING AGENT WHO SELLS FARM PRODUCTS, IN THE ORDINARY COURSE OF BUSINESS, FOR A PERSON ENGAGED IN FARMING OPERATIONS, AND WHO RECEIVES NOTICE PURSUANT TO SUBSECTION (9), SHALL NOT BE PROTECTED FROM LIABILITY UNDER SUBSECTION (15) IF THE COMMISSION MERCHANT OR SELLING AGENT WITHHOLDS FROM THE SELLER ALL OR PART OF THE PROCEEDS OF A SALE OF THE FARM PRODUCTS IN ORDER TO SATISFY A DEBT OWED BY THE SELLER TO THE COMMISSION MERCHANT OR SELLING AGENT, UNLESS THE DEBT WAS SECURED BY A PRIOR PERFECTED SECURITY INTEREST. FOR PURPOSES OF THIS SUBSECTION, "DEBT" DOES NOT INCLUDE THE COST OF HARVESTING; PROCESSING, INCLUDING PACKAGING, FREEZING, CANNING, AND DRYING; STORING; MARKETING; OR TRANSPORTING FARM PRODUCTS TO MARKET.

(17) A PROSECUTION UNDER SUBSECTIONS (12) TO (14) SHALL NOT BE COMMENCED AFTER THE EXPIRATION OF 2 YEARS FOLLOWING THE DATE THE VIOLATION OCCURRED.".

The motion prevailed and the amendment was adopted, a majority of the members serving voting therefor.

Rep. Richner moved to amend the bill as follows:

1. Amend page 255, line 7, by striking out all of line 7 through line 7, page 256 and inserting "$10.00, PLUS 1 OR MORE OF THE FOLLOWING, IF APPLICABLE:

(A) IF THE RECORD IS A FINANCING STATEMENT IN A FORM OTHER THAN THE FORM CONTAINED IN SECTION 9521(1), OR THE RECORD IS A FINANCING STATEMENT AMENDMENT IN A FORM OTHER THAN THE FORM CONTAINED IN SECTION 9521(2), AN ADDITIONAL FEE OF $7.00.

(B) IF THE RECORD CONTAINS MORE THAN 100 PAGES, AN ADDITIONAL FEE OF $12.00.

(C) IF THE FILING OFFICE IS REQUIRED TO INDEX MORE THAN 2 NAMES, AN ADDITIONAL FEE OF $10.00 FOR EACH NAME MORE THAN 2 THAT THE FILING OFFICE IS REQUIRED TO INDEX.

(2) A FILING OFFICE SHALL CHARGE A PERSON A FEE FOR RESPONDING TO A REQUEST FOR A SEARCH OF THE RECORDS FILED WITH A FILING OFFICE CONCERNING A DEBTOR, INCLUDING ISSUANCE OF A CERTIFICATE DESCRIBING EACH PRESENTLY EFFECTIVE RECORD FILED CONCERNING THE DEBTOR IF REQUESTED. THE FEE IS $6.00, PLUS 1 OR MORE OF THE FOLLOWING, IF APPLICABLE:

(A) IF THE PERSON REQUESTS A CERTIFICATE AND THE SEARCH DISCLOSES MORE THAN 100 PRESENTLY EFFECTIVE RECORDS FILED CONCERNING THE DEBTOR, AN ADDITIONAL FEE OF $6.00.

(B) IF THE PERSON REQUESTS EXPEDITING OF THE REGULAR SEARCH PROCESS, AN ADDITIONAL FEE OF $25.00.

(C) IF THE PERSON REQUESTS COPIES OF THE PRESENTLY EFFECTIVE RECORDS DISCLOSED BY THE SEARCH, AN ADDITIONAL FEE OF $2.00 PER PAGE.

(D) IF THE FILING OFFICE IS THE SECRETARY OF STATE AND THE PERSON REQUESTS THAT THE SECRETARY OF STATE INCLUDE AN IMPRESSION OF THE OFFICIAL SEAL OF THE SECRETARY OF STATE ON THE CERTIFICATE, AN ADDITIONAL FEE OF $6.00.".

The motion prevailed and the amendment was adopted, a majority of the members serving voting therefor.

Rep. Richner moved to amend the bill as follows:

1. Amend page 92, following line 8, by inserting:

"(l) THE CREATION OF OR TRANSFER OF AN INTEREST IN OR LIEN ON A LAND CONTRACT MORTGAGE GOVERNED BY SECTIONS 6 THROUGH 11 OF 1879 PA 237, MCL 565.356 TO 565.361." and relettering the remaining subdivisions.

The motion prevailed and the amendment was adopted, a majority of the members serving voting therefor.

Rep. Richner moved that the bill be placed on the order of Third Reading of Bills.

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

Rep. Raczkowski moved that the bill be placed on its immediate passage.

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

By unanimous consent the House returned to the order of

Third Reading of Bills

Pending the Third Reading of

House Bill No. 5228, entitled

A bill to amend 1962 PA 174, entitled "Uniform commercial code," by amending sections 1105, 1201, 2103, 2210, 2326, 2502, 2716, 2A103, 2A303, 2A307, 2A309, 4210, 7503, 8103, 8106, 8110, 8301, 8302, 8510, 9102, 9103, 9104, 9105, 9106, 9107, 9108, 9109, 9110, 9201, 9202, 9203, 9204, 9205, 9206, 9207, 9208, 9301, 9302, 9303, 9304, 9305, 9306, 9307, 9308, 9309, 9310, 9311, 9312, 9313, 9314, 9315, 9316, 9317, 9318, 9401, 9402, 9403, 9404, 9405, 9406, 9407, 9408, 9409, 9501, 9502, 9503, 9504, 9505, 9506, and 9507 (MCL 440.1105, 440.1201, 440.2103, 440.2210, 440.2326, 440.2502, 440.2716, 440.2803, 440.2903, 440.2907, 440.2909, 440.4210, 440.7503, 440.8103, 440.8106, 440.8110, 440.8301, 440.8302, 440.8510, 440.9102, 440.9103, 440.9104, 440.9105, 440.9106, 440.9107, 440.9108, 440.9109, 440.9110, 440.9201, 440.9202, 440.9203, 440.9204, 440.9205, 440.9206, 440.9207, 440.9208, 440.9301, 440.9302, 440.9303, 440.9304, 440.9305, 440.9306, 440.9307, 440.9308, 440.9309, 440.9310, 440.9311, 440.9312, 440.9313, 440.9314, 440.9315, 440.9316, 440.9317, 440.9318, 440.9401, 440.9402, 440.9403, 440.9404, 440.9405, 440.9406, 440.9407, 440.9408, 440.9409, 440.9501, 440.9502, 440.9503, 440.9504, 440.9505, 440.9506, and 440.9507), sections 1105, 9203, and 9402 as amended by 1998 PA 489, section 1201 as amended and sections 2A103, 2A303, 2A307, and 2A309 as added by 1992 PA 101, section 2326 as amended by 1982 PA 397, section 4210 as amended by 1993 PA 130, sections 8103, 8106, 8301, 8302, 9301, 9302, 9303, 9306, 9309, and 9312 as amended and sections 8110 and 8510 as added by 1998 PA 278, sections 9103, 9104, 9105, 9106, 9304, and 9305 as amended by 1998 PA 488, section 9307 as amended by 1985 PA 199, section 9313 as amended by 1980 PA 53, section 9401 as amended by 1990 PA 288, sections 9403 and 9404 as amended by 1992 PA 186, sections 9405 and 9407 as amended by 1988 PA 130, and section 9406 as amended by 1989 PA 216, and by adding sections 5118, 9103a, 9209, 9210, 9319, 9320, 9321, 9322, 9323, 9324, 9324a, 9325, 9326, 9327, 9328, 9329, 9330, 9331, 9332, 9333, 9334, 9335, 9336, 9337, 9338, 9339, 9340, 9341, 9342, 9508, 9509, 9510, 9511, 9512, 9513, 9514, 9515, 9516, 9517, 9518, 9519, 9520, 9521, 9522, 9523, 9524, 9525, 9526, 9527, 9601, 9602, 9603, 9604, 9605, 9606, 9607, 9608, 9609, 9610, 9611, 9612, 9613, 9614, 9615, 9616, 9617, 9618, 9619, 9620, 9621, 9622, 9623, 9624, 9625, 9626, 9627, 9628, 9701, 9702, 9703, 9704, 9705, 9706, 9707, and 9708; and to repeal acts and parts of acts.

Rep. Raczkowski moved that consideration of the bill be postponed temporarily.

The motion prevailed.

Second Reading of Bills

House Bill No. 4780, entitled

A bill to amend 1974 PA 154, entitled "Michigan occupational safety and health act," (MCL 408.1001 to 408.1094) by adding section 24a.

Was read a second time, and the question being on the adoption of the proposed substitute (H-3) previously recommended by the Committee on Health Policy,

The substitute (H-3) was adopted, a majority of the members serving voting therefor.

Rep. DeWeese moved that the bill be placed on the order of Third Reading of Bills.

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

Rep. Raczkowski moved that the bill be placed on its immediate passage.

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

By unanimous consent the House returned to the order of

Third Reading of Bills

House Bill No. 4780, entitled

A bill to amend 1974 PA 154, entitled "Michigan occupational safety and health act," (MCL 408.1001 to 408.1094) by adding section 24a.

Was read a third time and passed, a majority of the members serving voting therefor, by yeas and nays, as follows:

Roll Call No. 810 Yeas--106

Allen Faunce Koetje Rison

Baird Frank Kowall Rivet

Basham Garcia Kuipers Rocca

Birkholz Garza Kukuk Sanborn

Bisbee Geiger LaForge Schauer

Bishop Gieleghem LaSata Schermesser

Bogardus Gilbert Law Scott

Bovin Godchaux Lockwood Shackleton

Bradstreet Gosselin Mans Sheltrown

Brater Green Mead Shulman

Brewer Hager Middaugh Spade

Brown, B. Hale Minore Stallworth

Brown, C. Hanley Mortimer Stamas

Byl Hansen Neumann Switalski

Callahan Hardman O'Neil Tabor

Cassis Hart Pappageorge Tesanovich

Caul Howell Patterson Thomas

Cherry Jacobs Pestka Toy

Clark, I. Jamnick Price Van Woerkom

Clarke, H. Jansen Prusi Vander Roest

Daniels Jelinek Pumford Vaughn

DeHart Jellema Quarles Vear

Dennis Johnson, Rick Raczkowski Voorhees

DeRossett Johnson, Ruth Reeves Wojno

DeVuyst Julian Richardville Woodward

DeWeese Kelly Richner Woronchak

Ehardt Kilpatrick

Nays--0

In The Chair: Birkholz

The question being on agreeing to the title of the bill,

Rep. Raczkowski moved to amend the title to read as follows:

A bill to amend 1974 PA 154, entitled "Michigan occupational safety and health act," (MCL 408.1001 to 408.1094) by adding section 24b; and to repeal acts and parts of acts.

The motion prevailed.

The House agreed to the title as amended.

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

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

Quorum Call

Rep. Raczkowski questioned the presence of a quorum and moved that the roll be called and printed in the Journal.

The motion prevailed.

The roll was called and the Clerk announced that a quorum was present.

The following is the roll call:

Roll Call No. 811 Yeas--103

Allen Faunce Kowall Rison

Baird Frank Kuipers Rocca

Basham Garcia Kukuk Sanborn

Birkholz Garza LaForge Schauer

Bisbee Geiger LaSata Schermesser

Bishop Gieleghem Law Scott

Bogardus Gilbert Lockwood Scranton

Bovin Godchaux Mans Shackleton

Bradstreet Gosselin Martinez Sheltrown

Brater Hager Mead Shulman

Brewer Hale Middaugh Spade

Brown, B. Hanley Minore Stamas

Brown, C. Hansen Mortimer Switalski

Callahan Hardman Neumann Tabor

Cassis Hart O'Neil Tesanovich

Caul Howell Pappageorge Thomas

Cherry Jacobs Patterson Toy

Clark, I. Jamnick Pestka Van Woerkom

Clarke, H. Jansen Price Vander Roest

Daniels Jelinek Prusi Vaughn

DeHart Jellema Pumford Vear

Dennis Johnson, Rick Quarles Voorhees

DeRossett Johnson, Ruth Raczkowski Wojno

DeVuyst Julian Reeves Woodward

DeWeese Kelly Richardville Woronchak

Ehardt Koetje Richner

In The Chair: Birkholz

Announcement by the Clerk of Printing and Enrollment

The Clerk announced that the following bills and joint resolution had been printed and placed upon the files of the members, Monday, June 12:

House Bill Nos. 5876 5877 5878 5879 5880 5881 5882 5883 5884 5885 5886 5887

House Joint Resolution T

The Clerk announced the enrollment printing and presentation to the Governor on Tuesday, June 13, for his approval of the following bills:

Enrolled House Bill No. 5227 at 2:02 p.m.

Enrolled House Bill No. 5230 at 2:04 p.m.

Enrolled House Bill No. 5270 at 2:06 p.m.

The Clerk announced the enrollment printing and presentation to the Governor on Thursday, June 15, for his approval of the following bills:

Enrolled House Bill No. 4238 at 4:16 p.m.

Enrolled House Bill No. 4784 at 4:18 p.m.

Enrolled House Bill No. 4881 at 4:20 p.m.

Enrolled House Bill No. 5058 at 4:22 p.m.

Enrolled House Bill No. 5311 at 4:24 p.m.

Enrolled House Bill No. 5322 at 4:26 p.m.

Enrolled House Bill No. 5351 at 4:28 p.m.

Enrolled House Bill No. 5520 at 4:30 p.m.

Enrolled House Bill No. 5521 at 4:32 p.m.

Enrolled House Bill No. 5526 at 4:34 p.m.

Enrolled House Bill No. 5543 at 4:36 p.m.

Enrolled House Bill No. 5554 at 4:38 p.m.

Enrolled House Bill No. 5568 at 4:40 p.m.

Enrolled House Bill No. 5570 at 4:42 p.m.

Enrolled House Bill No. 5572 at 4:44 p.m.

Enrolled House Bill No. 5573 at 4:46 p.m.

Enrolled House Bill No. 5581 at 4:48 p.m.

Enrolled House Bill No. 5588 at 4:50 p.m.

Enrolled House Bill No. 5590 at 4:52 p.m.

Enrolled House Bill No. 5594 at 4:54 p.m.

Enrolled House Bill No. 5630 at 4:56 p.m.

Enrolled House Bill No. 5670 at 4:58 p.m.

Enrolled House Bill No. 5719 at 5:00 p.m.

Enrolled House Bill No. 5767 at 5:02 p.m.

Enrolled House Bill No. 5781 at 5:04 p.m.

Enrolled House Bill No. 5802 at 5:06 p.m.

Enrolled House Bill No. 5832 at 5:08 p.m.

The Clerk announced the enrollment printing and presentation to the Governor on Friday, June 16, for his approval of the following bills:

Enrolled House Bill No. 4891 at 11:10 a.m.

Enrolled House Bill No. 5029 at 11:12 a.m.

Enrolled House Bill No. 5139 at 11:14 a.m.

Enrolled House Bill No. 5538 at 11:16 a.m.

Enrolled House Bill No. 4239 at 11:18 a.m.

Enrolled House Bill No. 4846 at 11:20 a.m.

Enrolled House Bill No. 4865 at 11:22 a.m.

Enrolled House Bill No. 5222 at 11:24 a.m.

Enrolled House Bill No. 5534 at 11:26 a.m.

Enrolled House Bill No. 5576 at 11:28 a.m.

Enrolled House Bill No. 5813 at 11:30 a.m.

Messages from the Governor

Date: June 9, 2000

Time: 2:50 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5164 (Public Act No. 152, I.E.), being

An act to amend 1949 PA 300, entitled "An act to provide for the registration, titling, sale, transfer, and regulation of certain vehicles operated upon the public highways of this state or any other place open to the general public or generally accessible to motor vehicles and distressed vehicles; to provide for the licensing of dealers; to provide for the examination, licensing, and control of operators and chauffeurs; to provide for the giving of proof of financial responsibility and security by owners and operators of vehicles; to provide for the imposition, levy, and collection of specific taxes on vehicles, and the levy and collection of sales and use taxes, license fees, and permit fees; to provide for the regulation and use of streets and highways; to create certain funds; to provide penalties and sanctions for a violation of this act; to provide for civil liability of owners and operators of vehicles and service of process on residents and nonresidents; to provide for the levy of certain assessments; to provide for the enforcement of this act; to provide for the creation of and to prescribe the powers and duties of certain state and local agencies; to repeal all other acts or parts of acts inconsistent with this act or contrary to this act; and to repeal certain parts of this act on a specific date," by amending section 319 (MCL 257.319), as amended by 1999 PA 267.

(Filed with the Secretary of State June 12, 2000, at 3:47 p.m.)

Date: June 14, 2000

Time: 12:45 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5140 (Public Act No. 154, I.E.), being

An act to amend 1949 PA 300, entitled "An act to provide for the registration, titling, sale, transfer, and regulation of certain vehicles operated upon the public highways of this state or any other place open to the general public or generally accessible to motor vehicles and distressed vehicles; to provide for the licensing of dealers; to provide for the examination, licensing, and control of operators and chauffeurs; to provide for the giving of proof of financial responsibility and security by owners and operators of vehicles; to provide for the imposition, levy, and collection of specific taxes on vehicles, and the levy and collection of sales and use taxes, license fees, and permit fees; to provide for the regulation and use of streets and highways; to create certain funds; to provide penalties and sanctions for a violation of this act; to provide for civil liability of owners and operators of vehicles and service of process on residents and nonresidents; to provide for the levy of certain assessments; to provide for the enforcement of this act; to provide for the creation of and to prescribe the powers and duties of certain state and local agencies; to repeal all other acts or parts of acts inconsistent with this act or contrary to this act; and to repeal certain parts of this act on a specific date," by amending section 721 (MCL 257.721), as amended by 1999 PA 24.

(Filed with the Secretary of State June 14, 2000, at 3:20 p.m.)

Date: June 14, 2000

Time: 1:00 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5638 (Public Act No. 157, I.E.), being

An act to designate December 7 of each year as Pearl Harbor day in the state of Michigan.

(Filed with the Secretary of State June 14, 2000, at 3:26 p.m.)

Date: June 14, 2000

Time: 1:05 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5172 (Public Act No. 158, I.E.), being

An act to amend 1949 PA 300, entitled "An act to provide for the registration, titling, sale, transfer, and regulation of certain vehicles operated upon the public highways of this state or any other place open to the general public or generally accessible to motor vehicles and distressed vehicles; to provide for the licensing of dealers; to provide for the examination, licensing, and control of operators and chauffeurs; to provide for the giving of proof of financial responsibility and security by owners and operators of vehicles; to provide for the imposition, levy, and collection of specific taxes on vehicles, and the levy and collection of sales and use taxes, license fees, and permit fees; to provide for the regulation and use of streets and highways; to create certain funds; to provide penalties and sanctions for a violation of this act; to provide for civil liability of owners and operators of vehicles and service of process on residents and nonresidents; to provide for the levy of certain assessments; to provide for the enforcement of this act; to provide for the creation of and to prescribe the powers and duties of certain state and local agencies; to repeal all other acts or parts of acts inconsistent with this act or contrary to this act; and to repeal certain parts of this act on a specific date," by amending section 312e (MCL 257.312e), as amended by 1991 PA 100.

(Filed with the Secretary of State June 14, 2000, at 3:28 p.m.)

Date: June 14, 2000

Time: 1:08 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4008 (Public Act No. 159, I.E.), being

An act to amend 1949 PA 300, entitled "An act to provide for the registration, titling, sale, transfer, and regulation of certain vehicles operated upon the public highways of this state or any other place open to the general public or generally accessible to motor vehicles and distressed vehicles; to provide for the licensing of dealers; to provide for the examination, licensing, and control of operators and chauffeurs; to provide for the giving of proof of financial responsibility and security by owners and operators of vehicles; to provide for the imposition, levy, and collection of specific taxes on vehicles, and the levy and collection of sales and use taxes, license fees, and permit fees; to provide for the regulation and use of streets and highways; to create certain funds; to provide penalties and sanctions for a violation of this act; to provide for civil liability of owners and operators of vehicles and service of process on residents and nonresidents; to provide for the levy of certain assessments; to provide for the enforcement of this act; to provide for the creation of and to prescribe the powers and duties of certain state and local agencies; to repeal all other acts or parts of acts inconsistent with this act or contrary to this act; and to repeal certain parts of this act on a specific date," by amending section 208b (MCL 257.208b), as amended by 1998 PA 329.

(Filed with the Secretary of State June 14, 2000, at 3:30 p.m.)

Date: June 14, 2000

Time: 1:10 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5682 (Public Act No. 160, I.E.), being

An act to amend 1978 PA 368, entitled "An act to protect and promote the public health; to codify, revise, consolidate, classify, and add to the laws relating to public health; to provide for the prevention and control of diseases and disabilities; to provide for the classification, administration, regulation, financing, and maintenance of personal, environmental, and other health services and activities; to create or continue, and prescribe the powers and duties of, departments, boards, commissions, councils, committees, task forces, and other agencies; to prescribe the powers and duties of governmental entities and officials; to regulate occupations, facilities, and agencies affecting the public health; to regulate health maintenance organizations and certain third party administrators and insurers; to provide for the imposition of a regulatory fee; to promote the efficient and economical delivery of health care services, to provide for the appropriate utilization of health care facilities and services, and to provide for the closure of hospitals or consolidation of hospitals or services; to provide for the collection and use of data and information; to provide for the transfer of property; to provide certain immunity from liability; to regulate and prohibit the sale and offering for sale of drug paraphernalia under certain circumstances; to provide for the implementation of federal law; to provide for penalties and remedies; to provide for sanctions for violations of this act and local ordinances; to repeal certain acts and parts of acts; to repeal certain parts of this act; and to repeal certain parts of this act on specific dates," by amending section 16621 (MCL 333.16621), as amended by 1998 PA 436.

(Filed with the Secretary of State June 14, 2000, at 3:32 p.m.)

Date: June 16, 2000

Time: 11:05 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5653 (Public Act No. 162, I.E.), being

An act to amend 1967 PA 281, entitled "An act to meet deficiencies in state funds by providing for the imposition, levy, computation, collection, assessment, and enforcement by lien and otherwise of taxes on or measured by net income; to prescribe the manner and time of making reports and paying the taxes, and the functions of public officers and others as to the taxes; to permit the inspection of the records of taxpayers; to provide for interest and penalties on unpaid taxes; to provide exemptions, credits and refunds of the taxes; to prescribe penalties for the violation of this act; to provide an appropriation; and to repeal certain acts and parts of acts," by amending section 30 (MCL 206.30), as amended by 1999 PA 181.

(Filed with the Secretary of State June 16, 2000, at 3:42 p.m.)

Date: June 16, 2000

Time: 11:07 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5654 (Public Act No. 163, I.E.), being

An act to amend 1967 PA 281, entitled "An act to meet deficiencies in state funds by providing for the imposition, levy, computation, collection, assessment, and enforcement by lien and otherwise of taxes on or measured by net income; to prescribe the manner and time of making reports and paying the taxes, and the functions of public officers and others as to the taxes; to permit the inspection of the records of taxpayers; to provide for interest and penalties on unpaid taxes; to provide exemptions, credits and refunds of the taxes; to prescribe penalties for the violation of this act; to provide an appropriation; and to repeal certain acts and parts of acts," (MCL 206.1 to 206.532) by adding section 30f.

(Filed with the Secretary of State June 16, 2000, at 3:44 p.m.)

Date: June 20, 2000

Time: 10:30 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5078 (Public Act No. 164, I.E.), being

An act to amend 1995 PA 279, entitled "An act to license and regulate the conducting of horse race meetings in this state with pari-mutuel wagering on the results of horse races and persons involved in horse racing and pari-mutuel gaming activities at such race meetings; to create the office of racing commissioner; to prescribe the powers and duties of the racing commissioner; to prescribe certain powers and duties of the department of agriculture and the director of the department of agriculture; to provide for the promulgation of rules; to provide for the imposition of taxes and fees and the disposition of revenues; to impose certain taxes; to create funds; to legalize and permit the pari-mutuel method of wagering on the results of live and simulcast races at licensed race meetings in this state; to appropriate the funds derived from pari-mutuel wagering on the results of horse races at licensed race meetings in this state; to prescribe remedies and penalties; and to repeal acts and parts of acts," by amending sections 7, 9, 10, 12, and 20 (MCL 431.307, 431.309, 431.310, 431.312, and 431.320), section 10 as amended by 1998 PA 408 and section 20 as amended by 1997 PA 73.

(Filed with the Secretary of State June 20, 2000, at 12:00 p.m.)

Date: June 20, 2000

Time: 10:32 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5260 (Public Act No. 165, I.E.), being

An act to amend 1973 PA 186, entitled "An act to create the tax tribunal; to provide for personnel, jurisdiction, functions, practice and procedure; to provide for appeals; and to prescribe the powers and duties of certain state agencies; and to abolish certain boards," by amending section 35 (MCL 205.735), as amended by 1994 PA 254.

(Filed with the Secretary of State June 20, 2000, at 12:02 p.m.)

Date: June 20, 2000

Time: 10:36 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4206 (Public Act No. 167, I.E.), being

An act to amend 1949 PA 300, entitled "An act to provide for the registration, titling, sale, transfer, and regulation of certain vehicles operated upon the public highways of this state or any other place open to the general public or generally accessible to motor vehicles and distressed vehicles; to provide for the licensing of dealers; to provide for the examination, licensing, and control of operators and chauffeurs; to provide for the giving of proof of financial responsibility and security by owners and operators of vehicles; to provide for the imposition, levy, and collection of specific taxes on vehicles, and the levy and collection of sales and use taxes, license fees, and permit fees; to provide for the regulation and use of streets and highways; to create certain funds; to provide penalties and sanctions for a violation of this act; to provide for civil liability of owners and operators of vehicles and service of process on residents and nonresidents; to provide for the levy of certain assessments; to provide for the enforcement of this act; to provide for the creation of and to prescribe the powers and duties of certain state and local agencies; to repeal all other acts or parts of acts inconsistent with this act or contrary to this act; and to repeal certain parts of this act on a specific date," by amending section 628 (MCL 257.628), as amended by 1996 PA 320.

(Filed with the Secretary of State June 20, 2000, at 12:06 p.m.)

Date: June 20, 2000

Time: 10:40 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5507 (Public Act No. 168, I.E.), being

An act to amend 1939 PA 280, entitled "An act to protect the welfare of the people of this state; to provide general assistance, hospitalization, infirmary and medical care to poor or unfortunate persons; to provide for compliance by this state with the social security act; to provide protection, welfare and services to aged persons, dependent children, the blind, and the permanently and totally disabled; to administer programs and services for the prevention and treatment of delinquency, dependency and neglect of children; to create a state department of social services; to prescribe the powers and duties of the department; to provide for the interstate and intercounty transfer of dependents; to create county and district departments of social services; to create within certain county departments, bureaus of social aid and certain divisions and offices thereunder; to prescribe the powers and duties of the departments, bureaus and officers; to provide for appeals in certain cases; to prescribe the powers and duties of the state department with respect to county and district departments; to prescribe certain duties of certain other state departments, officers, and agencies; to make an appropriation; to prescribe penalties for the violation of the provisions of this act; and to repeal certain parts of this act on specific dates," by amending section 109 (MCL 400.109), as amended by 1997 PA 173.

(Filed with the Secretary of State June 20, 2000, at 12:08 p.m.)

Date: June 20, 2000

Time: 10:44 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5252 (Public Act No. 170, I.E.), being

An act to amend 1978 PA 368, entitled "An act to protect and promote the public health; to codify, revise, consolidate, classify, and add to the laws relating to public health; to provide for the prevention and control of diseases and disabilities; to provide for the classification, administration, regulation, financing, and maintenance of personal, environmental, and other health services and activities; to create or continue, and prescribe the powers and duties of, departments, boards, commissions, councils, committees, task forces, and other agencies; to prescribe the powers and duties of governmental entities and officials; to regulate occupations, facilities, and agencies affecting the public health; to regulate health maintenance organizations and certain third party administrators and insurers; to provide for the imposition of a regulatory fee; to promote the efficient and economical delivery of health care services, to provide for the appropriate utilization of health care facilities and services, and to provide for the closure of hospitals or consolidation of hospitals or services; to provide for the collection and use of data and information; to provide for the transfer of property; to provide certain immunity from liability; to regulate and prohibit the sale and offering for sale of drug paraphernalia under certain circumstances; to provide for the implementation of federal law; to provide for penalties and remedies; to provide for sanctions for violations of this act and local ordinances; to repeal certain acts and parts of acts; to repeal certain parts of this act; and to repeal certain parts of this act on specific dates," by amending section 20155 (MCL 333.20155), as amended by 1996 PA 267.

(Filed with the Secretary of State June 20, 2000, at 12:12 p.m.)

Date: June 20, 2000

Time: 10:46 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5460 (Public Act No. 171, I.E.), being

An act to amend 1978 PA 368, entitled "An act to protect and promote the public health; to codify, revise, consolidate, classify, and add to the laws relating to public health; to provide for the prevention and control of diseases and disabilities; to provide for the classification, administration, regulation, financing, and maintenance of personal, environmental, and other health services and activities; to create or continue, and prescribe the powers and duties of, departments, boards, commissions, councils, committees, task forces, and other agencies; to prescribe the powers and duties of governmental entities and officials; to regulate occupations, facilities, and agencies affecting the public health; to regulate health maintenance organizations and certain third party administrators and insurers; to provide for the imposition of a regulatory fee; to promote the efficient and economical delivery of health care services, to provide for the appropriate utilization of health care facilities and services, and to provide for the closure of hospitals or consolidation of hospitals or services; to provide for the collection and use of data and information; to provide for the transfer of property; to provide certain immunity from liability; to regulate and prohibit the sale and offering for sale of drug paraphernalia under certain circumstances; to provide for the implementation of federal law; to provide for penalties and remedies; to provide for sanctions for violations of this act and local ordinances; to repeal certain acts and parts of acts; to repeal certain parts of this act; and to repeal certain parts of this act on specific dates," by amending sections 20151 and 20155 (MCL 333.20151 and 333.20155), section 20155 as amended by 1996 PA 267.

(Filed with the Secretary of State June 20, 2000, at 12:14 p.m.)

Date: June 20, 2000

Time: 11:36 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5421 (Public Act No. 174, I.E.), being

An act to designate certain parts and bypasses of certain highways located in certain counties of this state; and to prescribe the duties of the state transportation department.

(Filed with the Secretary of State June 20, 2000, at 12:20 p.m.)

Date: June 20, 2000

Time: 11:40 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5232 (Public Act No. 176, I.E.), being

An act to amend 1961 PA 236, entitled "An act to revise and consolidate the statutes relating to the organization and jurisdiction of the courts of this state; the powers and duties of such courts, and of the judges and other officers thereof; the forms and attributes of civil claims and actions; the time within which civil actions and proceedings may be brought in said courts; pleading, evidence, practice and procedure in civil and criminal actions and proceedings in said courts; to provide remedies and penalties for the violation of certain provisions of this act; to repeal all acts and parts of acts inconsistent with or contravening any of the provisions of this act; and to repeal acts and parts of acts," (MCL 600.101 to 600.9948) by adding section 2955b.

(Filed with the Secretary of State June 20, 2000, at 12:24 p.m.)

Date: June 20, 2000

Time: 11:50 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5484 (Public Act No. 177, I.E.), being

An act to amend 1998 PA 386, entitled "An act to codify, revise, consolidate, and classify aspects of the law relating to wills and intestacy, relating to the administration and distribution of estates of certain individuals, relating to trusts, and relating to the affairs of certain individuals under legal incapacity; to provide for the powers and procedures of the court that has jurisdiction over these matters; to provide for the validity and effect of certain transfers, contracts, and deposits that relate to death; to provide procedures to facilitate enforcement of certain trusts; and to repeal acts and parts of acts," by amending sections 1103, 2402, 2403, 2404, 2517, 3805, 3807, 3987, 3988, 7503, and 7508 (MCL 700.1103, 700.2402, 700.2403, 700.2404, 700.2517, 700.3805, 700.3807, 700.3987, 700.3988, 700.7503, and 700.7508), sections 1103 and 3807 as amended by 2000 PA 54.

(Filed with the Secretary of State June 20, 2000, at 12:26 p.m.)

Date: June 20, 2000

Time: 11:52 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5184 (Public Act No. 178, I.E.), being

An act to amend 1927 PA 175, entitled "An act to revise, consolidate, and codify the laws relating to criminal procedure and to define the jurisdiction, powers, and duties of courts, judges, and other officers of the court under the provisions of this act; to provide laws relative to the rights of persons accused of criminal offenses and ordinance violations; to provide for the arrest of persons charged with or suspected of criminal offenses and ordinance violations; to provide for bail of persons arrested for or accused of criminal offenses and ordinance violations; to provide for the examination of persons accused of criminal offenses; to regulate the procedure relative to grand juries, indictments, informations, and proceedings before trial; to provide for trials of persons complained of or indicted for criminal offenses and ordinance violations and to provide for the procedure in those trials; to provide for judgments and sentences of persons convicted of criminal offenses and ordinance violations; to establish a sentencing commission and to prescribe its powers and duties; to provide for procedure relating to new trials and appeals in criminal and ordinance violation cases; to provide a uniform system of probation throughout this state and the appointment of probation officers; to prescribe the powers, duties, and compensation of probation officers; to provide penalties for the violation of the duties of probation officers; to provide for procedure governing proceedings to prevent crime and proceedings for the discovery of crime; to provide for fees of officers, witnesses, and others in criminal and ordinance violation cases; to set forth miscellaneous provisions as to criminal procedure in certain cases; to provide penalties for the violation of certain provisions of this act; and to repeal all acts and parts of acts inconsistent with or contravening any of the provisions of this act," by amending section 17 of chapter XVII (MCL 777.17), as amended by 1999 PA 67.

(Filed with the Secretary of State June 20, 2000, at 12:28 p.m.)

Date: June 20, 2000

Time: 11:55 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5185 (Public Act No. 179, I.E.), being

An act to amend 1979 PA 53, entitled "An act to prohibit access to computers, computer systems, and computer networks for certain fraudulent purposes; to prohibit intentional and unauthorized access, alteration, damage, and destruction of computers, computer systems, computer networks, computer software programs, and data; and to prescribe penalties," by amending section 6 (MCL 752.796), as amended by 1996 PA 326.

(Filed with the Secretary of State June 20, 2000, at 3:30 p.m.)

Date: June 20, 2000

Time: 11:57 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5186 (Public Act No. 180, I.E.), being

An act to amend 1979 PA 53, entitled "An act to prohibit access to computers, computer systems, and computer networks for certain fraudulent purposes; to prohibit intentional and unauthorized access, alteration, damage, and destruction of computers, computer systems, computer networks, computer software programs, and data; and to prescribe penalties," by amending section 7 (MCL 752.797), as amended by 1996 PA 326.

(Filed with the Secretary of State June 20, 2000, at 3:32 p.m.)

Date: June 20, 2000

Time: 11:59 a.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5187 (Public Act No. 181, I.E.), being

An act to amend 1979 PA 53, entitled "An act to prohibit access to computers, computer systems, and computer networks for certain fraudulent purposes; to prohibit intentional and unauthorized access, alteration, damage, and destruction of computers, computer systems, computer networks, computer software programs, and data; and to prescribe penalties," by amending section 2 (MCL 752.792), as amended by 1996 PA 326.

(Filed with the Secretary of State June 20, 2000, at 3:34 p.m.)

Date: June 20, 2000

Time: 12:15 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4684 (Public Act No. 182, I.E.), being

An act to amend 1961 PA 236, entitled "An act to revise and consolidate the statutes relating to the organization and jurisdiction of the courts of this state; the powers and duties of such courts, and of the judges and other officers thereof; the forms and attributes of civil claims and actions; the time within which civil actions and proceedings may be brought in said courts; pleading, evidence, practice and procedure in civil and criminal actions and proceedings in said courts; to provide remedies and penalties for the violation of certain provisions of this act; to repeal all acts and parts of acts inconsistent with or contravening any of the provisions of this act; and to repeal acts and parts of acts," by amending section 2162 (MCL 600.2162), as amended by 1994 PA 67.

(Filed with the Secretary of State June 20, 2000, at 3:36 p.m.)

Date: June 20, 2000

Time: 2:30 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4427 (Public Act No. 190), being

An act to define, develop, and regulate privately owned cervidae as an agricultural enterprise in this state; to provide powers and duties of certain state agencies and departments; and to provide for certain penalties and remedies.

(Filed with the Secretary of State June 20, 2000, at 3:52 p.m.)

Date: June 20, 2000

Time: 2:32 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 4428 (Public Act No. 191), being

An act to amend 1994 PA 451, entitled "An act to protect the environment and natural resources of the state; to codify, revise, consolidate, and classify laws relating to the environment and natural resources of the state; to regulate the discharge of certain substances into the environment; to regulate the use of certain lands, waters, and other natural resources of the state; to prescribe the powers and duties of certain state and local agencies and officials; to provide for certain charges, fees, and assessments; to provide certain appropriations; to prescribe penalties and provide remedies; to repeal certain parts of this act on a specific date; and to repeal certain acts and parts of acts," by amending sections 40103, 41102, and 42702 (MCL 324.40103, 324.41102, and 324.42702), section 40103 as amended by 1999 PA 66 and sections 41102 and 42702 as added by 1995 PA 57; and to repeal acts and parts of acts.

(Filed with the Secretary of State June 20, 2000, at 3:54 p.m.)

Date: June 20, 2000

Time: 2:40 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5227 (Public Act No. 192, I.E.), being

An act to amend 1949 PA 300, entitled "An act to provide for the registration, titling, sale, transfer, and regulation of certain vehicles operated upon the public highways of this state or any other place open to the general public or generally accessible to motor vehicles and distressed vehicles; to provide for the licensing of dealers; to provide for the examination, licensing, and control of operators and chauffeurs; to provide for the giving of proof of financial responsibility and security by owners and operators of vehicles; to provide for the imposition, levy, and collection of specific taxes on vehicles, and the levy and collection of sales and use taxes, license fees, and permit fees; to provide for the regulation and use of streets and highways; to create certain funds; to provide penalties and sanctions for a violation of this act; to provide for civil liability of owners and operators of vehicles and service of process on residents and nonresidents; to provide for the levy of certain assessments; to provide for the enforcement of this act; to provide for the creation of and to prescribe the powers and duties of certain state and local agencies; to repeal all other acts or parts of acts inconsistent with this act or contrary to this act; and to repeal certain parts of this act on a specific date," by amending section 232 (MCL 257.232), as amended by 1997 PA 101.

(Filed with the Secretary of State June 20, 2000, at 3:56 p.m.)

Date: June 20, 2000

Time: 2:45 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5230 (Public Act No. 193, I.E.), being

An act to amend 1972 PA 222, entitled "An act to provide for an official personal identification card; to provide for its form, issuance and use; to regulate the use and disclosure of information obtained from the card; to prescribe the powers and duties of the secretary of state; to prescribe fees; and to prescribe certain penalties for violations," by amending section 10 (MCL 28.300), as added by 1997 PA 99.

(Filed with the Secretary of State June 20, 2000, at 3:58 p.m.)

Date: June 20, 2000

Time: 2:50 p.m.

To the Speaker of the House of Representatives:

Sir--I have this day approved and signed

Enrolled House Bill No. 5270 (Public Act No. 194, I.E.), being

An act to amend 1994 PA 451, entitled "An act to protect the environment and natural resources of the state; to codify, revise, consolidate, and classify laws relating to the environment and natural resources of the state; to regulate the discharge of certain substances into the environment; to regulate the use of certain lands, waters, and other natural resources of the state; to prescribe the powers and duties of certain state and local agencies and officials; to provide for certain charges, fees, and assessments; to provide certain appropriations; to prescribe penalties and provide remedies; to repeal certain parts of this act on a specific date; and to repeal certain acts and parts of acts," by amending sections 80130a, 80130c, 80315c, 81114c, and 82156c (MCL 324.80130a, 324.80130c, 324.80315c, 324.81114c, and 324.82156c), as added by 1997 PA 102, and by adding section 80108.

(Filed with the Secretary of State June 20, 2000, at 4:00 p.m.)

By unanimous consent the House returned to the order of

Messages from the Senate

House Bill No. 4007, entitled

A bill to amend 1974 PA 369, entitled "An act to regulate the business of conducting a driver training school; to require licenses in relation thereto; to prescribe certain fees; to prescribe the powers and duties of certain persons and state departments; and to prescribe remedies and penalties," by amending sections 5 and 5b (MCL 256.605 and 256.605b), section 5 as amended and section 5b as added by 1998 PA 11.

The Senate has passed the bill and ordered that it be given immediate effect.

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

House Bill No. 5418, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending section 20140 (MCL 324.20140), as amended by 1995 PA 71.

The Senate has passed the bill, ordered that it be given immediate effect and pursuant to Joint Rule 20, inserted the full title.

The House agreed to the full title.

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

House Bill No. 5740, entitled

A bill to amend 1976 PA 451, entitled "The revised school code," by amending section 1233 (MCL 380.1233), as amended by 1995 PA 289.

The Senate has passed the bill, ordered that it be given immediate effect and pursuant to Joint Rule 20, inserted the full title.

The House agreed to the full title.

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

Senate Bill No. 757, entitled

A bill to amend 1982 PA 295, entitled "Support and parenting time enforcement act," by amending sections 31 and 32 (MCL 552.631 and 552.632), as amended by 1996 PA 301.

The Senate has nonconcurred in the House substitute (H-2) and appointed Senators Bullard, Hammerstrom and Dingell as conferees.

The message was referred to the Clerk for record.

The Speaker appointed as conferees, on the part of the House of Representatives, Reps. Richner, Shulman and Baird.

The message was referred to the Clerk for record.

Communications from State Officers

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

Notices of Filing

Administrative Rules

April 25, 2000

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 11:30 A.M. this date, administrative rule (00-04-09) for the Department of Consumer and Industry Services, Bureau of Workers' Disability Compensation, entitled "Bureau of Workers' Disability Compensation - Health Care Service Rules", effective 15 days hereafter.

April 25, 2000

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 4:00 P.M. this date, administrative rule (00-04-10) for the Department of Transportation, Bureau of Urban and Public Transportation, entitled "Comprehensive Transportation Fund", effective 15 days hereafter.

May 1, 2000

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 1:15 P.M. this date, administrative rule (00-05-01) for the Department of Environmental Quality, Air Quality Division, entitled "Air Pollution Control", effective 15 days hereafter.

May 12, 2000

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 2:35 P.M. this date, administrative rule (00-05-02) for the Department of Treasury, Bureau of State Lottery, entitled "Crane Game Rules", effective 15 days hereafter.

May 30, 2000

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 2:38 P.M. this date, administrative rule (00-05-03) for the Department of Environmental Quality, Land and Water Management Division, entitled "Inland Lakes and Streams", effective 15 days hereafter.

June 6, 2000

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 3:25 P.M. this date, administrative rule (00-06-01) for the Department of Consumer and Industry Services, Director's Office, entitled "Part 12. Variances", effective 15 days hereafter.

June 6, 2000

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 3:27 P.M. this date, administrative rule (00-06-02) for the Department of Consumer and Industry Services, Director's Office, entitled "Part 11. Recording and Reporting of Occupational Injuries and Illnesses", effective 15 days hereafter.

June 6, 2000

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 3:29 P.M. this date, administrative rule (00-06-03) for the Department of Consumer and Industry Services, Director's Office, entitled "Laundry Machinery and Operations, R 3405", effective 15 days hereafter.

June 6, 2000

In accordance with the provisions of Section 46(1) of Act 306, Public Acts of 1969, as amended, and Executive Order 1995-6 this is to advise you that the Office of Regulatory Reform, Legal Division filed at 3:31 P.M. this date, administrative rule (00-06-04) for the Department of Consumer and Industry Services, Director's Office, entitled "Laundry Machinery and Operations, R 5004", effective 15 days hereafter.

Sincerely,

Candice S. Miller

Secretary of State

Elena L. Beasley, Supervisor

Office of the Great Seal

The communications were referred to the Clerk.

Introduction of Bills

Rep. Patterson introduced

House Bill No. 5888, entitled

A bill to amend 1949 PA 300, entitled "Michigan vehicle code," by amending section 311 (MCL 257.311), as amended by 1983 PA 63.

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

Rep. Bradstreet introduced

House Bill No. 5889, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending section 502a (MCL 324.502a), as added by 1998 PA 114.

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

Reps. Bradstreet, Bishop, Ehardt, Julian, Gosselin, Gilbert, DeRossett, Shackleton, Patterson, Voorhees, Tabor, Raczkowski, Rocca, Sheltrown, Bovin, Green and Vear introduced

House Bill No. 5890, 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 2 (MCL 28.422), as amended by 1994 PA 338.

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

Rep. Bradstreet introduced

House Bill No. 5891, entitled

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

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

Rep. Bradstreet introduced

House Bill No. 5892, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," (MCL 324.101 to 324.90106) by adding section 9315.

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

Reps. Brater, Gieleghem, DeHart, Callahan, Mans, Martinez, LaForge, Kowall, Minore, Bogardus, Baird, Switalski, Frank, Garza, Dennis, Lockwood and Daniels introduced

House Bill No. 5893, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," (MCL 324.101 to 324.90106) by adding part 6.

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

Reps. Kelly, Rick Johnson, Brewer, Kilpatrick, Allen, Daniels, Bovin, Reeves, LaForge, Prusi, Schermesser, Neumann, Jamnick, Byl, Jellema and Lemmons introduced

House Bill No. 5894, entitled

A bill to amend 1951 PA 51, entitled "An act to provide for the classification of all public roads, streets, and highways in this state, and for the revision of that classification and for additions to and deletions from each classification; to set up and establish the Michigan transportation fund; to provide for the deposits in the Michigan transportation fund of specific taxes on motor vehicles and motor vehicle fuels; to provide for the allocation of funds from the Michigan transportation fund and the use and administration of the fund for transportation purposes; to set up and establish the truck safety fund; to provide for the allocation of funds from the truck safety fund and administration of the fund for truck safety purposes; to set up and establish the Michigan truck safety commission; to establish certain standards for road contracts for certain businesses; to provide for the continuing review of transportation needs within the state; to authorize the state transportation commission, counties, cities, and villages to borrow money, issue bonds, and make pledges of funds for transportation purposes; to authorize counties to advance funds for the payment of deficiencies necessary for the payment of bonds issued under this act; to provide for the limitations, payment, retirement, and security of the bonds and pledges; to provide for appropriations and tax levies by counties and townships for county roads; to authorize contributions by townships for county roads; to provide for the establishment and administration of the state trunk line fund, critical bridge fund, comprehensive transportation fund, and certain other funds; to provide for the deposits in the state trunk line fund, critical bridge fund, comprehensive transportation fund, and certain other funds of money raised by specific taxes and fees; to provide for definitions of public transportation functions and criteria; to define the purposes for which Michigan transportation funds may be allocated; to provide for Michigan transportation fund grants; to provide for review and approval of transportation programs; to provide for submission of annual legislative requests and reports; to provide for the establishment and functions of certain advisory entities; to provide for conditions for grants; to provide for the issuance of bonds and notes for transportation purposes; to provide for the powers and duties of certain state and local agencies and officials; to provide for the making of loans for transportation purposes by the state transportation department and for the receipt and repayment by local units and agencies of those loans from certain specified sources; and to repeal acts and parts of acts," by amending sections 1c, 1h, 2, 6, 9a, 10, 10a, 10e, 10h, 10o, 11, 11b, 12, 13, 13b, 15, and 17 (MCL 247.651c, 247.651h, 247.652, 247.656, 247.659a, 247.660, 247.660a, 247.660e, 247.660h, 247.660o, 247.661, 247.661b, 247.662, 247.663, 247.663b, 247.665, and 247.667), sections 1c, 2, and 10h as amended by 1982 PA 438, section 1h as added and section 12 as amended by 1997 PA 79, sections 9a, 10, and 11 as amended and section 10o as added by 1998 PA 308, section 10a as amended by 1992 PA 137, section 10e as amended by 1998 PA 87, section 11b as amended by 1992 PA 223, section 13 as amended by 1999 PA 54, section 15 as amended by 1999 PA 50, and section 17 as amended by 1993 PA 294; and to repeal acts and parts of acts.

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

Reps. Patterson, Kuipers, Ehardt, Julian, Gilbert, Shulman, Shackleton, Raczkowski, Vander Roest, Bishop, Cameron Brown, LaSata, Kowall, Bradstreet, Kukuk, Stamas, Rocca, Howell, DeRossett, Toy and Koetje introduced

House Bill No. 5895, entitled

A bill to repeal 1987 PA 248, entitled "Airport parking tax act," (MCL 207.371 to 207.383).

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

Rep. DeWeese introduced

House Bill No. 5896, entitled

A bill to amend 1978 PA 90, entitled "Youth employment standards act," by amending section 19 (MCL 409.119).

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

Rep. DeWeese introduced

House Bill No. 5897, entitled

A bill to amend 1978 PA 368, entitled "Public health code," (MCL 333.1101 to 333.25211) by adding section 20188.

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

Rep. DeWeese introduced

House Bill No. 5898, entitled

A bill to amend 1967 PA 281, entitled "Income tax act of 1967," (MCL 206.1 to 206.532) by adding section 258.

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

Reps. DeHart, Prusi, Schermesser, Bogardus, Minore and Jacobs introduced

House Bill No. 5899, entitled

A bill to amend 1943 PA 240, entitled "State employees' retirement act," by amending section 21 (MCL 38.21).

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

Reps. DeHart, Bogardus, Schermesser, Prusi and Jacobs introduced

House Bill No. 5900, entitled

A bill to amend 1981 PA 180, entitled "Older Michiganians act," (MCL 400.581 to 400.594) by adding section 6l.

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

Reps. DeHart, Bogardus, Schermesser, Prusi and Jacobs introduced

House Bill No. 5901, entitled

A bill to amend 1967 PA 281, entitled "Income tax act of 1967," by amending section 273 (MCL 206.273), as added by 1988 PA 516.

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

Reps. Shackleton, Richardville, Kowall, Tabor, Julian, Sanborn, Howell, LaSata, Birkholz, Garcia, Green and DeVuyst introduced

House Bill No. 5902, entitled

A bill to provide compensation to correctional officers who are killed in the line of duty.

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

Reps. Shackleton, Richardville, Faunce, Garcia, Tabor, Kowall, Birkholz, Julian, Gilbert, DeRossett, Mortimer, Pappageorge, Sanborn, Howell, Green and DeVuyst introduced

House Bill No. 5903, entitled

A bill to amend 1976 PA 442, entitled "Freedom of information act," by amending section 13 (MCL 15.243), as amended by 1996 PA 553.

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

Reps. Dennis, Callahan, Switalski, Mans, Woodward, Baird, O'Neil, Wojno, Minore, Bovin, Gieleghem, Clark, Hardman, Rivet, Pestka, Frank, Bogardus, Jamnick, Hale, Neumann, Basham, Clarke, Hansen, Thomas, Schauer, Vaughn, Price, Brater, Martinez, Prusi, Schermesser, DeHart, Brewer, Kelly, Lockwood and LaForge introduced

House Bill No. 5904, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending sections 35301, 63701, 63702, 63704, 63708, 63709, and 63711 (MCL 324.35301, 324.63701, 324.63702, 324.63704, 324.63708, 324.63709, and 324.63711), section 35301 as amended by 1995 PA 262 and sections 63701, 63702, 63704, 63708, 63709, and 63711 as added by 1995 PA 57.

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

Rep. Frank introduced

House Bill No. 5905, entitled

A bill to amend 1978 PA 368, entitled "Public health code," by amending section 16608 (MCL 333.16608), as amended by 1990 PA 216, and by adding sections 16603, 16612, and 16613.

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

Reps. Richner, Richardville, Van Woerkom, Sheltrown, Garcia, Julian, Toy, Birkholz, Lockwood, Howell, Ehardt, Mans, Gosselin, Sanborn, Mortimer, Bradstreet, Green, Rick Johnson and Caul introduced

House Bill No. 5906, entitled

A bill to amend 1949 PA 300, entitled "Michigan vehicle code," by amending section 811e (MCL 257.811e), as added by 2000 PA 77, and by adding section 811p.

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

Reps. Wojno, Sanborn, Shackleton, Hager, Mortimer, Van Woerkom, Bishop, DeVuyst, Rick Johnson, Daniels, Hale, Thomas, Bob Brown, Patterson, Julian, Ehardt, Bisbee, Law, Clark, Richner, O'Neil, Jansen and Basham introduced

House Bill No. 5907, entitled

A bill to amend 1996 PA 354, entitled "Savings bank act," by amending sections 102 and 103 (MCL 487.3102 and 487.3103).

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

Reps. Bisbee, Wojno, Sanborn, Shackleton, Hager, Mortimer, Van Woerkom, Bishop, DeVuyst, Rick Johnson, Daniels, Hale, Thomas, Bob Brown, Patterson, Julian, Ehardt, Law, Clark, Richner, O'Neil, Jansen and Basham introduced

House Bill No. 5908, entitled

A bill to amend 1996 PA 354, entitled "Savings bank act," by amending sections 209, 210, 213, and 214 (MCL 487.3209, 487.3210, 487.3213, and 487.3214).

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

Reps. Sanborn, Wojno, Shackleton, Hager, Mortimer, Van Woerkom, Bishop, DeVuyst, Rick Johnson, Daniels, Hale, Thomas, Bob Brown, Patterson, Julian, Ehardt, Bisbee, Law, Clark, Richner, O'Neil, Jansen and Basham introduced

House Bill No. 5909, entitled

A bill to amend 1996 PA 354, entitled "Savings bank act," by amending sections 303, 307, 313, 314, 316, 317, 321, 322, 324, 325, 326, 334, 335, 336, 401, 409, 412, 413, 417, 422, 428, 430, 432, 508, 701, 703, 705, 706, 708, 709, 710, 711, 712, 713, and 804 (MCL 487.3303, 487.3307, 487.3313, 487.3314, 487.3316, 487.3317, 487.3321, 487.3322, 487.3324, 487.3325, 487.3326, 487.3334, 487.3335, 487.3336, 487.3401, 487.3409, 487.3412, 487.3413, 487.3417, 487.3422, 487.3428, 487.3430, 487.3432, 487.3508, 487.3701, 487.3703, 487.3705, 487.3706, 487.3708, 487.3709, 487.3710, 487.3711, 487.3712, 487.3713, and 487.3804), section 401 as amended by 1996 PA 422, section 422 as amended by 2000 PA 63, and section 508 as amended by 1997 PA 50, and by adding sections 330a, 340, 501, 711a, and 712a; and to repeal acts and parts of acts.

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

Reps. Richner, Schermesser and DeHart introduced

House Bill No. 5910, entitled

A bill to establish procedures for municipalities to designate individual lots or structures as blighting; to purchase or condemn blighting property; and to transfer blighting property to developers.

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

Rep. Richner introduced

House Bill No. 5911, entitled

A bill to amend 1980 PA 87, entitled "The uniform condemnation procedures act," by amending the title and section 2 (MCL 213.52), the title as amended by 1988 PA 189.

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

Rep. Richner introduced

House Joint Resolution U, entitled

A joint resolution proposing an amendment to the state constitution of 1963, by amending section 31 of article IX, to require that local tax increases be approved by not less than one-third of the qualified electors of a unit of local government.

The joint resolution was read a first time by its title and referred to the Committee on Constitutional Law and Ethics.

______

Rep. Vander Roest moved that Rep. Perricone be excused temporarily from today's session.

The motion prevailed.

By unanimous consent the House returned to the order of

Reports of Select Committees

Second Conference Report

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

House Bill No. 5274, entitled

A bill to make appropriations for the department of career development and certain other state purposes for the fiscal year ending September 30, 2001; to provide for the expenditure of the appropriations; and to provide for the disposition of fees and other income received by the state agencies.

Recommends:

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

A bill to make appropriations for the department of career development and the Michigan strategic fund and certain other state purposes for the fiscal year ending September 30, 2001; to provide for the expenditure of the appropriations; and to provide for the disposition of fees and other income received by the state agencies.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. There is appropriated for the department of career development and the Michigan strategic fund for the fiscal year ending September 30, 2001, from the funds indicated in this part, the following:

TOTAL APPROPRIATIONS

Full-time equated unclassified positions 6.0

Full-time equated classified positions 1,374.0

GROSS APPROPRIATION $ 692,787,200

Total interdepartmental grants and intradepartmental transfers $ 1,148,000

ADJUSTED GROSS APPROPRIATION $ 691,639,200

Federal revenues:

Total federal revenues 521,492,000

Special revenue funds:

Total local revenues 14,962,800

Total private revenues 3,327,100

Total other state restricted revenues 60,545,800

State general fund/general purpose $ 91,311,500

Sec. 102. DEPARTMENT OF CAREER DEVELOPMENT

(1) APPROPRIATION SUMMARY:

Full-time equated unclassified positions 6.0

Full-time equated classified positions 1,139.0

GROSS APPROPRIATION $ 523,454,400

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 1,048,000

ADJUSTED GROSS APPROPRIATION $ 522,406,400

Federal revenues:

Total federal revenues 468,818,800

Special revenue funds:

Total local revenues 14,962,800

Total private revenues 2,670,400

Total other state restricted revenues 10,495,800

State general fund/general purpose $ 25,458,600

(2) DEPARTMENTAL ADMINISTRATION

Full-time equated unclassified positions 6.0

Unclassified salaries $ 546,900


GROSS APPROPRIATION $ 546,900

Appropriated from:

State general fund/general purpose $ 546,900

(3) DEPARTMENT OPERATIONS

Full-time equated classified positions 103.0

Administration--103.0 FTE positions $ 11,562,800

Building occupancy charges - property development services 479,000

Special project advances 200,000

Worker's compensation 213,900


GROSS APPROPRIATION $ 12,455,700

Appropriated from:

Federal revenues:

CNS 102,000

DED-OSERS, rehabilitation services, vocational rehabilitation of state grants 4,180,700

DOL-ETA, workforce investment act 645,900

DOL, federal funds 3,279,000

HHS, temporary assistance for needy families 1,514,200

Special revenue funds:

Private - special project advances 200,000

Contingent fund, penalty and interest 397,900

State general fund/general purpose $ 2,136,000

(4) WORKFORCE DEVELOPMENT

Full-time equated classified positions 669.0

Employment training services--574.0 FTE positions $ 60,743,100

Michigan career and technical institute--95.0 FTE positions 10,163,200


GROSS APPROPRIATION $ 70,906,300

Appropriated from:

Interdepartmental grant revenues:

IDG-MDOC 32,400

Federal revenues:

CNS 532,400

DAG, employment and training 258,300

DED, cooperative demonstration, school-to-work 700,000

DED-OPSE, multiple grants 615,500

DED-OSERS, centers for independent living 58,200

DED-OSERS, rehabilitation long-term training 566,900

DED-OSERS, rehabilitation services, vocational rehabilitation of state grants 41,327,200

DED-OSERS, state grants for technical related assistance 55,700

DOL-ETA, multiple grants 596,300

DOL-ETA, workforce investment act 3,172,400

DOL-NOICC 171,900

HHS, temporary assistance for needy families 3,725,100

HHS-SSA, supplemental security income 4,185,500

Special revenue funds:

Private - gifts, bequests, and donations 1,396,300

Local vocational rehabilitation match 3,247,100

Rehabilitation services fees 1,236,900

Second injury fund 51,500

Student fees 308,000

Training material fees 256,300

State general fund/general purpose $ 8,412,400

(5) CAREER EDUCATION PROGRAMS

Full-time equated classified positions 64.0

Career and technical education--30.0 FTE positions $ 2,969,700

Postsecondary education--22.0 FTE positions 2,359,900

Adult education--12.0 FTE positions 1,753,100


GROSS APPROPRIATION $ 7,082,700

Appropriated from:

Federal revenues:

Federal revenues 5,192,300

Special revenue funds:

Private - occupational school license fees 274,100

Defaulted loan collection fees 102,200

State general fund/general purpose $ 1,514,100

(6) DEPARTMENT GRANTS

Council of Michigan foundations $ 6,000,000

Adult basic education 11,004,700

Gear-up program grants 2,000,000

Job training programs subgrantees 111,248,300

Michigan community service commission subgrantees 5,900,000

Personal assistance services 462,000

Pre-college programs in engineering and the sciences 1,044,700

Supported employment grants 1,308,600

Technology assistance grants 1,150,000

Vocational education act of 1963 39,500,000

Vocational rehabilitation client services/facilities 50,143,400

Vocational rehabilitation independent living 3,115,700

Welfare-to-work programs 140,499,000

Focus: HOPE 5,494,300


GROSS APPROPRIATION $ 378,870,700

Appropriated from:

Interdepartmental grant revenues:

IDG-MDOC 1,015,600

Federal revenues:

CNS 4,500,000

DAG, employment and training 13,000,000

DED-OESE, gear up 2,000,000

DED-OSERS, centers for independent living 525,000

DED-OSERS, client assistance for individuals with disabilities 400,000

DED-OSERS, rehabilitation services, vocational rehabilitation of state grants 34,935,200

DED-OSERS, rehabilitation services facilities 2,272,500

DED-OSERS, supported employment 1,308,600

DED-OSERS, state grants for technical related assistance 1,150,000

DED-OVAE, adult education 11,004,700

DED-OVAE, basic grants to states 39,500,000

DOL-ETA, workforce investment act 104,602,700

DOL-ETA, multiple grants 4,430,000

HHS, temporary assistance for needy families 127,499,000

HHS-SSA, supplemental security income 2,362,500

Special revenue funds:

Private - gifts, bequests, and donations 800,000

Contingent fund, penalty and interest account 1,000,000

Local vocational rehabilitation match 6,437,400

Local vocational rehabilitation facilities match 1,278,300

Tobacco settlement revenue 6,000,000

State general fund/general purpose $ 12,849,200

(7) EMPLOYMENT SERVICE AGENCY

Full-time equated classified positions 303.0

Building occupancy charges - property development service $ 376,400

Rent 373,500

Worker's compensation 141,300

Employment services--251.0 FTE positions 48,326,600

Labor market information--52.0 FTE positions 4,374,300


GROSS APPROPRIATION $ 53,592,100

Appropriated from:

Federal revenues:

DED-OSERS, rehabilitation services, vocational rehabilitation of state grants 1,300,000

DOL, federal funds 47,149,100

Special revenue funds:

Contingent fund, penalty and interest account 1,143,000

Local revenue 4,000,000

State general fund/general purpose $ 0

Sec. 103. MICHIGAN STRATEGIC FUND

(1) APPROPRIATION SUMMARY:

Full-time equated classified positions 235.0

GROSS APPROPRIATION $ 169,332,800

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 100,000

ADJUSTED GROSS APPROPRIATION $ 169,232,800

Federal revenues:

Total federal revenues 52,673,200

Special revenue funds:

Total private revenues 656,700

Total other state restricted revenues 50,050,000

State general fund/general purpose $ 65,852,900

(2) MICHIGAN STRATEGIC FUND

Full-time equated classified positions 235.0

Administration--40.0 FTE positions $ 5,483,300

Job creation services--195.0 FTE positions 24,557,000

Michigan promotion program 8,042,500

Economic development job training grants 31,000,000

Community development block grants 50,000,000

Health and aging research and development strategies 50,000,000

Small business development center network 250,000


GROSS APPROPRIATION $ 169,332,800

Appropriated from:

Interdepartmental grant revenues:

IDG-MDEQ, air quality fees 100,000

Federal revenues:

DOL-ETA, employment service 770,000

HUD-CPD, Community development block grant 51,903,200

Special revenue funds:

Private-Michigan certified development corporations fees 156,700

Private-special project advances 500,000

Industry support fees 50,000

Tobacco settlement revenue 50,000,000

State general fund/general purpose $ 65,852,900

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2000-2001 is $151,857,300.00 and state spending from state resources to be paid to local units of government for fiscal year 2000-2001 is $0.00.

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

Sec. 203. As used in this appropriation act:

(a) "CDBG" means community development block grant.

(b) "CNS" means the corporation for national services.

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

(d) "DED" means the United States department of education.

(e) "DED-OESE" means the DED office of elementary and secondary education.

(f) "DED-OPSE" means the DED office of postsecondary education.

(g) "DED-OSERS" means the DED office of special education rehabilitation services.

(h) "DED-OVAE" means the DED office of vocational and adult education.

(i) "Department" means the department of career development.

(j) "Director" means the director of the department of career development.

(k) "DOL" means the United States department of labor.

(l) "DOL-ETA" means the DOL employment and training act.

(m) "DOL-NOICC" means the DOL national occupational information coordinating committee.

(n) "Fiscal agencies" means the Michigan house fiscal agency and the Michigan senate fiscal agency.

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

(p) "Fund" means the Michigan strategic fund.

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

(r) "HHS-SSA" means HHS social security administration.

(s) "HUD-CPD" means HUD community planning and development.

(t) "IDG" means interdepartmental grant.

(u) "MDEQ" means the Michigan department of environmental quality.

(v) "MDOC" means the Michigan department of corrections.

(w) "President" means the president of the Michigan strategic fund.

(x) "U.S.C." means the United States Code.

(y) "WIA" means workforce investment act.

Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.

Sec. 205. (1) Beginning October 1, a hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department 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 rendering a state department or agency unable to deliver basic services. The state budget director shall report by the thirtieth of each month to the chairpersons of the senate and house of representatives standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous month and the justification for the exception.

Sec. 206. (1) In addition to the funds appropriated for the department and the fund in part 1, there is appropriated an amount not to exceed $41,000,000.00 for the department and $7,000,000.00 for the fund 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 $2,000,000.00 for the department and $1,000,000.00 for the fund 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 $8,000,000.00 for the department 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 $1,000,000.00 for the department and $500,000.00 for the fund for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 207. At least 60 days before beginning any effort to privatize, the department and fund shall submit a complete project plan to the appropriate senate and house of representatives appropriations subcommittees and the fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the appropriate senate and house of representatives appropriations subcommittees and the fiscal agencies within 30 months.

Sec. 208. The department and fund shall continue to pilot the use of the Internet to fulfill the reporting requirements of this act. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on the Internet or legislative Intranet site. The senate and house of representatives appropriations subcommittees and fiscal agencies shall be notified in writing of the Internet or Intranet site of any such report. Quarterly, the department shall provide a cumulative listing of the reports submitted during the most recent 3-month period along with the Internet or Intranet site of each report, and a list of those reports expected to be transmitted during the fourth quarter. The department shall continue to distribute all of these reports to the legislature in the current printed format.

Sec. 209. Funds appropriated in part 1 shall not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods or services, or both, are available.

Sec. 210. The director of the department and president of the fund receiving appropriations in part 1 shall take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies, or both. Each director or president shall strongly encourage firms with which the department contracts to subcontract with certified businesses in depressed and deprived communities for services, supplies, or both.

Sec. 211. Of the funds appropriated in part 1 that are in units other than the grants unit, the department and the fund shall not provide grants to local government agencies, institutions of higher education, or nonprofit organizations unless the department or the fund provides notice of the grant to the appropriations subcommittees of the house and senate at least 10 days before the grant is issued or at least 72 hours before any announcement to local governmental units or the public.

Sec. 212. The department and the fund shall provide a report prepared by the department's and the fund's internal auditor on the activities of the internal auditor for the prior fiscal year. This report shall include a listing of each audit or investigation performed by the internal auditor pursuant to sections 486(4) and 487 of the management and budget act, 1984 PA 431, MCL 18.1486 and 18.1487. The report shall identify the proportion of time spent on each of the statutory responsibilities listed in sections 485(4), 486(4), and 487 of the management and budget act, 1984 PA 431, MCL 18.1485, 18.1486, and 18.1487, and the time spent on all other activities performed in the internal audit function. The first report shall be due March 1, 2001 and biennially thereafter beginning on May 1 and shall be submitted to the governor, auditor general, the senate and house appropriations committees, the fiscal agencies, and the director and the president.

Sec. 213. The department and the fund shall establish and maintain affirmative action programs based on guidelines developed by the state equal opportunity workforce planning council which was created by Executive Order No. 1996-13 in order to receive general fund/general purpose dollars.

DEPARTMENT OF CAREER DEVELOPMENT


Sec. 301. The Michigan career and technical institute may receive equipment and in-kind contributions for the direct support of staff services through the Pine Lake fund, the Delton-Kellogg school district or other local or intermediate school district, or any combination of local or intermediate school districts in addition to those authorized in part 1.

Sec. 302. The Michigan rehabilitation service shall make every effort to ensure that all sources of matching funds in this state are used to obtain federal vocational rehabilitation funds. All sources include, but are not limited to, privately raised funds to support public nonprofit rehabilitation centers as permitted by the rehabilitation act of 1973, Public Law 93-112, 29 U.S.C. 701 to 717, 720 to 724, 730 to 732, 740 to 741, 750, 752, 760 to 762, 770 to 777b, 777d to 777f, 780, 781 to 785, 790 to 794d, 795 to 795q, and 796 to 796i.

Sec. 303. The local match requirements for vocational rehabilitation facilities establishment grants shall not exceed 21.3% for the fiscal year ending September 30, 2001.

Sec. 304. (1) Of the funds appropriated in part 1 for vocational rehabilitation independent living, all general fund/general purpose revenue not used to match federal funds shall be used for the support of centers for independent living which are in compliance with federal standards for such centers, for the development of new centers in areas presently unserved or underserved, for technical assistance to centers, and for projects to build capacity of centers to deliver independent living services. Applications for such funds shall be reviewed in accordance with criteria and procedures established by the statewide independent living council, the Michigan rehabilitation services unit within the department, and the Michigan commission for the blind. Funds must be used in a manner consistent with the priorities established in the state plan for independent living. The department is directed to work with the Michigan association of centers for independent living and the local workforce development boards to identify other competitive sources of funding.

(2) The statewide independent living council and the Michigan association of centers for independent living shall jointly produce a report providing the following information:

(a) Results in terms of enhanced statewide access to independent living services to individuals who do not have access to such services through other existing public agencies, including measures by which these results can be monitored over time. These measures shall include:

(i) Total number of persons assisted by the centers and a comparison to the number assisted in the previous year.

(ii) Number of persons moved out of nursing homes into independent living situations and a comparison to the number assisted in the previous year.

(iii) Number of persons for whom accommodations were provided to enable independent living or access to employment and a comparison to the number assisted in the previous year.

(iv) The total number of disabled individuals served by personal care attendants and the number of personal care attendants provided through the use of any funds appropriated in part 1 administered by a center for independent living and a comparison to the number served in the previous year.

(b) Information from each center for independent living receiving funding through appropriations in part 1 detailing their total budget for their most recently completed fiscal year as well as the amount within that budget funded through the vocational rehabilitation independent living grant program referenced in part 1, the total amount funded through other state agencies, the amount funded through federal sources, and the amount funded through local and private sources.

(c) Savings to state taxpayers in other specific areas that can be shown to be the direct result of activities funded from the vocational rehabilitation independent living grant program during the most recently completed state fiscal year.

(3) The report required in subsection (2) shall be submitted to the appropriate appropriations subcommittees, the fiscal agencies, and the state budget director on or before January 15, 2001.

Sec. 305. (1) The appropriation in part 1 to the department for the work first program shall be expended for grants which provide employment and training services to family independence program applicants and recipients and may be expended for grants which provide employment and training services to former family independence program recipients, as well as to recipients of noncash public assistance, specifically child day care, Medicaid, or food stamp benefits. The work first program, however, shall not be construed to be an entitlement to services.

(2) An applicant may be a district, intermediate district, community college, public or private nonprofit college or university, nonprofit organization that provides school-to-work transition programs or that provides employment and training services or vocational rehabilitation programs or state licensed accredited vocational or technical education programs, proprietary school licensed by the state board of education, local workforce development board, or a consortium consisting of any combination of districts, intermediate districts, community colleges, nonprofit organizations described in this subsection, licensed proprietary schools, or public or private nonprofit colleges or universities described in this subsection.

(3) When the work first job search requirements have been completed, if the participant has not found employment, the work first site shall identify the barriers which may have prevented the participant from obtaining employment and assist the client in removing those barriers. The work first site shall also identify appropriate education and job training programs which would be available to the participant.

(4) Work first program participants shall include applicants and recipients of the family independence program established under section 57a of the social welfare act, 1939 PA 280, MCL 400.57a, and such individuals referred to a job club program by a county family independence agency board or a county friend of the court as long as the participation in the job club is part of an application made under this section. Additionally, the department and the family independence agency shall work together to develop a program to provide employment services to former family independence program recipients and to recipients of noncash public assistance benefits such as child day care, Medicaid, or food stamp benefits. This program shall not be construed to be an entitlement to services.

(5) Participants in the work first program shall not be enrolled and counted in membership in a school district or intermediate school district.

(6) The department will work with the family independence agency to coordinate support services to work first participants relating to special/emergency needs.

(7) Work first program participants must receive or be provided an explanation of the program including their benefits and responsibilities before the job interview phase of the program. This explanation shall include clear guidelines with regard to an individual's eligibility for postemployment training support and for applying hours in training toward federal work requirements.

(8) The department shall make every effort to place a minimum of 25% of clients who participate in the work first program in positions that provide wages of $6.00 per hour or more.

(9) The department shall submit to the fiscal agencies and the state budget director by March 15, 2001, a report on the work first program, including the number of participants served under this section, the number of persons who located employment through work first, the average wage of participants who found employment, the number of persons who retained jobs for 90 days, the number of participants placed in employment training and education programs, the number of clients referred to work first who failed to report, a compilation of barriers to employment by incidence and type experienced by participants, and the number of participants referred back to the family independence agency.

(10) A grant awarded under this section may extend beyond the end of the fiscal year in which the grant is awarded and the funds awarded for the grant may be available in the subsequent fiscal year for payment the next fiscal year.

(11) The department shall provide to the state budget director and the fiscal agencies by May 15 and November 15 of each year a report on the work first grants. The report due by May 15 shall provide the information described in this subsection for each grant or contract awarded during the preceding 2 quarters of the state fiscal year. The report due by November 15 shall provide this information for each grant or contract awarded during the preceding full fiscal year. The report shall contain both of the following:

(a) The amount and recipient of each grant or contract.

(b) The number of participants in each service delivery area and the number of clients placed in employment in each service delivery area.

(12) The department and the family independence agency shall continue to collaborate on refining and making available to work first participants clear joint guidelines on the eligibility of work first participants for postemployment training support and on how training/education hours can be applied toward federal work participation requirements. These guidelines shall balance the ability of participants to obtain training and subsequent long-term, high-wage employment with the need to connect participants with the workplace. Any and all training/education, with the exception of high school completion and GED preparation, must be occupationally relevant and in demand in the labor market as determined by the workforce development board. Participants must make satisfactory progress while in training/education. The department shall submit a progress report on these continuing efforts to the house and senate appropriations subcommittees with jurisdiction over the department and the family independence agency and to the fiscal agencies by October 1, 2000.

(13) Work first participants may meet the work participation requirement by combining a minimum of 10 hours per week of work with training/education. Training/education may last up to 12 months and the calculated hours may include actual classroom seat time up to 10 hours per week plus up to 1 hour of study time for each hour of classroom seat time. The combined work and training/education hours must equal the minimum number of hours required to meet the federal work participation requirements, 30 hours per week for a single parent, 35 hours per week for 2-parent families, 55 hours if utilizing federally funded day care, and 20 hours per week for single parents with a child under the age of 6. Work first participants may enroll in additional hours of classroom seat time beyond 10 hours. However, these hours and the related study time will not count toward the work participation requirement. The training may be no longer than a 1-year program, or the final year of a 2- or 4-year undergraduate program which is designed to lead to immediate labor force attachment.

(14) Work first participants may meet the federal work participation requirement through enrollment in a short-term vocational program requiring 30 hours of classroom seat time per week for a period not to exceed 6 months, or by enrollment in full-time internships, practicums, or clinicals required by an academic or training institution for licensure, professional certification, or degree completion, without an additional work requirement. Two-parent families who receive federally funded day care must work an additional 25 hours per week to meet the federal work participation requirement. In cases where a short-term vocational program lasts less than 6 months, the participant shall be eligible to enroll in 1 additional short-term vocational program for a combined period not to exceed a total of 6 months.

(15) Work first participants who lack a high school diploma or GED and who enroll in high school completion or classes to obtain a GED may count up to 10 hours of classroom seat time, combined with a minimum number of hours of work per week, to meet their federal work participation requirement. There shall be no time limit on high school completion. GED preparation shall be limited to 6 months.

Sec. 306. (1) Using all relevant state data sources, the department shall acquire data on former work first participants, whose family independence program cases closed due to earnings during fiscal year 1999, for the second year in the continuing longitudinal study started in fiscal year 2000. In addition, first-year data will also be compiled on former work first participants whose family independence program cases were closed due to earnings during fiscal year 2000. The data will include the following:

(a) The number and percentage employed.

(b) The average hourly wage of those employed.

(c) The current hourly wage of those employed.

(d) The range of wages earned by those employed.

(e) The number of individuals that earned each wage amount.

(f) The number and percentage receiving health care benefits from their employer.

(g) The number and percentage receiving tuition reimbursement from their employer.

(h) The number and percentage receiving training benefits from their employer.

(i) The type of jobs obtained by former participants in general categories.

(j) The length of time former participants have retained their jobs, or if participants have had more than 1 job, the length of time employed at each job.

(k) The number and percentage continuing to receive any type of public assistance.

(l) If the former recipient has children, whether the children are enrolled in and attending school.

(m) The extent to which the former participant feels that they and their family are better off now than when they were on cash assistance with regard to household income, housing, food and nutritional needs, child health care, and access to health insurance coverage.

(2) The department shall file a report containing the identified data with the appropriate house and senate appropriation subcommittees and fiscal agencies by March 15, 2001.

(3) The department shall cooperate with the family independence agency in formulating and acquiring the identified data.

(4) The department may retain a third party to conduct the studies to obtain the data identified under this section.

Sec. 307. The department shall work cooperatively with the department of civil service to identify state employees who will lose their jobs as a result of an agency or program being reorganized, modified, or eliminated and shall develop training programs and provide training to these individuals that will provide them an opportunity and skills necessary to secure new employment within state government or the private sector. It shall be a priority of the department to provide training and employment opportunities to these individuals through their employment service locations.

Sec. 308. State and federal funds allocated to local workforce development boards for disbursement shall not be appropriated unless the local workforce development boards maintain a partnership with governmental agencies, public school districts, and public colleges located within the local service delivery area. Each board shall appoint an education advisory group made up of high-level administrators within local educational institutions, workforce development board members, other employers, labor, academic educators, and parents of public school pupils.

Sec. 309. From the funds appropriated in part 1 to job training programs subgrantees, the department shall allocate sufficient funds to the Michigan works! service centers to allow these centers to remain fully operational.

Sec. 310. (1) Of the funds appropriated in part 1 for precollege programs in engineering and the sciences, $620,000.00 shall be provided in the form of a grant to the Detroit precollege engineering program, incorporated and $424,700.00 shall be provided in the form of a grant to the Grand Rapids area precollege engineering program.

(2) The department shall submit a report to the appropriate house and senate appropriations subcommittees and the fiscal agencies by February 1, 2001 regarding dropout rates, grade point averages, enrollment in science, engineering, and math-based curricula, and employment in science, engineering, and math-based fields for students within the programs. The report shall continue to evaluate the effectiveness of the precollege programs in engineering and sciences funded through part 1 appropriations and shall make recommendations on whether state support to expand such programs to other areas of the state is warranted in future fiscal years.

Sec. 311. Funds earned or authorized by the United States department of labor in excess of the gross appropriation in part 1 for the employment service agency from the United States department of labor are appropriated and may be expended for staffing and related expenses incurred in the operation of its programs. These funds may be spent after the department notifies the appropriations subcommittees of the house and senate of the purpose and amount of each grant award.

Sec. 312. (1) The department shall have at least 1 disabled veterans outreach program specialist or local veterans employment representative present, if able and willing to serve, at each Michigan works! employment services office on a full- or part-time basis during hours of operation.

(2) The department shall ensure that each Michigan works! employment services office shall have the necessary equipment to allow the disabled veterans outreach specialist or local veterans employment representative to perform his or her duties in the same manner they were performed prior to February 1, 1999.

(3) The department shall require each Michigan works! employment services office to have an employee available to ask each individual who enters the office for service whether that individual is a veteran and to refer each veteran to the disabled veterans outreach program specialist or local veterans employment representative on duty at the time.

(4) The department shall require that each Michigan works! employment services office shall have posted in a conspicuous place within the office a notice advising veterans that a disabled veterans outreach program specialist or a local veterans employment representative is available to assist him or her.

(5) The department shall require each Michigan works! employment services office to provide free mediated services to employers wishing to hire a veteran.

(6) The department shall continue to make the appropriate placement of veterans and disabled veterans a priority.

Sec. 313. The department shall report to the appropriations subcommittees of the house and senate by September 30, 2001, on the distribution of the Michigan community service commission volunteer investment grants.

Sec. 315. The funds appropriated in part 1 for the council of Michigan foundations from tobacco settlement revenue shall be distributed to the council of Michigan foundations as a grant to support local community efforts to address youth and senior health needs. The council may distribute the funds according to a formula determined by the council or may invest these funds. Any investment earnings from this appropriation shall be used for the same purpose as the original appropriation.

Sec. 316. The department may carry into the succeeding fiscal year unexpended federal pass-through funds to local institutions and governments that do not require additional state matching funds. Federal pass-through funds to local institutions and governments that are received in amounts in addition to those included in part 1 and that do not require additional state matching funds are appropriated for the purposes intended.

Sec. 317. Of the amounts appropriated in part 1 for postsecondary education, $250,000.00 of private occupational school license fees shall fund 3.0 FTE positions and related administrative costs of the proprietary schools oversight unit within the department.

Sec. 318. Money in the school loan exception fee fund that is unexpended at the end of the fiscal year shall not revert to the general fund but shall be carried over to the succeeding fiscal year.

Sec. 319. The department is appropriated an amount not to exceed $100,000.00 from collection of defaulted loans under the future faculty program in the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks programs to offset costs of administering the loan collections.

Sec. 320. From the funds appropriated in part 1 for postsecondary education, the department shall compile data from each university that receives funding for the future faculty program within the King-Chavez-Parks initiative on employment outcomes for program participants. The report shall be distributed to the house and senate appropriations committees by February 1 of each year. The report shall include data from each participating university covering the most recently completed fiscal year. The data shall include all of the following:

(a) The number of participants receiving support under the program.

(b) The number of participants obtaining full-time employment.

(c) The number of participants obtaining full-time employment in college faculty positions.

(d) The number of participants obtaining full-time employment in college faculty positions within the university through which they received future faculty program support for graduate studies.

Sec. 321. The appropriation in part 1 for adult education shall be utilized to support the administration of up to $100,000,000.00 in general fund/general purpose revenue for adult education programs. It is the intent of the legislature that department staff funded through the appropriation in part 1 ensure that at least $80,000,000.00 in adult education program funding be distributed through the existing grant process as outlined in section 107 of the state school aid act of 1979, 1979 PA 94, MCL 388.1707. No more than $20,000,000.00 may be administered through any alternative process.

Sec. 323. The department shall work with the department of community health to establish a Medicaid buy-in program for the working disabled through the options available under the federal ticket to work and work incentives improvement act of 1999.

Sec. 324. It is the intent of the legislature that the King-Chavez-Parks initiative is marketed by the department to Michigan parents and high school and college students, to promote the benefits and the availability of its various programs. It is further the intent of the legislature that the department administer the King-Chavez-Parks initiative in the same manner as when it was previously contained in the department of education.

Sec. 325. It is the intent of the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks future faculty program to increase the pool of minority candidates pursuing faculty teaching careers in postsecondary education. Each university shall apply the percentage increase applicable to every university in the calculation of appropriations allocated to the future faculty program.

Sec. 326. (1) It is the intent of the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college day program to introduce school children underrepresented in postsecondary education to the potential of a college education.

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

Sec. 327. (1) It is the intent of the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks select student support services program to develop academically and economically disadvantaged student retention programs for 4-year public and independent educational institutions in this state.

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

Sec. 328. (1) It is the intent of the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college/university partnership program between 4-year public and independent colleges and universities and public community colleges to increase the number of underrepresented minority students who transfer from community colleges into baccalaureate programs.

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

Sec. 329. It is the intent of the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks visiting professors program to increase the number of minority instructors in the classroom and provide role models for underrepresented minority students.

Sec. 330. Each state institution of higher education receiving funds under section 325, 326, 327, 328, or 329 shall notify the department by April 15, 2001 as to whether it will expend by the end of its fiscal year the funds received under section 325, 326, 327, 328, or 329. Notwithstanding the award limitations in sections 327 and 328, the amount of funding reported as not being expended will be reallocated to the institutions that intend to expend all funding received under section 325, 326, 327, 328, or 329.

Sec. 331. (1) It is the intent of the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks initiative for the Morris Hood, Jr. educator development program to increase the number of minority students, especially males, who enroll in and complete K-12 teacher education programs at the baccalaureate level.

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

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

MICHIGAN STRATEGIC FUND


Sec. 401. (1) The appropriation in part 1 to the fund for economic development job training shall be expended for competitive grants that ensure employers have the trained workers they need to compete in the global economy. The fund shall expedite grant awards for employers locating or expanding in Michigan and thereby creating significant numbers of new jobs in the state.

(2) Not more than 5% of the total grant, administration, and operating funds appropriated in part 1 for the fund's economic development job training grants program may be expended for administrative costs. Not more than 12% of the total grant awarded to recipients may be expended for administration costs.

(3) No funds appropriated in part 1 to the fund for economic development job training grants may be expended for the training of permanent striker replacement workers.

(4) At least 70% of the economic development job training grant funds shall be awarded to community colleges or a consortium of community colleges and other eligible applicants pursuant to the requirements of this section.

(5) Training grants provided by private sector trainers may reach or exceed 20% of total grants, but not less than 10%.

(6) An applicant may be a district, intermediate district, community college, public or private nonprofit college or university, nonprofit organization whose primary purpose is to provide education programs or employment and training services or vocational rehabilitation programs or school-to-work transition programs, local workforce development board, the headquarters of a federal and state sponsored manufacturing technology center, or a consortium consisting of any combination of districts, intermediate districts, community colleges, nonprofit organizations described in this subsection, or public or private nonprofit colleges or universities described in this subsection.

(7) On or before October 1, 2000, the fund shall publish proposed application criteria, instructions, and forms for use by eligible applicants. The fund shall provide at least a 2-week period for public comment prior to finalization of the application criteria, instructions, and forms.

(8) The award process will include a simple notice of intent to be reviewed to see if the application merits further consideration. If so, a full application may be submitted. Applications for all grants shall be submitted to the fund, and each application shall contain at least all of the following:

(a) The name, address, and total number of employees of each business organization whose employees are receiving job training.

(b) A description of the specific job skills that will be taught.

(c) A clear statement of the project's scope of activities and number of participants to be involved.

(d) A commitment to maintain participant records in a form and manner required by the fund.

(e) A budget which relates to the proposed activities and various program components.

(9) Priority in the fund's awarding of grants shall be based on the following criteria:

(a) Demonstrated need for the type of training offered.

(b) Creation and/or retention of high wage and high skilled level jobs.

(c) Other criteria determined by the fund to be important.

(10) Not more than $5,000,000.00 of the amount appropriated in part 1 for economic development job training may be allocated to rapid response grants for employee training programs which maintain or attract permanent jobs for Michigan residents. A grant under this subsection shall be awarded to eligible applicants under subsection (1)(a).

(11) Participants in economic development job training programs shall be 16 years or older and not enrolled and counted in membership in a school district or intermediate school district.

(12) Funds allocated under this section shall be for the purpose of ensuring that employers have trained workers they need to compete in the global economy. The fund shall have on file a specific plan to accomplish its objectives. The program estimated completion cost is the total amount appropriated to the fund and shall have an estimated completion date of September 30, 2005.

(13) A recipient of a grant under this section shall not charge tuition or fees to participants in the program funded by the grant. However, a nonprofit organization may charge tuition or fees if the tuition plan or fees are recognized by the state and the nonprofit organization receives additional funding from other governmental or private funding sources for its programs.

(14) For incumbent worker training, the business organization shall provide 25% of the program costs in matching funds as determined by the program.

(15) Grant funds shall be expended on a cost reimbursement basis.

(16) A recipient of a grant under this section shall allow the fund or the agency's designee to audit all records related to the grant for all entities that receive money, either directly or indirectly through a contract, from the grant funds. A grant recipient or contractor shall reimburse the state for all disallowances found in the audit.

(17) The fund shall provide to the state budget director and the fiscal agencies by April 15 and November 1 of each year a report on the economic development job training grants. The report due by April 15 shall provide the information described in this subsection for each grant or contract awarded during the preceding 2 quarters of the state fiscal year. The report due by November 1 shall provide this information for each grant or contract awarded during the preceding full fiscal year. The report shall contain all of the following:

(a) The amount and recipient of each grant or contract.

(b) The number of participants under each grant or contract and the number of new hires who are in training under the grant.

(c) The names, addresses, and total number of employees of all business organizations for whom training is or will be provided.

(d) The matching funds, if any, to be provided by a business organization.

(18) Of the funds appropriated in part 1 for economic development job training grants, the fund shall not use these funds to finance the startup or in any way subsidize any private distributor of liquor products in Michigan.

(19) As a condition of receiving funds under part 1 of this act, the fund shall not expend any of the economic development job training grant funds to train any employee who is an officer of a corporation in a corporation employing more than 250 employees.

(20) Of the funds appropriated in part 1, $1,000,000.00 may be used for a recruitment program. This will be a pilot program that provides worker recruitment assistance to companies in Michigan. Priority for using the funds shall be to recruit workers from outside the state of Michigan. However, in the event funds are available for in-state recruitment efforts, the Michigan works! agencies shall be utilized unless they indicate they are unable to provide the service.

Sec. 402. The travel administration may establish and collect a fee to cover the cost of materials and processing of photographic prints, slides, videotapes, and travel product database information that are requested by the media and other segments of the public and private sectors. The fees collected shall be appropriated for all expenses necessary to purchase and distribute these photographic prints, slides, videotapes, and travel product database information. The funds are available for expenditure when they are received by the department of treasury.

Sec. 403. The fund shall submit an annual status report to the appropriations subcommittees of the house of representatives and senate on all activities, grants, and investment programs financed from the strategic fund/renaissance fund using investment or Indian gaming revenues. The report shall provide a list of individual grants and loans made from the fund.

Sec. 404. The travel administration may receive and expend private revenue related to the use of the "Michigan Great Lakes. Great Times." copyrighted slogan and image. This revenue may come from the direct licensing of the name and image or from the royalty payments from various merchandise sales. Revenue collected is appropriated for the marketing of the state as a travel destination. The funds are available for expenditure when they are received by the department of treasury.

Sec. 405. Of the funds appropriated in part 1 for the Michigan promotion program, at least 25% of all program funds shall be used to promote cultural tourism opportunities in Michigan. In addition, $200,000.00 shall be used to promote tourism activities in the northeast region of the state.

Sec. 406. The fund shall submit on or before May 1, 2001 and November 1, 2001 to the senate and house of representatives appropriations subcommittees and the fiscal agencies a listing of all grants which have been awarded by the fund or by the Michigan economic development corporation from the funds appropriated in part 1. The list shall include all of the following:

(a) The name of the recipient.

(b) The amount awarded to the recipient.

(c) The purpose of the grant.

Sec. 407. (1) The fund shall provide reports to the relevant senate and house of representatives appropriations subcommittees and the fiscal agencies concerning the activities of the Michigan economic development corporation. The report shall include, but not be limited to, the following programs funded in part 1:

(a) Travel Michigan bureau.

(b) National business development.

(c) International business development.

(d) Small, minority, and disabled business services.

(e) CDBG.

(f) Strategic/renaissance fund administration.

(g) Renaissance zones.

(h) Business roundtables.

(i) Business and clean air ombudsman.

(j) Economic development job training grants.

(k) Film office.

(l) Health and aging research and development initiative.

(m) Any other programs of the fund.

(2) The reports in subsection (1) shall be submitted by January 1, 2001. The report for each program in subsection (1)(a) through (m) shall include details on the actual spending and number of FTEs for that program for the previous fiscal year.

Sec. 408. As a condition of receiving funds under part 1, any interlocal agreement entered into by the fund shall include language which states that if a local unit of government has a contract or memorandum of understanding with a private economic development agency, the Michigan economic development corporation will work cooperatively with that private organization in that local area.

Sec. 409. (1) Of the funds appropriated to the fund or through grants to the Michigan economic development corporation, no funds shall be expended for the purchase of options on land or the purchase of land unless at least 1 of the following conditions applies:

(a) The land is located in an economically distressed area.

(b) The land is obtained through a purchase or exercise of an option at the invitation of the local unit of government and local economic development agency.

(2) It is the intent of the legislature that consideration be given to purchases where the proposed use of the land is consistent with a regional land use plan, will result in the redevelopment of an economically distressed area, can be supported by existing infrastructure, and will not cause shifts in population away from the area's population centers.

(3) As used in this section, "economically distressed area" means an area in a city, village, or township that has been designated as blighted; a city, village, or township that shows negative population change from 1970 and a poverty rate and unemployment rate greater than the statewide average; or an area certified as a neighborhood enterprise zone.

Sec. 410. (1) From the funds appropriated in part 1 for the fund, $50,000,000.00 is appropriated for a health and aging research and development initiative to support basic and applied research in health-related areas, with emphasis on issues related to aging. The program shall be administered by the Michigan economic development corporation.

(2) A health and aging steering committee, appointed by the governor, shall consist of 14 members including the CEO of the Michigan economic development corporation, a member from Michigan State University, the University of Michigan, Wayne State University, the VanAndel Institute, and 2 members from the private sector. The remaining members shall be appointed at large and may include members from the private sector, public sector, or other Michigan universities. The purpose of the steering committee is to provide advice and oversight of the initiative, including the development of criteria for the award of contracts or grants to qualifying universities, institutions, or individuals. The steering committee will make decisions regarding distribution of these grant funds and has the authority to make minor adjustments to the category funding percentage based upon the demands within categories and the quality of the applications received.

(3) Of the funds appropriated, 40% is allocated for a basic research fund, to be distributed on a competitive basis to Michigan universities or Michigan nonprofit research institutes, or both, for basic research in health-related areas. Not less than $5,000,000.00 is allocated to research related to aging diseases and health problems. Fifty percent of the appropriated funds are earmarked for a collaborative research fund to support peer-reviewed collaborative grants among Michigan universities and/or private research facilities, with emphasis on testing or developing emerging discoveries. Up to 10% of the appropriated funds may be used to support a commercial development fund to support commercialization opportunities for life science research in Michigan. Appropriated funds must be matched with other university, private, or federal funding. Not more than 1% of the appropriated funds may be used for administrative costs of administering the initiative.

Sec. 411. (1) The appropriation in part 1 for the Michigan small business development center network shall be awarded to the Michigan small business development center state headquarters, located at Wayne State University, for distribution to the small business development centers' offices located throughout Michigan. The Michigan small business development center state headquarters shall establish criteria for awarding these grant funds, which shall include, but are not limited to, all of the following:

(a) The ability to demonstrate a clear and effective plan to deliver small business management assistance services in this state.

(b) How small business management assistance services will enhance and expand basic services provided by the Michigan small business development center network under its existing cooperative agreement with the United States small business administration.

(2) The Michigan small business development center state headquarters shall compile a summary report to the fund that shall include a financial statement identifying all encumbrances on or expenditures from these grant funds. The summary report shall be submitted by September 30, 2001. The summary report shall include an economic impact analysis resulting from expenditure of the funds. All financial and impact reports shall be made available to the appropriate subcommittee of the house and senate appropriations committee upon request.

Sec. 412. The fund shall inform the members of the appropriate appropriations subcommittees of the house and senate of any decisions to eliminate any foreign outreach personnel.

Sec. 413. The money appropriated in part 1 to the fund is subject to the condition that none is spent for premiums or advertising material involving personal effects or apparel including, but not limited to, T-shirts, hats, coffee mugs, or other promotional items, except Travel Michigan.

Sec. 414. (1) From the general fund/general purpose appropriations in part 1 to the fund and granted or transferred to the Michigan economic development corporation, any unexpended or unencumbered balance shall be returned to the general fund at the end of the fiscal year, unless carryforward authorization has been otherwise provided for in this act.

(2) Any encumbered funds shall be used for the same purposes for which funding was originally appropriated in this act.

Sec. 415. As a condition of receiving funds under part 1, the fund shall ensure that a public body corporate, created under section 28 of article VII of the state constitution of 1963, and the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by a contractual interlocal agreement between local participating economic development corporations formed under the economic development corporations act, 1974 PA 338, MCL 125.1601 to 125.1636, and the Michigan strategic fund, complies with all of the following:

(a) The freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

(b) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

(c) Annual audits of all financial records by the auditor general or his or her designee.

(d) All reports required by law to be submitted to the legislature.

Sec. 417. As a condition for receiving the appropriations in part 1, any staff of the Michigan economic development corporation involved in private fund-raising activities shall not be party to any decisions regarding the awarding of grants or tax abatements from the Michigan strategic fund, Michigan economic development corporation, or the Michigan economic growth authority.

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

A bill to make appropriations for the department of career development and the Michigan strategic fund and certain other state purposes for the fiscal year ending September 30, 2001; to provide for the expenditure of the appropriations; and to provide for the disposition of fees and other income received by the state agencies.

Janet Kukuk

Patricia Godchaux

Conferees for the House

Shirley Johnson

Leon Stille

Conferees for the Senate

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

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

The motion prevailed.

The question being on the adoption of the second conference report,

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

Roll Call No. 812 Yeas--70

Allen Frank Kuipers Rocca

Baird Garcia Kukuk Sanborn

Birkholz Geiger LaSata Scranton

Bisbee Gilbert Law Shackleton

Bishop Godchaux Martinez Sheltrown

Bradstreet Green Mead Shulman

Brown, B. Hager Middaugh Spade

Brown, C. Hart Mortimer Stamas

Byl Howell Neumann Tabor

Cassis Jacobs Pappageorge Toy

Caul Jamnick Patterson Van Woerkom

Clarke, H. Jansen Pestka Vander Roest

DeHart Jellema Price Vear

DeRossett Johnson, Rick Pumford Voorhees

DeVuyst Johnson, Ruth Quarles Wojno

DeWeese Julian Richardville Woodward

Ehardt Koetje Richner Woronchak

Faunce Kowall

Nays--34

Basham Garza Lockwood Rivet

Bogardus Gieleghem Mans Schauer

Bovin Gosselin Minore Schermesser

Brater Hale O'Neil Scott

Callahan Hanley Prusi Stallworth

Cherry Hansen Raczkowski Switalski

Clark, I. Hardman Reeves Tesanovich

Daniels Kelly Rison Vaughn

Dennis LaForge

In The Chair: Birkholz

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

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

______

Rep. Hanley moved that Rep. Brewer be excused temporarily from today's session.

The motion prevailed.

Rep. Vander Roest moved that Rep. Caul be excused temporarily from today's session.

The motion prevailed.

Senate Bill No. 963, entitled

A bill to make appropriations for community colleges and certain state purposes related to education for the fiscal year ending September 30, 2001; to provide for the expenditures of those appropriations; to establish or continue certain funds, programs, and categories; and to prescribe the powers and duties of certain state departments, institutions, agencies, employees, and officers.

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

The Conference Report was read as follows:

First Conference Report

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

Senate Bill No. 963, entitled

A bill to make appropriations for community colleges and certain state purposes related to education for the fiscal year ending September 30, 2001; to provide for the expenditure of those appropriations; to establish or continue certain funds, programs, and categories; and to prescribe the powers and duties of certain state departments, institutions, agencies, employees, and officers.

Recommends:

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

A bill to make appropriations for community colleges and certain state purposes related to education for the fiscal year ending September 30, 2001; to provide for the expenditure of those appropriations; to establish or continue certain funds, programs, and categories; and to prescribe the powers and duties of certain state departments, institutions, agencies, employees, and officers.

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 community colleges and certain other state purposes relating to education for the fiscal year ending September 30, 2001, from the funds indicated in this part. The following is a summary of the appropriations in this part:

COMMUNITY COLLEGES

GROSS APPROPRIATION $ 325,061,722

Total interdepartmental grants and intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 325,061,722

Total federal revenues 0

Total local revenues 0

Total private revenues 0

Total state restricted revenues 10,000,000

State general fund/general purpose $ 315,061,722

Sec. 102. OPERATIONS

Alpena Community College $ 5,231,386

Bay de Noc Community College 5,034,112

Delta College 14,608,257

Glen Oaks Community College 2,434,150

Gogebic Community College 4,315,860

Grand Rapids Community College 18,448,891

Henry Ford Community College 22,296,069

Jackson Community College 12,434,747

Kalamazoo Valley Community College 12,554,684

Kellogg Community College 9,883,088

Kirtland Community College 3,023,951

Lake Michigan College 5,322,074

Lansing Community College 31,686,670

Macomb Community College 33,986,564

Mid Michigan Community College 4,501,743

Monroe County Community College 4,378,640

Montcalm Community College 3,189,079

C.S. Mott Community College 16,053,265

Muskegon Community College 9,143,771

North Central Michigan College 3,099,734

Northwestern Michigan College 9,307,774

Oakland Community College 21,473,255

St. Clair County Community College 7,176,573

Schoolcraft College 12,553,717

Southwestern Michigan College 6,705,122

Washtenaw Community College 12,642,980

Wayne County Community College 17,053,189

West Shore Community College 2,347,140


GROSS APPROPRIATION $ 310,886,488

Appropriated from:

State general fund/general purpose $ 310,886,488

Sec. 103. GRANTS

At-risk student success program $ 3,692,103

Renaissance zone tax reimbursement funding 483,131


GROSS APPROPRIATION $ 4,175,234

Appropriated from:

State general fund/general purpose $ 4,175,234

Sec. 104. FINANCIAL AID

Postsecondary access student scholarship program $ 10,000,000


GROSS APPROPRIATION $ 10,000,000

Appropriated from:

Special revenue funds:

Michigan tobacco settlement trust fund 10,000,000

State general fund/general purpose $ 0

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2000-2001 is $325,061,722.00 and state spending from state resources to be paid to local units of government for fiscal year 2000-2001 is $325,061,722.00.

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

Sec. 208. The department shall continue to pilot the use of the Internet to fulfill the reporting requirements of this act. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on the Internet or legislative Intranet site. The senate and house of representatives appropriations subcommittees and senate and house fiscal agencies shall be notified in writing of the Internet or Intranet site of any such report. Quarterly, the department shall provide a cumulative listing of the reports submitted during the most recent 3-month period along with the Internet or Intranet site of each report, and a list of those reports expected to be transmitted in the following quarter.

Sec. 209. Funds appropriated in part 1 shall not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods or services, or both, are available.

Sec. 210. The director of each department receiving appropriations in part 1 shall take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies, or both. Each director shall strongly encourage firms with which the department contracts to subcontract with certified businesses in depressed and deprived communities for services, supplies, or both.

Sec. 211. (1) The money appropriated in this act is appropriated for community colleges with fiscal years ending June 30, 2001 and shall be paid out of the state treasury and distributed by the state treasurer to the respective community colleges in 11 monthly installments on the sixteenth of each month, or the next succeeding business day, beginning with October 16, 2000. Each community college shall accrue its July and August 2001 payments to its institutional fiscal year ending June 30, 2001. However, if a community college fails to submit all verified Michigan community colleges activities classification structure data for school year 1999-2000 to the department of career development by November 1, 2000, the monthly installments shall be withheld from that community college until those data are submitted. The department of career development shall publish the activities classification structure data book for Michigan community colleges on or before March 1, 2001 for use by the legislature during budget development for the fiscal year ending September 30, 2002. The amount from the money appropriated in part 1 that is allocated under section 103 to address the special needs of at-risk students shall be paid in full by the state treasurer by November 1, 2000. The amount distributed to a community college or department shall not exceed the net state allocation authorized by this act.

(2) Except as otherwise provided by law, each of the amounts appropriated shall be used solely for the respective purposes stated in this act. The money appropriated by this act may be used to match the cost of any available programs under the Carl D. Perkins vocational and applied technology education act, Public Law 88-210, 98 Stat. 2435, including local administration.

Sec. 212. (1) The auditor general or an independent public accounting firm appointed by the auditor general shall audit data for the fiscal year ending on June 30, 2000 as submitted to the department of career development by 7 randomly selected community colleges. A community college shall maintain and provide those records necessary for the auditor general or certified public accountant appointed by the auditor general to determine the accuracy of the reported data. The audits shall be based upon the definitions and requirements contained in the Manual for Uniform Financial Reporting, Michigan Public Community Colleges, published by the Michigan state board of education in 1981, and the Activities Classification Structure Manual for Michigan Community Colleges, 1996 revision of the final report of the activities classification structure task force (July 1981), published by the department of education. Before the submission of a final audit report, a community college may appeal the findings of the preliminary report under an appeal process to be established by the auditor general. The auditor general shall submit a report of the findings to the house and senate appropriations committees, the department of career development, and the state budget director before June 1, 2001.

(2) The auditor general or a certified public accountant appointed by the auditor general shall conduct not less than 3 performance audits of community colleges but may conduct more if the auditor general considers it necessary.

(3) Not more than 60 days after an audit report is released by the office of the auditor general, the principal executive officer of the community college that was audited shall submit to the house and senate appropriations committees, the house and senate fiscal agencies, the department of career development, the auditor general, and the department of management and budget a plan to comply with audit recommendations. The plan shall contain projected dates and resources required, if any, to achieve compliance with the audit recommendations, or a documented explanation of the college's noncompliance with the audit recommendations concerning the matters on which the audited community college and office of the auditor general disagree.

(4) A community college whose audited activities classification structure data is significantly different than the data used to determine state aid under this act shall return any overappropriated money as provided in this section. The department of career development shall compare formula computations for the audited colleges using pre- and post-audit data. If the state allocation is 2% or more than the post-audit allocation amount, the college shall return the excess money. The returned money shall be redistributed to all 28 community colleges, prorated on the base appropriations contained in part 1.

Sec. 213. The department of career development shall review the taxonomy of the 7 community colleges selected for the audit under section 212 that is based on the Activities Classification Structure Manual for Michigan Community Colleges, 1996 revision of the final report of the activities classification structure task force (July 1981), published by the department of education.

Sec. 214. (1) A community college shall retain certified class summaries, class lists, registration documents, and student transcripts that are consistent with the taxonomy of courses. For each enrollment period during the fiscal year, these certified documents shall identify clearly by course the number of in-district and out-of-district student credit and contact hours. The class summaries and class lists shall be consistent with each other and shall include the course prefix and numbers, course title, course credit and contact hours, credit and contact hours generated by each student, and activity classifications consistent with the taxonomy. An auditable process shall be used by the community college to determine the unduplicated head count for in-district students, out-of-district students, and prisoners for each enrollment period during the fiscal year.

(2) Contracts between the community college and agencies that reimburse the community college for the costs of instruction shall be retained for audit purposes.

Sec. 215. Each community college shall have an annual audit of all income and expenditures performed by an independent auditor and shall furnish the independent auditor's management letter and an annual audited accounting of all general and current funds income and expenditures including audits of college foundations to the legislature, the senate and house fiscal agencies, the auditor general, the department of career development, and the state budget director before November 15, 2000. If a community college fails to furnish the audit materials, the monthly state aid installments shall be withheld from that college until the information is submitted. All reporting shall conform to the requirements set forth in the Manual for Uniform Financial Reporting, Michigan Public Community Colleges, published by the Michigan state board of education in 1981.

Sec. 216. (1) A community college shall pay the employer's contributions to the Michigan public school employees' retirement system created by the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408, as a condition of receiving money appropriated under this act. If amendments to the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408, that require pre-funding of the health benefits portion of the Michigan public school employees' retirement system are enacted and take effect, those amendments apply to community colleges.

(2) A community college shall not pay an employer's contribution to more than 1 retirement fund providing benefits for an employee.

Sec. 217. An appropriation contained in this act shall not be used for the construction of buildings for, or operations of, a community college not expressly authorized in part 1. Money appropriated in part 1 shall not be used to pay for the construction or maintenance of a self-liquidating project.

Sec. 218. The department of career development shall ensure that a statistical report for minorities and women employees for the most recent school year as submitted to the federal government on the EEO-6 form be included in the Michigan Community Colleges Enrollment Profile published by the department of career development. Also included in this profile shall be a statistical report for the most recent school year that includes enrollment statistics for minorities and women from the current year as submitted to the department of career development and from the prior year as submitted to the department of education. The department of career development shall distribute a copy of this report to the state budget director and to members of the house and senate appropriations subcommittees on community colleges and the house and senate fiscal agencies no later than March 1, 2001.

Sec. 219. (1) The department of treasury shall annually collect and compile data on the tax revenue losses to community colleges resulting from tax increment financing authorities (TIFA) and tax abatements. The department of treasury shall produce a report detailing the data. The report shall be completed and presented to the house and senate appropriations subcommittees on community colleges, the department of career development, and the department of management and budget not later than February 15, 2001. The report shall include, but is not limited to, the following:

(a) Estimated revenue losses for each community college for the calendar year 2000.

(b) Confirmed revenue losses for each community college for the calendar years 1999, 1998, and 1997.

(c) Other requirements requested by the house and senate appropriations subcommittees on community colleges.

(2) From the general fund/general purpose appropriation in part 1 for renaissance zone and TIFA tax reimbursement funding, there is allocated $50,000.00 to reimburse community colleges for data collection efforts in assisting the department of treasury to collect data from local units of government to determine property tax revenue losses as a result of tax increment financing for calendar year 2000. Reimbursements shall be made in equal amounts to each college.

Sec. 220. The auditor general shall audit the 1999, 1998, and 1997 calendar years tax revenue losses to community colleges resulting from TIFAs and tax abatements. The auditor general shall submit the results of this audit to the house and senate appropriations subcommittees on community colleges and the senate and house fiscal agencies by February 15, 2001.

Sec. 221. (1) Each community college shall report the following to the department of career development, no later than November 1, 2000:

(a) The number of North American Indian students enrolled each term for the previous fiscal year, using guidelines and procedures developed by the department of career development and the Michigan commission on Indian affairs.

(b) The number of Indian tuition waivers granted each term, and the monetary value of the waivers for the previous fiscal year.

(2) Colleges shall use the criteria cited in 1976 PA 174, MCL 390.1251 to 390.1253, to determine eligibility for tuition waivers, and shall grant those waivers to individuals who meet the criteria and request tuition waivers.

(3) The department of career development shall compile the information received under subsection (1) and shall submit this compilation to the house and senate appropriations subcommittees on community colleges, the senate and house fiscal agencies, and the state budget director by January 7, 2001.

Sec. 222. From the general fund/general purpose appropriation in part 1 for renaissance zone and TIFA tax reimbursement funding, there is allocated $433,131.00 to make reimbursement to community colleges, as provided by section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692, for property taxes levied in 2000 and $50,000.00 for purposes described in section 219(2). Reimbursements shall be made in amounts to each eligible recipient no later than 60 days after the department of treasury certifies to the state budget director that it has received all necessary information to properly determine the amounts due each eligible recipient under section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692. Excess allocations lapse to the general fund.

Sec. 223. Upon request, a community college shall inform interested Michigan high schools of the aggregate academic status of its students for the fiscal year beginning October 1, 2000, in a manner prescribed by the Michigan community college association and in cooperation with the Michigan association of secondary school principals.

Sec. 224. (1) Recognizing the critical importance of education in strengthening Michigan's workforce, the legislature encourages the state's public community colleges to explore ways of increasing collaboration and cooperation with 4-year universities, particularly in the areas related to training, instruction, and program articulation.

(2) Community colleges shall report by December 1, 2000 to the department of career development on steps they have taken to increase collaboration and cooperation with 4-year universities under subsection (1).

(3) The department of career development shall compile the information received under subsection (2) and shall submit this compilation to the house and senate appropriations subcommittees on community colleges and the senate and house fiscal agencies by January 7, 2001.

Sec. 225. The legislature intends that all citizens of this state have geographic and programmatic access to quality comprehensive community college services. The legislature and the Michigan community college association shall continue to review and analyze the recommendations made by the co-terminus task force to assure geographic and programmatic access to quality and comprehensive community college services. The legislature recognizes that as of January 1, 2000 there were also public universities that provide quality comprehensive community college services for citizens of this state who are not served by a community college district.

Sec. 226. Each community college shall report to the house and senate fiscal agencies and the department of career development a modification in credit or contact hour tuition or mandatory non-course-related student fees not later than 30 days after the modification is established by the college governing board.

Sec. 227. (1) Each community college shall report to the department of career development the numbers and type of associate degrees and other certificates awarded during the previous fiscal year. The report shall be made not later than November 15, 2000.

(2) The department of career development shall compile the information received under subsection (1) and shall submit this compilation to the house and senate appropriations subcommittees on community colleges, the senate and house fiscal agencies, and the state budget director by January 7, 2001.

Sec. 228. The legislature intends to achieve full funding of the Gast-Mathieu fairness in funding formula.

Sec. 229. (1) A community college receiving funding under this act and also subject to the student right-to-know and campus security act, Public Law 101-542, 104 Stat. 2381, shall make a copy of all material prepared in accordance with the public information reporting requirements under the crime awareness and campus security act of 1990, title II of the student right-to-know and campus security act, Public Law 101-542, 104 Stat. 2384, available in hard copy and electronic format accessible through the Internet for school districts, parents, and students.

(2) The department of career development shall compile and make information received under subsection (1) available in written and electronic format accessible through the Internet for school districts, parents, and students.

Sec. 230. (1) A community college shall not expend money appropriated under this act to provide health care coverage for community college employees or their dependents for abortion services, other than for spontaneous abortion or to prevent the death of the woman upon whom the abortion is performed. A community college shall not approve a collective bargaining agreement or enter into any other employment contract that includes health care coverage for abortion services other than spontaneous abortion or to prevent the death of the woman upon whom the abortion is performed.

(2) If a community college expends money appropriated under this act in violation of subsection (1), the community college shall repay to this state an amount equal to the amount of money spent in violation of subsection (1).

Sec. 231. In light of sections 1, 3, and 4 of 1846 RS 83, MCL 551.1, 551.3, and 551.4, and section 1 of 1939 PA 168, MCL 551.271, the legislature intends that a community college receiving funding under this act shall not use part 1 money to extend employee benefits to the unmarried partners of the community college's employees except for pre- and post-natal costs.

Sec. 233. Community colleges that include prescription drugs and medications as a covered health benefit for adults are encouraged to ensure that payment for preventative contraceptives are included in the insurance plan.

Sec. 234. The legislature intends that each community college do all of the following:

(a) Undertake active measures to promote equal opportunities, eliminate discrimination, and foster a diverse student body and administration among all people including, but not limited to, women, minorities, seniors, veterans, and people with disabilities.

(b) Review, analyze, and eradicate activities that may tend to discriminate.

STATE AID - OPERATIONS


Sec. 301. Unless otherwise stated, all data items used in determining state aid in this act are as defined in the Manual for Uniform Financial Reporting, Michigan Public Community Colleges, published by the Michigan state board of education in 1981, which shall be the basis for reporting data, and the Activities Classification Structure Manual for Michigan Community Colleges, 1996 revision of the final report of the activities classification structure task force (July 1981), published by the department of education, which shall be used to document financial needs of the community colleges.

Sec. 302. A community college shall not include in the enrollment report any student credit hours or student contact hours for a student incarcerated in a Michigan penal institution. Exclusion of these students is intended to avoid the payment of state aid under this act for the same individuals for whom reimbursement is provided by the state correctional system.

Sec. 303. (1) Community colleges shall use a portion of the money appropriated in part 1 for operations to implement and institute the ideas and goals embodied by the partnerships for employment program or another program with similar nature and intent as the ideas and goals embodied in the partnership for employment program. For this program, community colleges shall form identifiable links with local businesses or local business alliances to ascertain the immediate and lasting employment needs of the community. In so doing, the colleges in conjunction with the businesses shall create specific, direct certificate programs that upon completion will lead to an increased likelihood of employment by the sponsoring businesses.

(2) When creating programs under subsection (1), the community colleges shall consider all of the following:

(a) The likelihood of the project directly providing a discrete population of unemployed or underemployed workers with job skills that will lead to increased likelihood of desired employment with the sponsoring businesses.

(b) The use of appropriations to efficiently coordinate existing, but largely unconnected, resources for worker training.

(c) The use of performance outcome measures to detail a correlation between partnering with local businesses to provide specific training, and the population attaining employment upon successful completion of such training.

(3) Each community college shall report to the department of career development by no later than September 30, 2001 on all of the following:

(a) The number of certificated programs created under this section.

(b) The job placement rate for graduates with sponsoring businesses under this section.

(c) The amount budgeted for the partnership for employment program.

(d) The amount expended and for what activities for the partnership for employment program.

(e) The number of employers who have agreed to hire participants who complete the partnership for employment program.

(4) The department of career development shall compile the information received under subsection (3) and shall submit this compilation to the senate and house appropriations subcommittees on community colleges, the state budget director, and the senate and house fiscal agencies by November 1, 2001.

GRANTS


Sec. 401. (1) The community college at-risk student success program is continued. The funding shall be prorated among community colleges based on the number of student contact hours for developmental and preparatory instruction reported by each community college to the department of education for use in the Activities Classification Structure Manual for Michigan Community Colleges, 1996 revision of the final report of the activities classification structure task force (July 1981), published by the department of education. Of the amount appropriated in part 1 for the at-risk student success program, $1,120,000.00 is allocated for base grants of $40,000.00 each, to address the special needs of at-risk students at community colleges or the acquisition or upgrade of technology related equipment and software.

(2) Of the amount appropriated in part 1 for the at-risk student success program, the balance of the appropriated money shall be distributed on a proration utilizing the sum of the most recent 3 years developmental/preparatory contact hours divided by the sum of the 3-year total contact hours at each college. Each community college's percentage shall be divided by the sum of all the percentages systemwide to obtain each community college's prorated grant amount.

(3) For the fiscal year ending September 30, 2001, the at-risk student success program money is allocated as follows:

Alpena Community College $ 121,725

Bay de Noc Community College 105,324

Delta College 110,504

Glen Oaks Community College 131,210

Gogebic Community College 78,617

Grand Rapids Community College 76,714

Henry Ford Community College 168,324

Jackson Community College 114,933

Kalamazoo Valley Community College 118,490

Kellogg Community College 157,285

Kirtland Community College 145,724

Lake Michigan College 194,902

Lansing Community College 134,738

Macomb Community College 90,272

Mid Michigan Community College 123,549

Monroe Community College 102,673

Montcalm Community College 70,131

Mott Community College 105,617

Muskegon Community College 212,002

North Central Michigan College 178,833

Northwestern Michigan College 120,835

Oakland Community College 164,112

St. Clair Community College 77,130

Schoolcraft College 148,852

Southwestern Michigan College 186,227

Washtenaw Community College 148,858

Wayne County Community College 158,329

West Shore Community College 146,193

(4) As used in this act, "at-risk students" means students who meet 1 or more of the following criteria:

(a) Are initially placed in 1 or more developmental courses as a result of standardized testing or as a result of failure to make satisfactory academic progress.

(b) Are diagnosed as learning disabled.

(c) Require English as a second language (ESL) assistance.

(5) Grant funding under this section shall be utilized to address the special needs of at-risk students or for equipment or upgrade of information technology hardware or software. Activities related to services provided to at-risk students include, but are not limited to, pretesting for academic ability, counseling contacts, and special programs. Equipment or information technology hardware or software purchased under this section need not be associated with the operation of a program designed to address the needs of at-risk students.

(6) Grant funding under this section shall not be used for indirect costs including, but not limited to, rent, utilities, or, except as provided in this section, college administration.

(7) Each community college shall report to the department of career development a summary of all accomplishments under, expenditures for, and compliance with the intent of this program, including the number of at-risk students served. The report is subject to audit as provided for in section 204(1). The report shall be submitted not later than 90 days after the end of the state's fiscal year. The department of career development shall compile the information received under this subsection and shall submit this compilation to the house and senate appropriations subcommittees on community colleges, the senate and house fiscal agencies, and the state budget director by 120 days after the end of the state's fiscal year.

(8) Each community college receiving grant money under this section shall, not more than 12 months after receipt of that money, certify to the state treasurer, the state budget director, the house and senate fiscal agencies, and the auditor general whether all the grant money is expended or encumbered.

Sec. 402. The legislature intends that any executive or legislative proposal or action, subsequent to the adoption of a recommendation for appropriations for community colleges for the fiscal year ending September 30, 2001, to increase appropriations to state-supported 4-year universities in excess of the governor's original recommendation for the fiscal year ending September 30, 2001, will be accompanied by a similar action or proposal for state-supported community colleges.

Sec. 403. The legislature intends that not less than 70% of the economic development job training grant money be awarded to community colleges or a consortium of community colleges and other eligible applicants as provided in the budget that appropriated the economic development job training grant money. Further, the legislature intends that at least a portion of the total appropriation for economic development job training grants be awarded to community colleges that offer certified programs that are bureau of apprenticeship training certified. The Michigan economic development corporation shall report by November 1 of each year to the house and senate appropriations subcommittees on community colleges and the senate and house fiscal agencies the names of the community colleges awarded grant money under this section, the amount of the grants awarded, and the percentage awarded to bureau of apprenticeship training certified programs.

Sec. 404. (1) The Michigan postsecondary access student scholarship (PASS) program is established to provide a PASS award as calculated under this section for a student who is eligible under subsection (2), (3), or (4). The Michigan higher education assistance authority (MHEAA) shall administer the PASS program, for which there is $10,000,000.00 appropriated in part 1, and the PASS program shall comply with the requirements of this section.

(2) A student is eligible for a PASS award for the equivalent of 2 years of full-time college enrollment if the student meets all of the following:

(a) The student must be a Michigan resident enrolled in a program leading to an associate degree that was in existence as of January 1, 2000 at a Michigan public community college, Michigan public university, or Michigan independent nonprofit, degree-granting college or university.

(b) The student must be enrolled at least half-time.

(c) The student must be younger than 22 years old at the time of enrollment.

(d) The student must have scored at level 1 or level 2 on the high school Michigan education assessment program (MEAP) tests in reading, writing, mathematics, and science.

(e) The student must be eligible for a federal Pell grant.

(f) Other requirements established by the MHEAA.

(3) A student who meets all the requirements of subsection (2), other than subsection (2)(d), but has taken the high school MEAP tests in reading, writing, mathematics, and science while in high school shall receive a PASS award for 1 year of college enrollment. If the student maintains satisfactory academic progress in that first year of college enrollment, the student shall receive a PASS award for a second year of college enrollment.

(4) A student who is 22 years old or older who meets all the requirements of subsection (2), other than subsection (2)(c) and (d), shall receive a maximum $500.00 PASS award, not to exceed tuition and fees, for the second year of college enrollment. A student may qualify under this section whether or not the student took any of the high school MEAP tests.

(5) PASS award eligibility is limited to 2 semesters or 3 terms in any academic year.

(6) A PASS award for a student eligible under subsection (2), (3), or (4) shall be calculated by the MHEAA as the amount remaining after subtracting from the value of the student's allowable tuition and fees, as prescribed in subsection (8), all of the following state and federal financial educational assistance for which that student is eligible:

(a) Michigan competitive scholarship.

(b) Michigan tuition grant.

(c) Pell grant.

(d) Federal hope scholarship tax credit.

(7) The department of treasury shall prepare, and MHEAA shall utilize, a tax credit table that imputes an amount to be subtracted under subsection 6 for the federal hope scholarship tax credit.

(8) The value of a student's allowable tuition and fees is as follows:

(a) For student enrolled at a Michigan community college, the value of allowable tuition and fees is the in-district tuition and fees. For a student who does not reside within a community college district, the value of allowable tuition and fees is the out-of-district tuition and fees for the community college that the student is attending.

(b) For a student enrolled at a Michigan public university, the value of allowable tuition and fees is the lower-level resident tuition and fees for that public university.

(c) For a student enrolled at a Michigan independent, nonprofit, degree-granting college or university, the value of allowable tuition and fees is the average, lower-level resident tuition and fees for all Michigan public universities for the immediately preceding academic year as reported before August 1 after that academic year.

(9) The MHEAA shall remit an eligible student's PASS award to a higher education institution in accordance with procedures established by the MHEAA.

(10) The PASS award may be utilized by the student to pay costs of attendance as determined by the MHEAA.

(11) The PASS program shall not be applied for a student's theology or divinity courses.

(12) The MHEAA shall develop an application and eligibility determination process that ensures that all of the requirements prescribed by this section are met.

(13) Students who are expected to receive a tuition incentive program scholarship are not eligible for the PASS program.

(14) The MHEAA shall submit to the senate and house appropriations subcommittees on community colleges, the house and senate fiscal agencies, and the department of management and budget by May 1, 2001 a comprehensive report on the PASS program through December 31, 2000, including, but not limited to:

(a) Number of PASS program recipients by college.

(b) Average PASS award per student, including minimum and maximum, by college.

(c) Total PASS program expenditures.

(d) Other applicable PASS program information, including, but not limited to, the estimated PASS program and cost impact of removing age restrictions and of raising the income eligibility amount

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

A bill to make appropriations for community colleges and certain state purposes related to education for the fiscal year ending September 30, 2001; to provide for the expenditure of those appropriations; to establish or continue certain funds, programs, and categories; and to prescribe the powers and duties of certain state departments, institutions, agencies, employees, and officers.

Harry Gast

Mike Goschka

Alma Wheeler Smith

Conferees for the Senate

Tony Stamas

Patricia Godchaux

Steve Pestka

Conferees for the House

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

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

The motion prevailed.

The question being on the adoption of the conference report,

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

Roll Call No. 813 Yeas--105

Allen Garcia Kuipers Rison

Baird Garza Kukuk Rocca

Basham Geiger LaForge Sanborn

Birkholz Gieleghem LaSata Schauer

Bisbee Gilbert Law Schermesser

Bishop Godchaux Lockwood Scott

Bogardus Green Mans Scranton

Bovin Hager Martinez Shackleton

Bradstreet Hale Mead Sheltrown

Brater Hanley Middaugh Shulman

Brown, B. Hansen Minore Spade

Brown, C. Hardman Mortimer Stallworth

Byl Hart Neumann Stamas

Callahan Howell O'Neil Switalski

Cassis Jacobs Pappageorge Tabor

Cherry Jamnick Patterson Tesanovich

Clark, I. Jansen Perricone Thomas

Clarke, H. Jelinek Pestka Toy

Daniels Jellema Price Van Woerkom

DeHart Johnson, Rick Prusi Vander Roest

Dennis Johnson, Ruth Pumford Vaughn

DeRossett Julian Quarles Vear

DeVuyst Kelly Raczkowski Voorhees

DeWeese Kilpatrick Reeves Wojno

Ehardt Koetje Richardville Woodward

Faunce Kowall Richner Woronchak

Frank

Nays--1

Gosselin

In The Chair: Birkholz

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

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

Messages from the Senate

The Speaker laid before the House

House Bill No. 5833, entitled

A bill to amend 1961 PA 108, entitled "An act to provide for loans by the state of Michigan to school districts for the payment of principal and interest upon school bonds; to prescribe the terms and conditions of the loans and the conditions upon which levies for bond principal and interest shall be included in computing the amount to be so loaned by the state; to prescribe the powers and duties of the superintendent of public instruction and the state treasurer in relation to such loans; to provide for the repayment of such loans; to provide incentives for repayment of such loans; to provide for other matters in respect to such loans; and to make an appropriation," by amending the title and sections 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 9b, 10, 10a, 11, and 12 (MCL 388.951, 388.952, 388.953, 388.954, 388.954a, 388.955, 388.956, 388.957, 388.958, 388.959, 388.959b, 388.960, 388.960a, 388.961, and 388.962), the title and sections 6 and 9 as amended and section 9b as added by 1991 PA 65, sections 2, 4, and 11 as amended by 1992 PA 228, section 3 as amended by 1985 PA 25, section 4a as amended by 1991 PA 22, section 5 as amended by 1983 PA 124, and section 10 as amended and section 10a as added by 1989 PA 6, and by adding sections 1a, 9c, 10b, 10c, and 11a; and to repeal acts and parts of acts.

(The bill was received from the Senate on June 8, with substitute (S-1) and immediate effect given by the Senate, consideration of which, under the rules, was postponed until today, see House Journal No. 55, p. 1754.)

The question being on concurring in the substitute (S-1) made to the bill by the Senate,

Rep. Jelinek moved to amend the Senate substitute (S-1) as follows:

1. Amend page 16, line 26, after "COMPLETED" by striking out "CONCURRENTLY".

The motion prevailed and the amendment was adopted, a majority of the members serving voting therefor.

Rep. Bogardus moved to amend the Senate substitute (S-1) as follows:

1. Amend page 5, line 21, after "THAN" by striking out "75%" and inserting "90%".

The question being on the adoption of the amendment offered by Rep. Bogardus,

Rep. Bogardus demanded the yeas and nays.

The demand was supported.

The question being on the adoption of the amendment offered by Rep. Bogardus,

The amendment was not adopted, a majority of the members serving not voting therefor, by yeas and nays, as follows:

Roll Call No. 814 Yeas--50

Baird Frank Martinez Scott

Basham Garza Minore Shackleton

Bogardus Gieleghem Neumann Sheltrown

Bovin Hale O'Neil Spade

Brater Hanley Pestka Stallworth

Brown, B. Hansen Quarles Switalski

Callahan Hardman Reeves Tesanovich

Cherry Jacobs Richardville Thomas

Clark, I. Jamnick Rison Vaughn

Clarke, H. Kelly Rivet Wojno

Daniels LaForge Schauer Woodward

DeHart Lockwood Schermesser Woronchak

Dennis Mans

Nays--53

Allen Garcia Julian Pumford

Birkholz Gilbert Koetje Raczkowski

Bisbee Godchaux Kowall Richner

Bishop Gosselin Kuipers Rocca

Bradstreet Green Kukuk Sanborn

Brown, C. Hager LaSata Shulman

Byl Hart Law Stamas

Cassis Howell Mead Tabor

Caul Jansen Middaugh Toy

DeRossett Jelinek Mortimer Van Woerkom

DeVuyst Jellema Pappageorge Vander Roest

DeWeese Johnson, Rick Patterson Vear

Ehardt Johnson, Ruth Perricone Voorhees

Faunce

In The Chair: Birkholz

______

Rep. Stamas moved that Rep. Pappageorge be excused temporarily from today's session.

The motion prevailed.

Rep. Scott moved that Rep. Prusi be excused temporarily from today's session.

The motion prevailed.

The question being on concurring in the Senate substitute (S-1), as amended,

The Senate substitute (S-1), as amended, was concurred in, a majority of the members serving voting therefor, by yeas and nays, as follows:

Roll Call No. 815 Yeas--102

Allen Faunce Koetje Rivet

Baird Frank Kowall Rocca

Basham Garcia Kuipers Sanborn

Birkholz Garza Kukuk Schauer

Bisbee Gieleghem LaSata Schermesser

Bishop Gilbert Law Scott

Bogardus Godchaux Lockwood Shackleton

Bovin Gosselin Mans Sheltrown

Bradstreet Green Martinez Shulman

Brater Hager Mead Spade

Brown, B. Hale Middaugh Stallworth

Brown, C. Hanley Minore Stamas

Byl Hansen Neumann Switalski

Callahan Hardman O'Neil Tabor

Cassis Hart Patterson Tesanovich

Caul Howell Perricone Thomas

Cherry Jacobs Pestka Toy

Clark, I. Jamnick Price Van Woerkom

Clarke, H. Jansen Pumford Vander Roest

Daniels Jelinek Quarles Vaughn

DeHart Jellema Raczkowski Vear

Dennis Johnson, Rick Reeves Voorhees

DeRossett Johnson, Ruth Richardville Wojno

DeVuyst Julian Richner Woodward

DeWeese Kelly Rison Woronchak

Ehardt Kilpatrick

Nays--1

Mortimer

In The Chair: Birkholz

Second Reading of Bills

House Bill No. 4621, entitled

A bill to amend 1974 PA 154, entitled "Michigan occupational safety and health act," (MCL 408.1001 to 408.1094) by adding section 24a.

Was read a second time, and the question being on the adoption of the proposed substitute (H-4) previously recommended by the Committee on Health Policy,

The substitute (H-4) was adopted, a majority of the members serving voting therefor.

Rep. DeWeese moved to amend the bill as follows:

1. Amend page 4, line 10, after "effect" by striking out "1 year" and inserting "2 years".

The motion prevailed and the amendment was adopted, a majority of the members serving voting therefor.

Rep. DeWeese moved to amend the bill as follows:

1. Amend page 2, line 16, after "INCIDENTS" by striking out the balance of the line through the second "LOG" on line 19 and inserting "AS PROVIDED IN SECTION 61. THE INFORMATION RECORDED".

2. Amend page 3, following line 5, by inserting:

"(D) ANNUALLY SUMMARIZE THE NUMBER OF NEEDLE STICKS AND INJURIES FROM THOSE NEEDLE STICKS AND SUBMIT THAT INFORMATION TO THE OCCUPATIONAL HEALTH STANDARDS COMMISSION AND THE DEPARTMENT OF COMMUNITY HEALTH.".

The motion prevailed and the amendments were adopted, a majority of the members serving voting therefor.

Reps. Woodward and DeWeese moved to amend the bill as follows:

1. Amend page 2, line 4, after "PROTECTIONS." by inserting "IF A COLLECTIVE BARGAINING RELATIONSHIP IS IN EFFECT BETWEEN THE EMPLOYER AND THE EMPLOYER'S HEALTH CARE EMPLOYEES, HEALTH CARE EMPLOYEE MEMBERS OF THE EVALUATION COMMITTEE ESTABLISHED UNDER THIS SUBDIVISION SHALL BE SELECTED FROM HEALTH CARE EMPLOYEES NOMINATED BY THE AUTHORIZED EMPLOYEE REPRESENTATIVE.".

The motion prevailed and the amendment was adopted, a majority of the members serving voting therefor.

Reps. Woodward and DeWeese moved to amend the bill as follows:

1. Amend page 4, following line 9, by inserting:

"(E) "OCCUPATIONAL EXPOSURE TO NEEDLES" MEANS REASONABLY ANTICIPATED SKIN, EYE, MUCOUS MEMBRANE, OR PARENTERAL CONTACT WITH BLOOD OR OTHER POTENTIALLY INFECTIOUS MATERIALS THAT MAY RESULT FROM THE USE OF NEEDLES IN THE PERFORMANCE OF AN EMPLOYEE'S DUTIES. OCCUPATIONAL EXPOSURE TO NEEDLES DOES NOT INCLUDE EXPOSURES THAT MAY TAKE PLACE ON THE JOB, AND THAT ARE NEITHER REASONABLY NOR ROUTINELY EXPECTED AND THAT THE WORKER IS NOT REQUIRED TO INCUR IN THE NORMAL COURSE OF EMPLOYMENT.".

The motion prevailed and the amendment was adopted, a majority of the members serving voting therefor.

Rep. Woodward moved that the bill be placed on the order of Third Reading of Bills.

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

Rep. Middaugh moved that the bill be placed on its immediate passage.

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

______

Rep. Godchaux moved that Rep. Scranton be excused temporarily from today's session.

The motion prevailed.

Rep. Vander Roest moved that Rep. Ehardt be excused temporarily from today's session.

The motion prevailed.

By unanimous consent the House returned to the order of

Third Reading of Bills

House Bill No. 4621, entitled

A bill to amend 1974 PA 154, entitled "Michigan occupational safety and health act," (MCL 408.1001 to 408.1094) by adding section 24a.

Was read a third time and passed, a majority of the members serving voting therefor, by yeas and nays, as follows:

Roll Call No. 816 Yeas--104

Allen Frank Kowall Richner

Baird Garcia Kuipers Rison

Basham Garza Kukuk Rivet

Birkholz Gieleghem LaForge Rocca

Bisbee Gilbert LaSata Sanborn

Bishop Godchaux Law Schauer

Bogardus Gosselin Lockwood Schermesser

Bovin Green Mans Scott

Bradstreet Hager Martinez Shackleton

Brater Hale Mead Shulman

Brown, B. Hanley Middaugh Spade

Brown, C. Hansen Minore Stallworth

Byl Hardman Mortimer Stamas

Callahan Hart Neumann Switalski

Cassis Howell O'Neil Tabor

Caul Jacobs Pappageorge Tesanovich

Cherry Jamnick Patterson Thomas

Clark, I. Jansen Perricone Toy

Clarke, H. Jelinek Pestka Van Woerkom

Daniels Jellema Price Vander Roest

DeHart Johnson, Rick Prusi Vaughn

Dennis Johnson, Ruth Pumford Vear

DeRossett Julian Quarles Voorhees

DeVuyst Kelly Raczkowski Wojno

DeWeese Kilpatrick Reeves Woodward

Faunce Koetje Richardville Woronchak

Nays--0

In The Chair: Birkholz

The House agreed to the title of the bill.

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

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

Reps. Basham, Birkholz, Bogardus, Bob Brown, Cassis, Caul, Clark, Daniels, Faunce, Garcia, Garza, Hager, Hanley, Hansen, Hardman, Howell, Jamnick, Jansen, Jelinek, Julian, Kelly, Kowall, LaForge, Law, Lockwood, Middaugh, Minore, O'Neil, Pappageorge, Patterson, Pestka, Quarles, Raczkowski, Richardville, Richner, Rocca, Sanborn, Schermesser, Scott, Sheltrown, Shulman, Stallworth, Stamas, Tabor, Thomas, Van Woerkom, Vaughn, Wojno and Woronchak were named co-sponsors of the bill.

Second Reading of Bills

Senate Bill No. 1219, entitled

A bill to amend 1956 PA 218, entitled "The insurance code of 1956," by amending sections 1101, 1103, 1105, 1125, and 8132 (MCL 500.1101, 500.1103, 500.1105, 500.1125, and 500.8132), sections 1101, 1105, and 1125 as added by 1994 PA 226, section 1103 as amended by 1994 PA 443, and section 8132 as added by 1989 PA 302.

The bill was read a second time.

Rep. Raczkowski moved that the bill be placed on the order of Third Reading of Bills.

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

Rep. Raczkowski moved that the bill be placed on its immediate passage.

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

By unanimous consent the House returned to the order of

Third Reading of Bills

Senate Bill No. 1219, entitled

A bill to amend 1956 PA 218, entitled "The insurance code of 1956," by amending sections 1101, 1103, 1105, 1125, and 8132 (MCL 500.1101, 500.1103, 500.1105, 500.1125, and 500.8132), sections 1101, 1105, and 1125 as added by 1994 PA 226, section 1103 as amended by 1994 PA 443, and section 8132 as added by 1989 PA 302.

Was read a third time and passed, a majority of the members serving voting therefor, by yeas and nays, as follows:

Roll Call No. 817 Yeas--105

Allen Frank Kowall Rison

Baird Garcia Kuipers Rivet

Basham Garza Kukuk Rocca

Birkholz Gieleghem LaForge Sanborn

Bisbee Gilbert LaSata Schauer

Bishop Godchaux Law Schermesser

Bogardus Gosselin Lockwood Scott

Bovin Green Mans Scranton

Bradstreet Hager Martinez Shackleton

Brater Hale Mead Sheltrown

Brown, B. Hanley Middaugh Shulman

Brown, C. Hansen Minore Spade

Byl Hardman Mortimer Stallworth

Callahan Hart Neumann Stamas

Cassis Howell O'Neil Switalski

Caul Jacobs Pappageorge Tabor

Cherry Jamnick Patterson Tesanovich

Clark, I. Jansen Perricone Toy

Clarke, H. Jelinek Pestka Van Woerkom

Daniels Jellema Price Vander Roest

DeHart Johnson, Rick Prusi Vaughn

Dennis Johnson, Ruth Pumford Vear

DeRossett Julian Raczkowski Voorhees

DeVuyst Kelly Reeves Wojno

DeWeese Kilpatrick Richardville Woodward

Ehardt Koetje Richner Woronchak

Faunce

Nays--0

In The Chair: Birkholz

Pursuant to Joint Rule 20, the full title of the act shall be inserted to read as follows:

"An act to revise, consolidate, and classify the laws relating to the insurance and surety business; to regulate the incorporation or formation of domestic insurance and surety companies and associations and the admission of foreign and alien companies and associations; to provide their rights, powers, and immunities and to prescribe the conditions on which companies and associations organized, existing, or authorized under this act may exercise their powers; to provide the rights, powers, and immunities and to prescribe the conditions on which other persons, firms, corporations, associations, risk retention groups, and purchasing groups engaged in an insurance or surety business may exercise their powers; to provide for the imposition of a privilege fee on domestic insurance companies and associations and the state accident fund; to provide for the imposition of a tax on the business of foreign and alien companies and associations; to provide for the imposition of a tax on risk retention groups and purchasing groups; to provide for the imposition of a tax on the business of surplus line agents; to provide for the imposition of regulatory fees on certain insurers; to modify tort liability arising out of certain accidents; to provide for limited actions with respect to that modified tort liability and to prescribe certain procedures for maintaining those actions; to require security for losses arising out of certain accidents; to provide for the continued availability and affordability of automobile insurance and homeowners insurance in this state and to facilitate the purchase of that insurance by all residents of this state at fair and reasonable rates; to provide for certain reporting with respect to insurance and with respect to certain claims against uninsured or self-insured persons; to prescribe duties for certain state departments and officers with respect to that reporting; to provide for certain assessments; to establish and continue certain state insurance funds; to modify and clarify the status, rights, powers, duties, and operations of the nonprofit malpractice insurance fund; to provide for the departmental supervision and regulation of the insurance and surety business within this state; to provide for regulation over worker's compensation self-insurers; to provide for the conservation, rehabilitation, or liquidation of unsound or insolvent insurers; to provide for the protection of policyholders, claimants, and creditors of unsound or insolvent insurers; to provide for associations of insurers to protect policyholders and claimants in the event of insurer insolvencies; to prescribe educational requirements for insurance agents and solicitors; to provide for the regulation of multiple employer welfare arrangements; to create an automobile theft prevention authority to reduce the number of automobile thefts in this state; to prescribe the powers and duties of the automobile theft prevention authority; to provide certain powers and duties upon certain officials, departments, and authorities of this state; to repeal acts and parts of acts; and to provide penalties for the violation of this act,".

The House agreed to the full title.

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

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

______

Rep. Raczkowski moved that House Committees be given leave to meet during the balance of today's session.

The motion prevailed.

Rep. Vander Roest moved that Rep. Caul be excused temporarily from today's session.

The motion prevailed.

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

By unanimous consent the House returned to the order of

Messages from the Senate

House Bill No. 5854, entitled

A bill to amend 1855 PA 105, entitled "An act to regulate the disposition of the surplus funds in the state treasury; to provide for the deposit of surplus funds in certain financial institutions; to lend surplus funds pursuant to loan agreements secured by certain commercial, agricultural, or industrial real and personal property; to authorize the loan of surplus funds to certain municipalities; to authorize the participation in certain loan programs; to authorize an appropriation; and to prescribe the duties of certain state agencies," by amending sections 3 and 7 (MCL 21.143 and 21.147), as amended by 1997 PA 32, and by adding section 2d.

The Senate has amended the bill as follows:

1. Amend page 3, line 11, after "HAS" by striking out the balance of the subdivision and inserting "CERTIFIED THAT IT IS AN ELIGIBLE MARINA.".

2. Amend page 4, following line 6, by inserting:

"(5) UPON THE DETERMINATION BY THE DIRECTORS OF THE DEPARTMENTS OF NATURAL RESOURCES AND ENVIRONMENTAL QUALITY THAT THE NEED TO FACILITATE MARINA DREDGING LOANS HAS SIGNIFICANTLY DIMINISHED BASED ON CHANGES IN GREAT LAKES WATER LEVELS, THE STATE TREASURER MAY TAKE ACTIONS NECESSARY TO ENSURE THAT NO NEW MARINA DREDGING LOANS THAT ARE ATTRIBUTABLE TO AN INVESTMENT UNDER THIS SECTION ARE MADE. SUCH A DETERMINATION SHALL NOT AFFECT EXISTING MARINA DREDGING LOANS THAT ARE ATTRIBUTABLE TO AN INVESTMENT UNDER THIS SECTION." and renumbering the remaining subsections.

3. Amend page 4, line 25, by striking out all of subdivision (7) and inserting:

"(7) ANNUALLY, EACH FINANCIAL INSTITUTION IN WHICH THE STATE TREASURER HAS MADE AN INVESTMENT UNDER THIS SECTION SHALL FILE AN AFFIDAVIT, SIGNED BY A SENIOR EXECUTIVE OFFICER OF THE FINANCIAL INSTITUTION, STATING THAT THE FINANCIAL INSTITUTION IS IN COMPLIANCE WITH THE TERMS OF THE INVESTMENT AGREEMENT.".

4. Amend page 5, line 10, after "OF" by inserting "ELIGIBLE".

5. Amend page 5, line 17, by striking out all of subdivision (D).

6. Amend page 6, line 3, by striking out all of subdivision (D) and inserting:

"(D) "ELIGIBLE MARINA" MEANS A PRIVATELY OWNED, COMMERCIAL FACILITY IN THIS STATE THAT MEETS ALL OF THE FOLLOWING REQUIREMENTS:

(i) EXTENDS INTO OR OVER THE GREAT LAKES AND THEIR CONNECTING WATERS NAVIGABLE BY MOTORIZED WATERCRAFT FROM A GREAT LAKE.

(ii) PROVIDES DOCKING, MOORING OR LAUNCHING SERVICES AVAILABLE TO THE GENERAL PUBLIC FOR RECREATIONAL BOATING. MARINAS THAT LIMIT THEIR SERVICES BASED ON MEMBERSHIP OR RESIDENCY REQUIREMENTS ARE NOT ELIGIBLE.

(iii) PROVIDES MOORING FACILITIES FOR NO MORE THAN 200 RECREATIONAL WATERCRAFT THROUGH THE USE OF DOCKS, SLIPS, OR BROADSIDE MOORING.

(iv) HAS RECEIVED THE PERMITS REQUIRED BY LAW FROM THE DEPARTMENT OF ENVIRONMENTAL QUALITY AND THE ARMY CORPS OF ENGINEERS FOR THE DREDGING TO BE CONDUCTED WITH LOAN FUNDS.".

7. Amend page 6, line 8, after the third "OF" by striking out "A" and inserting "AN ELIGIBLE".

8. Amend page 6, line 24, by striking out all of subdivision (H).

The Senate has passed the bill as amended and ordered that it be given immediate effect.

The Speaker announced that pursuant to Rule 45, the bill was laid over one day.

Rep. Raczkowski moved that Rule 45 be suspended.

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

The question being on concurring in the amendments made to the bill by the Senate,

The amendments were concurred in, a majority of the members serving voting therefor, by yeas and nays, as follows:

Roll Call No. 818 Yeas--94

Basham Gieleghem LaSata Rocca

Birkholz Gilbert Law Sanborn

Bisbee Godchaux Lockwood Schauer

Bishop Gosselin Mans Schermesser

Bovin Green Mead Scranton

Bradstreet Hager Middaugh Shackleton

Brown, B. Hansen Mortimer Sheltrown

Brown, C. Hardman Neumann Shulman

Callahan Hart O'Neil Spade

Cassis Howell Pappageorge Stallworth

Cherry Jacobs Patterson Stamas

Clark, I. Jamnick Perricone Switalski

Clarke, H. Jansen Pestka Tabor

Daniels Jelinek Price Tesanovich

DeHart Jellema Prusi Thomas

Dennis Johnson, Rick Pumford Toy

DeRossett Johnson, Ruth Quarles Van Woerkom

DeVuyst Julian Raczkowski Vander Roest

DeWeese Kelly Reeves Vear

Ehardt Kilpatrick Richardville Voorhees

Faunce Koetje Richner Wojno

Frank Kowall Rison Woodward

Garcia Kuipers Rivet Woronchak

Garza Kukuk

Nays--11

Baird Byl LaForge Scott

Bogardus Hale Martinez Vaughn

Brater Hanley Minore

In The Chair: Scranton

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

Rep. Vander Roest moved that Rep. Allen be excused temporarily from today's session.

The motion prevailed.

Rep. Kelly moved that Rep. LaForge be excused temporarily from today's session.

The motion prevailed.

House Bill No. 5780, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending sections 36101, 36111, and 36111b (MCL 324.36101, 324.36111, and 324.36111b), section 36101 as amended and section 36111b as added by 1996 PA 233 and section 36111 as amended by 1996 PA 567, and by adding part 362.

The Senate has substituted (S-3) the bill.

The Senate has passed the bill as substituted (S-3), ordered that it be given immediate effect and pursuant to Joint Rule 20, inserted the full title.

The Speaker announced that pursuant to Rule 45, the bill was laid over one day.

Rep. Raczkowski moved that Rule 45 be suspended.

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

The question being on concurring in the substitute (S-3) made to the bill by the Senate,

The substitute (S-3) was concurred in, a majority of the members serving voting therefor, by yeas and nays, as follows:

Roll Call No. 819 Yeas--76

Basham Garcia Kukuk Rison

Birkholz Geiger LaSata Rivet

Bisbee Gilbert Law Rocca

Bishop Godchaux Lockwood Sanborn

Bogardus Gosselin Mans Schauer

Bovin Green Mead Scranton

Bradstreet Hager Middaugh Shackleton

Brown, C. Hansen Mortimer Sheltrown

Byl Howell Neumann Shulman

Cassis Jansen O'Neil Spade

Caul Jelinek Pappageorge Stamas

Cherry Jellema Patterson Tabor

Clarke, H. Johnson, Rick Pestka Toy

DeRossett Johnson, Ruth Price Van Woerkom

DeVuyst Julian Pumford Vander Roest

DeWeese Kilpatrick Quarles Vear

Ehardt Koetje Raczkowski Voorhees

Faunce Kowall Richardville Woodward

Frank Kuipers Richner Woronchak

Nays--27

Baird Dennis Jamnick Scott

Brater Garza Kelly Stallworth

Brown, B. Gieleghem Martinez Switalski

Callahan Hale Minore Tesanovich

Clark, I. Hanley Prusi Vaughn

Daniels Hardman Reeves Wojno

DeHart Jacobs Schermesser

In The Chair: Scranton

The House agreed to the full title of the bill.

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

By unanimous consent the House returned to the order of

Reports of Select Committees

Senate Bill No. 1044, entitled

A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending sections 3, 6, 8, 11, 11f, 11g, 19, 20, 20j, 21b, 24, 26a, 31a, 31c, 31d, 32, 36, 36a, 39, 40, 41, 51a, 53a, 54, 56, 57, 61a, 62, 63, 67, 68, 74, 81, 91c, 94, 99, 101, 102, 104a, 105, 105b, 105c, 107, 147, 151, 152, and 163 (MCL 388.1603, 388.1606, 388.1608, 388.1611, 388.1611f, 388.1611g, 388.1619, 388.1620, 388.1620j, 388.1621b, 388.1624, 388.1626a, 388.1631a, 388.1631c, 388.1631d, 388.1632, 388.1636, 388.1636a, 388.1639, 388.1640, 388.1641, 388.1651a, 388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662, 388.1663, 388.1667, 388.1668, 388.1674, 388.1681, 388.1691c, 388.1694, 388.1699, 388.1701, 388.1702, 388.1704a, 388.1705, 388.1705b, 388.1705c, 388.1707, 388.1747, 388.1751, 388.1752, and 388.1763), sections 6, 11, 11f, 11g, 20, 24, 26a, 31a, 31c, 36, 36a, 41, 51a, 53a, 54, 56, 57, 61a, 62, 63, 67, 68, 74, 81, 94, 99, 101, 104a, 105, 107, and 147 as amended and sections 20j, 31d, 32, and 105c as added by 1999 PA 119, sections 3 and 151 as amended by 1997 PA 93, sections 8 and 39 as amended by 1997 PA 142, sections 19, 21b, 102, and 163 as amended by 1996 PA 300, section 40 as amended by 1991 PA 118, section 91c as added by 1995 PA 130, section 105b as added by 1997 PA 24, and section 152 as amended by 1993 PA 175, and by adding sections 20l, 22a, 22b, 22c, 51c, 94a, 101b, and 108; and to repeal acts and parts of acts.

The Senate 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

Senate Bill No. 1044, entitled

A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending sections 3, 6, 8, 11, 11f, 11g, 19, 20, 20j, 21b, 24, 26a, 31a, 31c, 31d, 32, 36, 36a, 39, 40, 41, 51a, 53a, 54, 56, 57, 61a, 62, 63, 67, 68, 74, 81, 91c, 94, 99, 101, 102, 104a, 105, 105b, 105c, 107, 147, 151, 152, and 163 (MCL 388.1603, 388.1606, 388.1608, 388.1611, 388.1611f, 388.1611g, 388.1619, 388.1620, 388.1620j, 388.1621b, 388.1624, 388.1626a, 388.1631a, 388.1631c, 388.1631d, 388.1632, 388.1636, 388.1636a, 388.1639, 388.1640, 388.1641, 388.1651a, 388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662, 388.1663, 388.1667, 388.1668, 388.1674, 388.1681, 388.1691c, 388.1694, 388.1699, 388.1701, 388.1702, 388.1704a, 388.1705, 388.1705b, 388.1705c, 388.1707, 388.1747, 388.1751, 388.1752, and 388.1763), sections 6, 11, 11f, 11g, 20, 24, 26a, 31a, 31c, 36, 36a, 41, 51a, 53a, 54, 56, 57, 61a, 62, 63, 67, 68, 74, 81, 94, 99, 101, 104a, 105, 107, and 147 as amended and sections 20j, 31d, 32, and 105c as added by 1999 PA 119, sections 3 and 151 as amended by 1997 PA 93, sections 8 and 39 as amended by 1997 PA 142, sections 19, 21b, 102, and 163 as amended by 1996 PA 300, section 40 as amended by 1991 PA 118, section 91c as added by 1995 PA 130, section 105b as added by 1997 PA 24, and section 152 as amended by 1993 PA 175, and by adding sections 20l, 22a, 22b, 22c, 51c, 94a, 101b, and 108; and to repeal acts and parts of acts.

Recommends:

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

A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending sections 3, 6, 8, 11, 11f, 11g, 17b, 19, 20, 20j, 21b, 24, 25, 26a, 31a, 31d, 33, 37, 38, 39, 40, 41, 51a, 53a, 54, 56, 57, 61a, 62, 63, 67, 68, 74, 81, 91c, 94, 99, 101, 102, 105, 105b, 105c, 107, 147, 151, 152, and 163 (MCL 388.1603, 388.1606, 388.1608, 388.1611, 388.1611f, 388.1611g, 388.1617b, 388.1619, 388.1620, 388.1620j, 388.1621b, 388.1624, 388.1625, 388.1626a, 388.1631a, 388.1631d, 388.1633, 388.1637, 388.1638, 388.1639, 388.1640, 388.1641, 388.1651a, 388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662, 388.1663, 388.1667, 388.1668, 388.1674, 388.1681, 388.1691c, 388.1694, 388.1699, 388.1701, 388.1702, 388.1705, 388.1705b, 388.1705c, 388.1707, 388.1747, 388.1751, 388.1752, and 388.1763), sections 3, 25, and 151 as amended by 1997 PA 93, sections 6, 11, 11f, 11g, 17b, 20, 24, 26a, 31a, 41, 51a, 53a, 54, 56, 57, 61a, 62, 63, 67, 68, 74, 81, 94, 99, 101, 105, 107, and 147 as amended and sections 20j, 31d, 33, and 105c as added by 1999 PA 119, sections 8 and 39 as amended by 1997 PA 142, sections 19, 21b, 37, 38, 102, and 163 as amended by 1996 PA 300, section 40 as amended by 1991 PA 118, section 91c as added by 1995 PA 130, section 105b as added by 1997 PA 24, and section 152 as amended by 1993 PA 175, and by adding sections 11j, 11k, 11l, 18b, 18c, 20k, 22a, 22b, 22c, 25b, 32a, 32b, 32c, 32d, 32e, 32f, 32g, 32h, 35, 51c, 94a, 95, 96, 97, 98, 98a, and 108; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 3. (1) "Average daily attendance", for the purposes of complying with federal law, means 92% of the membership as defined in section 6(4).

(2) "Board" means the governing body of a district or public school academy.

(3) "Cooperative education program" means a written voluntary agreement between and among districts to provide certain educational programs for pupils in certain groups of districts. The written agreement shall be approved by all affected districts at least annually and shall specify the educational programs to be provided and the estimated number of pupils from each district who will participate in the educational programs.

(4) "Department", EXCEPT IN SECTIONS 67, 68, 107, AND 108, means the department of education.

(5) "District" means a local school district established under the revised school code, a local act school district, or, except in sections 6(4), 6(6), 13, 20, 22A, 23, 31a, and 32F, 105, AND 105C, a public school academy. Except in sections 6(4), 6(6), 13, 20, and 22A, 105, AND 105C, district also includes a university school.

(6) "District of residence", except as otherwise provided in this subsection, means the district in which a pupil's custodial parent or parents or legal guardian resides. For a pupil described in section 24b, the pupil's district of residence is the district in which the pupil enrolls under that section. For a pupil described in section 6(4)(d), the pupil's district of residence shall be considered to be the district or intermediate district in which the pupil is counted in membership under that section. For a pupil under court jurisdiction who is placed outside the district in which the pupil's custodial parent or parents or legal guardian resides, the pupil's district of residence shall be considered to be the educating district or educating intermediate district.

(7) "District superintendent" means the superintendent of a district, the chief administrator of a public school academy, or the chief administrator of a university school.

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

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

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

(4) "Membership", except as otherwise provided in this act, means for 1998-99 for a district, public school academy, university school, or intermediate district the sum of the product of .6 times the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the pupil membership count day for the current school year, plus the product of .4 times the final audited count from the supplemental count day for the immediately preceding school year. For 1999-2000, membership means 1999-2000 for a district, public school academy, university school, or intermediate district the sum of the product of .75 times the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the pupil membership count day for the current school year, plus the product of .25 times the final audited count from the supplemental count day for the immediately preceding school year. For BEGINNING IN 2000-2001, membership means for a district, public school academy, university school, or intermediate district the sum of the product of .8 times the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the pupil membership count day for the current school year, plus the product of .2 times the final audited count from the supplemental count day for the immediately preceding school year. All pupil counts used in this subsection are as determined by the department and calculated by adding the number of pupils registered for attendance plus pupils received by transfer and minus pupils lost as defined by rules promulgated by the superintendent, and as corrected by a subsequent department audit. The amount of the foundation allowance for a pupil in membership is determined under section 20. In making the calculation of membership, all of the following, as applicable, apply to determining the membership of a district, public school academy, university school, or intermediate district:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(q) The number of class hours used to calculate full-time equated memberships shall be consistent with section 1284 of the revised school code, MCL 380.1284 101(3). In determining full-time equated memberships for pupils who are enrolled in a postsecondary institution, a pupil shall not be considered to be less than a full-time equated pupil solely because of the effect of his or her postsecondary enrollment, including necessary travel time, on the number of class hours provided by the district to the pupil.

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

(s) For a district that has qualified currently migrant pupils enrolled in the district as of the pupil membership count day who were not counted in membership in the district on the supplemental count day for the immediately preceding school year, as determined by the department using the criteria used for eligibility for the migrant education program under the improving America's schools act of 1994, Public Law 103-382, 108 Stat. 3518, the number of those pupils counted in the district's membership is 3/4 of the number of those pupils counted on the pupil membership count day only.

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

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

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

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

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

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

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

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

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

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

(Y) FOR 2000-2001, 2001-2002, AND 2002-2003 ONLY, IF A DISTRICT'S MEMBERSHIP FOR A PARTICULAR FISCAL YEAR, AS OTHERWISE CALCULATED UNDER THIS SUBSECTION, WOULD BE LESS THAN 1,550 PUPILS, THE DISTRICT'S MEMBERSHIP FOR THAT FISCAL YEAR SHALL BE CONSIDERED TO BE THE GREATER OF THE FOLLOWING:

(i) THE AVERAGE OF THE DISTRICT'S MEMBERSHIP FOR THE 3-FISCAL-YEAR PERIOD ENDING WITH THAT FISCAL YEAR, CALCULATED BY ADDING THE DISTRICT'S ACTUAL MEMBERSHIP FOR THAT FISCAL YEAR, AS OTHERWISE CALCULATED UNDER THIS SUBSECTION, PLUS THE DISTRICT'S MEMBERSHIP FOR EACH OF THE 2 IMMEDIATELY PRECEDING FISCAL YEARS, AND DIVIDING THE SUM OF THOSE 3 MEMBERSHIP FIGURES BY 3.

(ii) THE DISTRICT'S ACTUAL MEMBERSHIP AS OTHERWISE CALCULATED UNDER THIS SUBSECTION.

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

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

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

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

(c) A pupil enrolled in a public school academy or university school.

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

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

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

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

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

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

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

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

(j) A pupil enrolled in an alternative education program operated by a district other than his or her district of residence . However, this subdivision does not apply until legislation is enacted to specify the policies for its implementation including the types of alternative education programs affected. WHO MEETS 1 OR MORE OF THE FOLLOWING:

(i) THE PUPIL HAS BEEN SUSPENDED OR EXPELLED FROM HIS OR HER DISTRICT OF RESIDENCE FOR ANY REASON, INCLUDING, BUT NOT LIMITED TO, A SUSPENSION OR EXPULSION UNDER SECTION 1310, 1311, OR 1311A OF THE REVISED SCHOOL CODE, MCL 380.1310, 380.1311, AND 380.1311A.

(ii) THE PUPIL HAD PREVIOUSLY DROPPED OUT OF SCHOOL.

(iii) THE PUPIL IS PREGNANT OR IS A PARENT.

(iv) THE PUPIL HAS BEEN REFERRED TO THE PROGRAM BY A COURT.

(K) A PUPIL ENROLLED IN THE MICHIGAN VIRTUAL HIGH SCHOOL, FOR THE PUPIL'S ENROLLMENT IN THE MICHIGAN VIRTUAL HIGH SCHOOL.

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

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

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

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

(i) Fourth Wednesday in July.

(ii) Fourth Wednesday in September.

(iii) Second Wednesday in February.

(iv) Fourth Wednesday in April.

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 8. (1) In order to receive funds under this act, each district shall furnish to the department not later than December 1 of each year, on a form and in a manner prescribed by the department, the information requested by the department that is necessary for the preparation of the district pupil retention report defined in section 6(3).

(2) On the basis of a district's pupil retention report as defined in section 6(3), the department shall calculate an annual pupil dropout rate for each district. In addition, the department shall calculate an annual pupil dropout rate for the state in the same manner as that used to calculate the pupil dropout rate for a district. The department shall report all pupil dropout rates to the senate and house education committees and appropriations committees and the department of management and budget STATE BUDGET DIRECTOR not later than September 15 each year.

Sec. 11. (1) For the fiscal year ending September 30, 1999, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $9,049,591,100.00 from the state school aid fund established by section 11 of article IX of the state constitution of 1963 and the sum of $420,613,500.00 from the general fund. For the fiscal year ending September 30, 2000, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $9,590,537,700.00 $9,623,215,800.00 from the state school aid fund established by section 11 of article IX of the state constitution of 1963 and the sum of $420,613,500.00 from the general fund. For the fiscal year ending September 30, 2001, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $10,033,634,700.00 $10,402,821,500.00 from the state school aid fund established by section 11 of article IX of the state constitution of 1963 and the sum of $420,613,500.00 $385,613,500.00 from the general fund. FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2002, THERE IS APPROPRIATED FOR THE PUBLIC SCHOOLS OF THIS STATE AND CERTAIN OTHER STATE PURPOSES RELATING TO EDUCATION THE SUM OF $11,192,489,800.00 FROM THE STATE SCHOOL AID FUND ESTABLISHED BY SECTION 11 OF ARTICLE IX OF THE STATE CONSTITUTION OF 1963 AND THE SUM OF $205,613,500.00 FROM THE GENERAL FUND. FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2003, THERE IS APPROPRIATED FOR THE PUBLIC SCHOOLS OF THIS STATE AND CERTAIN OTHER STATE PURPOSES RELATING TO EDUCATION THE SUM OF $11,339,360,300.00 FROM THE STATE SCHOOL AID FUND ESTABLISHED BY SECTION 11 OF ARTICLE IX OF THE STATE CONSTITUTION OF 1963 AND THE SUM OF $420,613,500.00 FROM THE GENERAL FUND. In addition, available federal funds are appropriated for 1998-99, for 1999-2000, and for 2000-2001 EACH OF THOSE FISCAL YEARS.

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

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

(4) EXCEPT FOR THE ALLOCATION UNDER SECTION 26A, ANY GENERAL FUND ALLOCATIONS UNDER THIS ACT THAT ARE NOT EXPENDED BY THE END OF THE STATE FISCAL YEAR ARE TRANSFERRED TO THE STATE SCHOOL AID FUND.

Sec. 11f. (1) In addition to any other money appropriated under this act, there is appropriated from the state school aid fund an amount not to exceed $32,000,000.00 each fiscal year for the fiscal year ending September 30, 1999, for the fiscal year ending September 30, 2000, for the fiscal year ending September 30, 2001, FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2002, FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2003, and for each succeeding fiscal year through the fiscal year ending September 30, 2008. Payments under this section will cease after September 30, 2008. These appropriations are for paying the amounts described in subsection (4) to districts and intermediate districts, other than those receiving a lump sum payment under subsection (2), that were not plaintiffs in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492 and that, on or before March 2, 1998, have submitted to the state treasurer a board resolution waiving any right or interest the district or intermediate district has or may have in any claim or litigation based on or arising out of any claim or potential claim through September 30, 1997 that is or was similar to the claims asserted by the plaintiffs in the consolidated cases known as Durant v State of Michigan. The waiver resolution shall be in form and substance as required under subsection (8). The state treasurer is authorized to accept such a waiver resolution on behalf of this state. The amounts described in this subsection represent offers of settlement and compromise of any claim or claims that were or could have been asserted by these districts and intermediate districts, as described in this subsection.

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

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

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

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

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

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

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

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

Whereas, the district (or intermediate district) agrees to settle and compromise these claims for the consideration described in sections 11f and 11g of the state school aid act of 1979, 1979 PA 94, MCL 388.1611f and 388.1611g, and in the amount specified for the district (or intermediate district) in section 11h of the state school aid act of 1979, 1979 PA 94, MCL 388.1611h.

Whereas, the board of _______________ (name of district or intermediate district) is authorized to adopt this resolution.

Now, therefore, be it resolved as follows:

1. The board of ____________________ (name of district or intermediate district) waives any right or interest it may have in any claim or potential claim through September 30, 1997 relating to the amount of funding the district or intermediate district is, or may have been, entitled to receive under the state school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, or any other source of state funding, by reason of the application of section 29 of article IX of the state constitution of 1963, which claims or potential claims are or were similar to the claims asserted by the plaintiffs in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492.

2. The board of ____________________ (name of district or intermediate district) directs its secretary to submit a certified copy of this resolution to the state treasurer no later than 5 p.m. eastern standard time on March 2, 1998, and agrees that it will not take any action to amend or rescind this resolution.

3. The board of ____________________ (name of district or intermediate district) expressly agrees and understands that, if it takes any action to amend or rescind this resolution, the state, its agencies, employees, and agents shall have available to them any privilege, immunity, and/or defense that would otherwise have been available had the claims or potential claims been actually litigated in any forum.

4. This resolution is contingent on continued payments by the state each fiscal year as determined under sections 11f and 11g of the state school aid act of 1979, 1979 PA 94, MCL 388.1611f and 388.1611g. However, this resolution shall be an irrevocable waiver of any claim to amounts actually received by the school district or intermediate school district under sections 11f and 11g of the state school aid act of 1979.".

Sec. 11g. (1) In addition to the appropriations under section 11f and any other money appropriated under this act, there is appropriated from the state school aid fund an amount not to exceed $40,000,000.00 for the fiscal year ending September 30, 1999. From the general fund money appropriated in section 11, there is allocated an amount not to exceed $40,000,000.00 for the fiscal year ending September 30, 2000, for the fiscal year ending September 30, 2001, FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2002, FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2003, and for each succeeding fiscal year through the fiscal year ending September 30, 2013. Payments under this section will cease after September 30, 2013. These appropriations are for paying the amounts described in subsection (3) to districts and intermediate districts, other than those receiving a lump sum payment under section 11f(2), that were not plaintiffs in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492 and that, on or before March 2, 1998, have submitted to the state treasurer a waiver resolution described in section 11f. The amounts paid under this section represent offers of settlement and compromise of any claim or claims that were or could have been asserted by these districts and intermediate districts, as described in this section.

(2) This section does not create any obligation or liability of this state to any district or intermediate district that does not submit a waiver resolution described in section 11f. This section, any other provision of this act, and section 353e of the management and budget act, 1984 PA 431, MCL 18.1353e, are not intended to admit liability or waive any defense that is or would be available to this state or its agencies, employees, or agents in any litigation or future litigation with a district or intermediate district regarding these claims or potential claims.

(3) The amount paid each fiscal year to each district or intermediate district under this section shall be the sum of the following:

(a) 1/30 of the total amount listed in section 11h for the district or intermediate district.

(b) If the district or intermediate district borrows money and issues bonds under section 11i, an additional amount in each fiscal year calculated by the department of treasury that, when added to the amount described in subdivision (a), will cause the net present value as of November 15, 1998 of the total of the 15 annual payments made to the district or intermediate district under this section, discounted at a rate as determined by the state treasurer, to equal the amount of the bonds issued by that district or intermediate district under section 11i and that will result in the total payments made to all districts and intermediate districts in each fiscal year under this section being no more than the amount appropriated under this section in each fiscal year.

(4) The entire amount of each payment under this section each fiscal year shall be paid on May 15 of the applicable fiscal year or on the next business day following that date. If a district or intermediate district borrows money and issues bonds under section 11i, the district or intermediate district shall use funds received under this section to pay debt service on bonds issued under section 11i. If a district or intermediate district does not borrow money and issue bonds under section 11i, the district or intermediate district shall use funds received under this section only for the following purposes, in the following order of priority:

(a) First, to pay debt service on voter-approved bonds issued by the district or intermediate district before the effective date of this section.

(b) Second, to pay debt service on other limited tax obligations.

(c) Third, for deposit into a sinking fund established by the district or intermediate district under the revised school code.

(5) To the extent payments under this section are used by a district or intermediate district to pay debt service on debt payable from millage revenues, and to the extent permitted by law, the district or intermediate district may make a corresponding reduction in the number of mills levied for debt service.

(6) A district or intermediate district may pledge or assign payments under this section as security for bonds issued under section 11i, but shall not otherwise pledge or assign payments under this section.

(7) The state school aid fund appropriation under this section for 1998-99 is from the money appropriated and transferred to the state school aid fund from the countercyclical budget and economic stabilization fund under section 353e(2) of the management and budget act, 1984 PA 431, MCL 18.1353e.

SEC. 11J. (1) IN ADDITION TO OTHER MONEY APPROPRIATED UNDER THIS ACT, THERE IS APPROPRIATED FROM THE STATE SCHOOL AID FUND THE AMOUNT OF $50,000,000.00 FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2000. THIS MONEY SHALL BE TRANSFERRED TO A SEPARATE ACCOUNT IN THE STATE SCHOOL AID FUND DESIGNATED AS THE "STATE SCHOOL AID RESERVE ACCOUNT" AND MAY BE USED FOR PAYMENTS UNDER THIS SECTION. IN SUCCEEDING FISCAL YEARS, MONEY IN THE STATE SCHOOL AID RESERVE ACCOUNT MAY BE APPROPRIATED AND USED ONLY FOR THE PURPOSES OF THIS SECTION.

(2) IN ADDITION TO OTHER MONEY APPROPRIATED UNDER THIS ACT, ALL OF THE MONEY IN THE STATE SCHOOL AID RESERVE ACCOUNT IN THE STATE SCHOOL AID FUND IS APPROPRIATED FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2001 FOR THE PURPOSES OF THIS SECTION. IN ADDITION TO OTHER MONEY APPROPRIATED UNDER THIS ACT, ALL OF THE MONEY IN THE STATE SCHOOL AID RESERVE ACCOUNT IN THE STATE SCHOOL AID FUND IS APPROPRIATED FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2002 FOR THE PURPOSES OF THIS SECTION. IN ADDITION TO OTHER MONEY APPROPRIATED UNDER THIS ACT, ALL OF THE MONEY IN THE STATE SCHOOL AID RESERVE ACCOUNT IN THE STATE SCHOOL AID FUND IS APPROPRIATED FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2003 FOR THE PURPOSES OF THIS SECTION.

(3) AN ELIGIBLE DISTRICT OR INTERMEDIATE DISTRICT MAY OBTAIN A PAYMENT FROM THE STATE SCHOOL AID RESERVE ACCOUNT TO ASSIST THE DISTRICT OR INTERMEDIATE DISTRICT IN PAYING EMPLOYEE WAGES INCURRED OR PAYABLE DURING THE PERIOD BETWEEN THE DISTRICT'S OR INTERMEDIATE DISTRICT'S JUNE PAYMENT UNDER THIS ACT FOR A FISCAL YEAR AND THE DISTRICT'S OR INTERMEDIATE DISTRICT'S FIRST PAYMENT UNDER THIS ACT FOR THE NEXT FISCAL YEAR.

(4) TO BE ELIGIBLE FOR A PAYMENT UNDER THIS SECTION, A DISTRICT OR INTERMEDIATE DISTRICT MUST MEET 1 OF THE FOLLOWING:

(A) THE AMOUNT OF THE DISTRICT'S OR INTERMEDIATE DISTRICT'S UNRESERVED GENERAL FUND BALANCE FOR THE IMMEDIATELY PRECEDING FISCAL YEAR, EXCLUDING THE JULY AND AUGUST PAYMENTS PAID TO THE DISTRICT OR INTERMEDIATE DISTRICT IN THE IMMEDIATELY PRECEDING FISCAL YEAR, IS A NEGATIVE AMOUNT.

(B) THE AMOUNT OF THE DISTRICT'S OR INTERMEDIATE DISTRICT'S UNRESERVED GENERAL FUND BALANCE FOR THE IMMEDIATELY PRECEDING FISCAL YEAR, EXCLUDING THE JULY AND AUGUST PAYMENTS PAID TO THE DISTRICT OR INTERMEDIATE DISTRICT IN THE IMMEDIATELY PRECEDING FISCAL YEAR, IS NOT A NEGATIVE AMOUNT, BUT IS LESS THAN AN AMOUNT EQUAL TO 20% OF THE DISTRICT'S OR INTERMEDIATE DISTRICT'S AVERAGE MONTHLY EXPENDITURE FOR EMPLOYEE WAGES FOR THE PERIOD FROM JULY 1 TO SEPTEMBER 30 OF THE IMMEDIATELY PRECEDING FISCAL YEAR, AS DETERMINED BY THE DEPARTMENT.

(5) THE SUPERINTENDENT SHALL NOTIFY A DISTRICT OR INTERMEDIATE DISTRICT THAT IS ELIGIBLE UNDER SUBSECTION (4) OF ITS ELIGIBILITY AND OF THE AMOUNT OF THE POTENTIAL PAYMENT UNDER THIS SECTION FOR WHICH IT IS ELIGIBLE. IF THE DISTRICT OR INTERMEDIATE DISTRICT CHOOSES TO RECEIVE THE PAYMENT, THE DISTRICT OR INTERMEDIATE DISTRICT SHALL INDICATE TO THE SUPERINTENDENT, IN THE FORM AND MANNER PRESCRIBED BY THE SUPERINTENDENT, THAT IT CHOOSES TO RECEIVE THE PAYMENT AND AGREES TO COMPLY WITH THE REQUIREMENTS OF THIS SECTION. A PAYMENT UNDER THIS SECTION SHALL BE PAID TO THE DISTRICT OR INTERMEDIATE DISTRICT ON AUGUST 1 OF THAT FISCAL YEAR, OR ON THE NEXT BUSINESS DAY, IN THE SAME MANNER AS A PAYMENT UNDER SECTION 17B.

(6) A DISTRICT OR INTERMEDIATE DISTRICT RECEIVING A PAYMENT UNDER THIS SECTION SHALL REPAY THE AMOUNT OF THE PAYMENT AS PROVIDED IN THIS SUBSECTION. THE REPAYMENT SHALL BE MADE IN THE FORM OF DEDUCTIONS FROM THE DISTRICT'S OR INTERMEDIATE DISTRICT'S MARCH, APRIL, MAY, AND JUNE INSTALLMENTS UNDER THIS ACT IN THE NEXT FISCAL YEAR. THE AMOUNT OF EACH DEDUCTION SHALL BE AN AMOUNT EQUAL TO 25% OF THE PAYMENT UNDER THIS SECTION TO THE DISTRICT OR INTERMEDIATE DISTRICT. THE STATE TREASURER SHALL DEPOSIT ALL REPAYMENTS UNDER THIS SECTION IN THE STATE SCHOOL AID RESERVE ACCOUNT.

(7) THE MAXIMUM AMOUNT OF THE PAYMENT TO A DISTRICT OR INTERMEDIATE DISTRICT UNDER THIS SECTION IS AS FOLLOWS:

(A) FOR A DISTRICT THAT IS ELIGIBLE UNDER SUBSECTION (4)(A), AN AMOUNT EQUAL TO 20% OF THE DISTRICT'S OR INTERMEDIATE DISTRICT'S AVERAGE MONTHLY EXPENDITURE FOR EMPLOYEE WAGES FOR THE PERIOD FROM JULY 1 TO SEPTEMBER 30 OF THE IMMEDIATELY PRECEDING FISCAL YEAR.

(B) FOR A DISTRICT THAT IS ELIGIBLE UNDER SUBSECTION (4)(B), AN AMOUNT EQUAL TO A PERCENTAGE OF THE DISTRICT'S OR INTERMEDIATE DISTRICT'S AVERAGE MONTHLY EXPENDITURE FOR EMPLOYEE WAGES FOR THE PERIOD FROM JULY 1 TO SEPTEMBER 30 OF THE IMMEDIATELY PRECEDING FISCAL YEAR. THIS PERCENTAGE SHALL BE CALCULATED BY SUBTRACTING FROM 20 PERCENTAGE POINTS THE PERCENTAGE OF THE DISTRICT'S OR INTERMEDIATE DISTRICT'S AVERAGE MONTHLY EXPENDITURE FOR EMPLOYEE WAGES FOR THE PERIOD FROM JULY 1 TO SEPTEMBER 30 OF THE IMMEDIATELY PRECEDING FISCAL YEAR THAT IS EQUAL TO THE AMOUNT OF THE DISTRICT'S OR INTERMEDIATE DISTRICT'S GENERAL FUND BALANCE FOR THE IMMEDIATELY PRECEDING FISCAL YEAR, EXCLUDING THE JULY AND AUGUST PAYMENTS DUE TO THE DISTRICT OR INTERMEDIATE DISTRICT FOR THE IMMEDIATELY PRECEDING FISCAL YEAR, AS DESCRIBED IN SUBSECTION (4)(B).

(8) IF THE AMOUNT AVAILABLE IN THE STATE SCHOOL AID RESERVE ACCOUNT FOR A PARTICULAR FISCAL YEAR IS NOT SUFFICIENT TO PAY THE MAXIMUM PAYMENT TO EACH ELIGIBLE DISTRICT OR INTERMEDIATE DISTRICT, AS CALCULATED UNDER SUBSECTION (7), THE SUPERINTENDENT SHALL PRORATE THE AMOUNT OF EACH DISTRICT'S OR INTERMEDIATE DISTRICT'S PAYMENT ON AN EQUAL PERCENTAGE BASIS ACCORDING TO THE AMOUNT AVAILABLE.

(9) A DISTRICT OR INTERMEDIATE DISTRICT SHALL USE A PAYMENT UNDER THIS SECTION ONLY FOR EMPLOYEE WAGES AS DESCRIBED IN SUBSECTION (3).

SEC. 11K. FROM THE STATE SCHOOL AID FUND MONEY APPROPRIATED UNDER SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $34,000,000.00 EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 FOR PROJECT GRANTS TO DISTRICTS UNDER SECTION 10B OF 1961 PA 108, MCL 388.960B, AS PROVIDED UNDER THAT SECTION.

SEC. 11l. FROM THE STATE SCHOOL AID FUND MONEY APPROPRIATED UNDER SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $18,000,000.00 EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 FOR THE SCHOOL CONSTRUCTION INTEREST WAIVER PROGRAM DESCRIBED IN SECTION 10C OF 1961 PA 108, MCL 388.960C.

Sec. 17b. (1) Not later than October 20, November 20, December 20, January 20, February 20, March 20, April 20, May 20, June 20, July 20, and August 20, the department shall prepare a statement of the amount to be distributed under this act in the installment to the districts and intermediate districts and deliver the statement to the state treasurer, and the state treasurer shall pay the installments on each of those dates or, on the next business day following each of those dates IF THE DATE IS NOT A BUSINESS DAY, ON THE IMMEDIATELY PRECEDING BUSINESS DAY BEFORE THAT DATE. Except as otherwise provided in this act, the portion of the district's or intermediate district's state fiscal year entitlement to be included in each installment shall be 1/11. A district or intermediate district shall accrue the payments received in July and August to the school fiscal year ending the immediately preceding June 30.

(2) The state treasurer shall make payment under this section by drawing a warrant in favor of the treasurer of each district or intermediate district for the amount payable to the district or intermediate district according to the statement and delivering the warrant to the treasurer of each district or intermediate district, or if the state treasurer receives a written request by the treasurer of the district or intermediate district specifying an account, by electronic funds transfer to that account of the amount payable to the district or intermediate district according to the statement. The department may make adjustments in payments made under this section through additional payments when changes in law or errors in computation cause the regularly scheduled payment to be less than the amount to which the district or intermediate district is entitled pursuant to this act.

(3) Except as otherwise specified in this act, grant payments under this act shall be paid according to subsection (1).

(4) Upon the written request of a district or intermediate district and the submission of proof satisfactory to the department of a need of a temporary and nonrecurring nature, the superintendent, with the written concurrence of the state treasurer and the state budget director, may authorize an advance release of funds due a district or intermediate district under this act. Such an advance shall not cause funds to be paid to a district or intermediate district more than 30 days earlier than the established payment date for those funds.

SEC. 18B. (1) PROPERTY OF A PUBLIC SCHOOL ACADEMY THAT WAS ACQUIRED SUBSTANTIALLY WITH FUNDS APPROPRIATED UNDER THIS ACT SHALL BE TRANSFERRED TO THIS STATE BY THE PUBLIC SCHOOL ACADEMY CORPORATION IF ANY OF THE FOLLOWING OCCUR:

(A) THE PUBLIC SCHOOL ACADEMY HAS BEEN INELIGIBLE TO RECEIVE FUNDING UNDER THIS ACT FOR 18 CONSECUTIVE MONTHS.

(B) THE PUBLIC SCHOOL ACADEMY'S CONTRACT HAS BEEN REVOKED.

(C) THE PUBLIC SCHOOL ACADEMY'S CONTRACT HAS NOT BEEN REISSUED BY THE AUTHORIZING BODY.

(2) PROPERTY REQUIRED TO BE TRANSFERRED TO THIS STATE UNDER THIS SECTION INCLUDES TITLE TO ALL REAL AND PERSONAL PROPERTY, INTERESTS IN REAL OR PERSONAL PROPERTY, AND OTHER ASSETS OWNED BY THE PUBLIC SCHOOL ACADEMY CORPORATION THAT WERE SUBSTANTIALLY ACQUIRED WITH FUNDS APPROPRIATED UNDER THIS ACT.

(3) THE STATE TREASURER, OR HIS OR HER DESIGNEE, IS AUTHORIZED TO DISPOSE OF PROPERTY TRANSFERRED TO THIS STATE UNDER THIS SECTION. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE STATE TREASURER SHALL DEPOSIT IN THE STATE SCHOOL AID FUND ANY MONEY INCLUDED IN THAT PROPERTY AND THE NET PROCEEDS FROM THE SALE OF THE PROPERTY OR INTERESTS IN PROPERTY, AFTER PAYMENT BY THE STATE TREASURER OF ANY PUBLIC SCHOOL ACADEMY DEBT SECURED BY THE PROPERTY OR INTEREST IN PROPERTY.

(4) THIS SECTION DOES NOT IMPOSE ANY LIABILITY ON THIS STATE, ANY AGENCY OF THIS STATE, OR AN AUTHORIZING BODY FOR ANY DEBT INCURRED BY A PUBLIC SCHOOL ACADEMY.

(5) AS USED IN THIS SECTION AND SECTION 18C, "AUTHORIZING BODY" MEANS AN AUTHORIZING BODY DEFINED UNDER SECTION 501 OF THE REVISED SCHOOL CODE, MCL 380.501.

SEC. 18C. ANY CONTRACT, MORTGAGE, LOAN, OR OTHER INSTRUMENT OF INDEBTEDNESS ENTERED INTO BY A PUBLIC SCHOOL ACADEMY RECEIVING FUNDS UNDER THIS ACT AND A THIRD PARTY DOES NOT CONSTITUTE AN OBLIGATION, EITHER GENERAL, SPECIAL, OR MORAL, OF THIS STATE OR OF AN AUTHORIZING BODY. THE FULL FAITH AND CREDIT OR THE TAXING POWER OF THIS STATE OR ANY AGENCY OF THIS STATE, OR THE FULL FAITH AND CREDIT OF AN AUTHORIZING BODY, SHALL NOT BE PLEDGED FOR THE PAYMENT OF ANY CONTRACT, MORTGAGE, LOAN, OR OTHER INSTRUMENT OF INDEBTEDNESS ENTERED INTO BY A PUBLIC SCHOOL ACADEMY.

Sec. 19. (1) A district shall comply with the requirements of sections 1204a, 1277, 1278, and 1280 of the revised school code, being sections 380.1204a, 380.1277, 380.1278, and 380.1280 of the Michigan Compiled Laws MCL 380.1204A, 380.1277, 380.1278, AND 380.1280, commonly referred to as "public act 25 of 1990".

(2) Each district and intermediate district shall provide to the department, in a form and manner prescribed by the department, information necessary for the development of an annual progress report on the implementation of sections 1204a, 1277, 1278, and 1280 of the revised school code, MCL 380.1204A, 380.1277, 380.1278, AND 380.1280, commonly referred to as "public act 25 of 1990", and on the achievement of national education goals, AND INFORMATION NECESSARY FOR THE DEVELOPMENT OF OTHER PERFORMANCE REPORTS.

(3) If a district or intermediate district fails to meet the requirements of subsection (2) and sections 1204a, 1277, and 1278 of the revised school code, MCL 380.1204A, 380.1277, 380.1278, AND 380.1280, the department shall withhold 5% of the total funds for which the district or intermediate district qualifies under this act until the district or intermediate district complies with all of those sections. If the district or intermediate district does not comply with all of those sections by the end of the fiscal year, the department shall place the amount withheld in an escrow account until the district or intermediate district complies with all of those sections.

(4) If a school in a district is not accredited under section 1280 of the revised school code, MCL 380.1280, or is not making satisfactory progress toward meeting the standards for that accreditation, the department shall withhold 5% of the total funds for which the district qualifies under this act that are attributable to pupils attending that school. The department shall place the amount withheld from a district under this subsection in an escrow account and shall not release the funds to the district until the district submits to the department a plan for achieving accreditation for each of the district's schools that are not accredited under section 1280 of the revised school code, MCL 380.1280, or are not making satisfactory progress toward meeting the standards for that accreditation.

Sec. 20. (1) For 1998-99, the basic foundation allowance is $5,462.00 per membership pupil. For 1999-2000, the basic foundation allowance is $5,696.00 $5,700.00 per membership pupil. For 2000-2001, the basic foundation allowance is $5,866.00 $6,000.00 per membership pupil. FOR 2001-2002, THE BASIC FOUNDATION ALLOWANCE IS $6,300.00 PER MEMBERSHIP PUPIL. FOR 2002-2003, THE BASIC FOUNDATION ALLOWANCE IS $6,700.00 PER MEMBERSHIP PUPIL.

(2) From the appropriation in section 11, there is allocated for 1998-99 an amount not to exceed $8,034,100,000.00, for 1999-2000 an amount not to exceed $8,516,932,000.00, and for 2000-2001 an amount not to exceed $8,906,496,200.00, $8,418,600,000.00 to guarantee each district a foundation allowance per membership pupil other than special education pupils and to make payments under this section to public school academies and university schools for membership pupils other than special education pupils. The amount of each district's foundation allowance shall be calculated as provided in this section, using a basic foundation allowance in the amount specified in subsection (1). If the maximum amount allocated under this section is not sufficient to fully fund payments under this section, and before any proration required under section 11, the amount of the payment to each district, university school, and public school academy shall be prorated by reducing by an equal percentage the total payment under this section to each district, university school, and public school academy. However, if the department determines that proration will be required under this section, the superintendent of public instruction shall notify the state budget director, and the state budget director shall notify the legislature at least 30 calendar days or 6 legislative session days, whichever is more, before the department reduces any payments under this section because of the proration. During the 30 calendar day or 6 legislative session day period after that notification by the state budget director, the department shall not reduce any payments under this section because of proration. The legislature may prevent proration under this section from occurring by, within the 30 calendar day or 6 legislative session day period after that notification by the director, enacting legislation appropriating additional funds from the general fund, countercyclical budget and economic stabilization fund, state school aid fund balance, or another source to ensure full foundation allowance funding for each district, university school, and public school academy.

(3) Except as otherwise provided in this section, the amount of a district's foundation allowance shall be calculated as follows, using in all calculations the total amount of the district's foundation allowance as calculated before any proration:

(a) For a district that in the immediately preceding state fiscal year had a foundation allowance at least equal to the sum of $4,200.00 plus the total dollar amount of all adjustments made from 1994-95 to the immediately preceding state fiscal year in the lowest foundation allowance among all districts, but less than the basic foundation allowance in the immediately preceding state fiscal year, the district shall receive a foundation allowance in an amount equal to the sum of the district's foundation allowance for the immediately preceding state fiscal year plus the difference between twice the dollar amount of the adjustment from the immediately preceding state fiscal year to the current state fiscal year made in the basic foundation allowance and [(the dollar amount of the adjustment from the immediately preceding state fiscal year to the current state fiscal year made in the basic foundation allowance minus $50.00) times (the difference between the district's foundation allowance for the immediately preceding state fiscal year and the sum of $4,200.00 plus the total dollar amount of all adjustments made from 1994-95 to the immediately preceding state fiscal year in the lowest foundation allowance among all districts) divided by the difference between the basic foundation allowance for the current state fiscal year and the sum of $4,200.00 plus the total dollar amount of all adjustments made from 1994-95 to the immediately preceding state fiscal year in the lowest foundation allowance among all districts]. However, the foundation allowance for a district that had less than the basic foundation allowance in the immediately preceding state fiscal year shall not exceed the basic foundation allowance for the current state fiscal year.

(b) Except as otherwise provided in subdivision (c) or (d) THIS SUBSECTION, for a district that in the immediately preceding state fiscal year had a foundation allowance in an amount at least equal to the amount of the basic foundation allowance for the immediately preceding state fiscal year, the district shall receive a foundation allowance in an amount equal to the sum of the district's foundation allowance for the immediately preceding state fiscal year plus the dollar amount of the adjustment from the immediately preceding state fiscal year to the current state fiscal year in the basic foundation allowance.

(c) For BEGINNING IN 1999-2000, only, for a district that in the immediately preceding 1994-95 state fiscal year had a foundation allowance greater than $6,962.00 and less than $12,000.00 $6,500.00, the district shall receive a DISTRICT'S foundation allowance in IS an amount equal to the sum of the district's foundation allowance for the immediately preceding state fiscal year plus 1.6% THE LESSER OF THE INCREASE IN THE BASIC FOUNDATION ALLOWANCE FOR THE CURRENT STATE FISCAL YEAR, AS COMPARED TO THE IMMEDIATELY PRECEDING STATE FISCAL YEAR, OR THE PRODUCT of the district's foundation allowance for the immediately preceding state fiscal year TIMES THE PERCENTAGE INCREASE IN THE UNITED STATES CONSUMER PRICE INDEX IN THE CALENDAR YEAR ENDING IN THE IMMEDIATELY PRECEDING FISCAL YEAR AS REPORTED BY THE MAY REVENUE ESTIMATING CONFERENCE CONDUCTED UNDER SECTION 367B OF THE MANAGEMENT AND BUDGET ACT, 1984 PA 431, MCL 18.1367B.

(d) For 2000-2001 only, for a district that in the immediately preceding state fiscal year had a foundation allowance greater than $7,196.00 and less than $12,234.00, the district shall receive a foundation allowance in an amount equal to the sum of the district's foundation allowance for the immediately preceding state fiscal year plus 1.6% of the district's foundation allowance for the immediately preceding state fiscal year.

(D) (e) For 1998-99 1999-2000, each district's foundation allowance shall be at least $5,170.00 $5,700.00.

(E) BEGINNING IN 2000-2001, FOR A DISTRICT THAT HAS A FOUNDATION ALLOWANCE THAT IS NOT A WHOLE DOLLAR AMOUNT, THE DISTRICT'S FOUNDATION ALLOWANCE SHALL BE ROUNDED UP TO THE NEAREST WHOLE DOLLAR.

(F) BEGINNING IN 2002-2003, FOR A DISTRICT THAT RECEIVES A PAYMENT UNDER SECTION 22C FOR 2001-2002, THE DISTRICT'S 2001-2002 FOUNDATION ALLOWANCE SHALL BE CONSIDERED TO HAVE BEEN AN AMOUNT EQUAL TO THE SUM OF THE DISTRICT'S ACTUAL 2001-2002 FOUNDATION ALLOWANCE AS OTHERWISE CALCULATED UNDER THIS SECTION PLUS THE PER PUPIL AMOUNT OF THE DISTRICT'S EQUITY PAYMENT FOR 2001-2002 UNDER SECTION 22C.

(4) To ensure that a district receives the district's foundation allowance, there is allocated to each district a state portion of the district's foundation allowance in an amount calculated under this subsection. Except as otherwise provided in this subsection, the state portion of a district's foundation allowance is an amount equal to the district's foundation allowance or $6,500.00, whichever is less, minus the difference between the product of the taxable value per membership pupil of all property in the district that is not a homestead or qualified agricultural property times the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94 and the quotient of the ad valorem property tax revenue of the district captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the Brownfield BROWNFIELD redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership excluding special education pupils. For BEGINNING IN 1999-2000, only, for a district described in subsection (3)(c), the state portion of the district's foundation allowance is an amount equal to $6,962.00 plus 1.6% of THE DIFFERENCE BETWEEN the district's foundation allowance for the immediately preceding CURRENT state fiscal year AND THE DISTRICT'S FOUNDATION ALLOWANCE FOR 1998-99, minus the difference between the product of the taxable value per membership pupil of all property in the district that is not a homestead or qualified agricultural property times the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94 and the quotient of the ad valorem property tax revenue of the district captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the Brownfield BROWNFIELD redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership excluding special education pupils. For 2000-2001 only, for a district described in subsection (3)(d), the state portion of the district's foundation allowance is an amount equal to $7,196.00 plus 1.6% of the district's foundation allowance for the immediately preceding state fiscal year minus the difference between the product of the taxable value per membership pupil of all property in the district that is not a homestead or qualified agricultural property times the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94 and the quotient of the ad valorem property tax revenue of the district captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the Brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership excluding special education pupils. For a district that has a millage reduction required under section 31 of article IX of the state constitution of 1963, the state portion of the district's foundation allowance shall be calculated as if that reduction did not occur. For each fiscal year after 1994-95, the THE $6,500.00 amount prescribed in this subsection shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00. HOWEVER, BEGINNING IN 2002-2003, THE $6,500.00 AMOUNT PRESCRIBED IN THIS SUBSECTION SHALL BE ADJUSTED EACH YEAR BY AN AMOUNT EQUAL TO THE DOLLAR AMOUNT OF THE DIFFERENCE BETWEEN THE BASIC FOUNDATION ALLOWANCE FOR THE CURRENT STATE FISCAL YEAR AND $5,000.00, MINUS $200.00.

(5) The allocation under this section for a pupil shall be based on the foundation allowance of the pupil's district of residence. However, for a pupil enrolled pursuant to section 105 OR 105C in a district other than the pupil's district of residence, the allocation under this section shall be based on the lesser of the foundation allowance of the pupil's district of residence or the foundation allowance of the educating district. For a pupil in membership in a K-5, K-6, or K-8 district who is enrolled in another district in a grade not offered by the pupil's district of residence, the allocation under this section shall be based on the foundation allowance of the educating district if the educating district's foundation allowance is greater than the foundation allowance of the pupil's district of residence. BEGINNING IN 1999-2000, THE CALCULATION UNDER THIS SUBSECTION SHALL TAKE INTO ACCOUNT A DISTRICT'S PER PUPIL ALLOCATION UNDER SECTION 20J(2).

(6) Subject to subsection (7) and except as otherwise provided in this subsection, for pupils in membership, other than special education pupils, in a public school academy or a university school, there is allocated under this section each fiscal year for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 to the authorizing body that is the fiscal agent for the public school academy for forwarding to the public school academy, or to the board of the public university operating the university school, an amount per membership pupil other than special education pupils in the public school academy or university school equal to the sum of the local school operating revenue per membership pupil other than special education pupils for the district in which the public school academy or university school is located and the state portion of that district's foundation allowance, or the sum of the basic foundation allowance under subsection (1) plus $500.00, whichever is less. HOWEVER, BEGINNING IN 2002-2003, THIS $500.00 AMOUNT SHALL INSTEAD BE $300.00. Notwithstanding section 101(2), for a public school academy that begins operations in 1998-99, 1999-2000, or 2000-2001, 2001-2002, OR 2002-2003, as applicable, after the pupil membership count day, the amount per membership pupil calculated under this subsection shall be adjusted by multiplying that amount per membership pupil by the number of hours of pupil instruction provided by the public school academy after it begins operations, as determined by the department, divided by the minimum number of hours of pupil instruction required under section 1284 of the revised school code, MCL 380.1284. The result of this calculation shall not exceed the amount per membership pupil otherwise calculated under this subsection.

(7) If more than 25% of the pupils residing within a district are in membership in 1 or more public school academies located in the district, then the amount per membership pupil allocated under this section to the authorizing body that is the fiscal agent for a public school academy located in the district for forwarding to the public school academy shall be reduced by an amount equal to the difference between the product of the taxable value per membership pupil of all property in the district that is not a homestead or qualified agricultural property times the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94 and the quotient of the ad valorem property tax revenue of the district captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the Brownfield BROWNFIELD redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership excluding special education pupils, in the school fiscal year ending in the current state fiscal year, calculated as if the resident pupils in membership in 1 or more public school academies located in the district were in membership in the district. In order to receive state school aid under this act, a district described in this subsection shall pay to the authorizing body that is the fiscal agent for a public school academy located in the district for forwarding to the public school academy an amount equal to that local school operating revenue per membership pupil for each resident pupil in membership other than special education pupils in the public school academy, as determined by the department.

(8) If a district does not receive a payment under subsection (9); if the number of mills the district may levy on a homestead and qualified agricultural property under section 1211(1) of the revised school code, MCL 380.1211, is 0.5 mills or less; and if the district elects not to levy those mills, the district instead shall receive a separate supplemental payment under this subsection in an amount equal to the amount the district would have received had it levied those mills, as determined by the department of treasury. A district shall not receive a separate supplemental payment under this subsection for a fiscal year unless in the calendar year ending in the fiscal year the district levies 18 mills or the number of mills of school operating taxes levied by the district in 1993, whichever is less, on property that is not a homestead or qualified agricultural property.

(9) For a district that had combined state and local revenue per membership pupil in the 1993-94 state fiscal year of more than $6,500.00 and that had fewer than 350 pupils in membership, if the district elects not to reduce the number of mills from which a homestead and qualified agricultural property are exempt and not to levy school operating taxes on a homestead and qualified agricultural property as provided in section 1211(1) of the revised school code, MCL 380.1211, and not to levy school operating taxes on all property as provided in section 1211(2) of the revised school code, MCL 380.1211, there is allocated under this subsection for 1994-95 and each succeeding fiscal year a separate supplemental payment in an amount equal to the amount the district would have received per membership pupil had it levied school operating taxes on a homestead and qualified agricultural property at the rate authorized for the district under section 1211(1) of the revised school code, MCL 380.1211, and levied school operating taxes on all property at the rate authorized for the district under section 1211(2) of the revised school code, MCL 380.1211, as determined by the department of treasury. A district shall not receive a separate supplemental payment under this subsection for a fiscal year unless in the calendar year ending in the fiscal year the district levies 18 mills or the number of mills of school operating taxes levied by the district in 1993, whichever is less, on property that is not a homestead or qualified agricultural property. If in the calendar year ending in the fiscal year a district does not levy 18 mills or the number of mills of school operating taxes levied by the district in 1993, whichever is less, on property that is not a homestead or qualified agricultural property, the payment under this subsection will be reduced by the same percentage as the millage actually levied compares to the 18 mills or the number of mills levied in 1993, whichever is less.

(10) A district or public school academy may use any funds allocated under this section in conjunction with any federal funds for which the district or public school academy otherwise would be eligible.

(11) For a district that is formed or reconfigured after June 1, 1994 by consolidation of 2 or more districts or by annexation, the resulting district's foundation allowance under this section beginning after the effective date of the consolidation or annexation shall be the average of the foundation allowances of each of the original or affected districts, calculated as provided in this section, weighted as to the percentage of pupils in total membership in the resulting district who reside in the geographic area of each of the original districts. If an affected district's foundation allowance is less than the basic foundation allowance, the amount of that district's foundation allowance shall be considered for the purpose of calculations under this subsection to be equal to the amount of the basic foundation allowance.

(12) Each fraction used in making calculations under this section shall be rounded to the fourth decimal place and the dollar amount of an increase in the basic foundation allowance shall be rounded to the nearest whole dollar.

(13) State payments related to payment of the foundation allowance for a special education pupil are not funded under this section but are instead funded under section 51a.

(14) To assist the legislature in determining the basic foundation allowance for the subsequent state fiscal year, each revenue estimating conference conducted under section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b, shall calculate a pupil membership factor, a revenue adjustment factor, and an index as follows:

(a) The pupil membership factor shall be computed by dividing the estimated membership in the school year ending in the current state fiscal year, excluding intermediate district membership, by the estimated membership for the school year ending in the subsequent state fiscal year, excluding intermediate district membership. If a consensus membership factor is not determined at the revenue estimating conference, the principals of the revenue estimating conference shall report their estimates to the house and senate subcommittees responsible for school aid appropriations not later than 7 days after the conclusion of the revenue conference.

(b) The revenue adjustment factor shall be computed by dividing the sum of the estimated total state school aid fund revenue for the subsequent state fiscal year plus the estimated total state school aid fund revenue for the current state fiscal year, adjusted for any change in the rate or base of a tax the proceeds of which are deposited in that fund and excluding money transferred into that fund from the countercyclical budget and economic stabilization fund under section 353e of the management and budget act, 1984 PA 431, MCL 18.1353e, by the sum of the estimated total school aid fund revenue for the current state fiscal year plus the estimated total state school aid fund revenue for the immediately preceding state fiscal year, adjusted for any change in the rate or base of a tax the proceeds of which are deposited in that fund. If a consensus revenue factor is not determined at the revenue estimating conference, the principals of the revenue estimating conference shall report their estimates to the house and senate subcommittees responsible for school aid appropriations not later than 7 days after the conclusion of the revenue conference.

(c) The index shall be calculated by multiplying the pupil membership factor by the revenue adjustment factor. However, for 1998-99 only, the index shall be 1.00. If a consensus index is not determined at the revenue estimating conference, the principals of the revenue estimating conference shall report their estimates to the house and senate subcommittees responsible for school aid appropriations not later than 7 days after the conclusion of the revenue conference.

(15) If the principals at the revenue estimating conference reach a consensus on the index described in subsection (14)(c), the basic foundation allowance for the subsequent state fiscal year shall be at least the amount of that consensus index multiplied by the basic foundation allowance specified in subsection (1).

(16) If at the January revenue estimating conference it is estimated that pupil membership, excluding intermediate district membership, for the subsequent state fiscal year will be greater than 101% of the pupil membership, excluding intermediate district membership, for the current state fiscal year, then it is the intent of the legislature that the executive budget proposal for the school aid budget for the subsequent state fiscal year include a general fund/general purpose allocation sufficient to support the membership in excess of 101% of the current year pupil membership.

(17) Beginning in 1999-2000, for a district that had combined state and local revenue per membership pupil in the 1993-94 state fiscal year of more than $6,500.00, that had fewer than 7 pupils in membership in the 1993-94 state fiscal year, that has at least 1 pupil in membership CHILD educated in the district in the current state fiscal year, and that levies the number of mills of school operating taxes authorized for the district under section 1211 of the revised school code, MCL 380.1211, the district shall be allocated a minimum amount of combined state and local revenue as provided under this subsection. This THE minimum amount of combined state and local revenue for 1999-2000 shall be $67,000.00 plus the district's additional expenses to educate pupils in grades 9 to 12 educated in other districts as determined and allowed by the department. Beginning in 2000-2001, the amount of the minimum amount of combined state and local revenue under this subsection, before adding the additional expenses, shall increase each fiscal year by the same percentage increase as the percentage increase in the basic foundation allowance from the immediately preceding fiscal year to the current fiscal year. The state portion of the minimum amount of combined state and local revenue under this subsection shall be calculated by subtracting from the minimum amount of combined state and local revenue under this subsection the sum of the district's local school operating revenue and the product of the state portion of the district's foundation allowance times the district's membership. As used in this subsection, "additional expenses" means the district's expenses for tuition or fees, not to exceed $6,500.00 as adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, plus a room and board stipend not to exceed $10.00 per school day for each pupil in grades 9 to 12 educated in another district, as approved by the department. HOWEVER, BEGINNING IN 2002-2003, THE $6,500.00 AMOUNT PRESCRIBED IN THIS SUBSECTION SHALL BE ADJUSTED EACH YEAR BY AN AMOUNT EQUAL TO THE DOLLAR AMOUNT OF THE DIFFERENCE BETWEEN THE BASIC FOUNDATION ALLOWANCE FOR THE CURRENT STATE FISCAL YEAR AND $5,000.00, MINUS $200.00.

(18) FOR A DISTRICT IN WHICH 7.75 MILLS LEVIED IN 1992 FOR SCHOOL OPERATING PURPOSES IN THE 1992-93 SCHOOL YEAR WERE NOT RENEWED IN 1993 FOR SCHOOL OPERATING PURPOSES IN THE 1993-94 SCHOOL YEAR, THE DISTRICT'S COMBINED STATE AND LOCAL REVENUE PER MEMBERSHIP PUPIL SHALL BE RECALCULATED AS IF THAT MILLAGE REDUCTION DID NOT OCCUR AND, BEGINNING IN 2000-2001, THE DISTRICT'S FOUNDATION ALLOWANCE SHALL BE CALCULATED AS IF ITS 1994-95 FOUNDATION ALLOWANCE HAD BEEN CALCULATED USING THAT RECALCULATED 1993-94 COMBINED STATE AND LOCAL REVENUE PER MEMBERSHIP PUPIL AS A BASE. A DISTRICT IS NOT ENTITLED TO ANY RETROACTIVE PAYMENTS FOR FISCAL YEARS BEFORE 2000-2001 DUE TO THIS SUBSECTION.

(19) BEGINNING IN 2000-2001, PAYMENTS TO DISTRICTS, UNIVERSITY SCHOOLS, OR PUBLIC SCHOOL ACADEMIES SHALL NOT BE MADE UNDER THIS SECTION. RATHER, THE CALCULATIONS UNDER THIS SECTION SHALL BE USED TO DETERMINE THE AMOUNT OF STATE PAYMENTS UNDER SECTION 22B.

(20) FROM THE ALLOCATION IN SUBSECTION (1), THE DEPARTMENT MAY EXPEND FUNDS TO PAY FOR NECESSARY COSTS ASSOCIATED WITH RESOLVING MATTERS PENDING IN FEDERAL COURT IMPACTING PAYMENTS TO DISTRICTS.

(21) IF AN AMENDMENT TO SECTION 2 OF ARTICLE VIII OF THE STATE CONSTITUTION OF 1963 ALLOWING STATE AID TO SOME OR ALL NONPUBLIC SCHOOLS IS APPROVED BY THE VOTERS OF THIS STATE, EACH FOUNDATION ALLOWANCE OR PER PUPIL PAYMENT CALCULATION UNDER THIS SECTION MAY BE REDUCED.

(22) (18) As used in this section:

(a) "Combined state and local revenue" means the aggregate of the district's state school aid received by or paid on behalf of the district under this section and the district's local school operating revenue.

(b) "Combined state and local revenue per membership pupil" means the district's combined state and local revenue divided by the district's membership excluding special education pupils.

(c) "Current state fiscal year" means the state fiscal year for which a particular calculation is made.

(d) "Homestead" means that term as defined in section 1211 of the revised school code, MCL 380.1211.

(e) "Immediately preceding state fiscal year" means the state fiscal year immediately preceding the current state fiscal year.

(f) "Local school operating revenue" means school operating taxes levied under section 1211 of the revised school code, MCL 380.1211.

(g) "Local school operating revenue per membership pupil" means a district's local school operating revenue divided by the district's membership excluding special education pupils.

(h) "Membership" means the definition of that term under section 6 as in effect for the particular fiscal year for which a particular calculation is made.

(i) "Qualified agricultural property" means that term as defined in section 1211 of the revised school code, MCL 380.1211.

(j) "School operating purposes" means the purposes included in the operation costs of the district as prescribed in sections 7 and 18.

(k) "School operating taxes" means local ad valorem property taxes levied under section 1211 of the revised school code, MCL 380.1211, and retained for school operating purposes.

(l) Taxable value per membership pupil" means taxable value, as certified by the department of treasury, for the calendar year ending in the current state fiscal year divided by the district's membership excluding special education pupils for the school year ending in the current state fiscal year.

Sec. 20j. (1) From the appropriation in section 11, there is allocated for 1999-2000 only an amount not to exceed $16,000,000.00 $23,400,000.00 for foundation allowance supplemental payments to districts that in the immediately preceding 1994-95 state fiscal year had a foundation allowance greater than $6,962.00 and less than $12,000.00 $6,500.00. From the appropriation in section 11, there is allocated for 2000-2001 only an amount not to exceed $13,000,000.00 for foundation allowance supplemental payments to districts that in the immediately preceding state fiscal year had a foundation allowance greater than $7,196.00 and less than $12,234.00.

(2) The per pupil allocation to each district under this section shall be the difference between the dollar amount of the adjustment from the immediately preceding 1998-99 state fiscal year to the current state fiscal year in the basic foundation allowance and 1.6% of the district's foundation allowance for the immediately preceding MINUS THE DOLLAR AMOUNT OF THE ADJUSTMENT FROM THE 1998-99 state fiscal year TO THE CURRENT STATE FISCAL YEAR IN THE DISTRICT'S FOUNDATION ALLOWANCE.

(3) The total payment to each district under this section shall be the product of the per pupil allocation under subsection (2) multiplied by the district's membership excluding special education pupils.

(4) BEGINNING IN 2000-2001, PAYMENTS TO DISTRICTS SHALL NOT BE MADE UNDER THIS SECTION. RATHER, THE CALCULATIONS UNDER THIS SECTION SHALL BE MADE AND USED TO DETERMINE THE AMOUNT OF STATE PAYMENTS UNDER SECTION 22B.

SEC. 20K. (1) FROM THE STATE SCHOOL AID FUND MONEY APPROPRIATED IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $1,050,000.00 EACH FISCAL YEAR FOR 2000-2001, 2001-2002, AND 2002-2003 FOR PAYMENTS TO DISTRICTS UNDER THIS SECTION.

(2) TO BE ELIGIBLE FOR A PAYMENT UNDER THIS SECTION, A DISTRICT MUST MEET ALL OF THE FOLLOWING:

(A) THE DISTRICT'S MEMBERSHIP IS 100 PUPILS OR FEWER.

(B) AT LEAST 80% OF THE DISTRICT'S COMBINED STATE AND LOCAL REVENUE IS FROM THE DISTRICT'S LOCAL SCHOOL OPERATING REVENUE. AS USED IN THIS SUBDIVISION, "COMBINED STATE AND LOCAL REVENUE" AND "LOCAL SCHOOL OPERATING REVENUE" MEAN THOSE TERMS AS DEFINED IN SECTION 20.

(C) THE DISTRICT IS NOT ELIGIBLE TO BE FUNDED UNDER SECTION 20(17).

(3) THE AMOUNT OF THE PAYMENT UNDER THIS SECTION TO EACH DISTRICT ELIGIBLE UNDER SUBSECTION (2) SHALL BE AN AMOUNT EQUAL TO 1/2 OF THE STATE REVENUE DERIVED FOR THE CALENDAR YEAR ENDING IN THE IMMEDIATELY PRECEDING FISCAL YEAR FROM THE TAX LEVIED UNDER THE STATE EDUCATION TAX ACT, 1993 PA 331, MCL 211.901 TO 211.906, ON PROPERTY LOCATED IN THE DISTRICT, AS DETERMINED BY THE DEPARTMENT OF TREASURY.

(4) A TASK FORCE IS CREATED TO STUDY THE ISSUES SPECIFIED IN THIS SUBSECTION CONCERNING THE FUNDING OF DISTRICTS WITH FEWER THAN 100 PUPILS IN MEMBERSHIP. THE TASK FORCE SHALL STUDY AND REPORT ITS FINDINGS TO THE LEGISLATURE, STATE BUDGET DIRECTOR, AND SENATE AND HOUSE FISCAL AGENCIES NOT LATER THAN OCTOBER 1, 2001 ON THE FOLLOWING ISSUES:

(A) THE FISCAL IMPACT ON A DISTRICT FROM HAVING FEWER THAN 100 PUPILS.

(B) ALTERNATIVE METHODS OF CALCULATING PAYMENTS FOR DISTRICTS WITH FEWER THAN 100 PUPILS, INCLUDING USING A MINIMUM PUPIL COUNT AS THE MEMBERSHIP FIGURE FOR SUCH A DISTRICT EACH FISCAL YEAR.

(C) THE FISCAL IMPACT ON A DISTRICT FROM HAVING A DECLINING MEMBERSHIP.

(5) THE TASK FORCE UNDER SUBSECTION (4) SHALL CONSIST OF THE FOLLOWING 5 MEMBERS, APPOINTED BY THE SUPERINTENDENT.

(A) TWO MEMBERS REPRESENTING SCHOOL BOARDS, APPOINTED FROM AMONG NOMINATIONS SUBMITTED BY THE MICHIGAN ASSOCIATION OF SCHOOL BOARDS. AT LEAST 1 OF THESE MEMBERS SHALL BE A REPRESENTATIVE OF A DISTRICT WITH FEWER THAN 100 PUPILS.

(B) ONE MEMBER REPRESENTING PUBLIC SCHOOL ADMINISTRATORS, APPOINTED FROM AMONG NOMINATIONS SUBMITTED BY THE MICHIGAN ASSOCIATION OF SCHOOL ADMINISTRATORS.

(C) ONE MEMBER REPRESENTING THE SUPERINTENDENT.

(D) ONE MEMBER WHO IS A K-12 TEACHER IN THIS STATE, APPOINTED FROM AMONG NOMINATIONS JOINTLY SUBMITTED BY THE MICHIGAN EDUCATION ASSOCIATION AND THE MICHIGAN FEDERATION OF TEACHERS.

(6) THE MEMBERS APPOINTED TO THE TASK FORCE UNDER SUBSECTION (5) SHALL BE APPOINTED NOT LATER THAN OCTOBER 1, 2000.

(7) MEMBERS OF THE TASK FORCE SHALL SERVE UNTIL THE TASK FORCE FINDINGS ARE REPORTED AS REQUIRED UNDER SUBSECTION (4).

(8) IF A VACANCY OCCURS ON THE TASK FORCE, THE SUPERINTENDENT SHALL APPOINT A REPLACEMENT IN THE SAME MANNER AS THE ORIGINAL APPOINTMENT.

Sec. 21b. (1) Subject to subsections (2) and (3), a district shall use funds received under section 20 OR, BEGINNING IN 2000-2001, UNDER SECTION 22A OR 22B to support the attendance of a district pupil at an eligible postsecondary institution under the postsecondary enrollment options act, Act No.160 of the Public Acts of 1996, being sections 388.511 to 388.524 of the Michigan Compiled Laws 1996 PA 160, MCL 388.511 TO 388.524, OR UNDER THE CAREER AND TECHNICAL PREPARATION ACT.

(2) To the extent required under subsection (3), a district shall pay tuition and mandatory course fees, material fees, and registration fees required by an eligible postsecondary institution for enrollment in an eligible course. A district also shall pay any late fees charged by an eligible postsecondary institution due to the district's failure to make a required payment according to the timetable prescribed by Act No.160 of the Public Acts of 1996 THE POSTSECONDARY ENROLLMENT OPTIONS ACT, 1996 PA 160, MCL 388.511 TO 388.524, OR THE CAREER AND TECHNICAL PREPARATION ACT. A district is not required to pay transportation costs, parking costs, or activity fees.

(3) A district shall pay to the eligible postsecondary institution on behalf of an eligible student an amount equal to the lesser of the amount of the eligible charges described in subsection (2) or the prorated percentage of the state portion of the foundation allowance paid OR CALCULATED, AS APPLICABLE, on behalf of that eligible student under section 20, with the proration based on the proportion of the school year that the eligible student attends the postsecondary institution. A district may pay more money to an eligible postsecondary institution on behalf of an eligible student than required under this section and Act No.160 of the Public Acts of 1996 THE POSTSECONDARY ENROLLMENT OPTIONS ACT, 1996 PA 160, MCL 388.511 TO 388.524, OR THE CAREER AND TECHNICAL PREPARATION ACT, and may use local school operating revenue for that purpose. An eligible student is responsible for payment of the remainder of the costs associated with his or her postsecondary enrollment that exceed the amount the district is required to pay under this section and Act No.160 of the Public Acts of 1996 THE POSTSECONDARY ENROLLMENT OPTIONS ACT, 1996 PA 160, MCL 388.511 TO 388.524, OR THE CAREER AND TECHNICAL PREPARATION ACT, and that are not paid by the district. As used in this subsection, "local school operating revenue" means that term as defined in section 20.

(4) As used in this section, "eligible course", "eligible student", and "eligible postsecondary institution" mean those terms as defined in section 3 of Act No.160 of the Public Acts of 1996, being section 388.513 of the Michigan Compiled Laws THE POSTSECONDARY ENROLLMENT OPTIONS ACT, 1996 PA 160, MCL 388.511 TO 388.524, OR IN SECTION 3 OF THE CAREER AND TECHNICAL PREPARATION ACT, AS APPLICABLE.

SEC. 22A. (1) FROM THE APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $7,181,000,000.00 FOR 2000-2001, AN AMOUNT NOT TO EXCEED $7,088,000,000.00 FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $7,004,000,000.00 FOR 2002-2003 FOR PAYMENTS TO DISTRICTS, QUALIFYING UNIVERSITY SCHOOLS, AND QUALIFYING PUBLIC SCHOOL ACADEMIES TO GUARANTEE EACH DISTRICT, QUALIFYING UNIVERSITY SCHOOL, AND QUALIFYING PUBLIC SCHOOL ACADEMY AN AMOUNT EQUAL TO ITS 1994-95 TOTAL STATE AND LOCAL PER PUPIL REVENUE FOR SCHOOL OPERATING PURPOSES UNDER SECTION 11 OF ARTICLE IX OF THE STATE CONSTITUTION OF 1963. PURSUANT TO SECTION 11 OF ARTICLE IX OF THE STATE CONSTITUTION OF 1963, THIS GUARANTEE DOES NOT APPLY TO A DISTRICT IN A YEAR IN WHICH THE DISTRICT LEVIES A MILLAGE RATE FOR SCHOOL DISTRICT OPERATING PURPOSES LESS THAN IT LEVIED IN 1994. HOWEVER, SUBSECTION (2) APPLIES TO CALCULATING THE PAYMENTS UNDER THIS SECTION.

(2) TO ENSURE THAT A DISTRICT RECEIVES AN AMOUNT EQUAL TO THE DISTRICT'S 1994-95 TOTAL STATE AND LOCAL PER PUPIL REVENUE FOR SCHOOL OPERATING PURPOSES, THERE IS ALLOCATED TO EACH DISTRICT A STATE PORTION OF THE DISTRICT'S 1994-95 FOUNDATION ALLOWANCE IN AN AMOUNT CALCULATED AS FOLLOWS:

(A) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, THE STATE PORTION OF A DISTRICT'S 1994-95 FOUNDATION ALLOWANCE IS AN AMOUNT EQUAL TO THE DISTRICT'S 1994-95 FOUNDATION ALLOWANCE OR $6,500.00, WHICHEVER IS LESS, MINUS THE DIFFERENCE BETWEEN THE PRODUCT OF THE TAXABLE VALUE PER MEMBERSHIP PUPIL OF ALL PROPERTY IN THE DISTRICT THAT IS NOT A HOMESTEAD OR QUALIFIED AGRICULTURAL PROPERTY TIMES THE LESSER OF 18 MILLS OR THE NUMBER OF MILLS OF SCHOOL OPERATING TAXES LEVIED BY THE DISTRICT IN 1993-94 AND THE QUOTIENT OF THE AD VALOREM PROPERTY TAX REVENUE OF THE DISTRICT CAPTURED UNDER 1975 PA 197, MCL 125.1651 TO 125.1681, THE TAX INCREMENT FINANCE AUTHORITY ACT, 1980 PA 450, MCL 125.1801 TO 125.1830, THE LOCAL DEVELOPMENT FINANCING ACT, 1986 PA 281, MCL 125.2151 TO 125.2174, OR THE BROWNFIELD REDEVELOPMENT FINANCING ACT, 1996 PA 381, MCL 125.2651 TO 125.2672, DIVIDED BY THE DISTRICT'S MEMBERSHIP. FOR A DISTRICT THAT HAS A MILLAGE REDUCTION REQUIRED UNDER SECTION 31 OF ARTICLE IX OF THE STATE CONSTITUTION OF 1963, THE STATE PORTION OF THE DISTRICT'S FOUNDATION ALLOWANCE SHALL BE CALCULATED AS IF THAT REDUCTION DID NOT OCCUR.

(B) FOR A DISTRICT THAT HAD A 1994-95 FOUNDATION ALLOWANCE GREATER THAN $6,500.00, THE STATE PAYMENT UNDER THIS SUBSECTION SHALL BE THE SUM OF THE AMOUNT CALCULATED UNDER SUBDIVISION (A) PLUS THE AMOUNT CALCULATED UNDER THIS SUBDIVISION. THE AMOUNT CALCULATED UNDER THIS SUBDIVISION SHALL BE EQUAL TO THE DIFFERENCE BETWEEN THE DISTRICT'S 1994-95 FOUNDATION ALLOWANCE MINUS $6,500.00 AND THE CURRENT YEAR HOLD HARMLESS SCHOOL OPERATING TAXES PER PUPIL. IF THE RESULT OF THE CALCULATION UNDER SUBDIVISION (A) IS NEGATIVE, THE NEGATIVE AMOUNT SHALL BE AN OFFSET AGAINST ANY STATE PAYMENT CALCULATED UNDER THIS SUBDIVISION. IF THE RESULT OF A CALCULATION UNDER THIS SUBDIVISION IS NEGATIVE, THERE SHALL NOT BE A STATE PAYMENT OR A DEDUCTION UNDER THIS SUBDIVISION. THE TAXABLE VALUES PER MEMBERSHIP PUPIL USED IN THE CALCULATIONS UNDER THIS SUBDIVISION ARE AS ADJUSTED BY AD VALOREM PROPERTY TAX REVENUE CAPTURED UNDER 1975 PA 197, MCL 125.1651 TO 125.1681, THE TAX INCREMENT FINANCE AUTHORITY ACT, 1980 PA 450, MCL 125.1801 TO 125.1830, THE LOCAL DEVELOPMENT FINANCING ACT, 1986 PA 281, MCL 125.2151 TO 125.2174, OR THE BROWNFIELD REDEVELOPMENT FINANCING ACT, 1996 PA 381, MCL 125.2651 TO 125.2672, DIVIDED BY THE DISTRICT'S MEMBERSHIP.

(3) FOR PUPILS IN MEMBERSHIP IN A QUALIFYING PUBLIC SCHOOL ACADEMY OR QUALIFYING UNIVERSITY SCHOOL, THERE IS ALLOCATED UNDER THIS SECTION EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 TO THE AUTHORIZING BODY THAT IS THE FISCAL AGENT FOR THE QUALIFYING PUBLIC SCHOOL ACADEMY FOR FORWARDING TO THE QUALIFYING PUBLIC SCHOOL ACADEMY, OR TO THE BOARD OF THE PUBLIC UNIVERSITY OPERATING THE QUALIFYING UNIVERSITY SCHOOL, AN AMOUNT EQUAL TO THE 1994-95 PER PUPIL PAYMENT TO THE QUALIFYING PUBLIC SCHOOL ACADEMY OR QUALIFYING UNIVERSITY SCHOOL UNDER SECTION 20.

(4) A DISTRICT, QUALIFYING UNIVERSITY SCHOOL, OR QUALIFYING PUBLIC SCHOOL ACADEMY MAY USE FUNDS ALLOCATED UNDER THIS SECTION IN CONJUNCTION WITH ANY FEDERAL FUNDS FOR WHICH THE DISTRICT, QUALIFYING UNIVERSITY SCHOOL, OR QUALIFYING PUBLIC SCHOOL ACADEMY OTHERWISE WOULD BE ELIGIBLE.

(5) FOR A DISTRICT THAT IS FORMED OR RECONFIGURED AFTER JUNE 1, 2000 BY CONSOLIDATION OF 2 OR MORE DISTRICTS OR BY ANNEXATION, THE RESULTING DISTRICT'S 1994-95 FOUNDATION ALLOWANCE UNDER THIS SECTION BEGINNING AFTER THE EFFECTIVE DATE OF THE CONSOLIDATION OR ANNEXATION SHALL BE THE AVERAGE OF THE 1994-95 FOUNDATION ALLOWANCES OF EACH OF THE ORIGINAL OR AFFECTED DISTRICTS, CALCULATED AS PROVIDED IN THIS SECTION, WEIGHTED AS TO THE PERCENTAGE OF PUPILS IN TOTAL MEMBERSHIP IN THE RESULTING DISTRICT IN THE STATE FISCAL YEAR IN WHICH THE CONSOLIDATION TAKES PLACE WHO RESIDE IN THE GEOGRAPHIC AREA OF EACH OF THE ORIGINAL DISTRICTS. IF AN AFFECTED DISTRICT'S 1994-95 FOUNDATION ALLOWANCE IS LESS THAN THE 1994-95 BASIC FOUNDATION ALLOWANCE, THE AMOUNT OF THAT DISTRICT'S 1994-95 FOUNDATION ALLOWANCE SHALL BE CONSIDERED FOR THE PURPOSE OF CALCULATIONS UNDER THIS SUBSECTION TO BE EQUAL TO THE AMOUNT OF THE 1994-95 BASIC FOUNDATION ALLOWANCE.

(6) AS USED IN THIS SECTION:

(A) "1994-95 FOUNDATION ALLOWANCE" MEANS A DISTRICT'S 1994-95 FOUNDATION ALLOWANCE CALCULATED AND CERTIFIED BY THE DEPARTMENT OF TREASURY OR THE SUPERINTENDENT UNDER FORMER SECTION 20A AS ENACTED IN 1993 PA 336 AND AS AMENDED BY 1994 PA 283.

(B) "CURRENT STATE FISCAL YEAR" MEANS THE STATE FISCAL YEAR FOR WHICH A PARTICULAR CALCULATION IS MADE.

(C) "CURRENT YEAR HOLD HARMLESS SCHOOL OPERATING TAXES PER PUPIL" MEANS THE PER PUPIL REVENUE GENERATED BY MULTIPLYING A DISTRICT'S 1994-95 HOLD HARMLESS MILLAGE BY THE DISTRICT'S CURRENT YEAR TAXABLE VALUE PER MEMBERSHIP PUPIL.

(D) "HOLD HARMLESS MILLAGE" MEANS, FOR A DISTRICT WITH A 1994-95 FOUNDATION ALLOWANCE GREATER THAN $6,500.00, THE NUMBER OF MILLS BY WHICH THE EXEMPTION FROM THE LEVY OF SCHOOL OPERATING TAXES ON A HOMESTEAD AND QUALIFIED AGRICULTURAL PROPERTY COULD BE REDUCED AS PROVIDED IN SECTION 1211(1) OF THE REVISED SCHOOL CODE, MCL 380.1211, AND THE NUMBER OF MILLS OF SCHOOL OPERATING TAXES THAT COULD BE LEVIED ON ALL PROPERTY AS PROVIDED IN SECTION 1211(2) OF THE REVISED SCHOOL CODE, MCL 380.1211, AS CERTIFIED BY THE DEPARTMENT OF TREASURY FOR THE 1994 TAX YEAR.

(E) "HOMESTEAD" MEANS THAT TERM AS DEFINED IN SECTION 1211 OF THE REVISED SCHOOL CODE, MCL 380.1211.

(F) "MEMBERSHIP" MEANS THE DEFINITION OF THAT TERM UNDER SECTION 6 AS IN EFFECT FOR THE PARTICULAR FISCAL YEAR FOR WHICH A PARTICULAR CALCULATION IS MADE.

(G) "QUALIFIED AGRICULTURAL PROPERTY" MEANS THAT TERM AS DEFINED IN SECTION 1211 OF THE REVISED SCHOOL CODE, MCL 380.1211.

(H) "QUALIFYING PUBLIC SCHOOL ACADEMY" MEANS A PUBLIC SCHOOL ACADEMY THAT WAS IN OPERATION IN THE 1994-95 SCHOOL YEAR AND IS IN OPERATION IN THE CURRENT STATE FISCAL YEAR.

(I) "QUALIFYING UNIVERSITY SCHOOL" MEANS A UNIVERSITY SCHOOL THAT WAS IN OPERATION IN THE 1994-95 SCHOOL YEAR AND IS IN OPERATION IN THE CURRENT FISCAL YEAR.

(J) "SCHOOL OPERATING TAXES" MEANS LOCAL AD VALOREM PROPERTY TAXES LEVIED UNDER SECTION 1211 OF THE REVISED SCHOOL CODE, MCL 380.1211, AND RETAINED FOR SCHOOL OPERATING PURPOSES.

(K) "TAXABLE VALUE PER MEMBERSHIP PUPIL" MEANS EACH OF THE FOLLOWING DIVIDED BY THE DISTRICT'S MEMBERSHIP:

(i) FOR THE NUMBER OF MILLS BY WHICH THE EXEMPTION FROM THE LEVY OF SCHOOL OPERATING TAXES ON A HOMESTEAD AND QUALIFIED AGRICULTURAL PROPERTY MAY BE REDUCED AS PROVIDED IN SECTION 1211(1) OF THE REVISED SCHOOL CODE, MCL 380.1211, THE TAXABLE VALUE OF HOMESTEAD AND QUALIFIED AGRICULTURAL PROPERTY FOR THE CALENDAR YEAR ENDING IN THE CURRENT STATE FISCAL YEAR.

(ii) FOR THE NUMBER OF MILLS OF SCHOOL OPERATING TAXES THAT MAY BE LEVIED ON ALL PROPERTY AS PROVIDED IN SECTION 1211(2) OF THE REVISED SCHOOL CODE, MCL 380.1211, THE TAXABLE VALUE OF ALL PROPERTY FOR THE CALENDAR YEAR ENDING IN THE CURRENT STATE FISCAL YEAR.

SEC. 22B. (1) FROM THE APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $1,811,000,000.00 FOR 2000-2001, AN AMOUNT NOT TO EXCEED $2,324,000,000.00 FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $2,805,000,000.00 FOR 2002-2003 FOR DISCRETIONARY PAYMENTS TO DISTRICTS UNDER THIS SECTION.

(2) SUBJECT TO SUBSECTION (4), BEGINNING IN 2000-2001, THE ALLOCATION TO A DISTRICT UNDER THIS SECTION SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE AMOUNTS CALCULATED UNDER SECTIONS 20, 20J, 51A(2), 51A(3), AND 51A(12), MINUS THE SUM OF THE ALLOCATIONS TO THE DISTRICT UNDER SECTIONS 22A AND 51C.

(3) THE ALLOCATIONS UNDER THIS SECTION ARE NOT CONSIDERED TO BE PER PUPIL REVENUE FOR SCHOOL OPERATING PURPOSES UNDER SECTION 11 OF ARTICLE IX OF THE STATE CONSTITUTION OF 1963.

(4) IN ORDER TO RECEIVE AN ALLOCATION UNDER THIS SECTION, EACH DISTRICT SHALL ADMINISTER IN EACH GRADE LEVEL THAT IT OPERATES IN GRADES 1 TO 5 A STANDARDIZED ASSESSMENT APPROVED BY THE DEPARTMENT OF GRADE-APPROPRIATE BASIC EDUCATIONAL SKILLS. A DISTRICT MAY USE THE MICHIGAN LITERACY PROGRESS PROFILE TO SATISFY THIS REQUIREMENT FOR GRADES 1 TO 3.

SEC. 22C. FROM THE APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $129,000,000.00 FOR 2001-2002 TO MAKE EQUITY PAYMENTS TO DISTRICTS THAT HAVE A FOUNDATION ALLOWANCE OR PER PUPIL PAYMENT CALCULATED UNDER SECTION 20 FOR 2001-2002 OF LESS THAN $6,500.00. THE EQUITY PAYMENT FOR A DISTRICT SHALL BE AN AMOUNT CALCULATED BY SUBTRACTING THE DISTRICT'S 2001-2002 FOUNDATION ALLOWANCE OR PER PUPIL PAYMENT FROM $6,500.00 AND MULTIPLYING THE RESULT BY THE DISTRICT'S MEMBERSHIP.

Sec. 24. (1) Subject to subsection (2), from the appropriation in section 11, there is allocated for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 to the educating district or intermediate district an amount equal to 100% of the added cost each fiscal year for educating all pupils assigned by a court or the family independence agency to reside in or to attend a juvenile detention facility or child caring institution licensed by the family independence agency or the department of consumer and industry services and approved by the department to provide an on-grounds education program. The total amount to be paid under this section for added cost shall not exceed $7,000,000.00 for 1998-99 and shall not exceed $7,900,000.00 each fiscal year for 1999-2000, and AN AMOUNT NOT TO EXCEED $8,000,000.00 EACH FISCAL YEAR for 2000-2001, FOR 2001-2002, AND FOR 2002-2003. For the purposes of this section, "added cost" shall be computed by deducting all other revenue received under this act for pupils described in this section from total costs, as approved by the department, for educating those pupils in the on-grounds education program or in a program approved by the department that is located on property adjacent to a juvenile detention facility or child caring institution. Costs reimbursed by federal funds are not included.

(2) A district or intermediate district educating pupils described in this section at a residential child caring institution may operate, and receive funding under this section for, a department-approved on-grounds educational program for those pupils that is longer than 181 days, but not longer than 233 days, if the child caring institution was licensed as a child caring institution and offered in 1991-92 an on-grounds educational program that was longer than 181 days but not longer than 233 days and that was operated by a district or intermediate district. IN ADDITION, A DISTRICT OR INTERMEDIATE DISTRICT THAT RECEIVED FUNDS UNDER THIS SUBSECTION FOR 1998-99 FOR AN ON-GROUNDS EDUCATIONAL PROGRAM THAT IS LONGER THAN 181 DAYS BUT NOT LONGER THAN 233 DAYS SHALL CONTINUE TO RECEIVE FUNDS UNDER THIS SECTION FOR SUBSEQUENT FISCAL YEARS FOR THAT PROGRAM.

(3) Special education pupils funded under section 53a shall not be funded under this section.

Sec. 25. If a pupil is enrolled in an alternative education program operated by an intermediate district or district for middle school or high school pupils, or both, PUPILS who have been expelled under section 1311 of the revised school code, MCL 380.1311 FROM SCHOOL, AND IF THE PUPIL IS COUNTED IN MEMBERSHIP IN ANOTHER INTERMEDIATE DISTRICT OR DISTRICT, the intermediate district or district operating the program shall report the enrollment information to the department and to the district in which the pupil is counted in membership, and the district in which the pupil is counted in membership shall pay to the intermediate district or district operating the program an amount equal to the amount of the foundation allowance received by OR PER PUPIL PAYMENT AS CALCULATED UNDER SECTION 20 FOR the district in which the pupil is counted in membership, prorated according to the number of days of the school year ending in the fiscal year the pupil is educated in the alternative education program compared to the number of days of the school year ending in the fiscal year the pupil was actually enrolled in the district in which the pupil is counted in membership. THE FOUNDATION ALLOWANCE OR PER PUPIL PAYMENT SHALL BE ADJUSTED BY THE PUPIL'S FULL-TIME EQUATED STATUS AS AFFECTED BY THE MEMBERSHIP DEFINITION UNDER SECTION 6(4). If a district does not make the payment required under this section within 30 days after receipt of the report, the department shall calculate the amount owed, shall deduct that amount from the remaining state school aid payments to the district for that fiscal year under this act, and shall pay that amount to the intermediate district or district operating the alternative education program. The district in which the pupil is counted in membership and the intermediate district or district operating the alternative education program shall provide to the department all information the department requires to enforce this section.

SEC. 25B. (1) THIS SECTION APPLIES TO A DISTRICT'S ENROLLMENT OF A PUPIL IF ALL OF THE FOLLOWING APPLY:

(A) THE PUPIL TRANSFERS FROM 1 OF 3 OTHER DISTRICTS SPECIFIED BY THE EDUCATING DISTRICT AND ENROLLS IN THE DISTRICT AFTER THE PUPIL MEMBERSHIP COUNT DAY.

(B) DUE TO THE PUPIL'S ENROLLMENT STATUS AS OF THE PUPIL MEMBERSHIP COUNT DAY, THE PUPIL WAS COUNTED IN MEMBERSHIP IN THE DISTRICT FROM WHICH HE OR SHE TRANSFERS.

(C) THE TOTAL NUMBER OF PUPILS ENROLLED IN THE DISTRICT WHO ARE DESCRIBED IN SUBDIVISIONS (A) AND (B) AND WHO TRANSFER FROM 1 OF THE 3 OTHER DISTRICTS SPECIFIED BY THE EDUCATING DISTRICT IS AT LEAST EQUAL TO THE GREATER OF 25 OR 1% OF THE EDUCATING DISTRICT'S MEMBERSHIP.

(2) IF THE CONDITIONS SPECIFIED IN SUBSECTION (1) ARE MET, AND A PUPIL TRANSFERS FROM 1 OF THE 3 OTHER SPECIFIED DISTRICTS DESCRIBED IN SUBSECTION (1)(C) AND ENROLLS DURING A SCHOOL YEAR IN THE EDUCATING DISTRICT, THE EDUCATING DISTRICT SHALL REPORT THE ENROLLMENT INFORMATION TO THE DEPARTMENT AND TO THE DISTRICT IN WHICH THE PUPIL IS COUNTED IN MEMBERSHIP, AND THE DISTRICT IN WHICH THE PUPIL IS COUNTED IN MEMBERSHIP SHALL PAY TO THE EDUCATING DISTRICT AN AMOUNT EQUAL TO THE AMOUNT OF THE FOUNDATION ALLOWANCE OR PER PUPIL PAYMENT AS CALCULATED UNDER SECTION 20 FOR THE DISTRICT IN WHICH THE PUPIL IS COUNTED IN MEMBERSHIP, PRORATED ACCORDING TO THE NUMBER OF DAYS OF THE SCHOOL YEAR ENDING IN THE FISCAL YEAR THE PUPIL IS EDUCATED IN THE EDUCATING DISTRICT COMPARED TO THE NUMBER OF DAYS OF THE SCHOOL YEAR ENDING IN THE FISCAL YEAR THE PUPIL WAS ACTUALLY ENROLLED IN THE DISTRICT IN WHICH THE PUPIL IS COUNTED IN MEMBERSHIP. THE FOUNDATION ALLOWANCE OR PER PUPIL PAYMENT SHALL BE ADJUSTED BY THE PUPIL'S FULL-TIME EQUATED STATUS AS AFFECTED BY THE MEMBERSHIP DEFINITION UNDER SECTION 6(4). IF A DISTRICT DOES NOT MAKE THE PAYMENT REQUIRED UNDER THIS SECTION WITHIN 30 DAYS AFTER RECEIPT OF THE REPORT, THE DEPARTMENT SHALL CALCULATE THE AMOUNT OWED, SHALL DEDUCT THAT AMOUNT FROM THE REMAINING STATE SCHOOL AID PAYMENTS TO THE DISTRICT FOR THAT FISCAL YEAR UNDER THIS ACT, AND SHALL PAY THAT AMOUNT TO THE EDUCATING DISTRICT. THE DISTRICT IN WHICH THE PUPIL IS COUNTED IN MEMBERSHIP AND THE EDUCATING DISTRICT SHALL PROVIDE TO THE DEPARTMENT ALL INFORMATION THE DEPARTMENT REQUIRES TO ENFORCE THIS SECTION.

(3) AS USED IN THIS SECTION, "EDUCATING DISTRICT" MEANS THE DISTRICT IN WHICH A PUPIL ENROLLS AFTER THE PUPIL MEMBERSHIP COUNT DAY AS DESCRIBED IN SUBSECTION (1).

Sec. 26a. From the general fund appropriation in section 11, there is allocated for 1998-99 an amount not to exceed $5,100,000.00, and for each fiscal year for 1999-2000, and 2000-2001, 2001-2002, AND 2002-2003 an amount not to exceed $7,000,000.00 to reimburse districts, intermediate districts, and the state school aid fund pursuant to section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied in 1998, 1999, and 2000, 2001, AND 2002, respectively. This reimbursement shall be made by adjusting payments under section 20 OR 22A to eligible districts, adjusting payments under section 56, 62, or 81 to eligible intermediate districts, and adjusting the state school aid fund. The adjustments shall be made not later than 60 days after the department of treasury certifies to the department and to the state budget director that the department of treasury has received all necessary information to properly determine the amounts due to each eligible recipient.

Sec. 31a. (1) From the state school aid fund money appropriated in section 11, there is allocated for 1998-99 an amount not to exceed $260,000,000.00, for 1999-2000 an amount not to exceed $270,920,000.00, and for 2000-2001 an amount not to exceed $278,776,700.00 $304,000,000.00, FOR 2001-2002 AN AMOUNT NOT TO EXCEED $319,200,000.00, AND FOR 2002-2003 AN AMOUNT NOT TO EXCEED $329,095,200.00 for payments to eligible districts and eligible public school academies under this section. Subject to subsection (10), the amount of the additional allowance under this section shall be based on the number of actual pupils in membership in the district or public school academy who met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding state fiscal year, as determined under the RICHARD B. RUSSELL national school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to 1753, 1755 to 1761, 1762a, 1765 to 1766a, 1769, 1769b to 1769c, and 1769f to 1769h, and reported to the department by October 31 of the immediately preceding fiscal year and adjusted not later than December 31 of the immediately preceding fiscal year. However, for a public school academy that began operations as a public school academy after the pupil membership count day of the immediately preceding school year, the basis for the additional allowance under this section shall be the number of actual pupils in membership in the public school academy who met the income eligibility criteria for free breakfast, lunch, or milk in the current state fiscal year, as determined under the national school lunch act.

(2) To be eligible to receive funding under this section, a district or public school academy that has not been previously determined to be eligible shall apply to the department, in a form and manner prescribed by the department, and a district or public school academy must meet all of the following:

(a) The sum of the district's or public school academy's combined state and local revenue per membership pupil in the current state fiscal year, as calculated under section 20, plus , each fiscal year for 1999-2000 and 2000-2001 only, the amount of the district's per pupil allocation under section 20j(2), is less than or equal to $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current state fiscal year and $5,000.00. HOWEVER, BEGINNING IN 2002-2003, THE $6,500.00 AMOUNT PRESCRIBED IN THIS SUBDIVISION SHALL BE ADJUSTED EACH YEAR BY AN AMOUNT EQUAL TO THE DOLLAR AMOUNT OF THE DIFFERENCE BETWEEN THE BASIC FOUNDATION ALLOWANCE FOR THE CURRENT STATE FISCAL YEAR AND $5,000.00, MINUS $200.00.

(b) The district or public school academy agrees to use the funding only for purposes allowed under this section and to comply with the program and accountability requirements under this section.

(3) Except as otherwise provided in this subsection, an eligible district or eligible public school academy shall receive under this section for each membership pupil in the district or public school academy who met the income eligibility criteria for free breakfast, lunch, or milk, as determined under the RICHARD B. RUSSELL national school lunch act and as reported to the department by October 31 of the immediately preceding fiscal year and adjusted not later than December 31 of the immediately preceding fiscal year, an amount per pupil equal to 11.5% of the sum of the district's foundation allowance or public school academy's per pupil allocation under section 20, plus , each fiscal year for 1999-2000 and 2000-2001 only, the amount of the district's per pupil allocation under section 20j(2), not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current state fiscal year and $5,000.00, or of the public school academy's per membership pupil allocation under section 20 for the current state fiscal year. HOWEVER, BEGINNING IN 2002-2003, THE $6,500.00 AMOUNT PRESCRIBED IN THIS SUBSECTION SHALL BE ADJUSTED EACH YEAR BY AN AMOUNT EQUAL TO THE DOLLAR AMOUNT OF THE DIFFERENCE BETWEEN THE BASIC FOUNDATION ALLOWANCE FOR THE CURRENT STATE FISCAL YEAR AND $5,000.00, MINUS $200.00. A public school academy that began operations as a public school academy after the pupil membership count day of the immediately preceding school year shall receive under this section for each membership pupil in the public school academy who met the income eligibility criteria for free breakfast, lunch, or milk, as determined under the RICHARD B. RUSSELL national school lunch act and as reported to the department by October 31 of the current fiscal year and adjusted not later than December 31 of the current fiscal year, an amount per pupil equal to 11.5% of the public school academy's per membership pupil allocation under section 20 for the current state fiscal year.

(4) Except as otherwise provided in this section, a district or public school academy receiving funding under this section shall use that money only to provide instructional programs and direct noninstructional services, including, but not limited to, medical or counseling services, for at-risk pupils and for the purposes of subsection (5) or section 31c and shall not use any of that money for administrative costs or to supplant another program or other funds, except for funds allocated to the district or public school academy under this section in the immediately preceding year and already being used by the district or public school academy for at-risk pupils. The instruction or direct noninstructional services provided under this section may be conducted before or after regular school hours or by adding extra school days to the school year and may be conducted using a tutorial method, with paraprofessionals working under the supervision of a certificated teacher. The ratio of pupils to paraprofessionals shall be between 10:1 and 15:1. Only 1 certificated teacher is required to supervise instruction using a tutorial method. As used in this subsection, "to supplant another program" means to take the place of a previously existing instructional program or direct noninstructional services funded from a funding source other than funding under this section.

(5) A district or public school academy that receives funds under this section and that operates a school breakfast program under section 1272a of the revised school code, MCL 380.1272a, shall use from the funds received under this section an amount, not to exceed $10.00 per pupil for whom the district or public school academy receives funds under this section, necessary to operate the school breakfast program. A FOR 1999-2000 ONLY, A district or public school academy that receives funds under this section and that operates a school lunch program under section 1272a of the revised school code, MCL 380.1272a, shall use from the funds received under this section an amount, not to exceed $10.00 per pupil for whom the district or public school academy receives funds under this section, necessary to operate the school lunch program.

(6) Each district or public school academy receiving funds under this section shall submit to the department by July 15 of each fiscal year a report, not to exceed 10 pages, on the usage by the district or public school academy of funds under this section, which report shall include at least a brief description of each program conducted by the district or public school academy using funds under this section, the amount of funds under this section allocated to each of those programs, THE NUMBER OF AT-RISK PUPILS ELIGIBLE FOR FREE OR REDUCED PRICE SCHOOL LUNCH WHO WERE SERVED BY EACH OF THOSE PROGRAMS, and the TOTAL number of at-risk pupils served by each of those programs. If a district or public school academy does not comply with this subsection, the department shall withhold an amount equal to the August payment due under this section until the district or public school academy complies with this subsection. If the district or public school academy does not comply with this subsection by the end of the state fiscal year, the withheld funds shall be forfeited to the school aid fund.

(7) In order to receive funds under this section, a district or public school academy shall allow access for the department or the department's designee to audit all records related to the program for which it receives those funds. The district or public school academy shall reimburse the state for all disallowances found in the audit.

(8) Subject to subsection (5), any district may use up to 100% of the funds it receives under this section to reduce the ratio of pupils to teachers in grades K-6, or any combination of those grades, in school buildings in which the percentage of pupils described in subsection (1) exceeds the district's aggregate percentage of those pupils. Subject to subsection (5), if a district obtains a waiver from the department, the district may use up to 100% of the funds it receives under this section to reduce the ratio of pupils to teachers in grades K-6, or any combination of those grades, in school buildings in which the percentage of pupils described in subsection (1) is at least 60% of the district's aggregate percentage of those pupils and at least 30% of the total number of pupils enrolled in the school building. To obtain a waiver, a district must apply to the department and demonstrate to the satisfaction of the department that the class size reductions would be in the best interests of the district's at-risk pupils.

(9) A district or public school academy may use funds received under this section for adult high school completion, general education development (G.E.D.) test preparation, or adult basic education programs described in section 107.

(10) If necessary, and before any proration required under section 11, the department shall prorate payments under this section by reducing the amount of the per pupil payment under this section by a dollar amount calculated by determining the amount by which the amount necessary to fully fund the requirements of this section exceeds the maximum amount allocated under this section and then dividing that amount by the total statewide number of pupils who met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding fiscal year, as described in subsection (1).

(11) If a district is formed by consolidation after June 1, 1995, and if 1 or more of the original districts was not eligible before the consolidation for an additional allowance under this section, the amount of the additional allowance under this section for the consolidated district shall be based on the number of pupils described in subsection (1) enrolled in the consolidated district who reside in the territory of an original district that was eligible before the consolidation for an additional allowance under this section.

(12) Beginning in 1999-2000, a district or public school academy that does not meet the eligibility requirement under subsection (2)(a) is eligible for funding under this section if at least 1/4 of the pupils in membership in the district or public school academy met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding state fiscal year, as determined and reported as described in subsection (1), and at least 4,500 of the pupils in membership in the district or public school academy met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding state fiscal year, as determined and reported as described in subsection (1). A district or public school academy that is eligible for funding under this section because the district meets the requirements of this subsection shall receive under this section for each membership pupil in the district or public school academy who met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding fiscal year, as determined and reported as described in subsection (1), an amount per pupil equal to 5.75% of the sum of the district's foundation allowance or public school academy's per pupil allocation under section 20, plus , each fiscal year for 1999-2000 and 2000-2001 only, the amount of the district's per pupil allocation under section 20j(2), not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current state fiscal year and $5,000.00. HOWEVER, BEGINNING IN 2002-2003, THE $6,500.00 AMOUNT PRESCRIBED IN THIS SUBSECTION SHALL BE ADJUSTED EACH YEAR BY AN AMOUNT EQUAL TO THE DOLLAR AMOUNT OF THE DIFFERENCE BETWEEN THE BASIC FOUNDATION ALLOWANCE FOR THE CURRENT STATE FISCAL YEAR AND $5,000.00, MINUS $200.00.

(13) Beginning in 1999-2000 2001-2002, the total amount allocated under this section for a fiscal year shall be increased from the total amount allocated under this section for the immediately preceding fiscal year by the same percentage as the percentage increase in the amount of the basic foundation allowance under section 20 for that fiscal year from the amount of the basic foundation allowance under section 20 for the immediately preceding fiscal year.

(14) As used in this section, "at-risk pupil" means a pupil for whom the district has documentation that the pupil meets at least 2 of the following criteria: is a victim of child abuse or neglect; is below grade level in English language and communication skills or mathematics; is a pregnant teenager or teenage parent; is eligible for a federal free or reduced-price lunch subsidy; has atypical behavior or attendance patterns; or has a family history of school failure, incarceration, or substance abuse. For pupils for whom the results of at least the applicable Michigan education assessment program (MEAP) test have been received, at-risk pupil also includes a pupil who does not meet the other criteria under this subsection but who did not achieve at least a score of moderate on the most recent MEAP reading test for which results for the pupil have been received, did not achieve at least a score of moderate on the most recent MEAP mathematics test for which results for the pupil have been received, or achieved less than 50% of the objectives DID NOT ACHIEVE AT LEAST A SCORE OF NOVICE on the most recent MEAP science test for which results for the pupil have been received. For pupils in grades K-3, at-risk pupil also includes a pupil who is at risk of not meeting the district's core academic curricular objectives in English language, communication skills, or mathematics.

Sec. 31d. (1) From the state school aid fund appropriation in section 11, there is allocated an amount not to exceed $13,227,500.00 for 1998-1999 and an amount not to exceed $6,963,000.00 each fiscal year $6,454,500.00 for 1999-2000, and AN AMOUNT NOT TO EXCEED $13,669,500.00 FOR 2000-2001, AN AMOUNT NOT TO EXCEED $14,079,600.00 FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $14,502,000.00 FOR 2002-2003, AND FROM THE GENERAL FUND APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $662,200.00 FOR 2000-2001, AN AMOUNT NOT TO EXCEED $682,100.00 FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $702,500.00 FOR 2002-2003 for the purpose of making payments TO DISTRICTS, INTERMEDIATE DISTRICTS, AND OTHER ELIGIBLE ENTITIES under this section.

(2) The amounts allocated under this section shall be used to pay the amount necessary to reimburse districts for 6.0127% of the necessary costs of the state mandated portion of the school lunch programs provided by those districts. The amount due to each district under this section shall be computed by the department using the methods of calculation adopted by the Michigan supreme court in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492.

(3) The FOR 1999-2000, THE payments made under this section are in addition to the state payments made to districts under the department of education appropriations act for the corresponding fiscal year 1999-2000 and under section 31a(5), so that each district receives from all of these sources combined at least 6.0127% of the necessary costs of operating the state mandated portion of the school lunch program in a fiscal year. BEGINNING IN 2000-2001, THE PAYMENTS MADE UNDER THIS SECTION INCLUDE ALL STATE PAYMENTS MADE TO DISTRICTS SO THAT EACH DISTRICT RECEIVES AT LEAST 6.0127% OF THE NECESSARY COSTS OF OPERATING THE STATE MANDATED PORTION OF THE SCHOOL LUNCH PROGRAM IN A FISCAL YEAR.

(4) The 1998-99 payment to each district under this section includes reimbursement for both 1997-98 and 1998-99, and the portion of the 1998-99 payment that is attributable to reimbursement for 1997-98 shall be made within 60 days after the effective date of this section. BEGINNING IN 2000-2001, NOTWITHSTANDING SECTION 17B, PAYMENTS TO INTERMEDIATE DISTRICTS AND OTHER ELIGIBLE ENTITIES UNDER THIS SECTION SHALL BE PAID ON A SCHEDULE DETERMINED BY THE DEPARTMENT.

SEC. 32A. (1) FROM THE STATE SCHOOL AID FUND APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $267,850,000.00 FOR 2000-2001, AN AMOUNT NOT TO EXCEED $267,850,000.00 FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $279,850,000.00 FOR 2002-2003 TO FUND THE ALL STUDENTS ACHIEVE PROGRAM (ASAP) AS PROVIDED UNDER SECTIONS 32B TO 32H. IN ADDITION, FROM THE GENERAL FUND APPROPRIATIONS IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $25,200,000.00 FOR 2000-2001, AN AMOUNT NOT TO EXCEED $30,200,000.00 FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $35,200,000.00 FOR 2002-2003 FOR THE PURPOSES OF SECTIONS 32B TO 32H. THE PROGRAMS FUNDED THROUGH THIS SECTION ARE FOR THE PURPOSES OF IMPROVING PARENTING SKILLS, IMPROVING SCHOOL READINESS, REDUCING THE NUMBER OF PUPILS RETAINED IN GRADE, AND REDUCING THE NUMBER OF PUPILS REQUIRING SPECIAL EDUCATION SERVICES.

(2) EACH GRANT RECIPIENT APPROVED BY THE DEPARTMENT SHALL IMPLEMENT DEPARTMENT-APPROVED DATA COLLECTION METHODS AND EVALUATION OR ASSESSMENT TOOLS TO MEASURE THE IMPACT OF THE PROPOSED PROGRAM.

(3) A DISTRICT SHALL NOT USE FUNDS RECEIVED UNDER SECTIONS 32B TO 32H TO SUPPLANT ANY LOCAL OR FEDERAL FUNDS IT CURRENTLY RECEIVES. A DISTRICT MAY USE THESE FUNDS IN COMBINATION WITH OTHER FEDERAL, LOCAL, PUBLIC, OR PRIVATE FUNDS TO ENHANCE EXISTING PROGRAMS WITH SIMILAR PURPOSES.

SEC. 32B. (1) FROM THE STATE SCHOOL AID FUND ALLOCATION IN SECTION 32A(1), THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $45,000,000.00 EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 FOR GRANTS TO INTERMEDIATE DISTRICTS AND DISTRICTS FOR PROGRAMS FOR PRESCHOOL CHILDREN AND THEIR PARENTS. THE PURPOSE OF THESE PROGRAMS IS TO IMPROVE SCHOOL READINESS AND FOSTER THE MAINTENANCE OF STABLE FAMILIES BY ENCOURAGING POSITIVE PARENTING SKILLS; ENHANCING PARENT-CHILD INTERACTION; PROVIDING LEARNING OPPORTUNITIES TO PROMOTE INTELLECTUAL, PHYSICAL, AND SOCIAL GROWTH; AND PROMOTING ACCESS TO NEEDED COMMUNITY SERVICES THROUGH A COMMUNITY-SCHOOL-HOME PARTNERSHIP THAT PROVIDES PARENTS WITH INFORMATION ON CHILD DEVELOPMENT FROM BIRTH TO AGE 5.

(2) TO QUALIFY FOR FUNDING UNDER THIS SECTION, A PROGRAM SHALL MEET ALL OF THE FOLLOWING:

(A) THE PROGRAM MUST PROVIDE SERVICES TO ALL FAMILIES WITH CHILDREN AGE 5 OR YOUNGER RESIDING WITHIN THE INTERMEDIATE DISTRICT OR DISTRICT WHO CHOOSE TO PARTICIPATE, INCLUDING AT LEAST ALL OF THE FOLLOWING SERVICES:

(i) HOME VISITS BY PARENT EDUCATORS TRAINED IN CHILD DEVELOPMENT TO HELP PARENTS UNDERSTAND APPROPRIATE EXPECTATIONS FOR EACH STAGE OF THEIR CHILD'S DEVELOPMENT, TO ENCOURAGE LEARNING OPPORTUNITIES, AND TO PROMOTE STRONG PARENT-CHILD RELATIONSHIPS.

(ii) GROUP MEETINGS OF PARTICIPATING FAMILIES.

(iii) PERIODIC DEVELOPMENTAL SCREENING OF THE CHILD'S OVERALL DEVELOPMENT, HEALTH, HEARING, AND VISION.

(iv) A COMMUNITY RESOURCE NETWORK THAT PROVIDES REFERRALS TO OTHER STATE, LOCAL, AND PRIVATE AGENCIES AS APPROPRIATE TO ASSIST PARENTS IN PREPARING THEIR CHILDREN FOR ACADEMIC SUCCESS AND TO FOSTER THE MAINTENANCE OF STABLE FAMILIES.

(v) CONNECTION WITH QUALITY PRESCHOOL PROGRAMS.

(B) THE PROGRAM MUST BE A COLLABORATIVE COMMUNITY EFFORT THAT INCLUDES AT LEAST THE INTERMEDIATE DISTRICT OR DISTRICT, LOCAL MULTIPURPOSE COLLABORATIVE BODIES, LOCAL HEALTH AND WELFARE AGENCIES, AND PRIVATE NONPROFIT AGENCIES INVOLVED IN PROGRAMS AND SERVICES FOR PRESCHOOL CHILDREN AND THEIR PARENTS.

(3) TO COMPETE FOR A GRANT UNDER THIS SECTION, AN INTERMEDIATE DISTRICT OR DISTRICT SHALL APPLY TO THE SUPERINTENDENT NOT LATER THAN DECEMBER 1, 2000 IN THE FORM AND MANNER PRESCRIBED BY THE SUPERINTENDENT. TO BE CONSIDERED FOR A GRANT UNDER THIS SECTION, A GRANT APPLICATION MUST PROVIDE ALL OF THE FOLLOWING IN A MANNER PRESCRIBED BY THE DEPARTMENT:

(A) PROVIDE A PLAN FOR THE DELIVERY OF THE PROGRAM COMPONENTS DESCRIBED IN SUBSECTION (2).

(B) DEMONSTRATE AN ADEQUATE COLLABORATION OF LOCAL ENTITIES INVOLVED IN PROVIDING PROGRAMS AND SERVICES FOR PRESCHOOL CHILDREN AND THEIR PARENTS.

(C) PROVIDE EVIDENCE OF A REVIEW AND APPROVAL BY THE LOCAL MULTIPURPOSE COLLABORATIVE BODY OF THE PROGRAM PLAN.

(D) PROVIDE A PROJECTED BUDGET FOR THE PROGRAM TO BE FUNDED. THE INTERMEDIATE DISTRICT SHALL PROVIDE AT LEAST A 20% LOCAL MATCH FROM LOCAL PUBLIC OR PRIVATE RESOURCES FOR THE FUNDS RECEIVED UNDER THIS SECTION. NOT MORE THAN 1/2 OF THIS MATCHING REQUIREMENT, UP TO A TOTAL OF 10% OF THE TOTAL PROJECT BUDGET, MAY BE SATISFIED THROUGH IN-KIND SERVICES PROVIDED BY PARTICIPATING PROVIDERS OF PROGRAMS OR SERVICES. IN ADDITION, NOT MORE THAN 10% OF THE GRANT MAY BE USED FOR PROGRAM ADMINISTRATION.

(4) EACH SUCCESSFUL GRANT RECIPIENT SHALL AGREE TO INCLUDE A DATA COLLECTION SYSTEM AND AN EVALUATION TOOL APPROVED BY THE DEPARTMENT TO MEASURE THE IMPACT OF THE PROGRAM ON IMPROVING SCHOOL READINESS, REDUCING THE NUMBER OF CHILDREN NEEDING SPECIAL EDUCATION PROGRAMS AND SERVICES, AND FOSTERING THE MAINTENANCE OF STABLE FAMILIES. THE DATA COLLECTION SYSTEM SHALL PROVIDE A REPORT BY OCTOBER 15 OF EACH YEAR ON THE NUMBER OF CHILDREN IN FAMILIES WITH INCOME BELOW 200% OF THE FEDERAL POVERTY LEVEL THAT RECEIVED SERVICES UNDER THIS PROGRAM AND THE TOTAL NUMBER OF CHILDREN WHO RECEIVED SERVICES UNDER THIS PROGRAM.

(5) FROM THE GENERAL FUND ALLOCATION UNDER SECTION 32A(1), THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $250,000.00 EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 TO THE DEPARTMENT, INCLUDING THE OFFICE FOR SAFE SCHOOLS, FOR IMPLEMENTATION AND EVALUATION OF ACTIVITIES UNDER THIS SECTION. FURTHER, BEGINNING IN 2000-2001, UPON RECEIPT OF THE FEDERAL DRUG-FREE SCHOOLS GRANT, THE DEPARTMENT SHALL ALLOCATE $200,000.00 OF THAT GRANT TO THE OFFICE FOR SAFE SCHOOLS WITHIN THE DEPARTMENT.

(6) THE DEPARTMENT AND SUPERINTENDENT SHALL DO ALL OF THE FOLLOWING:

(A) THE DEPARTMENT SHALL MAKE APPLICATIONS AVAILABLE FOR THE PURPOSES OF THIS SECTION NOT LATER THAN OCTOBER 15, 2000.

(B) THE SUPERINTENDENT SHALL APPROVE OR DISAPPROVE APPLICATIONS AND NOTIFY THE APPLYING INTERMEDIATE DISTRICT OR DISTRICT OF THAT DECISION NOT LATER THAN FEBRUARY 1, 2001. PRIORITY IN AWARDING GRANTS SHALL BE GIVEN TO PROGRAMS THAT FOCUS ON REDUCING THE PERCENTAGE OF CHILDREN NEEDING SPECIAL EDUCATION PROGRAMS AND SERVICES WHEN THEY ENTER SCHOOL. THE SUPERINTENDENT SHALL ENSURE THAT THE INTERMEDIATE DISTRICTS AND DISTRICTS RECEIVING GRANTS UNDER THIS SECTION ARE GEOGRAPHICALLY AND ECONOMICALLY DIVERSE AND THAT NOT MORE THAN 10% OF THE TOTAL ALLOCATION UNDER THIS SECTION IS PAID TO ANY 1 PARTICULAR INTERMEDIATE DISTRICT OR DISTRICT.

(C) THE DEPARTMENT SHALL ENSURE THAT ALL PROGRAMS FUNDED UNDER THIS SECTION UTILIZE THE MOST CURRENT VALIDATED RESEARCH-BASED METHODS AND CURRICULUM FOR PROVIDING THE PROGRAM COMPONENTS DESCRIBED IN SUBSECTION (2).

(D) THE DEPARTMENT SHALL SUBMIT A REPORT TO THE LEGISLATURE, THE STATE BUDGET DIRECTOR, AND THE SENATE AND HOUSE FISCAL AGENCIES DETAILING THE EVALUATIONS DESCRIBED IN SUBSECTION (4) BY DECEMBER 1 OF EACH YEAR.

(7) AN INTERMEDIATE DISTRICT OR DISTRICT RECEIVING FUNDS UNDER THIS SECTION SHALL USE THE FUNDS ONLY FOR THE PROGRAM FUNDED UNDER THIS SECTION. GRANTS AWARDED BY FEBRUARY 1, 2001 MAY BE USED FOR THE FOLLOWING SCHOOL YEAR.

SEC. 32C. (1) FROM THE GENERAL FUND ALLOCATION IN SECTION 32A(1), THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $2,000,000.00 EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 TO THE DEPARTMENT FOR GRANTS FOR COMMUNITY-BASED COLLABORATIVE PREVENTION SERVICES DESIGNED TO FOSTER POSITIVE PARENTING SKILLS; IMPROVE PARENT/CHILD INTERACTION, ESPECIALLY FOR CHILDREN 0-3 YEARS OF AGE; PROMOTE ACCESS TO NEEDED COMMUNITY SERVICES; INCREASE LOCAL CAPACITY TO SERVE FAMILIES AT RISK; IMPROVE SCHOOL READINESS; AND SUPPORT HEALTHY FAMILY ENVIRONMENTS THAT DISCOURAGE ALCOHOL, TOBACCO, AND OTHER DRUG USE. THIS ALLOCATION IS TO FUND SECONDARY PREVENTION PROGRAMS AS DEFINED BY THE CHILDREN'S TRUST FUND FOR THE PREVENTION OF CHILD ABUSE AND NEGLECT.

(2) THE FUNDS ALLOCATED UNDER SUBSECTION (1) SHALL BE DISTRIBUTED THROUGH A JOINT REQUEST FOR PROPOSALS PROCESS ESTABLISHED BY THE DEPARTMENT IN CONJUNCTION WITH THE CHILDREN'S TRUST FUND AND THE STATE'S INTERAGENCY SYSTEMS REFORM WORKGROUP. PROJECTS FUNDED WITH GRANTS AWARDED UNDER THIS SECTION SHALL MEET ALL OF THE FOLLOWING:

(A) BE SECONDARY PREVENTION INITIATIVES AND VOLUNTARY TO CONSUMERS. THIS APPROPRIATION IS NOT INTENDED TO SERVE THE NEEDS OF CHILDREN FOR WHOM AND FAMILIES IN WHICH NEGLECT OR ABUSE HAS BEEN SUBSTANTIATED.

(B) DEMONSTRATE THAT THE PLANNED SERVICES ARE PART OF A COMMUNITY'S INTEGRATED COMPREHENSIVE FAMILY SUPPORT STRATEGY ENDORSED BY THE LOCAL MULTI-PURPOSE COLLABORATIVE BODY.

(C) PROVIDE A 25% LOCAL MATCH, OF WHICH NOT MORE THAN 10% MAY BE IN-KIND SERVICES, UNLESS THIS REQUIREMENT IS WAIVED BY THE INTERAGENCY SYSTEMS REFORM WORKGROUP.

(3) NOTWITHSTANDING SECTION 17B, PAYMENTS UNDER THIS SECTION MAY BE MADE PURSUANT TO AN AGREEMENT WITH THE DEPARTMENT.

SEC. 32D. (1) FROM THE STATE SCHOOL AID FUND ALLOCATION UNDER SECTION 32A(1), THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $72,600,000.00 EACH FISCAL YEAR FOR 2000-2001, 2001-2002, AND 2002-2003 FOR SCHOOL READINESS GRANTS TO ENABLE ELIGIBLE DISTRICTS, AS DETERMINED UNDER SECTION 37, TO DEVELOP OR EXPAND, IN CONJUNCTION WITH WHATEVER FEDERAL FUNDS MAY BE AVAILABLE, INCLUDING, BUT NOT LIMITED TO, FEDERAL FUNDS UNDER TITLE I OF THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965, PUBLIC LAW 89-10, 108 STAT. 3519, CHAPTER 1 OF TITLE I OF THE HAWKINS-STAFFORD ELEMENTARY AND SECONDARY SCHOOL IMPROVEMENT AMENDMENTS OF 1988, PUBLIC LAW 89-10, 102 STAT. 140, AND THE HEAD START ACT, SUBCHAPTER B OF CHAPTER 8 OF SUBTITLE A OF TITLE VI OF THE OMNIBUS BUDGET RECONCILIATION ACT OF 1981, PUBLIC LAW 97-35, COMPREHENSIVE COMPENSATORY PROGRAMS DESIGNED TO IMPROVE THE READINESS AND SUBSEQUENT ACHIEVEMENT OF EDUCATIONALLY DISADVANTAGED CHILDREN AS DEFINED BY THE DEPARTMENT WHO WILL BE AT LEAST 4, BUT LESS THAN 5 YEARS OF AGE, AS OF DECEMBER 1 OF THE SCHOOL YEAR IN WHICH THE PROGRAMS ARE OFFERED, AND WHO SHOW EVIDENCE OF 2 OR MORE RISK FACTORS AS DEFINED IN THE STATE BOARD REPORT ENTITLED "CHILDREN AT RISK" THAT WAS ADOPTED BY THE STATE BOARD ON APRIL 5, 1988. A COMPREHENSIVE COMPENSATORY PROGRAM FUNDED UNDER THIS SECTION SHALL INCLUDE AN AGE-APPROPRIATE EDUCATIONAL CURRICULUM, NUTRITIONAL SERVICES, HEALTH SCREENING FOR PARTICIPATING CHILDREN, A PLAN FOR PARENT AND LEGAL GUARDIAN INVOLVEMENT, AND PROVISION OF REFERRAL SERVICES FOR FAMILIES ELIGIBLE FOR COMMUNITY SOCIAL SERVICES. IN ADDITION, FROM THE GENERAL FUND ALLOCATIONS UNDER SECTION 32A(1), THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $20,200,000.00 FOR 2000-2001, AN AMOUNT NOT TO EXCEED $25,200,000.00 FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $30,200,000.00 FOR 2002-2003 FOR THE PURPOSES OF SUBSECTIONS (2) AND (3).

(2) FROM THE GENERAL FUND ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED EACH FISCAL YEAR FOR 2000-2001, 2001-2002, AND 2002-2003 AN AMOUNT NOT TO EXCEED $200,000.00 FOR A COMPETITIVE GRANT TO CONTINUE A LONGITUDINAL EVALUATION OF CHILDREN WHO HAVE PARTICIPATED IN THE MICHIGAN SCHOOL READINESS PROGRAM.

(3) FROM THE GENERAL FUND ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $20,000,000.00 FOR 2000-2001, AN AMOUNT NOT TO EXCEED $25,000,000.00 FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $30,000,000.00 FOR 2002-2003 UNDER THIS SUBSECTION TO OPERATE NEW OR EXPANDED FULL-DAY SCHOOL READINESS OR HEAD START PROGRAMS. THE FUNDS SHALL BE ALLOCATED THROUGH A COMPETITIVE GRANT PROCESS TO ELIGIBLE DISTRICTS THAT RECEIVE FUNDING UNDER SUBSECTION (1), TO ELIGIBLE PUBLIC OR NONPROFIT ENTITIES OR AGENCIES THAT RECEIVE FUNDING FOR SCHOOL READINESS PROGRAMS UNDER THE DEPARTMENT APPROPRIATIONS ACT, OR TO ELIGIBLE HEAD START FUNDED PROGRAMS. THE DEPARTMENT SHALL DETERMINE THE COMPETITIVE GRANT CRITERIA. THE DEPARTMENT MAY ACCEPT AVAILABLE FEDERAL FUNDS FROM THE FAMILY INDEPENDENCE AGENCY TO SUPPORT THE PROGRAM UNDER THIS SUBSECTION. THESE FEDERAL FUNDS INCLUDE, BUT ARE NOT LIMITED TO, FEDERAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES FUNDS.

(4) A DISTRICT, ENTITY, OR AGENCY RECEIVING FUNDING UNDER SUBSECTION (3) THAT OFFERS HEAD START OR SCHOOL READINESS PROGRAMS MAY USE THE FUNDS TO EXPAND THE PROGRAM TO OPERATE A FULL DAY.

(5) A DISTRICT, ENTITY, OR AGENCY RECEIVING FUNDING UNDER SUBSECTION (3) SHALL CONTRIBUTE A LOCAL MATCH, WHICH MAY CONSIST OF LOCAL, PRIVATE, OR FEDERAL FUNDS OR IN-KIND SERVICES, TOTALING AT LEAST 50% OF THE ALLOCATION UNDER SUBSECTION (3).

(6) AN APPLICATION FOR A GRANT UNDER SUBSECTION (3) SHALL BE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. THE DEPARTMENT SHALL MAKE THE APPLICATION FORM AVAILABLE TO DISTRICTS BY DECEMBER 15 OF THE SCHOOL YEAR. THE APPLICATION SHALL INCLUDE A PROGRAM BUDGET THAT STATES ALL SOURCES OF FUNDING TO BE USED FOR THE PROGRAM. APPLICATIONS SHALL BE SUBMITTED TO THE DEPARTMENT NOT LATER THAN FEBRUARY 1 OF THE SCHOOL YEAR. THE DEPARTMENT SHALL APPROVE OR DISAPPROVE THE APPLICATION AND NOTIFY THE APPLYING DISTRICT, ENTITY, OR AGENCY OF THAT DECISION BY APRIL 1 OF THE SCHOOL YEAR. FUNDS ALLOCATED UNDER SUBSECTION (3) FOR THE CURRENT FISCAL YEAR MAY BE EXPENDED THROUGH THE END OF THE FOLLOWING FISCAL YEAR.

(7) A DISTRICT RECEIVING A GRANT UNDER THIS SECTION MAY CONTRACT FOR THE PROVISION OF THE COMPREHENSIVE COMPENSATORY PROGRAM OR FULL DAY SCHOOL READINESS PROGRAM AND RETAIN FOR ADMINISTRATIVE SERVICES AN AMOUNT EQUAL TO NOT MORE THAN 5% OF THE GRANT AMOUNT.

(8) AS USED IN THIS SECTION, "FULL DAY" MEANS A PROGRAM THAT OFFERS SUPPLEMENTARY DAY CARE AND THEREFORE OFFERS FULL-DAY PROGRAMMING OF AT LEAST 10 HOURS PER DAY AS PART OF ITS SCHOOL READINESS PROGRAM.

(9) NOT MORE THAN 10% OF THE GRANT FUNDING IN THIS SECTION MAY BE USED FOR START-UP, EQUIPMENT, OR OTHER COSTS NOT DIRECTLY RELATED TO THE COSTS OF THE PROGRAM. THIS DOES NOT PROHIBIT ANY APPLICANT FROM RECEIVING OTHER AVAILABLE STATE ASSISTANCE FOR THESE PURPOSES.

(10) A GRANT RECIPIENT RECEIVING FUNDS UNDER THIS SECTION SHALL REPORT TO THE DEPARTMENT NO LATER THAN OCTOBER 15 OF EACH YEAR THE NUMBER OF CHILDREN PARTICIPATING IN THE PROGRAM WHO MEET THE INCOME OR OTHER ELIGIBILITY CRITERIA SPECIFIED UNDER SECTION 37(3)(G) AND THE TOTAL NUMBER OF CHILDREN PARTICIPATING IN THE PROGRAM. FOR CHILDREN PARTICIPATING IN THE PROGRAM WHO MEET THE INCOME OR OTHER ELIGIBILITY CRITERIA SPECIFIED UNDER SECTION 37(3)(G), GRANT RECIPIENTS SHALL ALSO REPORT WHETHER OR NOT A PARENT IS AVAILABLE TO PROVIDE CARE BASED ON EMPLOYMENT STATUS. FOR THE PURPOSES OF THIS SUBSECTION, "EMPLOYMENT STATUS" SHALL BE DEFINED BY THE FAMILY INDEPENDENCE AGENCY IN A MANNER CONSISTENT WITH MAXIMIZING THE AMOUNT OF SPENDING THAT MAY BE CLAIMED FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES MAINTENANCE OF EFFORT PURPOSES.

SEC. 32E. (1) FROM THE STATE SCHOOL AID FUND ALLOCATIONS UNDER SECTION 32A(1), THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $29,750,000.00 EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 FOR GRANTS TO ELIGIBLE DISTRICTS FOR PROGRAMS TO MAINTAIN OR ESTABLISH SMALL CLASSES IN GRADES K TO 3 IN ELIGIBLE SCHOOL BUILDINGS IN THE DISTRICT.

(2) FOR A SCHOOL BUILDING TO BE ELIGIBLE FOR FUNDING UNDER THIS SECTION, THE SCHOOL BUILDING MUST OPERATE AT LEAST 1 OF GRADES K TO 3; THE SCHOOL BUILDING MUST BE OPERATED BY A DISTRICT THAT OPERATES ALL OF GRADES K TO 12 AND THAT RECEIVES FUNDS UNDER SECTION 31A; AND AT LEAST 50% OF THE ACTUAL PUPILS ENROLLED IN THE SCHOOL BUILDING IN THE IMMEDIATELY PRECEDING FISCAL YEAR MUST HAVE BEEN ELIGIBLE FOR FREE LUNCH, AS DETERMINED UNDER THE RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT, CHAPTER 281, 60 STAT. 230, 42 U.S.C. 1751 TO 1753, 1755 TO 1761, 1762a, 1765 TO 1766a, 1769, 1769b TO 1769c, AND 1769f TO 1769h, AND REPORTED TO THE DEPARTMENT NOT LATER THAN OCTOBER 31 OF THE IMMEDIATELY PRECEDING FISCAL YEAR AND ADJUSTED NOT LATER THAN DECEMBER 31 OF THE IMMEDIATELY PRECEDING FISCAL YEAR.

(3) NOT MORE THAN 25% OF THE TOTAL ALLOCATION UNDER SUBSECTION (1) MAY BE PAID TO ANY 1 PARTICULAR DISTRICT. THE DEPARTMENT SHALL MAKE ALLOCATIONS UNDER SUBSECTION (1) TO AT LEAST 12 DISTRICTS, AND THE DISTRICTS SHALL BE GEOGRAPHICALLY DIVERSE.

(4) A DISTRICT RECEIVING FUNDS UNDER SUBSECTION (1) SHALL USE THE FUNDS TO MAINTAIN OR ESTABLISH SMALL CLASSES IN GRADES K TO 3 IN SCHOOL BUILDINGS OF THE DISTRICT FOR WHICH FUNDS ARE RECEIVED UNDER THIS SECTION. THE AVERAGE CLASS SIZE SHALL BE NOT MORE THAN 17 PUPILS PER CLASS, WITH NOT MORE THAN 19 PUPILS IN ANY PARTICULAR CLASS. EACH FISCAL YEAR, A DISTRICT RECEIVING FUNDS UNDER SUBSECTION (1) SHALL USE AT LEAST $2,000,000.00 OR 25% OF THE FUNDS THE DISTRICT RECEIVES FOR THE FISCAL YEAR UNDER SECTION 31A, WHICHEVER IS LESS, FOR THE PURPOSES OF THIS SECTION.

(5) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, FUNDING TO DISTRICTS UNDER THIS SECTION FOR 2000-2001 IS INTENDED TO BE FOR THE THIRD OF 5 YEARS OF FUNDING UNDER THIS SECTION AND FORMER SECTION 31C, FUNDING TO DISTRICTS UNDER THIS SECTION FOR 2001-2002 IS INTENDED TO BE FOR THE FOURTH OF 5 YEARS OF FUNDING UNDER THIS SECTION AND FORMER SECTION 31C, AND FUNDING UNDER THIS SECTION FOR 2002-2003 IS INTENDED TO BE FOR THE FIFTH OF 5 YEARS OF FUNDING UNDER THIS SECTION AND FORMER SECTION 31C. FOR DISTRICTS RECEIVING FUNDING UNDER THIS SECTION FOR THE FIRST TIME FROM THE ADDITIONAL $10,000,000.00 ALLOCATED UNDER THIS SECTION FOR 2000-20001, AS COMPARED TO THE FUNDING UNDER FORMER SECTION 31C, FUNDING TO THOSE DISTRICTS UNDER THIS SECTION FOR 2000-2001 IS INTENDED TO BE FOR THE FIRST OF 3 YEARS OF FUNDING, FUNDING TO THOSE DISTRICTS UNDER THIS SECTION FOR 2001-2002 IS INTENDED TO BE FOR THE SECOND OF 3 YEARS OF FUNDING, AND FUNDING TO THOSE DISTRICTS UNDER THIS SECTION FOR 2002-2003 IS INTENDED TO BE FOR THE THIRD OF 3 YEARS OF FUNDING.

(6) THE FUNDS ALLOCATED UNDER THIS SECTION FOR A FISCAL YEAR MAY BE EXPENDED AFTER THE FISCAL YEAR THROUGH THE END OF EITHER THE FIFTH FISCAL YEAR OF FUNDING UNDER THIS SECTION AND FORMER SECTION 31C OR THE FINAL FISCAL YEAR OF FUNDING UNDER THIS SECTION AND FORMER SECTION 31C, WHICHEVER OCCURS EARLIER.

SEC. 32F. (1) FROM THE STATE SCHOOL AID FUND ALLOCATION UNDER SECTION 32A(1), THERE IS ALLOCATED EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 AN AMOUNT NOT TO EXCEED $72,500,000.00, FOR GRANTS UNDER THIS SECTION. FROM THE GENERAL FUND ALLOCATION UNDER SECTION 32A(1), THERE IS ALLOCATED EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 AN AMOUNT NOT TO EXCEED $2,750,000.00 FOR THE PURPOSES OF SUBSECTIONS (5) AND (6).

(2) FROM THE ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 AN AMOUNT NOT TO EXCEED $15,000,000.00 FOR PROVIDING GRANTS TO DISTRICTS AND PUBLIC SCHOOL ACADEMIES WITH SPECIAL EDUCATION MEMBERSHIP THAT IS AT LEAST 10% OF THE DISTRICT'S OR PUBLIC SCHOOL ACADEMY'S TOTAL MEMBERSHIP FOR 1998-99. GRANTS UNDER THIS SUBSECTION ARE TO BE AWARDED TO DISTRICTS AND PUBLIC SCHOOL ACADEMIES THAT ARE ELIGIBLE UNDER THIS SUBSECTION ON AN EQUAL BASIS BASED ON SPECIAL EDUCATION MEMBERSHIP ONLY, AND SHALL BE EXPENDED FOR PROVIDING STUDENT INTERVENTION PROGRAMS CONDUCTED IN CONJUNCTION WITH THE DISTRICT'S OR PUBLIC SCHOOL ACADEMY'S EXISTING READING INSTRUCTION PROGRAM. THE GOAL OF THE NEW PROGRAM SHALL BE TO REDUCE THE ELIGIBLE DISTRICT'S OR PUBLIC SCHOOL ACADEMY'S NUMBER OF PUPILS CATEGORIZED AS LEARNING DISABLED. A DISTRICT OR PUBLIC SCHOOL ACADEMY DOES NOT HAVE TO MEET THE ELIGIBILITY REQUIREMENTS UNDER SUBSECTION (7) TO BE ELIGIBLE FOR FUNDING UNDER THIS SUBSECTION.

(3) FROM THE ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 AN AMOUNT NOT TO EXCEED $5,000,000.00 FOR PROVIDING GRANTS TO THE 8 REGIONAL LITERACY CENTERS FOR THE PURPOSES OF EXPANDING TRAINING PROGRAMS FOR TRAINERS AND TEACHERS IN THE USE OF STRATEGIES FOR READING INSTRUCTION AND ASSESSMENT, INCLUDING THE MICHIGAN LITERACY PROGRESS PROFILE.

(4) FROM THE ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 AN AMOUNT NOT TO EXCEED $2,500,000.00 FOR COMPETITIVE GRANTS TO HIGHER EDUCATION INSTITUTIONS FOR THE DEVELOPMENT OR ENHANCEMENT OF PROGRAMS TO MEET THE NEEDS OF AUTISM IMPAIRED PUPILS. THESE PROGRAMS MAY INCLUDE, BUT ARE NOT LIMITED TO, STUDENT INTERVENTION CENTERS ON CAMPUS.

(5) FROM THE GENERAL FUND ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED TO THE DEPARTMENT EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 AN AMOUNT NOT TO EXCEED $2,500,000.00 FOR THE DEVELOPMENT AND DISSEMINATION OF READ, EDUCATE, AND DEVELOP YOUTH (READY) KITS TO PARENTS OF PRESCHOOL AND KINDERGARTEN CHILDREN TO PROVIDE THESE PARENTS WITH INFORMATION ABOUT HOW THEY CAN PREPARE THEIR CHILDREN FOR READING SUCCESS.

(6) FROM THE GENERAL FUND ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED TO THE DEPARTMENT EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 AN AMOUNT NOT TO EXCEED $250,000.00 FOR THE GRANT REVIEW PROCESS AND GRANT ADMINISTRATION UNDER THIS SECTION.

(7) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (2), TO BE ELIGIBLE FOR A GRANT UNDER THIS SECTION, A DISTRICT MUST HAVE HAD AT LEAST 1,500 PUPILS IN MEMBERSHIP IN 1998-99, AND THE NUMBER OF PUPILS IN THE DISTRICT THAT HAVE BEEN DETERMINED TO HAVE A SPECIFIC LEARNING DISABILITY ACCORDING TO R 340.1713 OF THE MICHIGAN ADMINISTRATIVE CODE, AS DETERMINED IN THE DECEMBER 1, 1998 HEAD COUNT REQUIRED UNDER THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT, TITLE VI OF PUBLIC LAW 91-230, MUST EQUAL OR EXCEED 5% OF THE DISTRICT'S MEMBERSHIP. IN ADDITION, A DISTRICT IS ELIGIBLE FOR A GRANT UNDER THIS SECTION IF THE DISTRICT HAD AT LEAST 1,500 PUPILS IN MEMBERSHIP IN 1998-99 AND IF NOT MORE THAN 41% OF THE DISTRICT'S PUPILS WHO TOOK THE SPRING 1999 FOURTH GRADE MEAP READING TEST ACHIEVED A SCORE OF AT LEAST SATISFACTORY. EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (2), FOR A PUBLIC SCHOOL ACADEMY TO BE ELIGIBLE FOR A GRANT UNDER THIS SECTION, THE PUBLIC SCHOOL ACADEMY MUST BE LOCATED IN A DISTRICT THAT IS ELIGIBLE UNDER THIS SUBSECTION.

(8) FROM THE ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 AN AMOUNT NOT TO EXCEED $50,000,000.00 FOR COMPETITIVE GRANTS TO ELIGIBLE DISTRICTS, TO INTERMEDIATE DISTRICTS, AND TO PUBLIC SCHOOL ACADEMIES LOCATED WITHIN ELIGIBLE DISTRICTS FOR READING IMPROVEMENTS PROGRAMS FOR PUPILS IN GRADES K TO 4, READING DISORDERS AND READING METHODS PROGRAMS, MENTORING PROGRAMS, LANGUAGE AND LITERACY OUTREACH PROGRAMS, OR COGNITIVE DEVELOPMENT PROGRAMS.

(9) IF A DISTRICT OR PUBLIC SCHOOL ACADEMY MEETS THE ELIGIBILITY CRITERIA UNDER BOTH SUBSECTIONS (2) AND (7), THE DISTRICT OR PUBLIC SCHOOL ACADEMY MAY RECEIVE FUNDING ONLY UNDER 1 OF SUBSECTION (2) OR (8), AS ELECTED BY THE DISTRICT OR PUBLIC SCHOOL ACADEMY.

(10) TO QUALIFY FOR FUNDING UNDER THIS SECTION, A PROPOSED READING IMPROVEMENT PROGRAM MUST MEET ALL OF THE FOLLOWING:

(A) THE PROGRAM SHALL INCLUDE ASSESSMENT OF READING SKILLS OF PUPILS IN GRADES K TO 4 TO IDENTIFY THOSE PUPILS WHO ARE READING BELOW GRADE LEVEL AND MUST PROVIDE SPECIAL READING ASSISTANCE FOR THESE PUPILS.

(B) THE PROGRAM SHALL BE A RESEARCH-BASED, VALIDATED, STRUCTURED READING PROGRAM.

(C) THE PROGRAM SHALL INCLUDE CONTINUOUS ASSESSMENT OF PUPILS AND INDIVIDUALIZED EDUCATION PLANS FOR PUPILS.

(D) THE PROGRAM SHALL ALIGN LEARNING RESOURCES TO STATE STANDARDS.

(E) FOR EACH SCHOOL BUILDING RECEIVING FUNDING UNDER THIS SECTION FOR A READING IMPROVEMENT PROGRAM, THE PROGRAM SHALL SERVE AT LEAST 25% OF PUPILS WHO ARE IDENTIFIED AS AT-RISK, AS DETERMINED BY THE MICHIGAN LITERACY PROGRESS PROFILE, OF READING FAILURE, AND THE AMOUNT OF THE GRANT SHALL NOT EXCEED $85,000.00 PER SCHOOL BUILDING ANNUALLY.

(11) FUNDS ALLOCATED FOR PROGRAMS DESCRIBED IN SUBSECTION (10) MAY BE USED TO REIMBURSE GRANT RECIPIENTS FOR FUNDS PAID BY DISTRICTS FOR UP TO 1/2 OF THE SALARIES AND BENEFITS FOR EACH TEACHER TRAINED AND CERTIFIED TO PROVIDE A READING IMPROVEMENT PROGRAM.

(12) TO QUALIFY FOR FUNDING UNDER THIS SECTION, A PROPOSED MENTORING PROGRAM MUST BE A RESEARCH-BASED, VALIDATED PROGRAM OR A STATEWIDE 1-TO-1 MENTORING PROGRAM TO ENHANCE THE INDEPENDENCE AND LIFE QUALITY OF PUPILS WHO ARE MENTALLY IMPAIRED BY PROVIDING OPPORTUNITIES FOR MENTORING AND INTEGRATED EMPLOYMENT.

(13) TO QUALIFY FOR FUNDING UNDER THIS SECTION, A PROPOSED COGNITIVE DEVELOPMENT PROGRAM MUST BE A RESEARCH-BASED, VALIDATED EDUCATIONAL SERVICE PROGRAM, FOCUSED ON ASSESSING AND BUILDING ESSENTIAL COGNITIVE AND PERCEPTUAL LEARNING ABILITIES TO STRENGTHEN PUPIL CONCENTRATION AND LEARNING.

(14) TO QUALIFY FOR FUNDING UNDER THIS SECTION, A PROPOSED STRUCTURED MENTORING-TUTORIAL READING PROGRAM FOR PRESCHOOL TO GRADE 4 PUPILS MUST BE A RESEARCH-BASED, VALIDATED PROGRAM THAT DEVELOPS INDIVIDUALIZED INSTRUCTIONAL PLANS BASED ON EACH PUPIL'S AGE, ASSESSED NEEDS, READING LEVEL, INTERESTS, AND LEARNING STYLE.

(15) A PROGRAM RECEIVING FUNDING UNDER THIS SECTION MAY BE CONDUCTED OUTSIDE OF REGULAR SCHOOL HOURS OR OUTSIDE THE REGULAR SCHOOL CALENDAR.

(16) TO COMPETE FOR A GRANT UNDER THIS SECTION, AN APPLICANT SHALL APPLY TO THE SUPERINTENDENT IN THE FORM AND MANNER PRESCRIBED BY THE SUPERINTENDENT. THE DEPARTMENT SHALL MAKE APPLICATIONS AVAILABLE FOR THIS PURPOSE. AN APPLICANT SHALL INCLUDE IN ITS APPLICATION A PROJECTED BUDGET FOR THE PROGRAMS. THE GRANT RECIPIENT SHALL PROVIDE AT LEAST A 20% LOCAL MATCH FROM LOCAL PUBLIC OR PRIVATE RESOURCES FOR THE FUNDS RECEIVED UNDER THIS SECTION. NOT MORE THAN 1/2 OF THIS MATCHING REQUIREMENT, UP TO A TOTAL OF 10% OF THE TOTAL PROJECT BUDGET, MAY BE SATISFIED THROUGH IN-KIND SERVICES PROVIDED BY PARTICIPATING PROVIDERS OF PROGRAMS OR SERVICES. IN ADDITION, NOT MORE THAN 10% OF THE GRANT MAY BE USED FOR PROGRAM ADMINISTRATION.

(17) THE SUPERINTENDENT SHALL APPROVE OR DISAPPROVE APPLICATIONS AND NOTIFY THE APPLICANT OF THAT DECISION. PRIORITY IN AWARDING GRANTS SHALL BE GIVEN TO PROGRAMS THAT FOCUS ON ACCELERATING STUDENT ACHIEVEMENT ON A COST-EFFECTIVE BASIS, REDUCING THE NUMBER OF PUPILS REQUIRING SPECIAL EDUCATION PROGRAMS AND SERVICES, AND IMPROVING PUPIL SCORES ON STANDARDIZED TESTS AND ASSESSMENTS.

(18) A GRANT RECIPIENT RECEIVING FUNDS UNDER THIS SECTION SHALL REPORT TO THE DEPARTMENT, IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT, ON THE RESULTS ACHIEVED BY THE PROGRAM. AT A MINIMUM, THE GRANT RECIPIENT SHALL REPORT TO THE DEPARTMENT BY OCTOBER 15 REGARDING THE PROGRAM'S IMPACT ON REDUCING THE NUMBER OF PUPILS REQUIRING SPECIAL EDUCATION PROGRAMS AND SERVICES AND ON IMPROVING PUPIL SCORES ON STANDARDIZED TESTS AND ASSESSMENTS, AND INFORMATION ON THE COSTS AND BENEFITS PER UNIT OF PUPIL IMPROVEMENT. IN ADDITION, THE REPORT SHALL STATE THE NUMBER OF PUPILS ELIGIBLE FOR FREE OR REDUCED PRICE SCHOOL LUNCH WHO RECEIVED SERVICES UNDER THE PROGRAM AND THE TOTAL NUMBER OF PUPILS WHO RECEIVED SERVICES UNDER THE PROGRAM. NOT LATER THAN NOVEMBER 15 OF EACH FISCAL YEAR, THE DEPARTMENT SHALL SUBMIT A REPORT TO THE LEGISLATURE, THE STATE BUDGET DIRECTOR, AND THE SENATE AND HOUSE FISCAL AGENCIES DETAILING THE RESULTS OF THE PROGRAMS. IT IS THE INTENT OF THE LEGISLATURE THAT FURTHER FUNDING FOR THE PROGRAMS UNDER THIS SECTION WILL REFLECT THE RESULTS ACHIEVED IN THESE PROGRAMS.

(19) NOTWITHSTANDING SECTION 17B, PAYMENTS UNDER THIS SECTION SHALL BE PAID ON A SCHEDULE DETERMINED BY THE DEPARTMENT.

(20) IF THE MAXIMUM AMOUNT APPROPRIATED UNDER THIS SECTION EXCEEDS THE AMOUNT NECESSARY TO FULLY FUND ALLOCATIONS UNDER THIS SECTION, THAT EXCESS AMOUNT SHALL NOT BE EXPENDED IN THAT STATE FISCAL YEAR BUT SHALL INSTEAD BE CARRIED FORWARD TO THE SUCCEEDING FISCAL YEAR AND ADDED TO ANY FUNDS APPROPRIATED FOR THAT FISCAL YEAR FOR EXPENDITURE IN THAT FISCAL YEAR.

SEC. 32G. (1) FROM THE STATE SCHOOL AID FUND ALLOCATION UNDER SECTION 32A(1), THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $38,000,000.00 EACH FISCAL YEAR FOR 2000-2001 AND FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $50,000,000.00 FOR 2002-2003 FOR PAYMENTS TO DISTRICTS TO PROVIDE SUMMER SCHOOL INSTRUCTION IN READING AND MATHEMATICS FOR PUPILS IN GRADE 1, 2, 3, OR 4.

(2) IN ORDER TO IMPROVE ELEMENTARY SCHOOL PUPIL ACHIEVEMENT, DISTRICTS MAY PROVIDE SUMMER SCHOOL INSTRUCTION IN READING AND MATHEMATICS. THE DEPARTMENT SHALL DEVELOP A MODEL SUMMER MATHEMATICS PROGRAM FOR PUPILS WHO ATTENDED GRADE 1, 2, 3, OR 4 IN THE SCHOOL YEAR THAT JUST ENDED AND WHO HAVE DEMONSTRATED THE NEED FOR ADDITIONAL MATHEMATICS SKILLS TRAINING, AS EVIDENCED BY STANDARDIZED TEST RESULTS ON TESTS APPROVED BY THE DEPARTMENT FOR THIS PURPOSE. THE MODEL MATHEMATICS PROGRAM SHALL BE IN CONFORMANCE WITH THE NATIONAL EDUCATION GOALS AND SHALL ALSO MEET CRITERIA FOR DED-OESE, TITLE I PROGRAM FUNDING.

(3) TO BE ELIGIBLE TO PARTICIPATE IN SUMMER SCHOOL INSTRUCTION FUNDED UNDER THIS SECTION DURING A PARTICULAR SUMMER, A PUPIL SHALL HAVE BEEN ENROLLED IN GRADE 1, 2, 3, OR 4 IN THE SCHOOL YEAR THAT JUST ENDED AND SHALL MEET AT LEAST 1 OF THE FOLLOWING CRITERIA:

(A) ACHIEVED LESS THAN SATISFACTORY RESULTS, AS DETERMINED BY THE DISTRICT, IN THE MATHEMATICS OR READING PORTION OF A DEPARTMENT-APPROVED ANNUAL STANDARDIZED ASSESSMENT OF GRADE-APPROPRIATE BASIC EDUCATIONAL SKILLS.

(B) SCORED IN THE LOW PERFORMANCE CATEGORY OF THE MATHEMATICS OR READING PORTION OF THE GRADE 4 MICHIGAN EDUCATION ASSESSMENT PROGRAM (MEAP) TEST.

(4) AN APPLICATION FOR FUNDING UNDER THIS SECTION SHALL BE SUBMITTED TO THE DEPARTMENT FOR APPROVAL, IN A MANNER AND ON FORMS PRESCRIBED BY THE DEPARTMENT, BY A DATE SPECIFIED BY THE DEPARTMENT.

(5) A DISTRICT THAT RECEIVES FUNDING UNDER THIS SECTION SHALL, AT A MINIMUM, OFFER SUMMER SCHOOL INSTRUCTION UNDER THIS SECTION FOR PUPILS WHO WERE ENROLLED IN GRADE 3 IN THE SCHOOL YEAR THAT JUST ENDED AND MET THE CRITERIA DESCRIBED IN SUBSECTION (3)(A).

(6) A DISTRICT THAT RECEIVES FUNDING UNDER THIS SECTION SHALL PROVIDE A MINIMUM OF 6 WEEKS OF PUPIL INSTRUCTION UNDER THIS SECTION IN MATHEMATICS AND READING. IN ADDITION, APPLICATIONS FOR FUNDING MAY INCLUDE THE PROVISION OF AUXILIARY SERVICES BY THE DISTRICT IN A MANNER DETERMINED BY THE DISTRICT FOR SUCH SERVICES AS SCHOOL LUNCH AND TRANSPORTATION AS IS NECESSARY TO ENCOURAGE PUPIL PARTICIPATION.

(7) A DISTRICT APPLYING FOR FUNDING UNDER THIS SECTION MUST IDENTIFY MONEY FROM OTHER SOURCES AVAILABLE TO THE DISTRICT THAT WILL BE USED TO SUPPORT AT LEAST 50% OF THE TOTAL COSTS OF THE SUMMER SCHOOL PROGRAM.

(8) GRANT AWARDS UNDER THIS SECTION SHALL BE DISTRIBUTED IN ACCORDANCE WITH THE FOLLOWING:

(A) EIGHTY PERCENT OF THE AMOUNT PROVIDED TO A GRANT RECIPIENT SHALL BE BASED ON ENROLLMENT OF ELIGIBLE PARTICIPANTS.

(B) TWENTY PERCENT OF THE AMOUNT PROVIDED TO A GRANT RECIPIENT SHALL BE BASED ON MEASURED IMPROVEMENT IN READING OR MATHEMATICS, AS APPLICABLE.

(9) FUNDS ALLOCATED TO A DISTRICT UNDER THIS SECTION SHALL NOT BE USED TO SUPPLANT OTHER STATE OR FEDERAL FUNDS ALLOCATED TO THE DISTRICT FOR SIMILAR PURPOSES.

(10) SUBJECT TO PROGRAM CAPACITY, A PUPIL WHO WAS ENROLLED IN GRADE 1, 2, 3, OR 4 IN THE SCHOOL YEAR THAT JUST ENDED BUT WHO DOES NOT OTHERWISE MEET THE ELIGIBILITY CRITERIA UNDER THIS SECTION MAY RECEIVE SUMMER SCHOOL INSTRUCTION DESCRIBED IN THIS SECTION UPON THE PAYMENT OF TUITION. THE TUITION LEVEL SHALL BE DETERMINED BY THE DISTRICT BUT SHALL NOT EXCEED ACTUAL OPERATING COSTS.

(11) A DISTRICT RECEIVING FUNDING UNDER THIS SECTION SHALL REPORT ON THE RESULTS ACHIEVED BY THE SUMMER SCHOOL PROGRAM IN A MANNER PRESCRIBED BY THE DEPARTMENT. AT A MINIMUM, THE GRANT RECIPIENT SHALL REPORT TO THE DEPARTMENT BY OCTOBER 15 REGARDING THE PROGRAM'S IMPACT ON REDUCING THE NUMBER OF PUPILS REQUIRING SPECIAL EDUCATION PROGRAMS AND SERVICES AND ON IMPROVING PUPIL SCORES ON STANDARDIZED TESTS AND ASSESSMENTS, AND INFORMATION ON THE COSTS AND BENEFITS PER UNIT OF PUPIL IMPROVEMENT. IN ADDITION, THE REPORT SHALL STATE THE NUMBER OF PUPILS ELIGIBLE FOR FREE OR REDUCED PRICE SCHOOL LUNCH WHO RECEIVED SERVICES UNDER THE PROGRAM AND THE TOTAL NUMBER OF PUPILS WHO RECEIVED SERVICES UNDER THE PROGRAM. NOT LATER THAN NOVEMBER 15 OF EACH FISCAL YEAR, THE DEPARTMENT SHALL SUBMIT A REPORT TO THE LEGISLATURE, THE STATE BUDGET DIRECTOR, AND THE SENATE AND HOUSE FISCAL AGENCIES DETAILING THE RESULTS OF THE PROGRAMS.

(12) BEGINNING IN 2000-2001, NOTWITHSTANDING SECTION 17B, PAYMENTS UNDER THIS SECTION SHALL BE PAID ON A SCHEDULE DETERMINED BY THE DEPARTMENT.

(13) DISTRICTS MAY FORM CONSORTIA OR ENTER INTO COOPERATIVE ARRANGEMENTS FOR OPERATING PROGRAMS AND OBTAINING FUNDING UNDER THIS SECTION.

(14) FUNDS ALLOCATED UNDER THIS SECTION THAT ARE NOT EXPENDED IN THE STATE FISCAL YEAR FOR WHICH THEY WERE ALLOCATED MAY BE CARRIED FORWARD TO A SUBSEQUENT STATE FISCAL YEAR.

SEC. 32H. FROM THE SCHOOL AID FUND ALLOCATION UNDER SECTION 32A(1), THERE IS ALLOCATED EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 AN AMOUNT NOT TO EXCEED $10,000,000.00 TO PROVIDE ADDITIONAL RESOURCES FOR COORDINATING COUNSELING SERVICES OR FOR PAYMENTS TO DISTRICTS TO MAKE TUITION GRANTS FOR HIGHER EDUCATION PROGRAMS THAT LEAD TO A DEGREE IN SCHOOL COUNSELING.

Sec. 33. (1) From the state school aid fund appropriation in section 11, there is allocated an amount not to exceed $15,000,000.00 for 1999-2000 only to a district that is a school district of the first class under the revised school code.

(2) FROM THE STATE SCHOOL AID FUND APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $15,000,000.00 FOR 2000-2001 ONLY TO A DISTRICT THAT IS A QUALIFYING SCHOOL DISTRICT UNDER PART 5A OF THE REVISED SCHOOL CODE, MCL 380.371 TO 380.376, OR THAT IS THE SUBJECT OF INTERVENTION UNDER A SUBSTANTIALLY SIMILAR PROVISION OF THE REVISED SCHOOL CODE. IF MORE THAN 1 DISTRICT QUALIFIES FOR FUNDING UNDER THIS SUBSECTION, THE FUNDS SHALL BE ALLOCATED ON AN EQUAL PER-PUPIL BASIS.

(3) Funds allocated under this section are for measures to improve student performance, including, but not limited to, enhanced school security and reading readiness programs.

SEC. 35. (1) FROM THE GENERAL FUND MONEY APPROPRIATED IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $10,000,000.00 FOR 1999-2000 ONLY TO THE FAMILY INDEPENDENCE AGENCY FOR GRANTS TO SUPPORT A FAMILY OPPORTUNITY PROJECT FOR FAMILIES RECEIVING FAMILY INDEPENDENCE PROGRAM BENEFITS WHO ARE EXPECTED TO WORK BUT HAVE NOT YET BEEN SUCCESSFUL IN OBTAINING EMPLOYMENT.

(2) THE FAMILY OPPORTUNITY PROJECT SHALL BE FUNDED BY GRANTS DISTRIBUTED THROUGH A REQUEST FOR PROPOSALS PROCESS ESTABLISHED BY THE FAMILY INDEPENDENCE AGENCY. PROJECTS AWARDED FUNDING FOR THIS PROGRAM SHALL COMPLY WITH ALL OF THE FOLLOWING:

(A) PROVIDE OPPORTUNITIES FOR FAMILIES TO IMPROVE FAMILY LITERACY, PARENTING SKILLS, HOME AND LIFE MANAGEMENT SKILLS, AND WORKFORCE READINESS SKILLS AND TO PARTICIPATE IN COMMUNITY VOLUNTEERING.

(B) REQUIRE MANDATORY PARTICIPATION OF THE FAMILY.

(C) PROVIDE ON-SITE CHILD CARE AND OTHER AUXILIARY SERVICES NECESSARY FOR FAMILY PARTICIPATION.

(D) USE LOCAL COMMUNITY SERVICE PROVIDERS INCLUDING, BUT NOT LIMITED TO, DISTRICTS, INTERMEDIATE DISTRICTS, COMMUNITY COLLEGES, LOCAL GOVERNMENTS, MICHIGAN WORKS AGENCIES, AND COMMUNITY-BASED ORGANIZATIONS.

(3) FUNDS ALLOCATED UNDER THIS SECTION THAT ARE NOT EXPENDED IN THE STATE FISCAL YEAR FOR WHICH THEY WERE ALLOCATED MAY BE CARRIED FORWARD TO A SUBSEQUENT STATE FISCAL YEAR.

Sec. 37. (1) A district is eligible for an allocation under section 36 OR, BEGINNING IN 2000-2001, SECTION 32D, if the district meets all of the requirements in subsections (2), (3), and (4).

(2) The district shall submit a preapplication, in a manner and on forms prescribed by the department, by a date specified by the department in the immediately preceding state fiscal year. The preapplication shall include a comprehensive needs assessment and community collaboration plan, and shall identify all of the following:

(a) The estimated total number of children in the community who meet the criteria of section 36 OR, BEGINNING IN 2000-2001, SECTION 32D, and how that calculation was made.

(b) The estimated number of children in the community who meet the criteria of section 36 OR, BEGINNING IN 2000-2001, SECTION 32D, and are being served by other early childhood development programs operating in the community, and how that calculation was made.

(c) The number of children the district will be able to serve who meet the criteria of section 36 OR, BEGINNING IN 2000-2001, SECTION 32D, including a verification of physical facility and staff resources capacity.

(d) The estimated number of children who meet the criteria of section 36 OR, BEGINNING IN 2000-2001, SECTION 32D, who will remain unserved after the district and community early childhood programs have met their funded enrollments. The school district shall maintain a waiting list of identified unserved eligible children who would be served when openings are available.

(3) The district shall submit a final application for approval, in a manner and on forms prescribed by the department, by a date specified by the department. The final application shall indicate all of the following that apply:

(a) The district complies with the state board approved standards of quality and curriculum guidelines for early childhood programs for 4-year-olds.

(b) The district provides for the active and continuous participation of parents or guardians of the children in the program, and describes the district's participation plan as part of the application.

(c) The district only employs for this program the following:

(i) Teachers possessing proper training, including, but not limited to, a valid teaching certificate and an early childhood (ZA) endorsement. This provision does not apply to a district that subcontracts with an eligible child development program. In that situation a teacher must have a valid teaching certificate and may have a child development associate credential (CDA) instead of an early childhood (ZA) endorsement.

(ii) Paraprofessionals possessing proper training in early childhood development or who have completed at least 1 course in an appropriate training program, including, but not limited to, a child development associate credential (CDA) or associate degree in child development or other similar program, as approved by the department.

(d) The district has submitted for approval a program budget that includes only those costs not reimbursed or reimbursable by federal funding, that are clearly and directly attributable to the early childhood readiness program, and that would not be incurred if the program were not being offered. If children other than those determined to be educationally disadvantaged participate in the program, state reimbursement under section 36 OR, BEGINNING IN 2000-2001, UNDER SECTION 32D shall be limited to the portion of approved costs attributable to educationally disadvantaged children.

(e) The district has established a school readiness advisory committee consisting of, at a minimum, classroom teachers for prekindergarten, kindergarten, and first grade; parents or guardians of program participants; representatives from appropriate community agencies and organizations; the district curriculum director or equivalent administrator; and, if feasible, a school psychologist, school social worker, or school counselor. In addition, there shall be on the committee at least 1 parent or guardian of a program participant for every 18 children enrolled in the program, with a minimum of 2 parent or guardian representatives. The committee shall do all of the following:

(i) Ensure the ongoing articulation of the early childhood, kindergarten, and first grade programs offered by the district.

(ii) Review the mechanisms and criteria used to determine participation in the early childhood program.

(iii) Review the health screening program for all participants.

(iv) Review the nutritional services provided to program participants.

(v) Review the mechanisms in place for the referral of families to community social service agencies, as appropriate.

(vi) Review the collaboration with and the involvement of appropriate community, volunteer, and social service agencies and organizations in addressing all aspects of educational disadvantage.

(vii) Review, evaluate, and make recommendations to a local school readiness program or programs for changes to the school readiness program.

(f) The district has submitted for departmental approval a plan to conduct and report annual school readiness program evaluations using criteria approved by the department. At a minimum, the evaluations shall include assessment of the gains in educational readiness and progress through first grade of children participating in the school readiness program.

(g) More than 50% of the children participating in the program meet the income eligibility criteria for free or reduced price lunch, as determined under the RICHARD B. RUSSELL national school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to 1753, 1755 to 1761, 1762a, 1765 to 1766b 1766a, and 1769, 1769b TO 1769c, AND 1769f to 1769h, or meet the income and all other eligibility criteria for the family independence agency unified child day care program.

(4) A consortium of 2 or more districts shall be eligible for an allocation under section 36 OR, BEGINNING IN 2000-2001, SECTION 32D, if the districts designate a single fiscal agent for the allocation. A district or intermediate district may administer a consortium described in this subsection. A consortium shall submit a single preapplication and application for the children to be served, regardless of the number of districts participating in the consortium.

(5) With the final application, an applicant district shall submit to the department a resolution adopted by its board certifying the number of 4-year-old children who show evidence of risk factors as described in section 36 OR, BEGINNING IN 2000-2001, SECTION 32D, who meet the income eligibility criteria for free or reduced price lunch or the income and all other eligibility criteria for the family independence agency unified child day care program, and who will participate in a school readiness program funded under section 36 OR, BEGINNING IN 2000-2001, SECTION 32D.

Sec. 38. The maximum number of prekindergarten children construed to be in need of special readiness assistance under section 36 OR, BEGINNING IN 2000-2001, SECTION 32D shall be calculated for each district in the following manner: one-half of the percentage of the district's pupils in grades 1-5 who are eligible for free lunch, as determined by the district's October count in the immediately preceding school year under the RICHARD B. RUSSELL national school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to 1753, 1755 to 1761, 1762a, 1765 to 1769b 1766a, and 1769, 1769b TO 1769c, AND 1769f to 1769h, as reported to the department not later than December 31 of the immediately preceding fiscal year, shall be multiplied by the average kindergarten enrollment of the district on the pupil membership count day of the 2 immediately preceding years.

Sec. 39. (1) The tentative allocation for each fiscal year to each eligible district under section 36 OR, BEGINNING IN 2000-2001, SECTION 32D shall be determined by multiplying the number of children determined in section 38 or the number of children the district indicates it will be able to serve under section 37(2)(c), whichever is less, by $3,100.00 OR, BEGINNING IN 2000-2001, BY $3,300.00 and shall be distributed among districts in decreasing order of concentration of eligible children as determined by section 38 until the money allocated in section 36 OR, BEGINNING IN 2000-2001, SECTION 32D is distributed.

(2) A district that has not less than 50 eligible children shall receive priority over other eligible districts other than those districts funded under subsection (3).

(3) A district that received funds under this section in at least 1 of the 2 immediately preceding fiscal years shall receive priority in funding over other eligible districts. However, funding beyond 3 state fiscal years is contingent upon the availability of funds and documented evidence satisfactory to the department of compliance with all operational, fiscal, administrative, and other program requirements.

(4) A district that offers supplementary day care funded by funds other than those received under this section and therefore offers full-day programs as part of its early childhood development program shall receive priority in the allocation of funds under this section over other eligible districts other than those districts funded under subsection (3).

(5) For any district with 315 or more eligible pupils, the number of eligible pupils shall be 65% of the number calculated under section 38. However, none of these districts may have less than 315 pupils for purposes of calculating the tentative allocation under section 36 OR, BEGINNING IN 2000-2001, SECTION 32D.

(6) If, taking into account the total amount to be allocated to the district as calculated under this section, a district determines that it is able to include additional eligible children in the school readiness program without additional funds under this section, the district may include additional eligible children but shall not receive additional funding under this section for those children.

Sec. 40. The department biennially shall review alternative methods to determine the number of children construed to be in need of special readiness assistance and shall report not later than November 15 of each even-numbered year its findings and recommendations to the senate and house appropriations subcommittees responsible for district funding and the senate and house committees responsible for education legislation and the department of management and budget STATE BUDGET DIRECTOR.

Sec. 41. From the appropriation in section 11, there is allocated an amount not to exceed $4,212,000.00 each fiscal year for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003, to applicant districts and intermediate districts offering programs of bilingual instruction for pupils of limited English-speaking ability under section 1153 of the revised school code, MCL 380.1153. Reimbursement shall be on a per pupil basis and shall be based on the number of pupils of limited English-speaking ability in membership on the pupil membership count day. Funds allocated under this section shall be used solely for bilingual instruction in speaking, reading, writing, or comprehension of pupils of limited English-speaking ability.

Sec. 51a. (1) From the appropriation in section 11, there is allocated for 1998-99 an amount not to exceed $735,059,400.00 from state sources and all available federal funding under sections 611 to 619 of part B of the individuals with disabilities education act, title VI of Public Law 91-230, 20 U.S.C. 1411 to 1419, estimated at $120,000,000.00, plus any carryover federal funds from previous year appropriations; there is allocated for 1999-2000 an amount not to exceed $789,643,900.00 $777,631,900.00 from state sources and all available federal funding UNDER SECTIONS 611 TO 619 OF PART B OF THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT, TITLE VI OF PUBLIC LAW 91-230, 20 U.S.C. 1411 TO 1419, estimated at $120,000,000.00 $125,000,000.00, plus any carryover federal funds from previous year appropriations; and there is allocated for 2000-2001 an amount not to exceed $846,252,600.00 $746,121,900.00 from state sources and all available federal funding, estimated at $120,000,000.00 $145,000,000.00, plus any carryover federal funds from previous year appropriations; THERE IS ALLOCATED FOR 2001-2002 AN AMOUNT NOT TO EXCEED $805,861,900.00 FROM STATE SOURCES AND ALL AVAILABLE FEDERAL FUNDING, ESTIMATED AT $145,000,000.00, PLUS ANY CARRYOVER FEDERAL FUNDS FROM PREVIOUS YEAR APPROPRIATIONS; AND THERE IS ALLOCATED FOR 2002-2003 AN AMOUNT NOT TO EXCEED $863,811,900.00 FROM STATE SOURCES AND ALL AVAILABLE FEDERAL FUNDING, ESTIMATED AT $145,000,000.00, PLUS ANY CARRYOVER FEDERAL FUNDS FROM PREVIOUS YEAR APPROPRIATIONS. The allocations under this subsection are for the purpose of reimbursing districts and intermediate districts for special education programs, services, and special education personnel as prescribed in article 3 of the revised school code, MCL 380.1701 to 380.1766; net tuition payments made by intermediate districts to the Michigan schools for the deaf and blind; and special education programs and services for pupils who are eligible for special education programs and services according to statute or rule. For meeting the costs of special education programs and services not reimbursed under this article, a district or intermediate district may use money in general funds or special education funds, not otherwise restricted, or contributions from districts to intermediate districts, tuition payments, gifts and contributions from individuals, or federal funds that may be available for this purpose, as determined by the intermediate district plan prepared pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766.

(2) From the funds allocated under subsection (1), there is allocated for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 the amount necessary, estimated at $622,459,400.00 for 1998-99, $677,953,200.00 $656,000,000.00 for 1999-2000, and $734,696,200.00 $126,000,000.00 for 2000-2001, $136,000,000.00 FOR 2001-2002, AND $147,000,000.00 FOR 2002-2003, for payments toward reimbursing districts and intermediate districts for 28.6138% of total approved costs of special education, excluding costs reimbursed under section 53a, and 70.4165% of total approved costs of special education transportation. Allocations under this subsection shall be made as follows:

(a) The initial amount allocated to a district under this subsection toward fulfilling the specified percentages shall be calculated by multiplying the district's special education pupil membership, excluding pupils described in subsection (12), times the sum of the foundation allowance under section 20 of the pupil's district of residence plus , each fiscal year for 1999-2000 and 2000-2001 only, the amount of the district's per pupil allocation under section 20j(2), not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current fiscal year and $5,000.00, or, for a special education pupil in membership in a district that is a public school academy or university school, times an amount equal to the amount per membership pupil calculated under section 20(6). For an intermediate district, the amount allocated under this subdivision toward fulfilling the specified percentages shall be an amount per special education membership pupil, excluding pupils described in subsection (12), and shall be calculated in the same manner as for a district, using the foundation allowance under section 20 of the pupil's district of residence, not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current fiscal year and $5,000.00, and , each fiscal year for 1999-2000 and 2000-2001 only, that district's per pupil allocation under section 20j(2). HOWEVER, BEGINNING IN 2002-2003, THE $6,500.00 AMOUNT PRESCRIBED IN THIS SUBDIVISION SHALL BE ADJUSTED EACH YEAR BY AN AMOUNT EQUAL TO THE DOLLAR AMOUNT OF THE DIFFERENCE BETWEEN THE BASIC FOUNDATION ALLOWANCE FOR THE CURRENT STATE FISCAL YEAR AND $5,000.00, MINUS $200.00.

(b) After the allocations under subdivision (a), districts and intermediate districts for which the payments under subdivision (a) do not fulfill the specified percentages shall be paid the amount necessary to achieve the specified percentages for the district or intermediate district.

(3) From the funds allocated under subsection (1), there is allocated each fiscal year for 1998-99, for 1999-2000 , and for 2000-2001 the amount necessary, estimated at $34,860,300.00 for 1998-99, $34,150,000.00 for 1999-2000, and $30,926,000.00 for 2000-2001, $38,300,000.00 to make payments to districts and intermediate districts under this subsection. If the amount allocated to a district or intermediate district for 1998-99, 1999-2000, or 2000-2001 A FISCAL YEAR under subsection (2)(b) is less than the sum of the amounts allocated to the district or intermediate district for 1996-97 under sections 52 and 58, there is allocated to the district or intermediate district for 1998-99, for 1999-2000, or for 2000-2001 or all of them as applicable, THE FISCAL YEAR an amount equal to that difference, adjusted by applying the same proration factor that was used in the distribution of funds under section 52 in 1996-97 as adjusted to the district's or intermediate district's necessary costs of special education used in calculations for 1998-99, 1999-2000, or 2000-2001 THE FISCAL YEAR. This adjustment is to reflect reductions in special education program operations between 1996-97 and 1998-99, 1999-2000, or 2000-2001, as applicable SUBSEQUENT FISCAL YEARS. BEGINNING IN 2000-2001, ADJUSTMENTS FOR REDUCTIONS IN SPECIAL EDUCATION PROGRAM OPERATIONS SHALL BE MADE IN A MANNER DETERMINED BY THE DEPARTMENT AND SHALL INCLUDE ADJUSTMENTS FOR PROGRAM SHIFTS.

(4) If the department determines that the sum of the amounts allocated for a fiscal year to a district or intermediate district under subsection (2)(a) and (b) is not sufficient to fulfill the specified percentages in subsection (2), then the shortfall shall be paid to the district or intermediate district during the fiscal year beginning on the October 1 following the determination and payments under subsection (3) shall be adjusted as necessary. If the department determines that the sum of the amounts allocated for a fiscal year to a district or intermediate district under subsection (2)(a) and (b) exceeds the sum of the amount necessary to fulfill the specified percentages in subsection (2), then the department shall deduct the amount of the excess from the district's or intermediate district's payments under this act for the fiscal year beginning on the October 1 following the determination and payments under subsection (3) shall be adjusted as necessary. However, if the amount allocated under subsection (2)(a) in itself exceeds the amount necessary to fulfill the specified percentages in subsection (2), there shall be no deduction under this subsection.

(5) State funds shall be allocated on a total approved cost basis. Federal funds shall be allocated under applicable federal requirements, except that an amount not to exceed $3,500,000.00 each fiscal year may be allocated by the department for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 to districts or intermediate districts on a competitive grant basis for programs, equipment, and services that the department determines to be designed to benefit or improve special education on a statewide scale.

(6) From the amount allocated in subsection (1), there is allocated an amount not to exceed $2,200,000.00 each fiscal year for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 to reimburse 100% of the net increase in necessary costs incurred by a district or intermediate district in implementing the revisions in the administrative rules for special education that became effective on July 1, 1987. As used in this subsection, "net increase in necessary costs" means the necessary additional costs incurred solely because of new or revised requirements in the administrative rules minus cost savings permitted in implementing the revised rules. Net increase in necessary costs shall be determined in a manner specified by the department.

(7) For purposes of this article, all of the following apply:

(a) "Total approved costs of special education" shall be determined in a manner specified by the department and may include indirect costs, but shall not exceed 115% of approved direct costs for section 52 and section 53a programs. The total approved costs include salary and other compensation for all approved special education personnel for the program, including payments for social security and medicare and public school employee retirement system contributions. The total approved costs do not include salaries or other compensation paid to administrative personnel who are not special education personnel as defined in section 6 of the revised school code, MCL 380.6. Costs reimbursed by federal funds, other than those federal funds included in the allocation made under this article, are not included. Special education approved personnel not utilized full time in the evaluation of students or in the delivery of special education programs, ancillary, and other related services shall be reimbursed under this section only for that portion of time actually spent providing these programs and services, with the exception of special education programs and services provided to youth placed in child caring institutions or juvenile detention programs approved by the department to provide an on-grounds education program.

(b) Reimbursement for ancillary and other related services, as defined by R 340.1701 of the Michigan administrative code, shall not be provided when those services are covered by and available through private group health insurance carriers or federal reimbursed program sources unless the department and district or intermediate district agree otherwise and that agreement is approved by the state budget director. Expenses, other than the incidental expense of filing, shall not be borne by the parent. In addition, the filing of claims shall not delay the education of a pupil. A district or intermediate district shall be responsible for payment of a deductible amount and for an advance payment required until the time a claim is paid.

(8) From the allocation in subsection (1), there is allocated each fiscal year for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 an amount not to exceed $15,313,900.00 each fiscal year to intermediate districts. The payment under this subsection to each intermediate district shall be equal to the amount of the 1996-97 allocation to the intermediate district under subsection (6) of this section as in effect for 1996-97.

(9) A pupil who is enrolled in a full-time special education program conducted or administered by an intermediate district or a pupil who is enrolled in the Michigan schools for the deaf and blind shall not be included in the membership count of a district, but shall be counted in membership in the intermediate district of residence.

(10) Special education personnel transferred from 1 district to another to implement the revised school code shall be entitled to the rights, benefits, and tenure to which the person would otherwise be entitled had that person been employed by the receiving district originally.

(11) If a district or intermediate district uses money received under this section for a purpose other than the purpose or purposes for which the money is allocated, the department may require the district or intermediate district to refund the amount of money received. Money that is refunded shall be deposited in the state treasury to the credit of the state school aid fund.

(12) From the funds allocated in subsection (1), there is allocated each fiscal year for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 the amount necessary, estimated at $10,087,800.00 for 1998-99, and $10,587,200.00 $11,100,000.00 for 1999-2000, and $11,178,400.00 $7,700,000.00 for 2000-2001, $8,140,000.00 FOR 2001-2002, AND $8,350,000.00 FOR 2002-2003 to pay the foundation allowances for pupils described in this subsection. The allocation to a district under this subsection shall be calculated by multiplying the number of pupils described in this subsection who are counted in membership in the district times the sum of the foundation allowance under section 20 of the pupil's district of residence plus , each fiscal year for 1999-2000 and 2000-2001 only, the amount of the district's per pupil allocation under section 20j(2), not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current fiscal year and $5,000.00, or, for a pupil described in this subsection who is counted in membership in a district that is a public school academy or university school, times an amount equal to the amount per membership pupil under section 20(6). The allocation to an intermediate district under this subsection shall be calculated in the same manner as for a district, using the foundation allowance under section 20 of the pupil's district of residence, not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current fiscal year and $5,000.00, and , each fiscal year for 1999-2000 and 2000-2001 only, that district's per pupil allocation under section 20j(2). HOWEVER, BEGINNING IN 2002-2003, THE $6,500.00 AMOUNT PRESCRIBED IN THIS SUBSECTION SHALL BE ADJUSTED EACH YEAR BY AN AMOUNT EQUAL TO THE DOLLAR AMOUNT OF THE DIFFERENCE BETWEEN THE BASIC FOUNDATION ALLOWANCE FOR THE CURRENT STATE FISCAL YEAR AND $5,000.00, MINUS $200.00. This subsection applies to all of the following pupils:

(a) Pupils described in section 53a.

(b) Pupils counted in membership in an intermediate district who are not special education pupils and are served by the intermediate district in a juvenile detention or child caring facility.

(c) Emotionally impaired pupils counted in membership by an intermediate district and provided educational services by the department of community health.

(13) After payments under subsections (2) and (12) AND, BEGINNING IN 2000-2001, SECTION 51C, the remaining expenditures from the allocation in subsection (1) shall be made in the following order:

(a) 100% of the reimbursement required under section 53a.

(b) 100% of the reimbursement required under subsection (6).

(c) 100% of the payment required under section 54.

(d) 100% of the payment required under subsection (3).

(e) 100% of the payment required under subsection (8).

(f) 100% of the payments under section 56.

(14) BEGINNING IN 2000-2001, THE ALLOCATIONS UNDER SUBSECTION (2), SUBSECTION (3), AND SUBSECTION (12) SHALL BE ALLOCATIONS TO INTERMEDIATE DISTRICTS ONLY AND SHALL NOT BE ALLOCATIONS TO DISTRICTS, BUT INSTEAD SHALL BE CALCULATIONS USED ONLY TO DETERMINE THE STATE PAYMENTS UNDER SECTION 22B.

SEC. 51C. AS REQUIRED BY THE COURT IN THE CONSOLIDATED CASES KNOWN AS DURANT V THE STATE OF MICHIGAN, MICHIGAN SUPREME COURT DOCKET NO. 104458-104492, FROM THE ALLOCATION UNDER SECTION 51A(1), THERE IS ALLOCATED FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 THE AMOUNT NECESSARY, ESTIMATED AT $540,300,000.00 FOR 2000-2001, $583,000,000.00 FOR 2001-2002, AND $629,100,000.00 FOR 2002-2003, FOR PAYMENTS TO REIMBURSE DISTRICTS FOR 28.6138% OF TOTAL APPROVED COSTS OF SPECIAL EDUCATION EXCLUDING COSTS REIMBURSED UNDER SECTION 53A, AND 70.4165% OF TOTAL APPROVED COSTS OF SPECIAL EDUCATION TRANSPORTATION.

Sec. 53a. (1) Reimbursement FOR DISTRICTS, REIMBURSEMENT FOR PUPILS DESCRIBED IN SUBSECTION (2), REIMBURSEMENT shall be 100% of the total approved costs of operating special education programs and services approved by the department and included in the intermediate district plan adopted pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766, minus the DISTRICT'S foundation allowance calculated under section 20, and , each fiscal year for 1999-2000 and 2000-2001 only, minus the amount of the district's per pupil allocation under section 20j(2). , FOR INTERMEDIATE DISTRICTS, REIMBURSEMENT FOR PUPILS DESCRIBED IN SECTION (2) SHALL BE CALCULATED IN THE SAME MANNER AS FOR A DISTRICT, USING THE FOUNDATION ALLOWANCE UNDER SECTION 20 OF THE PUPIL'S DISTRICT OF RESIDENCE, NOT TO EXCEED $6,500.00 ADJUSTED BY THE DOLLAR AMOUNT OF THE DIFFERENCE BETWEEN THE BASIC FOUNDATION ALLOWANCE UNDER SECTION 20 FOR THE CURRENT FISCAL YEAR AND $5,000.00, AND THAT DISTRICT'S PER PUPIL ALLOCATION UNDER SECTION 20J(2). HOWEVER, BEGINNING IN 2002-2003, THE $6,500.00 AMOUNT PRESCRIBED IN THIS SUBSECTION SHALL BE ADJUSTED EACH YEAR BY AN AMOUNT EQUAL TO THE DOLLAR AMOUNT OF THE DIFFERENCE BETWEEN THE BASIC FOUNDATION ALLOWANCE FOR THE CURRENT STATE FISCAL YEAR AND $5,000.00, MINUS $200.00

(2) REIMBURSEMENT UNDER SUBSECTION (1) IS for the following special education pupils:

(a) Pupils assigned to a district or intermediate district through the community placement program of the courts or a state agency, if the pupil was a resident of another intermediate district at the time the pupil came under the jurisdiction of the court or a state agency.

(b) Pupils who are residents of institutions operated by the department of community health.

(c) Pupils who are former residents of department of community health institutions for the developmentally disabled who are placed in community settings other than the pupil's home.

(d) Pupils enrolled in a department-approved on-grounds educational program longer than 180 days, but not longer than 233 days, at a residential child care institution, if the child care institution offered in 1991-92 an on-grounds educational program longer than 180 days but not longer than 233 days.

(e) Pupils placed in a district by a parent for the purpose of seeking a suitable home, if the parent does not reside in the same intermediate district as the district in which the pupil is placed.

(3) (2) Only those costs that are clearly and directly attributable to educational programs for pupils described in subsection (1) (2), and that would not have been incurred if the pupils were not being educated in a district or intermediate district, are reimbursable under this section.

(4) (3) The costs of transportation shall be funded under this section but shall not be reimbursed under section 58.

(5) (4) Not more than $14,500,000.00 FOR 1999-2000, AND NOT MORE THAN $14,800,000.00 each fiscal year for 1998-99, 1999-2000, and 2000-2001, 2001-2002, AND 2002-2003, of the allocation in section 51a(1) shall be allocated under this section.

(6) FROM THE ALLOCATION IN SUBSECTION (5), THERE IS ALLOCATED EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 AN AMOUNT NOT TO EXCEED $150,000.00 TO AN INTERMEDIATE DISTRICT THAT RECEIVED AT LEAST $1,000,000.00 FOR 1999-2000 UNDER SUBSECTION (4).

Sec. 54. In addition to the aid received under section 52, each intermediate district shall receive an amount per pupil for each pupil in attendance at the Michigan schools for the deaf and blind. The amount shall be proportionate to the total instructional cost at each school. Not more than $1,688,000.00 each fiscal year for 1998-99, 1999-2000, and 2000-2001, 2001-2002, AND 2002-2003 of the allocation in section 51a(1) shall be allocated under this section.

Sec. 56. (1) For the purposes of this section:

(a) "Membership" means for 1998-99 A PARTICULAR FISCAL YEAR the total membership in 1997-98 FOR THE IMMEDIATELY PRECEDING FISCAL YEAR of the intermediate district and the districts constituent to the intermediate district. ; means for 1999-2000 the total membership in 1998-99 of the intermediate district and the districts constituent to the intermediate district; and means for 2000-2001 the total membership in 1999-2000 of the intermediate district and the districts constituent to the intermediate district.

(b) "Millage levied" means the millage levied for special education pursuant to part 30 of the revised school code, MCL 380.1711 to 380.1743, including a levy for debt service obligations.

(c) "Taxable value" means the total taxable value of the districts constituent to an intermediate district, except that if a district has elected not to come under part 30 of the revised school code, MCL 380.1711 to 380.1743, membership and taxable value of the district shall not be included in the membership and taxable value of the intermediate district.

(2) From the allocation under section 51a(1), there is allocated an amount not to exceed $33,950,000.00 for 1998-99, $34,150,000.00 $38,530,000.00 for 1999-2000, and $35,750,000.00 $38,120,000.00 for 2000-2001, $44,720,000.00 FOR 2001-2002, AND $45,360,000.00 FOR 2002-2003 to reimburse intermediate districts levying millages for special education pursuant to part 30 of the revised school code, MCL 380.1711 to 380.1743. The purpose, use, and expenditure of the reimbursement shall be limited as if the funds were generated by these millages and governed by the intermediate district plan adopted pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766. As a condition of receiving funds under this section, an intermediate district distributing any portion of special education millage funds to its constituent districts shall submit for departmental approval and implement a distribution plan. that utilizes at least the sum of a district's foundation allowance, as calculated under section 20, plus, each fiscal year for 1999-2000 and 2000-2001 only, the amount of the district's per pupil allocation under section 20j(2), as a required local contribution.

(3) Reimbursement for those millages levied in 1997-98 shall be made in 1998-99 at an amount per 1997-98 membership pupil computed by subtracting from $102,200.00 the 1997-98 taxable value behind each membership pupil, and multiplying the resulting difference by the 1997-98 millage levied. Reimbursement for those millages levied in 1998-99 shall be made in 1999-2000 at an amount per 1998-99 membership pupil computed by subtracting from $106,800.00 the 1998-99 taxable value behind each membership pupil, and multiplying the resulting difference by the 1998-99 millage levied. Reimbursement for those millages levied in 1999-2000 shall be made in 2000-2001 at an amount per 1999-2000 membership pupil computed by subtracting from $111,600.00 $111,700.00 the 1999-2000 taxable value behind each membership pupil, and multiplying the resulting difference by the 1999-2000 millage levied. REIMBURSEMENT FOR THOSE MILLAGES LEVIED IN 2000-2001 SHALL BE MADE IN 2001-2002 AT AN AMOUNT PER 2000-2001 MEMBERSHIP PUPIL COMPUTED BY SUBTRACTING FROM $118,000.00 THE 2000-2001 TAXABLE VALUE BEHIND EACH MEMBERSHIP PUPIL AND MULTIPLYING THE RESULTING DIFFERENCE BY THE 2000-2001 MILLAGE LEVIED. REIMBURSEMENT FOR THOSE MILLAGES LEVIED IN 2001-2002 SHALL BE MADE IN 2002-2003 AT AN AMOUNT PER 2001-2002 MEMBERSHIP PUPIL COMPUTED BY SUBTRACTING FROM $123,500.00 THE 2001-2002 TAXABLE VALUE BEHIND EACH MEMBERSHIP PUPIL AND MULTIPLYING THE RESULTING DIFFERENCE BY THE 2001-2002 MILLAGE LEVIED.

(4) FROM THE ALLOCATION IN SUBSECTION (2), THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $3,300,000.00 FOR 1999-2000, AN AMOUNT NOT TO EXCEED $2,440,000.00 FOR 2000-2001, AN AMOUNT NOT TO EXCEED $6,820,000.00 FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $7,240,000.00 FOR 2002-2003 FOR PAYMENTS TO INTERMEDIATE DISTRICTS UNDER THIS SUBSECTION THAT DO NOT QUALIFY FOR A PAYMENT UNDER SUBSECTION (3) FOR REIMBURSEMENT FOR CHANGES AS A RESULT OF REVISIONS TO THE PERSONAL PROPERTY TAX DEPRECIATION TABLES. THE ALLOCATION FOR 1999-2000 INCLUDES PAYMENTS FOR PRIOR YEAR ADJUSTMENTS IN TAXABLE VALUE FOR CHANGES AS A RESULT OF REVISIONS TO THE PERSONAL PROPERTY TAX DEPRECIATION TABLES. TO RECEIVE A PAYMENT UNDER THIS SUBSECTION, AN INTERMEDIATE DISTRICT SHALL FILE A CLAIM BY JULY 1 OF THE FISCAL YEAR TO THE DEPARTMENT, DETAILING THE LOSS OF REVENUE TO THE INTERMEDIATE DISTRICT'S SPECIAL EDUCATION MILLAGE ATTRIBUTABLE TO THOSE REVISIONS. THE AMOUNT OF THE PAYMENT UNDER THIS SUBSECTION TO EACH INTERMEDIATE DISTRICT SHALL BE AN AMOUNT EQUAL TO THE SAME PROPORTION OF THE TOTAL AMOUNT OF FUNDING AVAILABLE UNDER THIS SUBSECTION AS THE INTERMEDIATE DISTRICT'S CLAIM UNDER THIS SECTION BEARS TO THE TOTAL AMOUNT OF CLAIMS UNDER THIS SUBSECTION AND, NOTWITHSTANDING SECTION 121, SHALL NOT BE ADJUSTED FOR PRIOR YEAR ADJUSTMENTS MORE THAN 2 YEARS AFTER THE END OF THE STATE FISCAL YEAR FOR WHICH PAYMENT UNDER THIS SUBSECTION WAS MADE.

Sec. 57. (1) From the appropriation in section 11, there is allocated an amount not to exceed $600,000.00 each fiscal year for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 to applicant intermediate districts that provide support services for the education of gifted and talented pupils. An intermediate district is entitled to 75% of the actual salary, but not to exceed $25,000.00 reimbursement for an individual salary, of a support services teacher approved by the department, and not to exceed $4,000.00 reimbursement for expenditures to support program costs, excluding in-county travel and salary, as approved by the department.

(2) From the appropriation in section 11, there is allocated an amount not to exceed $400,000.00 each fiscal year for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 to support part of the cost of summer institutes for gifted and talented students. This amount shall be contracted to applicant intermediate districts in cooperation with a local institution of higher education and shall be coordinated by the department.

(3) From the appropriation in section 11, there is allocated an amount not to exceed $4,000,000.00 each fiscal year for 1998-99, for 1999-2000, and AN AMOUNT NOT TO EXCEED $5,000,000.00 EACH FISCAL YEAR for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 for the development and operation of comprehensive programs for gifted and talented pupils. An eligible district or consortium of districts shall receive an amount not to exceed $50.00 $100.00 per K-12 pupil for up to 5% of the district's or consortium's K-12 membership for the immediately preceding fiscal year with a minimum total grant of $3,000.00 $6,000.00. Funding shall be provided in the following order: the per pupil allotment, and then the minimum total grant of $3,000.00 $6,000.00 to individual districts. An intermediate district may act as the fiscal agent for a consortium of districts. In order to be eligible for funding under this subsection, the district or consortium of districts shall submit each year a current 3-year plan for operating a comprehensive program for gifted and talented pupils and the district or consortium shall demonstrate to the department that the district or consortium will contribute matching funds of at least $50.00 per K-12 pupil. The plan or revised plan shall be developed in accordance with criteria established by the department and shall be submitted to the department for approval. Within the criteria, the department shall encourage the development of consortia among districts of less than 5,000 memberships.

Sec. 61a. (1) From the appropriation in section 11, there is allocated an amount not to exceed $31,027,600.00 each fiscal year for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 to reimburse on an added cost basis districts, except for a district that served as the fiscal agent for a vocational education consortium in the 1993-94 school year, and secondary area vocational-technical education centers for secondary-level vocational-technical education programs, including parenthood education programs, according to rules approved by the superintendent. Applications for participation in the programs shall be submitted in the form prescribed by the department. The department shall determine the added cost for each vocational-technical program area. The allocation of added cost funds shall be based on the type of vocational-technical programs provided, the number of pupils enrolled, and the length of the training period provided, and shall not exceed 75% of the added cost of any program. With the approval of the department, the board of a district maintaining a secondary vocational-technical education program may offer the program for the period from the close of the school year until September 1. The program shall use existing facilities and shall be operated as prescribed by rules promulgated by the superintendent.

(2) Except for a district that served as the fiscal agent for a vocational education consortium in the 1993-94 school year, districts and intermediate districts shall be reimbursed for local vocational administration, shared time vocational administration, and career education planning district vocational-technical administration. The definition of what constitutes administration and reimbursement shall be pursuant to guidelines adopted by the superintendent. Not more than $800,000.00 of the allocation in subsection (1) shall be distributed under this subsection.

(3) From the allocation in subsection (1), there is allocated an amount not to exceed $400,000.00 $388,700.00 each fiscal year to intermediate districts with constituent districts that had combined state and local revenue per membership pupil in the 1994-95 state fiscal year of $6,500.00 or more, served as a fiscal agent for a state board designated area vocational education center in the 1993-94 school year, and had an adjustment made to their 1994-95 combined state and local revenue per membership pupil pursuant to section 20d. The payment under this subsection to the intermediate district shall equal the amount of the allocation to the intermediate district for 1996-97 under this subsection.

Sec. 62. (1) For the purposes of this section:

(a) "Membership" means for 1998-99 A PARTICULAR FISCAL YEAR the total membership in 1997-98 FOR THE IMMEDIATELY PRECEDING FISCAL YEAR of the intermediate district and the districts constituent to the intermediate district or the total membership in 1997-98 FOR THE IMMEDIATELY PRECEDING FISCAL YEAR of the area vocational-technical program. ; means for 1999-2000 the total membership in 1998-99 of the intermediate district and the districts constituent to the intermediate district or the total membership in 1998-99 of the area vocational-technical program; and means for 2000-2001 the total membership in 1999-2000 of the intermediate district and the districts constituent to the intermediate district or the total membership in 1999-2000 of the area vocational-technical program.

(b) "Millage levied" means the millage levied for area vocational-technical education pursuant to sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, including a levy for debt service obligations incurred as the result of borrowing for capital outlay projects and in meeting capital projects fund requirements of area vocational-technical education.

(c) "Taxable value" means the total taxable value of the districts constituent to an intermediate district or area vocational-technical education program, except that if a district has elected not to come under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, the membership and taxable value of that district shall not be included in the membership and taxable value of the intermediate district. However, beginning in 1998-99, the membership and taxable value of a district that has elected not to come under sections 681 to 690 of the revised school code, MCL 380.681 TO 380.690, shall be included in the membership and taxable value of the intermediate district if the district meets both of the following:

(i) The district operates the area vocational-technical education program pursuant to a contract with the intermediate district.

(ii) The district contributes an annual amount to the operation of the program that is commensurate with the revenue that would have been raised for operation of the program if millage were levied in the district for the program under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690.

(2) From the appropriation in section 11, there is allocated an amount not to exceed $9,650,000.00 each fiscal year for 1998-99 and $9,880,000.00 for 1999-2000, and an amount not to exceed $10,250,000.00 $9,810,000.00 for 2000-2001, AN AMOUNT NOT TO EXCEED $11,190,000.00 FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $11,330,000.00 FOR 2002-2003 to reimburse intermediate districts and area vocational-technical education programs established under section 690(3) of the revised school code, MCL 380.690, levying millages for area vocational-technical education pursuant to sections 681 to 690 of the revised school code, MCL 380.681 to 380.690. The purpose, use, and expenditure of the reimbursement shall be limited as if the funds were generated by those millages.

(3) Reimbursement for the millages levied in 1997-98 shall be made in 1998-99 at an amount per 1997-98 membership pupil computed by subtracting from $104,400.00 the 1997-98 taxable value behind each membership pupil, and multiplying the resulting difference by the 1997-98 millage levied. Reimbursement for the millages levied in 1998-99 shall be made in 1999-2000 at an amount per 1998-99 membership pupil computed by subtracting from $108,800.00 the 1998-99 taxable value behind each membership pupil, and multiplying the resulting difference by the 1998-99 millage levied. Reimbursement for the millages levied in 1999-2000 shall be made in 2000-2001 at an amount per 1999-2000 membership pupil computed by subtracting from $113,400.00 $114,300.00 the 1999-2000 taxable value behind each membership pupil, and multiplying the resulting difference by the 1999-2000 millage levied. REIMBURSEMENT FOR THE MILLAGES LEVIED IN 2000-2001 SHALL BE MADE IN 2001-2002 AT AN AMOUNT PER 2000-2001 MEMBERSHIP PUPIL COMPUTED BY SUBTRACTING FROM $121,500.00 THE 2000-2001 TAXABLE VALUE BEHIND EACH MEMBERSHIP PUPIL, AND MULTIPLYING THE RESULTING DIFFERENCE BY THE 2000-2001 MILLAGE LEVIED. REIMBURSEMENT FOR THE MILLAGES LEVIED IN 2001-2002 SHALL BE MADE IN 2002-2003 AT AN AMOUNT PER 2001-2002 MEMBERSHIP PUPIL COMPUTED BY SUBTRACTING FROM $127,600.00 THE 2001-2002 TAXABLE VALUE BEHIND EACH MEMBERSHIP PUPIL, AND MULTIPLYING THE RESULTING DIFFERENCE BY THE 2001-2002 MILLAGE LEVIED.

(4) FROM THE ALLOCATION IN SUBSECTION (2), THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $670,000.00 FOR 1999-2000, AN AMOUNT NOT TO EXCEED $500,000.00 FOR 2000-2001, AN AMOUNT NOT TO EXCEED $1,380,000.00 FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $1,470,000.00 FOR 2002-2003 FOR PAYMENTS TO INTERMEDIATE DISTRICTS UNDER THIS SUBSECTION THAT DO NOT QUALIFY FOR A PAYMENT UNDER SUBSECTION (3) FOR REIMBURSEMENT FOR CHANGES AS A RESULT OF REVISIONS TO THE PERSONAL PROPERTY TAX DEPRECIATION TABLES. THE ALLOCATION FOR 1999-2000 INCLUDES PAYMENTS FOR PRIOR YEAR ADJUSTMENTS IN TAXABLE VALUE FOR CHANGES AS A RESULT OF REVISIONS TO THE PERSONAL PROPERTY TAX DEPRECIATION TABLES. TO RECEIVE A PAYMENT UNDER THIS SUBSECTION, AN INTERMEDIATE DISTRICT SHALL FILE A CLAIM BY JULY 1 OF THE FISCAL YEAR TO THE DEPARTMENT, DETAILING THE LOSS OF REVENUE TO THE INTERMEDIATE DISTRICT'S VOCATIONAL EDUCATION MILLAGE ATTRIBUTABLE TO THOSE REVISIONS. THE AMOUNT OF THE PAYMENT UNDER THIS SUBSECTION TO EACH INTERMEDIATE DISTRICT SHALL BE AN AMOUNT EQUAL TO THE SAME PROPORTION OF THE TOTAL AMOUNT OF FUNDING AVAILABLE UNDER THIS SUBSECTION AS THE INTERMEDIATE DISTRICT'S CLAIM UNDER THIS SECTION BEARS TO THE TOTAL AMOUNT OF CLAIMS UNDER THIS SUBSECTION AND, NOTWITHSTANDING SECTION 121, SHALL NOT BE ADJUSTED FOR PRIOR YEAR ADJUSTMENTS MORE THAN 2 YEARS AFTER THE END OF THE STATE FISCAL YEAR FOR WHICH PAYMENT UNDER THIS SUBSECTION WAS MADE.

Sec. 63. (1) From the GENERAL FUND appropriation in section 11, there is allocated an amount not to exceed $1,800,000.00 each fiscal year for 1999-2000, and 2000-2001, 2001-2002, AND 2002-2003 for implementation of the Michigan manufacturing technology program for the 1999-2000 and 2000-2001 CORRESPONDING school years as provided under this section.

(2) From the allocation in subsection (1), there is allocated $1,800,000.00 each fiscal year to the department, in conjunction with the department of career development, to award competitive grants for the purpose of improving manufacturing technology programs offered by public education agencies. The maximum amount of a grant under this subsection shall not exceed $50,000.00 each fiscal year for each public education agency determined to be eligible for funding.

(3) Applications for grants under subsection (2) shall be submitted in a form and manner determined by the department, in conjunction with the department of career development. Criteria for funding shall include all of the following:

(a) The public education agency operates a manufacturing technology program, is a participating agency in a regional career preparation plan described in section 68, and has the support of the local workforce development board for submission of the grant application.

(b) The public education agency offers employer-provided instruction for its pupils as part of its manufacturing technology curriculum.

(c) The public education agency agrees to evaluate the impact of the grant.

(d) Any other criteria determined by the department, in conjunction with the department of career development.

(4) Grants awarded under subsection (2) shall be used by eligible public education agencies for activities intended to increase the amount of employer-provided instruction provided to pupils and to increase pupil awareness of manufacturing technology programs.

(5) The department, in conjunction with the department of career development, shall consider the potential for graduates to be placed in high-wage, high-demand positions upon completion of the manufacturing technology program in its determination of grant awards.

(6) Grants under subsection (2) shall be awarded by the department no later than May 31 before the beginning of each fiscal year and paid out to the grant recipients in total no later than October 1 of the fiscal year for which the grant is awarded. Funds may be used by grant recipients to support allowable expenditures in the following school year.

Sec. 67. (1) From the general fund appropriation in section 11, there is allocated an amount not to exceed $350,000.00 each fiscal year for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 for Michigan career preparation system grants under this section.

(2) From the allocation in subsection (1), there is allocated $150,000.00 each fiscal year for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 to the council for career preparation standards DEPARTMENT to identify uniform career competency standards and assessments for career clusters, to establish a statewide information system on current and anticipated employment opportunities and the required level of skills and education required for employment. , and for any other council functions.

(3) From the allocation in subsection (1), there is allocated $100,000.00 each fiscal year for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 to the council for career preparation standards DEPARTMENT to provide information to parents, pupils, school personnel, employers, and others regarding opportunities to receive integrated academic and technical preparation in the public schools of this state.

(4) From the allocation in subsection (1) for 1998-99, there is allocated $100,000.00 for 1998-99 to the department of career development to establish peer review criteria, procedures, and standards and to provide technical assistance to local peer review committees created under section 68(4) and to the council for career preparation standards.

(4) (5) From the allocation in subsection (1), for 1999-2000 and 2000-2001, there is allocated $100,000.00 each fiscal year for 1999-2000, and 2000-2001, 2001-2002, AND 2002-2003 to the department of career development to provide technical assistance to eligible education agencies , local AND workforce development boards. , and the council for career preparation standards.

(5) (6) As used in this section and in section 68:

(a) "Advanced career academy" means a career preparation CAREER-TECHNICAL EDUCATION program operated by a district, by an intermediate district, or by a public school academy, that applies for and receives advanced career academy designation from the department. To receive this designation, a career preparation CAREER-TECHNICAL EDUCATION program shall meet criteria established by the department, in collaboration with the department of career development, which criteria shall include at least all of the following:

(i) Satisfactory completion of a peer review process.

(i) (ii) Operation of programs for those career clusters identified by the council for career preparation standards DEPARTMENT as being eligible for advanced career academy status.

(ii) (iii) Involvement of employers in the design and implementation of career preparation CAREER-TECHNICAL EDUCATION programs.

(iii) (iv) A fully integrated program of academic and technical education available to pupils.

(iv) (v) Demonstration of an established career preparation system resulting in industry-validated career ladders for graduates of the program, including, but not limited to, written articulation agreements with postsecondary institutions to allow pupils to receive advanced college placement and credit or federally registered apprenticeships, as applicable.

(b) "Career cluster" means a grouping of occupations from 1 or more industries that share common skill requirements.

(c) "Career preparation system" is a system of programs and strategies providing pupils with opportunities to prepare for success in careers of their choice.

(D) "DEPARTMENT" MEANS THE DEPARTMENT OF CAREER DEVELOPMENT.

(E) (d) "Eligible education agency" means a district, intermediate district, or advanced career academy that provides career preparation programs either directly or under a contract with a postsecondary institution or an employer as part of PARTICIPATES IN an approved regional career preparation plan.

(F) (e) "FTE" means full-time equivalent pupil as determined by the department.

(G) (f) "Workforce development board" means a local workforce development board established pursuant to the job training partnership act, Public Law 97-300, 96 Stat. 1322, OR, BEGINNING JULY 1, 2000, THE WORKFORCE INVESTMENT ACT OF 1998, PUBLIC LAW 105-220, 112 STAT. 936, and the school-to-work opportunities act of 1994, Public Law 103-239, 108 Stat. 568, or the equivalent.

(H) "STRATEGIC PLAN" MEANS A DEPARTMENT-APPROVED COMPREHENSIVE PLAN PREPARED BY A WORKFORCE DEVELOPMENT BOARD WITH INPUT FROM LOCAL REPRESENTATIVES, INCLUDING THE EDUCATION ADVISORY GROUP, THAT INCLUDES CAREER PREPARATION SYSTEM GOALS AND OBJECTIVES FOR THE REGION.

Sec. 68. (1) From the general fund appropriation in section 11, there is allocated an amount not to exceed $23,850,000.00 each fiscal year for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 to be used to implement the Michigan career preparation system in the 1998-99 and 1999-2000 and 2000-2001 CORRESPONDING school years as provided under this section. From this allocation, the department may reserve an amount not to exceed $2,000,000.00 each fiscal year for career preparation CAREER-TECHNICAL EDUCATION programs that have achieved designation as an advanced career academy. In order to receive funds under this section, an eligible education agency shall be part of an approved regional career preparation plan under subsection (2) and shall agree to expend the funds required under this section in accordance with the regional career preparation plan. Funds awarded under this section that are not expended in accordance with this section may be recovered by the department.

(2) In order to receive funding under this section, an eligible education agency shall be a part of an approved 3-year regional career preparation plan THAT IS CONSISTENT WITH THE WORKFORCE DEVELOPMENT BOARD'S STRATEGIC PLAN AND IS as described in this subsection. All of the following apply to a regional career preparation plan:

(a) A 3-year regional career preparation plan shall be developed under subdivisions (b), (c), and (d) for all public education agencies providing career preparation programs PARTICIPATING as part of a regional career preparation system within the geographical boundaries of a local workforce development board, and revised annually. If an intermediate district is located within the geographical boundaries of more than 1 local workforce development board, the board of the intermediate district shall choose 1 local workforce development board with which to align and shall notify the department of this choice not later than October 31, 1997.

(b) The regional career preparation plan shall be developed by representatives of the education advisory group of each local workforce development board in accordance with guidelines developed under former section 67(5), and in accordance with subdivisions (d) and (e). All of the following shall be represented on each education advisory group: workforce development board members, other employers, labor, districts, intermediate districts, postsecondary institutions, career/technical educators, parents of public school pupils, and academic educators. The representatives of districts, intermediate districts, and postsecondary institutions appointed to the education advisory group by the local workforce development board shall be individuals designated by the board of the district, intermediate district, or postsecondary institution.

(c) By majority vote, the education advisory group may nominate 1 education representative, who may or may not be a member of the education advisory group, for appointment to the local workforce development board. This education representative shall be in addition to existing education representation on the local workforce development board. This education representative shall meet all local workforce development board membership requirements.

(d) The components of the regional career preparation plan shall include, but are not limited to, all of the following:

(i) The roles of districts, intermediate districts, advanced career academies, postsecondary institutions, employers, labor representatives, and others in the career preparation system.

(ii) Programs to be offered, including at least career exploration activities, for middle school pupils.

(iii) Identification of integrated academic and technical curriculum, including related professional development training for teachers.

(iv) Identification of work-based learning opportunities for pupils and for teachers and other school personnel.

(v) Identification of testing and assessments that will be used to measure pupil achievement.

(vi) Identification of all federal, state, local, and private sources of funding available for career preparation programs ACTIVITIES in the region.

(e) The education advisory group shall develop a 3-year regional career preparation plan CONSISTENT WITH THE WORKFORCE DEVELOPMENT BOARD'S STRATEGIC PLAN and submit the plan to the department for final approval. The submission to the department shall also include statements signed by the chair of the education advisory group and the chair of the local workforce development board certifying that the plan has been reviewed by each entity. Upon department approval, all eligible education agencies designated in the regional career preparation plan as part of the career preparation delivery system are eligible for funding under this section.

(3) Funding under this section shall be distributed to eligible education agencies by the department for allowable costs defined in this subsection and identified as necessary costs for implementing a regional career preparation plan, as follows:

(a) The FOR 1999-2000 AND 2000-2001, THE department shall rank all career clusters, including career exploration, guidance, and counseling. Rank determination will be based on median salary data in career clusters and employment opportunity data provided by the council for career preparation standards. In addition, rank determination shall be based on placement data available for prior year graduates of the programs in the career clusters either in related careers or postsecondary education. The procedure for ranking of career clusters shall be determined by the department.

(b) Allowable costs to be funded under this section shall be determined by the department. Budgets submitted by eligible education agencies to the department in order to receive funding shall identify funds and in-kind contributions from the regional career education plan, excluding funds or in-kind contributions available as a result of funding received under section 61a, equal to at least 100% of anticipated funding under this section. Eligible categories of allowable costs are the following:

(i) Career exploration, guidance, and counseling.

(ii) Curriculum development, including integration of academic and technical content, and professional development for teachers directly related to career preparation.

(iii) Technology and equipment determined to be necessary.

(iv) Supplies and materials directly related to career preparation programs.

(v) Work-based learning expenses for pupils, teachers, and counselors.

(vi) Evaluation, including career competency testing and peer review.

(vii) Career placement services.

(viii) Student leadership organizations integral to the career preparation system.

(ix) Up to 10% of the allocation to an eligible education agency may be expended for planning, coordination, direct oversight, and accountability for the career preparation system.

(c) The FOR 1999-2000 AND 2000-2001, THE department shall calculate career preparation costs per FTE for each career cluster, including career exploration, guidance, and counseling, by dividing the allowable costs for each career cluster by the prior year FTE enrollment for each career cluster. Distribution to eligible education agencies shall be the product of 50% of career preparation costs per FTE times the current year FTE enrollment of each career cluster. This allocation shall be distributed to eligible education agencies in decreasing order of the career cluster ranking described in subdivision (a) until the money allocated for grant recipients in this section is distributed. However, beginning in 1999-2000, an individual career preparation program shall not be funded under this section, regardless of career cluster ranking, if it does not attain compliance with career competency standards set by the council for career preparation standards for the particular career cluster. BEGINNING IN 2001-2002, FUNDS SHALL BE DISTRIBUTED TO ELIGIBLE EDUCATION AGENCIES ACCORDING TO WORKFORCE DEVELOPMENT BOARD GEOGRAPHIC AREA CONSISTENT WITH SUBSECTION (2)(A) BASED UPON THE PROPORTION OF EACH WORKFORCE DEVELOPMENT BOARD AREA'S K-12 PUBLIC SCHOOL MEMBERSHIP TO THE TOTAL STATE K-12 PUBLIC SCHOOL MEMBERSHIP.

(4) The department , in collaboration with the department of career development, shall establish a review procedure for assessing the career preparation system in each region. Each local workforce development board shall establish regional peer review committees that include employers, educators, labor representatives, parents, and representatives of the local workforce development board nominated by the local workforce development board and the education advisory group. All of the following apply to peer review committees:

(5) (a) Peer review committees are AN EDUCATION ADVISORY GROUP IS responsible for assuring the quality of the career preparation system. A peer review committee AN EDUCATION ADVISORY GROUP shall review THE career preparation programs to ensure compliance with career competency standards as well as other program evaluation criteria SYSTEM IN ACCORDANCE WITH EVALUATION CRITERIA ESTABLISHED BY THE DEPARTMENT.

(6) (b) A peer review committee AN EDUCATION ADVISORY GROUP shall report its findings and recommendations for changes to the PARTICIPATING eligible education agency operating the career preparation program AGENCIES, the local workforce development board, the education advisory group responsible for revising the regional career preparation plan, and the department.

(7) (c) The next revision of a regional career preparation plan shall take into account the findings of a peer review committee THE EDUCATION ADVISORY GROUP IN ACCORDANCE WITH EVALUATION CRITERIA ESTABLISHED BY THE DEPARTMENT in order for the affected education agencies to receive continued funding under this section.

Sec. 74. (1) From the amount appropriated in section 11, there is allocated an amount not to exceed $1,625,000.00 each fiscal year for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 for the purposes of subsections (2) and (3).

(2) From the allocation in subsection (1), there is allocated each fiscal year the amount necessary for payments to state supported colleges or universities and intermediate districts providing school bus driver safety instruction or driver skills road tests pursuant to section SECTIONS 51 AND 52 of the pupil transportation act, 1990 PA 187, MCL 257.1851 AND 257.1852. The payments shall be in an amount determined by the department not to exceed 75% of the actual cost of instruction and driver compensation for each public or nonpublic school bus driver attending a course of instruction. For the purpose of computing compensation, the hourly rate allowed each school bus driver shall not exceed the hourly rate received for driving a school bus. Reimbursement compensating the driver during the course of instruction or driver skills road tests shall be made by the department to the college or university or intermediate district providing the course of instruction.

(3) From the allocation in subsection (1), there is allocated each fiscal year the amount necessary to pay the reasonable costs of nonspecial education auxiliary services transportation provided pursuant to section 1323 of the revised school code, MCL 380.1323. Districts funded under this subsection shall not receive funding under any other section of this act for nonspecial education auxiliary services transportation.

Sec. 81. (1) Except as otherwise provided in this section, from the appropriation in section 11, there is allocated each fiscal year for 1998-99, and for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 to the intermediate districts the sum necessary, but not to exceed $79,850,000.00 for 1998-99, not to exceed $83,203,700.00 $83,363,400.00 for 1999-2000, and not to exceed $85,616,600.00 $87,781,700.00 for 2000-2001, NOT TO EXCEED $92,170,800.00 FOR 2001-2002, AND NOT TO EXCEED $95,028,100.00 FOR 2002-2003 to provide state aid to intermediate districts under this section. Except as otherwise provided in this section, there shall be allocated to each intermediate district for 1998-99 an amount equal to the amount of funding actually received by the intermediate district under this subsection in 1997-98. Except as otherwise provided in this section, there shall be allocated to each intermediate district for 1999-2000 an amount equal to 104.2% 104.4% of the amount of funding actually received by the intermediate district under this subsection for 1998-99. Except as otherwise provided in this section, there shall be allocated to each intermediate district for 2000-2001 an amount equal to 102.9% 105.3% of the amount of funding actually received by the intermediate district under this subsection for 1999-2000. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THERE SHALL BE ALLOCATED TO EACH INTERMEDIATE DISTRICT FOR 2001-2002 AN AMOUNT EQUAL TO 105% OF THE AMOUNT OF FUNDING ACTUALLY RECEIVED BY THE INTERMEDIATE DISTRICT UNDER THIS SUBSECTION FOR 2000-2001. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THERE SHALL BE ALLOCATED TO EACH INTERMEDIATE DISTRICT FOR 2002-2003 AN AMOUNT EQUAL TO 103.1% OF THE AMOUNT OF FUNDING ACTUALLY RECEIVED BY THE INTERMEDIATE DISTRICT UNDER THIS SUBSECTION FOR 2001-2002. Funding provided under this section shall be used to comply with requirements of this act and the revised school code that are applicable to intermediate districts, and for which funding is not provided elsewhere in this act, and to provide technical assistance to districts as authorized by the intermediate school board.

(2) From the allocation in subsection (1), there is allocated to an intermediate district, formed by the consolidation or annexation of 2 or more intermediate districts or the attachment of a total intermediate district to another intermediate school district or the annexation of all of the constituent K-12 districts of a previously existing intermediate school district which has disorganized, an additional allotment of $3,500.00 each fiscal year for each intermediate district included in the new intermediate district for 3 years following consolidation, annexation, or attachment.

(3) If an intermediate district participated in 1993-94 in a consortium operating a regional educational media center under section 671 of the revised school code, MCL 380.671, and rules promulgated by the superintendent, and if the intermediate district obtains written consent from each of the other intermediate districts that participated in the consortium in 1993-94, the intermediate district may notify the department not later than December 30 of the current fiscal year that it is electing to directly receive its payment attributable to participation in that consortium. An intermediate district making that election, and that has obtained the necessary consent, shall receive each fiscal year for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003, as applicable, for each pupil in membership in the intermediate district or a constituent district an amount equal to the quotient of the 1993-94 allocation to the fiscal agent for that consortium under former section 83, adjusted as determined by the department to account for that election, divided by the combined total membership for the current fiscal year in all of the intermediate districts that participated in that consortium and their constituent districts. The amount allocated to an intermediate district under this subsection for a fiscal year shall be deducted from the total allocation for that fiscal year under this section to the intermediate district that was the 1993-94 fiscal agent for the consortium.

(4) During a fiscal year, the department shall not increase an intermediate district's allocation under subsection (1) because of an adjustment made by the department during the fiscal year in the intermediate district's taxable value for a prior year. Instead, the department shall report the adjustment and the estimated amount of the increase to the house and senate fiscal agencies and the state budget director not later than June 1 of the fiscal year, and the legislature shall appropriate money for the adjustment in the next succeeding fiscal year. Accordingly, from the appropriation in section 11, there is allocated for 1998-99 only an amount not to exceed $62,000.00 for payments to intermediate districts for adjustments in taxable value described in this subsection.

(5) From the appropriation in section 11, there is allocated an amount not to exceed $300,000.00 each fiscal year for 1998-99 and $360,000.00 FOR 1999-2000 and an amount not to exceed $500,000.00 $320,000.00 for 2000-2001, AN AMOUNT NOT TO EXCEED $890,000.00 FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $940,000.00 FOR 2002-2003 for payments to intermediate districts under this subsection for reimbursement for changes as a result of revisions to the personal property tax depreciation tables. To receive a payment under this subsection, an intermediate district shall file a claim by July 1 of the fiscal year to the department, detailing the loss of revenue to the intermediate district's operational millage attributable to those revisions. The amount of the payment under this subsection to each intermediate district shall be an amount equal to the same proportion of the total amount of funding available under this subsection as the intermediate district's claim under this subsection bears to the total amount of the claims under this subsection AND, NOTWITHSTANDING SECTION 121, SHALL NOT BE ADJUSTED FOR PRIOR YEAR ADJUSTMENTS MORE THAN 2 YEARS AFTER THE END OF THE STATE FISCAL YEAR FOR WHICH PAYMENT UNDER THIS SUBSECTION WAS MADE.

(6) In order to receive funding under this section, an intermediate district shall demonstrate to the satisfaction of the department that the intermediate district employs at least 1 person who is trained in pupil counting procedures, rules, and regulations.

Sec. 91c. A pupil who transfers to a district other than the pupil's district of residence under an intermediate district schools of choice pilot program under former section 91 a pupil described in section 6(4)(k) who transfers to a district other than the pupil's district of residence is ineligible to participate in interscholastic athletic competition for a period of 1 semester from the date the pupil transfers.

Sec. 94. From the general fund money appropriated in section 11, there is allocated to the department for 1998-99, for 1999-2000, and for 2000-2001 an amount not to exceed $1,500,000.00 each fiscal year FOR 1999-2000, AN AMOUNT NOT TO EXCEED $3,000,000.00 FOR 2000-2001, AN AMOUNT NOT TO EXCEED $5,000,000.00 FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $10,000,000.00 FOR 2002-2003 to provide technical assistance to districts for school accreditation purposes as described in section 1280 of the revised school code, MCL 380.1280.

SEC. 94A. (1) FROM THE GENERAL FUND APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $10,000,000.00 FOR 1999-2000, AN AMOUNT NOT TO EXCEED $2,160,000.00 FOR 2000-2001, AN AMOUNT NOT TO EXCEED $2,332,000.00 FOR 2002, AND AN AMOUNT NOT TO EXCEED $2,519,000.00 FOR 2002-2003 FOR PAYMENTS TO THE DATABASE FOR EDUCATIONAL PERFORMANCE AND INFORMATION CREATED PURSUANT TO EXECUTIVE ORDER.

(2) THE GOALS OF THE DATABASE FOR EDUCATIONAL PERFORMANCE AND INFORMATION SHALL BE TO IMPROVE THE QUALITY AND QUANTITY OF EDUCATIONAL DATA AVAILABLE TO TEACHERS, SCHOOL ADMINISTRATORS, PARENTS, TAXPAYERS, AND OTHERS.

(3) A PORTION OF THE FUNDS ALLOCATED UNDER THIS SECTION MAY BE USED FOR FUNDING TO DISTRICTS TO COVER ADDITIONAL COSTS RESULTING FROM IMPLEMENTATION OF THE DATABASE FOR EDUCATIONAL PERFORMANCE AND INFORMATION.

(4) FUNDS ALLOCATED UNDER THIS SECTION THAT ARE NOT EXPENDED IN THE FISCAL YEAR IN WHICH THEY WERE ALLOCATED MAY BE CARRIED FORWARD TO A SUBSEQUENT FISCAL YEAR.

SEC. 95. (1) FROM THE STATE SCHOOL AID FUND MONEY APPROPRIATED IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $10,000,000.00 EACH FISCAL YEAR FOR 2000-2001, 2001-2002, AND FOR 2002-2003 FOR PAYMENTS TO DISTRICTS AND INTERMEDIATE DISTRICTS UNDER THIS SECTION.

(2) IF A DISTRICT OR INTERMEDIATE DISTRICT PROVIDES A TEACHER PROFESSIONAL DEVELOPMENT TRAINING PROGRAM REQUIRED UNDER SECTION 1527 OF THE REVISED SCHOOL CODE, MCL 380.1527, DURING TIME THAT IS NOT PART OF THE TIME SCHEDULED FOR PUPIL INSTRUCTION IN THE DISTRICT'S OR INTERMEDIATE DISTRICT'S SCHOOL CALENDAR AND IF THE DISTRICT DOES NOT ELECT TO USE THE HOURS OF PUPIL INSTRUCTION EXCEPTION UNDER SECTION 101(11), THERE IS ALLOCATED TO THE DISTRICT OR INTERMEDIATE DISTRICT AN AMOUNT SUFFICIENT TO REIMBURSE THE DISTRICT OR INTERMEDIATE DISTRICT FOR THE FULL PER DIEM COMPENSATION PAID TO THE PARTICIPANTS IN THAT PROGRAM.

SEC. 96. (1) FROM THE STATE SCHOOL AID FUND MONEY APPROPRIATED IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $8,000,000.00 EACH FISCAL YEAR FOR 1999-2000, FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 FOR GOLDEN APPLE AWARDS UNDER THIS SECTION. THE AWARDS SHALL BE BASED ON ELEMENTARY SCHOOL ACHIEVEMENT ON THE FOURTH GRADE AND FIFTH GRADE MICHIGAN EDUCATION ASSESSMENT PROGRAM (MEAP) TESTS.

(2) TO BE ELIGIBLE FOR A GOLDEN APPLE AWARD, AN ELEMENTARY SCHOOL SHALL HAVE AT LEAST 50 PUPILS IN MEMBERSHIP AND SHALL MEET THE FOLLOWING REQUIREMENTS:

(A) FOR 1999-2000, AT LEAST 80% OF THE FOURTH AND FIFTH GRADE PUPILS ENROLLED AND IN REGULAR DAILY ATTENDANCE IN THE SCHOOL ON THE PUPIL MEMBERSHIP COUNT DAY IN THAT SCHOOL YEAR TOOK THE APPLICABLE MEAP TESTS, AND 1 OR BOTH OF THE FOLLOWING ARE MET:

(i) THE COMPOSITE SCORE FOR THE PUPILS IN THE SCHOOL WHO TOOK THE APPLICABLE MEAP TESTS INCREASED BY AT LEAST 60 POINTS OVER THE 2 CONSECUTIVE SCHOOL YEARS IMMEDIATELY PRECEDING THE STATE FISCAL YEAR IN WHICH THE AWARD IS GIVEN.

(ii) THE TEST SCORES FOR THE PUPILS IN THE SCHOOL WHO TOOK THE APPLICABLE MEAP TESTS ARE AMONG THE HIGHEST ELEMENTARY SCHOOL SCORES STATEWIDE, AS DETERMINED BY THE DEPARTMENT OF TREASURY, FOR THAT SCHOOL YEAR.

(B) BEGINNING IN 2000-2001, AT LEAST 90% OF THE FOURTH AND FIFTH GRADE PUPILS ENROLLED AND IN REGULAR DAILY ATTENDANCE IN THE SCHOOL ON THE PUPIL MEMBERSHIP COUNT DAY IN THAT SCHOOL YEAR TOOK THE APPLICABLE MEAP TESTS, AND 1 OR BOTH OF THE FOLLOWING ARE MET:

(i) THE COMPOSITE SCORE FOR THE PUPILS IN THE SCHOOL WHO TOOK THE APPLICABLE MEAP TESTS INCREASED BY AT LEAST 60 POINTS OVER THE 2 CONSECUTIVE SCHOOL YEARS IMMEDIATELY PRECEDING THE STATE FISCAL YEAR IN WHICH THE AWARD IS GIVEN.

(ii) THE TEST SCORES FOR THE PUPILS IN THE SCHOOL WHO TOOK THE APPLICABLE MEAP TESTS ARE AMONG THE HIGHEST ELEMENTARY SCHOOL SCORES STATEWIDE, AS DETERMINED BY THE DEPARTMENT OF TREASURY, FOR THAT SCHOOL YEAR.

(3) A GOLDEN APPLE AWARD UNDER THIS SECTION SHALL BE ALLOCATED TO AND USED BY A DISTRICT EXCLUSIVELY FOR THE PURPOSE OF DISTRIBUTING FUNDS TO EACH ELIGIBLE ELEMENTARY SCHOOL. A GOLDEN APPLE AWARD SHALL CONSIST OF $1,000.00 PER EACH FULL-TIME EMPLOYEE WHO WORKS IN THE ELIGIBLE ELEMENTARY SCHOOL PLUS $10,000.00 TO BE ALLOCATED TO THE PRINCIPAL OF THE SCHOOL FOR SCHOOL IMPROVEMENTS, BUT SHALL NOT BE LESS THAN $50,000.00 PER RECIPIENT SCHOOL. ALL MONEY ALLOCATED UNDER THIS SECTION PER FULL-TIME EMPLOYEE SHALL BE USED FOR SCHOOL IMPROVEMENTS, AS DETERMINED COLLECTIVELY BY A MAJORITY VOTE OF THOSE EMPLOYEES.

(4) FUNDS ALLOCATED UNDER THIS SECTION THAT ARE NOT EXPENDED IN THE STATE FISCAL YEAR FOR WHICH THEY WERE ALLOCATED MAY BE CARRIED FORWARD TO A SUBSEQUENT STATE FISCAL YEAR.

SEC. 97. (1) FROM THE STATE SCHOOL AID FUND MONEY APPROPRIATED IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $110,000,000.00 FOR 1999-2000 ONLY FOR PAYMENTS TO DISTRICTS FOR THE TEACHER TECHNOLOGY INITIATIVE.

(2) FROM THE ALLOCATION UNDER SUBSECTION (1), THERE IS ALLOCATED TO EACH DISTRICT AN AMOUNT PER ELIGIBLE TEACHER NOT TO EXCEED $1,200.00, OR THE ACTUAL COST, WHICHEVER IS LESS, TO PROVIDE 1 OR MORE OF THE FOLLOWING:

(A) A COMPUTER AND REMOTE INTERNET ACCESS FOR THE USE OF EACH ELIGIBLE TEACHER, OR A CERTIFICATE REDEEMABLE FOR A COMPUTER AND REMOTE INTERNET ACCESS. A DISTRICT SHALL ACQUIRE COMPUTERS AND REMOTE INTERNET ACCESS FOR ELIGIBLE TEACHERS IN A MANNER APPROVED BY THE DEPARTMENT OF MANAGEMENT AND BUDGET AND THE MICHIGAN VIRTUAL UNIVERSITY IN ORDER TO QUALIFY FOR FUNDING UNDER THIS SECTION.

(B) IF AGREED TO BY A MAJORITY VOTE OF THE SCHOOL BUILDING'S TEACHING STAFF WHO WOULD OTHERWISE RECEIVE A COMPUTER UNDER THIS SECTION, WITH THE CONCURRENCE OF THE SCHOOL BUILDING'S ADMINISTRATION, 1 OR MORE OF THE FOLLOWING:

(i) BUILDING-LEVEL OR CLASSROOM-LEVEL TECHNOLOGY IMPROVEMENTS.

(ii) TEACHER PROFESSIONAL DEVELOPMENT IN TECHNOLOGY.

(3) FUNDING TO A DISTRICT UNDER THIS SECTION SHALL BE ALLOCATED AS FOLLOWS:

(A) A MAXIMUM OF 10% SHALL BE PAID BASED ON THE NUMBER OF CLASSROOM TEACHERS EMPLOYED BY THE DISTRICT, AS CERTIFIED BY THE DISTRICT IN A MANNER PRESCRIBED BY THE DEPARTMENT OF MANAGEMENT AND BUDGET. TO BE ELIGIBLE TO RECEIVE ADDITIONAL PAYMENTS UNDER THIS SECTION AND TO AVOID A DEDUCTION OF THE PAYMENT UNDER THIS SUBDIVISION IN A SUBSEQUENT STATE SCHOOL AID PAYMENT, A DISTRICT MUST CERTIFY THAT NOT LESS THAN 10% OF ITS TEACHERS ARE ELIGIBLE TEACHERS UNDER SUBSECTION (4).

(B) THE REMAINDER OF THE ALLOCATION SHALL BE PAID TO A DISTRICT WITH THE NEXT AVAILABLE STATE SCHOOL AID PAYMENT CALCULATED AFTER THE DISTRICT CERTIFIES TO THE DEPARTMENT OF MANAGEMENT AND BUDGET THE ELIGIBILITY OF ITS TEACHERS UNDER SUBSECTION (4).

(4) AN ELIGIBLE TEACHER IS A TEACHER WHO IS EMPLOYED FULL-TIME IN AN ELEMENTARY OR SECONDARY SCHOOL OPERATED BY A DISTRICT, WHO IS PROVIDING CLASSROOM INSTRUCTION, AND WHO IS CERTIFIED BY THE DISTRICT AS MEETING ALL OF THE FOLLOWING:

(A) MEETS THE MINIMUM TECHNOLOGY COMPETENCIES IDENTIFIED BY THE MICHIGAN VIRTUAL UNIVERSITY.

(B) HAS COMPLETED AN ASSESSMENT PRESCRIBED BY THE MICHIGAN VIRTUAL UNIVERSITY OF HIS OR HER TECHNOLOGY LITERACY AND WILL TAKE A FOLLOW-UP ASSESSMENT WITHIN 1 YEAR AFTER RECEIVING A COMPUTER.

(C) DEVELOPS A DOCUMENT THAT BRIEFLY DESCRIBES HOW HE OR SHE PLANS TO USE THE COMPUTER TO ENHANCE HIS OR HER OWN PROFESSIONAL GROWTH AND TEACHING. THIS DOCUMENT IS TO BE RETAINED WITHIN THE TEACHER'S PROFESSIONAL FILE.

(D) AGREES IN WRITING TO COMPLY WITH THE TEACHER TECHNOLOGY INITIATIVE FAIR USE POLICY AND WITH A POLICY CONCERNING TEACHERS WHO CEASE TO BE ELIGIBLE TEACHERS, AS PRESCRIBED BY THE DEPARTMENT OF MANAGEMENT AND BUDGET AND THE MICHIGAN VIRTUAL UNIVERSITY.

(5) THE DEPARTMENT OF MANAGEMENT AND BUDGET SHALL DEVELOP A POLICY CONCERNING EQUITABLE REIMBURSEMENT BY AN ELIGIBLE TEACHER WHO CEASES TO BE ELIGIBLE AFTER RECEIPT OF A COMPUTER UNDER THIS SECTION.

(6) FUNDS ALLOCATED UNDER THIS SECTION THAT ARE NOT EXPENDED IN THE STATE FISCAL YEAR FOR WHICH THEY WERE ALLOCATED MAY BE CARRIED FORWARD TO THE NEXT 2 SUBSEQUENT STATE FISCAL YEARS.

SEC. 98. (1) FROM THE GENERAL FUND MONEY APPROPRIATED IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $15,000,000.00 FOR 2000-2001, AND AN AMOUNT NOT TO EXCEED $1,500,000.00 EACH FISCAL YEAR FOR 2001-2002 AND FOR 2002-2003 TO THE DEPARTMENT TO PROVIDE A GRANT TO THE MICHIGAN VIRTUAL UNIVERSITY FOR THE DEVELOPMENT, IMPLEMENTATION, AND OPERATION OF THE MICHIGAN VIRTUAL HIGH SCHOOL.

(2) THE MICHIGAN VIRTUAL HIGH SCHOOL SHALL HAVE THE FOLLOWING GOALS:

(A) SIGNIFICANTLY EXPAND CURRICULAR OFFERINGS FOR HIGH SCHOOLS ACROSS THIS STATE THROUGH AGREEMENTS WITH DISTRICTS OR LICENSES FROM OTHER RECOGNIZED PROVIDERS.

(B) CREATE STATEWIDE INSTRUCTIONAL MODELS USING INTERACTIVE MULTIMEDIA TOOLS DELIVERED BY ELECTRONIC MEANS, INCLUDING, BUT NOT LIMITED TO, THE INTERNET, DIGITAL BROADCAST, OR SATELLITE NETWORK, FOR DISTRIBUTED LEARNING AT THE HIGH SCHOOL LEVEL.

(C) PROVIDE PUPILS WITH OPPORTUNITIES TO DEVELOP SKILLS AND COMPETENCIES THROUGH ON-LINE LEARNING.

(D) OFFER TEACHERS OPPORTUNITIES TO LEARN NEW SKILLS AND STRATEGIES FOR DEVELOPING AND DELIVERING INSTRUCTIONAL SERVICES.

(E) ACCELERATE THIS STATE'S ABILITY TO RESPOND TO CURRENT AND EMERGING EDUCATIONAL DEMANDS.

(F) GRANT HIGH SCHOOL DIPLOMAS THROUGH A DUAL ENROLLMENT METHOD WITH DISTRICTS.

(G) ACT AS A BROKER FOR COLLEGE LEVEL EQUIVALENT COURSES, AS DEFINED IN SECTION 1471 OF THE REVISED SCHOOL CODE, MCL 380.1471, AND DUAL ENROLLMENT COURSES FROM POSTSECONDARY EDUCATION INSTITUTIONS.

(3) THE MICHIGAN VIRTUAL HIGH SCHOOL COURSE OFFERINGS SHALL INCLUDE, BUT ARE NOT LIMITED TO, ALL OF THE FOLLOWING:

(A) INFORMATION TECHNOLOGY COURSES.

(B) COLLEGE LEVEL EQUIVALENT COURSES, AS DEFINED IN SECTION 1471 OF THE REVISED SCHOOL CODE, MCL 380.1471.

(C) COURSES AND DUAL ENROLLMENT OPPORTUNITIES.

(D) PROGRAMS AND SERVICES FOR AT-RISK PUPILS.

(E) GENERAL EDUCATION DEVELOPMENT TEST PREPARATION COURSES FOR ADJUDICATED YOUTH.

(F) SPECIAL INTEREST COURSES.

(G) PROFESSIONAL DEVELOPMENT PROGRAMS AND SERVICES FOR TEACHERS.

(4) FUNDS ALLOCATED UNDER THIS SECTION THAT ARE NOT EXPENDED IN THE STATE FISCAL YEAR FOR WHICH THEY WERE ALLOCATED MAY BE CARRIED FORWARD TO A SUBSEQUENT STATE FISCAL YEAR.

SEC. 98A. FROM THE GENERAL FUND APPROPRIATION UNDER SECTION 11, THERE IS ALLOCATED TO THE DEPARTMENT OF MANAGEMENT AND BUDGET FOR 2000-2001 ONLY AN AMOUNT NOT TO EXCEED $1,200,000.00 FOR COLLABORATIVE EFFORTS AMONG THE OAKLAND INTERMEDIATE SCHOOL DISTRICT, THE WAYNE REGIONAL EDUCATION SERVICE AGENCY, AND EASTERN MICHIGAN UNIVERSITY TO PROVIDE CURRICULAR SUPPORT TO TEACHERS.

Sec. 99. (1) From the state school aid fund appropriation in section 11, there is allocated an amount not to exceed $7,293,100.00 for 1998-99, and an amount not to exceed $7,904,900.00 each fiscal year for 1999-2000, and AN AMOUNT NOT TO EXCEED $9,270,000.00 FOR 2000-2001, AN AMOUNT NOT TO EXCEED $10,684,300.00 FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $10,984,500.00 FOR 2002-2003, and from the general fund appropriation in section 11 there is allocated an amount not to exceed $400,000.00 each fiscal year for 1998-99, for 1999-2000, and AN AMOUNT NOT TO EXCEED $475,100.00 for 2000-2001, AN AMOUNT NOT TO EXCEED $548,000.00 FOR 2001-2002, AND AN AMOUNT NOT TO EXCEED $596,000.00 FOR 2002-2003 for implementing the comprehensive master plan for mathematics and science centers developed by the department and approved by the state board on February 17, 1993.

(2) Within a service area designated locally, approved by the department, and consistent with the master plan described in subsection (1), an established mathematics and science center shall address 2 or more of the following 6 basic services, as described in the master plan, to constituent districts and communities: leadership, pupil services, curriculum support, community involvement, professional development, and resource clearinghouse services.

(3) The department shall not award a grant under this section to more than 1 mathematics and science center located in a particular intermediate district unless each of the grants serves a distinct target population or provides a service that does not duplicate another program in the intermediate district.

(4) As part of the technical assistance process, the department shall provide minimum standard guidelines that may be used by the mathematics and science center for providing fair access for qualified pupils and professional staff as prescribed in this section.

(5) Allocations under this section to support the activities and programs of mathematics and science centers shall be continuing support grants to all 25 established mathematics and science centers and, SUBJECT TO SUBSECTION (9), the 8 satellite extensions that were funded in 1996-97. Each established mathematics and science center that was funded in 1996-97 1999-2000 shall receive an amount equal to 103% of the amount it received under this section in 1996-97 1999-2000.

(6) In order to receive funds under this section, a grant recipient shall allow access for the department or the department's designee to audit all records related to the program for which it receives such funds. The grant recipient shall reimburse the state for all disallowances found in the audit.

(7) From the state school aid fund allocation under subsection (1), there is allocated an amount not to exceed $611,800.00 each fiscal year for 1999-2000, and 2000-2001, 2001-2002, AND 2002-2003 for additional funding under this subsection for mathematics and science centers that have come into compliance with the comprehensive master plan described in subsection (1). These amounts are in addition to the funding determined under subsection (5) and are as follows for each OF THOSE fiscal year for 1999-2000 and 2000-2001 YEARS:

(a) $68,000.00 each to the central Michigan science, mathematics, and technology center; the Hillsdale-Lenawee-Monroe mathematics and science center; the St. Clair mathematics, science, and technology network; the Saginaw valley state university regional center; the Genesee area mathematics, science, and technology center; the Grand Traverse area regional mathematics, science, and technology center; and the Livingston/Washtenaw mathematics and science center.

(b) $85,000.00 to the Grand valley state university regional mathematics and science center.

(c) $50,800.00 to the Seaborg center at Northern Michigan university.

(8) Not later than June 30, 2000, the department shall reevaluate and update the comprehensive master plan described in subsection (1), including any recommendations for upgrading satellite extensions to full centers.

(9) DURING THE COURSE OF THE 2000-2001 AND 2001-2002 FISCAL YEARS, THE DEPARTMENT SHALL FACILITATE THE CONVERSION OF THE 8 EXISTING SATELLITE EXTENSIONS TO FULL MATHEMATICS AND SCIENCE CENTERS. TO THIS END, IN 2000-2001 THE DEPARTMENT SHALL PROVIDE 4 SATELLITE EXTENSIONS, AS SELECTED BY THE DEPARTMENT, WITH APPLICATIONS FOR CONVERSION TO FULL CENTERS, AND IN 2001-2002 THE DEPARTMENT SHALL PROVIDE THE REMAINING 4 SATELLITE EXTENSIONS WITH APPLICATIONS FOR CONVERSION. THE DEPARTMENT SHALL PROVIDE THE APPLICATIONS NOT LATER THAN OCTOBER 15 OF THE APPLICABLE FISCAL YEAR; A SATELLITE EXTENSION SHALL SUBMIT THE APPLICATION AND A DETAIL PLAN AS PRESCRIBED BY THE DEPARTMENT NOT LATER THAN NOVEMBER 15 OF THE APPLICABLE FISCAL YEAR; AND THE DEPARTMENT SHALL REVIEW THE APPLICATIONS AND PLANS AND NOTIFY THE SATELLITE EXTENSIONS OF THEIR STATUS NOT LATER THAN DECEMBER 1 OF THE APPLICABLE FISCAL YEAR. THE ALLOCATIONS UNDER THIS SECTION ARE SUFFICIENT TO FUND THE CONVERSION OF THE SATELLITE EXTENSIONS TO FULL CENTERS AND TO FUND THEM AS FULL CENTERS.

(10) BEGINNING IN 2001-2002, THE TOTAL AMOUNT ALLOCATED UNDER THIS SECTION FOR A FISCAL YEAR SHALL BE INCREASED FROM THE TOTAL AMOUNT ALLOCATED UNDER THIS SECTION FOR THE IMMEDIATELY PRECEDING FISCAL YEAR BY THE SAME PERCENTAGE AS THE PERCENTAGE INCREASE IN THE AMOUNT OF THE BASIC FOUNDATION ALLOWANCE UNDER SECTION 20 FOR THAT FISCAL YEAR FROM THE AMOUNT OF THE BASIC FOUNDATION ALLOWANCE UNDER SECTION 20 FOR THE IMMEDIATELY PRECEDING FISCAL YEAR.

Sec. 101. (1) To be eligible to receive state aid under this act, not later than the fifth Wednesday after the pupil membership count day and not later than the fifth Wednesday after the supplemental count day, each district superintendent through the secretary of the district's board shall file with the intermediate superintendent a certified and sworn copy of the number of pupils enrolled and in regular daily attendance in the district as of the pupil membership count day and as of the supplemental count day, as applicable, for the current school year. In addition, a district maintaining school during the entire year, as provided under section 1561 of the revised school code, MCL 380.1561, shall file with the intermediate superintendent a certified and sworn copy of the number of pupils enrolled and in regular daily attendance in the district for the current school year pursuant to rules promulgated by the superintendent. Not later than the seventh Wednesday after the pupil membership count day and not later than the seventh Wednesday after the supplemental count day, the intermediate district shall transmit to the department the data filed by each of its constituent districts. If a district fails to file the sworn and certified copy with the intermediate superintendent in a timely manner, as required under this subsection, the intermediate district shall notify the department and state aid due to be distributed under this act shall be withheld from the defaulting district immediately, beginning with the next payment after the failure and continuing with each payment until the district complies with this subsection. If an intermediate district fails to transmit the data in its possession in a timely and accurate manner to the department, as required under this subsection, state aid due to be distributed under this act shall be withheld from the defaulting intermediate district immediately, beginning with the next payment after the failure and continuing with each payment until the intermediate district complies with this subsection. If a district or intermediate district does not comply with this subsection by the end of the fiscal year, the district or intermediate district forfeits the amount withheld. A person who willfully falsifies a figure or statement in the certified and sworn copy of enrollment shall be punished in the manner prescribed by section 161.

(2) To be eligible to receive state aid under this act, not later than the twenty-fourth Wednesday after the pupil membership count day and not later than the twenty-fourth Wednesday after the supplemental count day, an intermediate district shall submit to the department, in a form and manner prescribed by the department, the audited enrollment and attendance data for the pupils of its constituent districts and of the intermediate district. If an intermediate district fails to transmit the audited data as required under this subsection, state aid due to be distributed under this act shall be withheld from the defaulting intermediate district immediately, beginning with the next payment after the failure and continuing with each payment until the intermediate district complies with this subsection. If an intermediate district does not comply with this subsection by the end of the fiscal year, the intermediate district forfeits the amount withheld.

(3) Each EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, EACH district shall provide at least 180 days of pupil instruction and A NUMBER OF HOURS OF PUPIL INSTRUCTION AT LEAST EQUAL TO the required minimum number of hours of pupil instruction REQUIRED FOR 2000-2001 under section 1284 of the revised school code, MCL 380.1284. Except as otherwise provided in this act, a district failing to hold 180 days of pupil instruction shall forfeit from its total state aid allocation for each day of failure an amount equal to 1/180 of its total state aid allocation. Except as otherwise provided in this act, a district failing to comply with the required minimum hours of pupil instruction UNDER THIS SUBSECTION shall forfeit from its total state aid allocation an amount determined by applying a ratio of the number of hours the district was in noncompliance in relation to the required minimum number of hours UNDER THIS SUBSECTION. A district failing to meet both the 180 days of pupil instruction requirement and the minimum number of hours of pupil instruction requirement UNDER THIS SUBSECTION shall be penalized only the higher of the 2 amounts calculated under the forfeiture provisions of this subsection. Not later than August 1, the board of each district shall certify to the department the number of days and hours of pupil instruction in the previous school year. If the district did not hold at least 180 days and the required minimum number of hours of pupil instruction UNDER THIS SUBSECTION, the deduction of state aid shall be made in the following fiscal year from the first payment of state school aid. A district is not subject to forfeiture of funds under this subsection for a fiscal year in which a forfeiture was already imposed under subsection (7). Days or hours lost because of strikes or teachers' conferences shall not be counted as days or hours of pupil instruction. A district not having at least 75% of the district's membership in attendance on any day of pupil instruction shall receive state aid in that proportion of 1/180 that the actual percent of attendance bears to the specified percentage. The superintendent shall promulgate rules for the implementation of this subsection.

(4) The first 2 days for which pupil instruction is not provided because of conditions not within the control of school authorities, such as severe storms, fires, epidemics, or health conditions as defined by the city, county, or state health authorities, shall be counted as days of pupil instruction. In addition, for 1998-99 only, the department shall count as days of pupil instruction not more than 2 additional days, and shall count as hours of pupil instruction not more than 16.5 hours, for which pupil instruction was not provided in a district after June 7, 1999 due to water damage resulting from a water main break. Subsequent such days shall not be counted as days of pupil instruction.

(5) A district shall not forfeit part of its state aid appropriation because it adopts or has in existence an alternative scheduling program for pupils in kindergarten if the program provides at least the number of hours required UNDER SUBSECTION (3) for a full-time equated membership for a pupil in kindergarten as provided under section 6(4).

(6) Upon application by the district for a particular fiscal year, the superintendent may waive the minimum number of days of pupil instruction requirement of subsection (3) for a district if the district has adopted an experimental school year schedule in 1 or more buildings in the district if the experimental school year schedule provides the required minimum number of hours of pupil instruction UNDER SUBSECTION (3) or more and is consistent with all state board policies on school improvement and restructuring. If a district applies for and receives a waiver under this subsection and complies with the terms of the waiver, for the fiscal year covered by the waiver the district is not subject to forfeiture under this section of part of its state aid allocation for the specific building or program covered by the waiver.

(7) Not later than April 15 of each fiscal year, the board of each district shall certify to the department the planned number of days and hours of pupil instruction in the district for the school year ending in the fiscal year. In addition to any other penalty or forfeiture under this section, if at any time the department determines that 1 or more of the following has occurred in a district, the district shall forfeit in the current fiscal year beginning in the next payment to be calculated by the department a proportion of the funds due to the district under this act that is equal to the proportion below 180 days and the required minimum number of hours of pupil instruction UNDER SUBSECTION (3), as specified in the following:

(a) The district fails to operate its schools for at least 180 days and the required minimum number of hours of pupil instruction UNDER SUBSECTION (3) in a school year, including days counted under subsection (4).

(b) The board of the district takes formal action not to operate its schools for at least 180 days and the required minimum number of hours of pupil instruction UNDER SUBSECTION (3) in a school year, including days counted under subsection (4).

(8) In providing the minimum number of hours of pupil instruction required under section 1284 of the revised school code, MCL 380.1284 SUBSECTION (3), a district shall use the following guidelines, and a district shall maintain records to substantiate its compliance with the following guidelines:

(a) Except as otherwise provided in this subsection, a pupil must be scheduled for at least the required minimum number of hours of instruction, excluding study halls, or at least the sum of 90 hours plus the required minimum number of hours of instruction, including up to 2 study halls.

(b) The time a pupil is assigned to any tutorial activity in a block schedule may be considered instructional time, unless that time is determined in an audit to be a study hall period.

(c) A pupil in grades 9 to 12 for whom a reduced schedule is determined to be in the individual pupil's best educational interest must be scheduled for a number of hours equal to at least 80% of the required minimum number of hours of pupil instruction to be considered a full-time equivalent pupil.

(d) If a pupil in grades 9 to 12 who is enrolled in a cooperative education program or a special education pupil cannot receive the required minimum number of hours of pupil instruction solely because of travel time between instructional sites during the school day, that travel time, up to a maximum of 2-1/2 hours per school week, shall be considered to be pupil instruction time for the purpose of determining whether the pupil is receiving the required minimum number of hours of pupil instruction. However, if a district demonstrates to the satisfaction of the department that the travel time limitation under this subdivision would create undue costs or hardship to the district, the department may consider more travel time to be pupil instruction time for this purpose.

(9) The department shall apply the guidelines under subsection (8) in calculating the full-time equivalency of pupils.

(10) Upon application by the district for a particular fiscal year, the superintendent may waive for a district the 180 days or minimum number of hours of pupil instruction requirement of subsection (3) for a department-approved alternative education program. If a district applies for and receives a waiver under this subsection and complies with the terms of the waiver, for the fiscal year covered by the waiver the district is not subject to forfeiture under this section for the specific program covered by the waiver.

(11) BEGINNING IN 2000-2001, A DISTRICT MAY COUNT UP TO 51 HOURS OF PROFESSIONAL DEVELOPMENT FOR TEACHERS AS HOURS OF PUPIL INSTRUCTION. A DISTRICT THAT ELECTS TO USE THIS EXCEPTION SHALL NOTIFY THE DEPARTMENT OF ITS ELECTION.

Sec. 102. (1) A district or intermediate district receiving money under this act shall not adopt or operate under a deficit budget, and a district or intermediate district shall not incur an operating deficit in a fund during a school fiscal year. A district or intermediate district having an existing deficit or which incurs a deficit shall not be allotted or paid a further sum under this act until the district or intermediate district submits to the department for approval a budget for the current school fiscal year and a plan to eliminate the district's or intermediate district's deficit not later than the end of the second school fiscal year after the deficit was incurred. Withheld state aid payments shall be released after the department approves the deficit reduction plan and ensures that the budget for the current school fiscal year is balanced.

(2) Not later than March 1 of each year, the department shall prepare a report of deficits incurred by districts and intermediate districts in the immediately preceding fiscal year and the progress made in reducing those deficits and submit the report to the standing committees of the legislature responsible for K-12 education legislation, the appropriations subcommittees of the legislature responsible for K-12 education appropriations, the house and senate fiscal agencies, the state treasurer, and the department of management and budget STATE BUDGET DIRECTOR. The department shall also submit interim reports concerning district and intermediate district deficits as necessary.

(3) The amount of the permissible deficit for each school fiscal year shall not exceed the amount of state aid reduced by an executive order during that school fiscal year.

(4) A district or intermediate district with an existing deficit or which incurs a deficit shall submit to the department a monthly monitoring report on revenue and expenditures in a form and manner prescribed by the department.

(5) If a district or intermediate district is not able to comply with the provisions of this section, the district or intermediate district shall submit to the department a plan to eliminate its deficit. Upon approval of the plan submitted, the superintendent of public instruction may continue allotment and payment of funds under this act, extend the period of time in which a district or intermediate district has to eliminate its deficit, and set special conditions that the district or intermediate district must meet during the period of the extension.

(6) For the purposes of this section, a district or intermediate district is considered to have incurred an operating deficit if the district or intermediate district incurs any withholding of or financial penalty, other than a temporary delay, against any portion of its total state school aid allocation under this act.

Sec. 105. (1) In order to avoid a penalty under this section, and in order to count a nonresident pupil residing within the same intermediate district in membership without the approval of the pupil's district of residence, a district shall comply with this section.

(2) Except as otherwise provided in this section, a district shall determine whether or not it will accept applications for enrollment by nonresident applicants residing within the same intermediate district for the next school year. If the district determines to accept applications for enrollment of a number of nonresidents, beyond those entitled to preference under this section, the district shall use the following procedures for accepting applications from and enrolling nonresidents:

(a) The district shall publish the grades, schools, and special programs, if any, for which enrollment may be available to, and for which applications will be accepted from, nonresident applicants residing within the same intermediate district.

(b) If the district has a limited number of positions available for nonresidents residing within the same intermediate district in a grade, school, or program, all of the following apply to accepting applications for and enrollment of nonresidents in that grade, school, or program:

(i) The district shall do all of the following not later than the second Friday in August:

(A) Provide notice to the general public that applications will be taken for a 15-day period from nonresidents residing within the same intermediate district for enrollment in that grade, school, or program. The notice shall identify the 15-day period and the place and manner for submitting applications.

(B) During the application period under sub-subparagraph (A), accept applications from nonresidents residing within the same intermediate district for enrollment in that grade, school, or program.

(C) Within 15 days after the end of the application period under sub-subparagraph (A), using the procedures and preferences required under this section, determine which nonresident applicants will be allowed to enroll in that grade, school, or program, using the random draw system required under subsection (12) (13) as necessary, and notify the parent or legal guardian of each nonresident applicant of whether or not the applicant may enroll in the district. The notification to parents or legal guardians of nonresident applicants accepted for enrollment shall contain notification of the date by which the applicant must enroll in the district and procedures for enrollment.

(ii) Beginning on the third Monday in August and not later than the end of the first week of school, if any positions become available in a grade, school, or program due to accepted applicants failing to enroll or to more positions being added, the district may enroll nonresident applicants from the waiting list maintained under subsection (12) (13), offering enrollment in the order that applicants appear on the waiting list. If there are still positions available after enrolling all applicants from the waiting list who desire to enroll, the district may not fill those positions until the second semester enrollment under subsection (3), as provided under that subsection, or until the next school year.

(c) For a grade, school, or program that has an unlimited number of positions available for nonresidents residing within the same intermediate district, all of the following apply to enrollment of nonresidents in that grade, school, or program:

(i) The district may accept applications for enrollment in that grade, school, or program, and may enroll nonresidents residing within the same intermediate district in that grade, school, or program, until the end of the first week of school. The district shall provide notice to the general public of the place and manner for submitting applications and, if the district has a limited application period, the notice shall include the dates of the application period. The application period shall be at least a 15-day period.

(ii) Not later than the end of the first week of school, the district shall notify the parent or legal guardian of each nonresident applicant who is accepted for enrollment that the applicant has been accepted for enrollment in the grade, school, or program and of the date by which the applicant must enroll in the district and the procedures for enrollment.

(3) If a district determines during the first semester of a school year that it has positions available for enrollment of a number of nonresidents residing within the same intermediate district, beyond those entitled to preference under this section, for the second semester of the school year, the district may accept applications from and enroll nonresidents residing within the same intermediate district for the second semester using the following procedures:

(a) Not later than 2 weeks before the end of the first semester, the district shall publish the grades, schools, and special programs, if any, for which enrollment for the second semester may be available to, and for which applications will be accepted from, nonresident applicants residing within the same intermediate district.

(b) During the last 2 weeks of the first semester, the district shall accept applications from nonresidents residing within the same intermediate district for enrollment for the second semester in the available grades, schools, and programs.

(c) By the beginning of the second semester, using the procedures and preferences required under this section, the district shall determine which nonresident applicants will be allowed to enroll in the district for the second semester and notify the parent or legal guardian of each nonresident applicant residing within the same intermediate district of whether or not the applicant may enroll in the district. The notification to parents or legal guardians of nonresident applicants accepted for enrollment shall contain notification of the date by which the applicant must enroll in the district and procedures for enrollment.

(4) If deadlines similar to those described in subsection (2) or (3) have been established in an intermediate district, and if those deadlines are not later than the deadlines under subsection (2) or (3), the districts within the intermediate district may use those deadlines.

(5) A district offering to enroll nonresident applicants residing within the same intermediate district may limit the number of nonresident pupils it accepts in a grade, school, or program, at its discretion, and may use that limit as the reason for refusal to enroll an applicant.

(6) A nonresident applicant residing within the same intermediate district shall not be granted or refused enrollment based on intellectual, academic, artistic, or other ability, talent, or accomplishment, or lack thereof, or based on a mental or physical disability, except that a district may refuse to admit a nonresident applicant if the applicant does not meet the same criteria, other than residence, that an applicant who is a resident of the district must meet to be accepted for enrollment in a grade or a specialized, magnet, or intra-district choice school or program to which the applicant applies.

(7) A nonresident applicant residing within the same intermediate district shall not be granted or refused enrollment based on age, except that a district may refuse to admit a nonresident applicant applying for a program that is not appropriate for the age of the applicant.

(8) A nonresident applicant residing within the same intermediate district shall not be granted or refused enrollment based upon religion, race, color, national origin, sex, height, weight, marital status, or athletic ability, or, generally, in violation of any state or federal law prohibiting discrimination.

(9) A district may refuse to enroll a nonresident applicant if the applicant is, or has been within the preceding 2 years, suspended from another school or if the applicant has ever been expelled from another school.

(10) A district shall give preference for enrollment over all other nonresident applicants residing within the same intermediate district to pupils who were CONTINUE TO ALLOW A PUPIL WHO WAS enrolled in and attended the district UNDER THIS SECTION in the school year or semester immediately preceding the school year or semester in question and TO ENROLL IN THE DISTRICT UNTIL THE PUPIL GRADUATES FROM HIGH SCHOOL. THIS SUBSECTION DOES NOT PROHIBIT A DISTRICT FROM EXPELLING A PUPIL DESCRIBED IN THIS SUBSECTION FOR DISCIPLINARY REASONS.

(11) A DISTRICT SHALL GIVE PREFERENCE FOR ENROLLMENT UNDER THIS SECTION OVER ALL OTHER NONRESIDENT APPLICANTS RESIDING WITHIN THE SAME INTERMEDIATE DISTRICT to other school-age children who reside in the same household as the A pupil DESCRIBED IN SUBSECTION (10).

(12) (11) If a nonresident pupil was enrolled in and attending school in a district as a nonresident pupil in the 1995-96 school year and continues to be enrolled continuously each school year in that district, the district shall allow that nonresident pupil to continue to enroll in and attend school in the district until high school graduation, without requiring the nonresident pupil to apply for enrollment under this section. This subsection does not prohibit a district from expelling a pupil described in this subsection for disciplinary reasons.

(13) (12) If the number of qualified nonresident applicants eligible for acceptance in a school, grade, or program does not exceed the positions available for nonresident pupils in the school, grade, or program, the school district shall accept for enrollment all of the qualified nonresident applicants eligible for acceptance. If the number of qualified nonresident applicants residing within the same intermediate district eligible for acceptance exceeds the positions available in a grade, school, or program in a district for nonresident pupils, the district shall use a random draw system, subject to the need to abide by state and federal antidiscrimination laws and court orders and subject to preferences allowed by this section. The district shall develop and maintain a waiting list based on the order in which nonresident applicants were drawn under this random draw system.

(14) (13) If a district, or the nonresident applicant, requests the district in which a nonresident applicant resides to supply information needed by the district for evaluating the applicant's application for enrollment or for enrolling the applicant, the district of residence shall provide that information on a timely basis.

(15) (14) If a district is subject to a court-ordered desegregation plan, and if the court issues an order prohibiting pupils residing in that district from enrolling in another district or prohibiting pupils residing in another district from enrolling in that district, this section is subject to the court order.

(16) (15) This section does not require a district to provide transportation for a nonresident pupil enrolled in the district under this section or for a resident pupil enrolled in another district under this section. However, at the time a nonresident pupil enrolls in the district, a district shall provide to the pupil's parent or legal guardian information on available transportation to and from the school in which the pupil enrolls.

(17) (16) If, in a particular state fiscal year, the total number of pupils enrolled and counted in membership in a district is less than 90% of the total number of pupils residing in the district who are enrolled and counted in membership in either that district or 1 or more other districts, the total amount of money allocated to that district under section 20 shall be adjusted so that the district receives a total allocation under section 20 equal to the amount the district would receive under section 20 if exactly 90% of the pupils residing in the district who are enrolled and counted in either that district or 1 or more other districts were enrolled and counted in membership in that district.

(18) (17) A district may participate in a cooperative education program with 1 or more other districts or intermediate districts whether or not the district enrolls any nonresidents pursuant to this section.

(19) (18) A district that, pursuant to this section, enrolls a nonresident pupil who is eligible for special education programs and services according to statute or rule, or who is a child with disabilities, as defined under the individuals with disabilities education act, title VI of Public Law 91-230, shall be considered to be the resident district of the pupil for the purpose of providing the pupil with a free appropriate public education. Consistent with state and federal law, that district is responsible for developing and implementing an individualized education plan annually for a nonresident pupil described in this subsection.

(20) (19) If a district does not comply with this section, the district forfeits 5% of the total state school aid allocation to the district under this act.

(21) (20) Upon application by a district, the superintendent may grant a waiver for the district from a specific requirement under this section for not more than 1 year.

Sec. 105b. Notwithstanding section 105(21), if IF an intermediate district is operating under an intermediate district pilot schools of choice program established under former section 91 or as described in section 91a, the intermediate district and its constituent districts are exempt from section 105.

Sec. 105c. (1) In order to avoid a penalty under this section, and in order to count a nonresident pupil residing in a contiguous district located in another A CONTIGUOUS intermediate district in membership without the approval of the pupil's district of residence, a district shall comply with this section.

(2) Except as otherwise provided in this section, a district shall determine whether or not it will accept applications for enrollment by nonresident applicants residing in a contiguous district located in another A CONTIGUOUS intermediate district for the next school year. If the district determines to accept applications for enrollment of a number of nonresidents under this section, beyond those entitled to preference under this section, the district shall use the following procedures for accepting applications from and enrolling nonresidents under this section:

(a) The district shall publish the grades, schools, and special programs, if any, for which enrollment may be available to, and for which applications will be accepted from, nonresident applicants residing in a contiguous district located in another A CONTIGUOUS intermediate district.

(b) If the district has a limited number of positions available for nonresidents residing in a contiguous district located in another A CONTIGUOUS intermediate district in a grade, school, or program, all of the following apply to accepting applications for and enrollment of nonresidents under this section in that grade, school, or program:

(i) The district shall do all of the following not later than the second Friday in August:

(A) Provide notice to the general public that applications will be taken for a 15-day period from nonresidents residing in a contiguous district located in another A CONTIGUOUS intermediate district for enrollment in that grade, school, or program. The notice shall identify the 15-day period and the place and manner for submitting applications.

(B) During the application period under sub-subparagraph (A), accept applications from nonresidents residing in a contiguous district located in another A CONTIGUOUS intermediate district for enrollment in that grade, school, or program.

(C) Within 15 days after the end of the application period under sub-subparagraph (A), using the procedures and preferences required under this section, determine which nonresident applicants will be allowed to enroll under this section in that grade, school, or program, using the random draw system required under subsection (12) (13) as necessary, and notify the parent or legal guardian of each nonresident applicant of whether or not the applicant may enroll in the district. The notification to parents or legal guardians of nonresident applicants accepted for enrollment under this section shall contain notification of the date by which the applicant must enroll in the district and procedures for enrollment.

(ii) Beginning on the third Monday in August and not later than the end of the first week of school, if any positions become available in a grade, school, or program due to accepted applicants failing to enroll or to more positions being added, the district may enroll nonresident applicants from the waiting list maintained under subsection (12) (13), offering enrollment in the order that applicants appear on the waiting list. If there are still positions available after enrolling all applicants from the waiting list who desire to enroll, the district may not fill those positions until the second semester enrollment under subsection (3), as provided under that subsection, or until the next school year.

(c) For a grade, school, or program that has an unlimited number of positions available for nonresidents residing in a contiguous district located in another A CONTIGUOUS intermediate district, all of the following apply to enrollment of nonresidents in that grade, school, or program under this section:

(i) The district may accept applications for enrollment in that grade, school, or program, and may enroll nonresidents residing in a contiguous district located in another A CONTIGUOUS intermediate district in that grade, school, or program, until the end of the first week of school. The district shall provide notice to the general public of the place and manner for submitting applications and, if the district has a limited application period, the notice shall include the dates of the application period. The application period shall be at least a 15-day period.

(ii) Not later than the end of the first week of school, the district shall notify the parent or legal guardian of each nonresident applicant who is accepted for enrollment under this section that the applicant has been accepted for enrollment in the grade, school, or program and of the date by which the applicant must enroll in the district and the procedures for enrollment.

(3) If a district determines during the first semester of a school year that it has positions available for enrollment of a number of nonresidents residing in a contiguous district located in another A CONTIGUOUS intermediate district, beyond those entitled to preference under this section, for the second semester of the school year, the district may accept applications from and enroll nonresidents residing in a contiguous district located in another A CONTIGUOUS intermediate district for the second semester using the following procedures:

(a) Not later than 2 weeks before the end of the first semester, the district shall publish the grades, schools, and special programs, if any, for which enrollment for the second semester may be available to, and for which applications will be accepted from, nonresident applicants residing in a contiguous district located in another A CONTIGUOUS intermediate district.

(b) During the last 2 weeks of the first semester, the district shall accept applications from nonresidents residing in a contiguous district located in another A CONTIGUOUS intermediate district for enrollment for the second semester in the available grades, schools, and programs.

(c) By the beginning of the second semester, using the procedures and preferences required under this section, the district shall determine which nonresident applicants will be allowed to enroll under this section in the district for the second semester and notify the parent or legal guardian of each nonresident applicant residing in a contiguous district located in another A CONTIGUOUS intermediate district of whether or not the applicant may enroll in the district. The notification to parents or legal guardians of nonresident applicants accepted for enrollment shall contain notification of the date by which the applicant must enroll in the district and procedures for enrollment.

(4) If deadlines similar to those described in subsection (2) or (3) have been established in an intermediate district, and if those deadlines are not later than the deadlines under subsection (2) or (3), the districts within the intermediate district may use those deadlines.

(5) A district offering to enroll nonresident applicants residing in a contiguous district located in another A CONTIGUOUS intermediate district may limit the number of those nonresident pupils it accepts in a grade, school, or program, at its discretion, and may use that limit as the reason for refusal to enroll an applicant under this section.

(6) A nonresident applicant residing in a contiguous district located in another A CONTIGUOUS intermediate district shall not be granted or refused enrollment based on intellectual, academic, artistic, or other ability, talent, or accomplishment, or lack thereof, or based on a mental or physical disability, except that a district may refuse to admit a nonresident applicant under this section if the applicant does not meet the same criteria, other than residence, that an applicant who is a resident of the district must meet to be accepted for enrollment in a grade or a specialized, magnet, or intra-district choice school or program to which the applicant applies.

(7) A nonresident applicant residing in a contiguous district located in another A CONTIGUOUS intermediate district shall not be granted or refused enrollment under this section based on age, except that a district may refuse to admit a nonresident applicant applying for a program that is not appropriate for the age of the applicant.

(8) A nonresident applicant residing in a contiguous district located in another A CONTIGUOUS intermediate district shall not be granted or refused enrollment under this section based upon religion, race, color, national origin, sex, height, weight, marital status, or athletic ability, or, generally, in violation of any state or federal law prohibiting discrimination.

(9) A district may refuse to enroll a nonresident applicant under this section if the applicant is, or has been within the preceding 2 years, suspended from another school or if the applicant has ever been expelled from another school.

(10) A district shall give preference for enrollment over all other nonresident applicants residing in a contiguous district located in another intermediate district to pupils who were CONTINUE TO ALLOW A PUPIL WHO WAS enrolled in and attended the district UNDER THIS SECTION in the school year or semester immediately preceding the school year or semester in question and TO ENROLL IN THE DISTRICT UNTIL THE PUPIL GRADUATES FROM HIGH SCHOOL. THIS SUBSECTION DOES NOT PROHIBIT A DISTRICT FROM EXPELLING A PUPIL DESCRIBED IN THIS SUBSECTION FOR DISCIPLINARY REASONS.

(11) A DISTRICT SHALL GIVE PREFERENCE FOR ENROLLMENT UNDER THIS SECTION OVER ALL OTHER NONRESIDENT APPLICANTS RESIDING IN A DISTRICT LOCATED IN A CONTIGUOUS INTERMEDIATE DISTRICT to other school-age children who reside in the same household as the A pupil DESCRIBED IN SUBSECTION (10).

(12) (11) If a nonresident pupil was enrolled in and attending school in a district as a nonresident pupil in the 1995-96 school year and continues to be enrolled continuously each school year in that district, the district shall allow that nonresident pupil to continue to enroll in and attend school in the district until high school graduation, without requiring the nonresident pupil to apply for enrollment under this section. This subsection does not prohibit a district from expelling a pupil described in this subsection for disciplinary reasons.

(13) (12) If the number of qualified nonresident applicants eligible for acceptance under this section in a school, grade, or program does not exceed the positions available for nonresident pupils under this section in the school, grade, or program, the school district shall accept for enrollment all of the qualified nonresident applicants eligible for acceptance. If the number of qualified nonresident applicants residing in a contiguous district located in another A CONTIGUOUS intermediate district eligible for acceptance under this section exceeds the positions available in a grade, school, or program in a district for nonresident pupils, the district shall use a random draw system, subject to the need to abide by state and federal antidiscrimination laws and court orders and subject to preferences allowed by this section. The district shall develop and maintain a waiting list based on the order in which nonresident applicants were drawn under this random draw system.

(14) (13) If a district, or the nonresident applicant, requests the district in which a nonresident applicant resides to supply information needed by the district for evaluating the applicant's application for enrollment or for enrolling the applicant under this section, the district of residence shall provide that information on a timely basis.

(15) (14) If a district is subject to a court-ordered desegregation plan, and if the court issues an order prohibiting pupils residing in that district from enrolling in another district or prohibiting pupils residing in another district from enrolling in that district, this section is subject to the court order.

(16) (15) This section does not require a district to provide transportation for a nonresident pupil enrolled in the district under this section or for a resident pupil enrolled in another district under this section. However, at the time a nonresident pupil enrolls in the district, a district shall provide to the pupil's parent or legal guardian information on available transportation to and from the school in which the pupil enrolls.

(17) (16) A district may participate in a cooperative education program with 1 or more other districts or intermediate districts whether or not the district enrolls any nonresidents pursuant to this section.

(18) (17) In order for a district or intermediate district to enroll pursuant to this section a nonresident pupil who resides in a contiguous district located in another A CONTIGUOUS intermediate district and who is eligible for special education programs and services according to statute or rule, or who is a child with disabilities, as defined under the individuals with disabilities education act, title VI of Public Law 91-230, the enrolling district shall have a written agreement with the resident district of the pupil for the purpose of providing the pupil with a free appropriate public education. The written agreement shall include, but is not limited to, an agreement on the responsibility for the payment of the added costs of special education programs and services for the pupil.

(19) (18) If a district does not comply with this section, the district forfeits 5% of the total state school aid allocation to the district under this act.

(20) (19) Upon application by a district, the superintendent may grant a waiver for the district from a specific requirement under this section for not more than 1 year.

(21) (20) This section is repealed if the final decision of a court of competent jurisdiction holds that any portion of this section is unconstitutional, ineffective, invalid, or in violation of federal law.

(22) (21) As used in this section, "contiguous "district located in another A CONTIGUOUS intermediate district" means a district LOCATED IN AN INTERMEDIATE DISTRICT that is contiguous to THE INTERMEDIATE DISTRICT IN WHICH a pupil's district of residence but that is located in a different intermediate district than the pupil's district of residence. IS LOCATED.

Sec. 107. (1) From the appropriation in section 11, there is allocated for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 an amount not to exceed $80,000,000.00 each fiscal year for adult education programs authorized under this section.

(2) To be eligible to be a participant funded under this section, a person shall be enrolled in an adult basic education program, an adult English as a second language program, a general education development (G.E.D.) test preparation program, a job or employment related program, or a high school completion program, that meets the requirements of this section, and shall meet either of the following, as applicable:

(a) If the individual has obtained a high school diploma or a general education development (G.E.D.) certificate, the individual meets 1 of the following:

(i) Is less than 20 years of age on September 1 of the school year and is enrolled in the state technical institute and rehabilitation center.

(ii) Is less than 20 years of age on September 1 of the school year, is not attending an institution of higher education, and is enrolled in a job or employment-related program through a referral by an employer.

(iii) Is enrolled in an English as a second language program.

(iv) Is enrolled in a high school completion program.

(b) If the individual has not obtained a high school diploma or G.E.D. certificate, is at least 20 years of age on September 1 of the school year.

(3) The amount allocated under subsection (1) shall be distributed as follows:

(a) For districts and consortia that received payments for 1995-96 under former section 107f and that received payments for 1996-97 under subsection (4) of this section as in effect in 1996-97, the amount allocated to each for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND 2002-2003 shall be an amount each fiscal year equal to 36.76% of the amount the district or consortium received for 1995-96 under former section 107f.

(b) For districts and consortia that received payments under subsection (3) of this section as in effect for 1996-97, the amount allocated to each for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 shall be an amount each fiscal year equal to the product of the number of full-time equated participants actually enrolled and in attendance during the 1996-97 school fiscal year in the program funded under subsection (3) of this section as in effect for 1996-97 as reported to the department, audited, and adjusted according to subsection (10) of this section as in effect for 1996-97, multiplied by $2,750.00.

(c) For districts and consortia that meet the conditions of both subdivisions (a) and (b), the amount allocated each fiscal year for 1998-99, for 1999-2000, and for 2000-2001, FOR 2001-2002, AND FOR 2002-2003 shall be the sum of the allocations to the district or consortium under subdivisions (a) and (b).

(d) A district or consortium that received funding in 1996-97 under this section as in effect for 1996-97 may operate independently of a consortium or join or form a consortium for 1998-99, for 1999-2000, or for 2000-2001, FOR 2001-2002, OR FOR 2002-2003. The allocation for 1998-99, for 1999-2000, or for 2000-2001, FOR 2001-2002, OR FOR 2002-2003 to the district or the newly formed consortium under this subsection shall be determined by the department and shall be based on the proportion of the amounts specified in subdivision (a) or (b), or both, that are attributable to the district or consortium that received funding in 1996-97. A district or consortium described in this subdivision shall notify the department of its intention with regard to 1998-99, 1999-2000, or 2000-2001, 2001-2002, OR 2002-2003 by October 1 of the affected fiscal year.

(4) A district that operated an adult education program in 1996-97 and does not intend to operate a program in 1998-99, 1999-2000, or 2000-2001, 2001-2002, OR 2002-2003 shall notify the department by October 1 of the affected fiscal year of its intention. The funds intended to be allocated under this section to a district that does not operate a program in 1998-99, 1999-2000, or 2000-2001, 2001-2002, OR 2002-2003 and the unspent funds originally allocated under this section to a district or consortium that subsequently operates a program at less than the level of funding allocated under subsection (3) shall instead be proportionately reallocated to the other districts described in subsection (3)(a) that are operating an adult education program in 1998-99, 1999-2000, or 2000-2001, 2001-2002, OR 2002-2003 under this section.

(5) The amount allocated under this section per full-time equated participant is $2,850.00 for a 450-hour program. The amount shall be proportionately reduced for a program offering less than 450 hours of instruction.

(6) An adult basic education program or an adult English as a second language program operated on a year-round or school year basis may be funded under this section, subject to all of the following:

(a) The program enrolls adults who are determined by an appropriate assessment to be below ninth grade level in reading or mathematics, or both, or to lack basic English proficiency.

(b) The program tests individuals for eligibility under subdivision (a) before enrollment and tests participants to determine progress after every 90 hours of attendance, using assessment instruments approved by the department.

(c) A participant in an adult basic education program is eligible for reimbursement until 1 of the following occurs:

(i) The participant's reading and mathematics proficiency are assessed at or above the ninth grade level.

(ii) The participant fails to show progress on 2 successive assessments after having completed at least 450 hours of instruction.

(d) A funding recipient enrolling a participant in an English as a second language program is eligible for funding according to subsection (10) until the participant meets 1 of the following:

(i) The participant is assessed as having attained basic English proficiency.

(ii) The participant fails to show progress on 2 successive assessments after having completed at least 450 hours of instruction. The department shall provide information to a funding recipient regarding appropriate assessment instruments for this program.

(7) A general education development (G.E.D.) test preparation program operated on a year-round or school year basis may be funded under this section, subject to all of the following:

(a) The program enrolls adults who do not have a high school diploma.

(b) The program shall administer a G.E.D. pre-test approved by the department before enrolling an individual to determine the individual's potential for success on the G.E.D. test, and shall administer other tests after every 90 hours of attendance to determine a participant's readiness to take the G.E.D. test.

(c) A funding recipient shall receive funding according to subsection (10) for a participant, and a participant may be enrolled in the program until 1 of the following occurs:

(i) The participant passes the G.E.D. test.

(ii) The participant fails to show progress on 2 successive tests used to determine readiness to take the G.E.D. test after having completed at least 450 hours of instruction.

(8) A high school completion program operated on a year-round or school year basis may be funded under this section, subject to all of the following:

(a) The program enrolls adults who do not have a high school diploma.

(b) A funding recipient shall receive funding according to subsection (10) for a participant in a course offered under this subsection until 1 of the following occurs:

(i) The participant passes the course and earns a high school diploma.

(ii) The participant fails to earn credit in 2 successive semesters or terms in which the participant is enrolled after having completed at least 900 hours of instruction.

(9) A job or employment-related adult education program operated on a year-round or school year basis may be funded under this section, subject to all of the following:

(a) The program enrolls adults referred by their employer who are less than 20 years of age, have a high school diploma, are determined to be in need of remedial mathematics or communication arts skills or, for 1997-98 only, vocational skills, and are not attending an institution of higher education.

(b) An individual may be enrolled in this program and the grant recipient shall receive funding according to subsection (10) until 1 of the following occurs:

(i) The individual achieves the requisite skills as determined by appropriate assessment instruments administered at least after every 90 hours of attendance.

(ii) The individual fails to show progress on 2 successive assessments after having completed at least 450 hours of instruction. The department shall provide information to a funding recipient regarding appropriate assessment instruments for this program.

(10) A funding recipient shall receive payments under this section in accordance with the following:

(a) Ninety percent for enrollment of eligible participants.

(b) Ten percent for completion of the adult basic education objectives by achieving an increase of at least 1 grade level of proficiency in reading or mathematics; for achieving basic English proficiency; for passage of the G.E.D. test; for passage of a course required for a participant to attain a high school diploma; or for completion of the course and demonstrated proficiency in the academic skills to be learned in the course, as applicable.

(11) As used in this section, "participant" means the sum of the number of full-time equated individuals enrolled in and attending a department-approved adult education program under this section, using quarterly participant count days on the schedule described in section 6(7)(b).

(12) A person who is not eligible to be a participant funded under this section may receive adult education services upon the payment of tuition. In addition, a person who is not eligible to be served in a program under this section due to the program limitations specified in subsection (6), (7), (8), or (9) may continue to receive adult education services in that program upon the payment of tuition. The tuition level shall be determined by the local or intermediate district conducting the program.

(13) An individual who is an inmate in a state correctional facility shall not be counted as a participant under this section.

(14) A district shall not commingle money received under this section or from another source for adult education purposes with any other funds of the district. A district receiving adult education funds shall establish a separate ledger account for those funds. This subsection does not prohibit a district from using general funds of the district to support an adult education or community education program.

(15) THE DEPARTMENT SHALL WORK WITH THE DEPARTMENT OF EDUCATION TO ENSURE THAT THIS SECTION IS ADMINISTERED IN THE SAME MANNER AS IN 1998-99.

(16) AS USED IN THIS SECTION AND SECTION 108, "DEPARTMENT" MEANS THE DEPARTMENT OF CAREER DEVELOPMENT.

SEC. 108. (1) FROM THE GENERAL FUND APPROPRIATION IN SECTION 11, THERE IS ALLOCATED FOR 2000-2001, 2001-2002, AND 2002-2003 AN AMOUNT NOT TO EXCEED $20,000,000.00 EACH FISCAL YEAR FOR PARTNERSHIP FOR ADULT LEARNING PROGRAMS AUTHORIZED UNDER THIS SECTION.

(2) TO BE ELIGIBLE TO BE ENROLLED AS A PARTICIPANT IN AN ADULT LEARNING PROGRAM FUNDED UNDER THIS SECTION, A PERSON SHALL BE AT LEAST 16 YEARS OF AGE AS OF SEPTEMBER 1 OF THE IMMEDIATELY PRECEDING STATE FISCAL YEAR AND SHALL MEET THE FOLLOWING, AS APPLICABLE:

(A) IF THE INDIVIDUAL HAS OBTAINED A HIGH SCHOOL DIPLOMA OR A GENERAL EDUCATION DEVELOPMENT (G.E.D.) CERTIFICATE, THE INDIVIDUAL IS DETERMINED TO HAVE ENGLISH LANGUAGE PROFICIENCY, READING, WRITING, OR MATH SKILLS BELOW WORKFORCE READINESS STANDARDS AS DETERMINED BY DEPARTMENT-APPROVED TESTS AND IS NOT ENROLLED IN A POSTSECONDARY INSTITUTION. AN INDIVIDUAL WHO HAS OBTAINED A HIGH SCHOOL DIPLOMA IS NOT ELIGIBLE FOR ENROLLMENT IN A G.E.D. TEST PREPARATION PROGRAM FUNDED UNDER THIS SECTION.

(B) IF THE INDIVIDUAL HAS NOT OBTAINED A HIGH SCHOOL DIPLOMA OR A G.E.D. CERTIFICATE, THE INDIVIDUAL HAS NOT ATTENDED A SECONDARY INSTITUTION FOR AT LEAST 6 MONTHS BEFORE ENROLLMENT IN AN ADULT LEARNING PROGRAM FUNDED UNDER THIS SECTION AND IS NOT ENROLLED IN A POSTSECONDARY INSTITUTION.

(3) FROM THE ALLOCATION UNDER SUBSECTION (1), AN AMOUNT NOT TO EXCEED $19,800,000.00 IS ALLOCATED EACH FISCAL YEAR FOR 2000-2001, FOR 2001-2002, AND FOR 2002-2003 TO LOCAL WORKFORCE DEVELOPMENT BOARDS FOR THE PURPOSE OF PROVIDING REGIONAL ADULT LEARNING PROGRAMS. AN APPLICATION FOR A GRANT UNDER THIS SUBSECTION SHALL BE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. SUBJECT TO SUBSECTIONS (4), (5), AND (6), THE AMOUNT ALLOCATED TO EACH LOCAL WORKFORCE DEVELOPMENT BOARD SHALL BE AS PROVIDED IN THIS SUBSECTION, EXCEPT THAT AN ELIGIBLE LOCAL WORKFORCE DEVELOPMENT BOARD SHALL NOT RECEIVE AN INITIAL ALLOCATION UNDER THIS SECTION THAT IS LESS THAN $70,000.00. THE MAXIMUM AMOUNT OF A GRANT AWARDED TO AN ELIGIBLE LOCAL WORKFORCE DEVELOPMENT BOARD SHALL BE THE SUM OF THE FOLLOWING COMPONENTS:

(A) THIRTY-FOUR PERCENT OF THE ALLOCATION UNDER THIS SUBSECTION MULTIPLIED BY THE PROPORTION OF THE FAMILY INDEPENDENCE AGENCY CASELOAD IN THE LOCAL WORKFORCE DEVELOPMENT BOARD REGION TO THE STATEWIDE FAMILY INDEPENDENCE AGENCY CASELOAD.

(B) THIRTY-THREE PERCENT OF THE ALLOCATION UNDER THIS SUBSECTION MULTIPLIED BY THE PROPORTION OF THE NUMBER OF PERSONS IN THE LOCAL WORKFORCE DEVELOPMENT BOARD REGION OVER AGE 17 WHO HAVE NOT RECEIVED A HIGH SCHOOL DIPLOMA COMPARED TO THE STATEWIDE TOTAL OF PERSONS OVER AGE 17 WHO HAVE NOT RECEIVED A HIGH SCHOOL DIPLOMA.

(C) THIRTY-THREE PERCENT OF THE ALLOCATION UNDER THIS SUBSECTION MULTIPLIED BY THE PROPORTION OF THE NUMBER OF PERSONS IN THE LOCAL WORKFORCE DEVELOPMENT BOARD REGION OVER AGE 17 FOR WHOM ENGLISH IS NOT A PRIMARY LANGUAGE COMPARED TO THE STATEWIDE TOTAL OF PERSONS OVER AGE 17 FOR WHOM ENGLISH IS NOT A PRIMARY LANGUAGE.

(4) THE AMOUNT OF A GRANT TO A LOCAL WORKFORCE DEVELOPMENT BOARD UNDER SUBSECTION (3) SHALL NOT EXCEED THE COST FOR ADULT LEARNING PROGRAMS NEEDED IN THE LOCAL WORKFORCE DEVELOPMENT BOARD REGION, AS DOCUMENTED IN A MANNER APPROVED BY THE DEPARTMENT.

(5) NOT MORE THAN 9% OF A GRANT AWARDED TO A LOCAL WORKFORCE DEVELOPMENT BOARD MAY BE USED FOR PROGRAM ADMINISTRATION, INCLUDING CONTRACTING FOR THE PROVISION OF CAREER AND EDUCATIONAL INFORMATION, COUNSELING SERVICES, AND ASSESSMENT SERVICES.

(6) IN ORDER TO RECEIVE FUNDS UNDER THIS SECTION, A LOCAL WORKFORCE DEVELOPMENT BOARD SHALL COMPLY WITH THE FOLLOWING REQUIREMENTS IN A MANNER APPROVED BY THE DEPARTMENT:

(A) THE LOCAL WORKFORCE DEVELOPMENT BOARD SHALL DOCUMENT THE NEED FOR ADULT LEARNING PROGRAMS IN THE LOCAL WORKFORCE DEVELOPMENT REGION.

(B) THE LOCAL WORKFORCE DEVELOPMENT BOARD SHALL REPORT PARTICIPANT OUTCOMES AND OTHER MEASUREMENTS OF PROGRAM PERFORMANCE.

(C) THE LOCAL WORKFORCE DEVELOPMENT BOARD SHALL DEVELOP A STRATEGIC PLAN THAT INCORPORATES ADULT LEARNING PROGRAMS IN THE REGION. BEGINNING IN 2001-2002, A LOCAL WORKFORCE DEVELOPMENT BOARD IS NOT ELIGIBLE FOR STATE FUNDS UNDER THIS SECTION WITHOUT A DEPARTMENT-APPROVED STRATEGIC PLAN.

(D) THE LOCAL WORKFORCE DEVELOPMENT BOARD SHALL FURNISH TO THE DEPARTMENT, IN A FORM AND MANNER DETERMINED BY THE DEPARTMENT, THE INFORMATION THE DEPARTMENT DETERMINES IS NECESSARY TO ADMINISTER THIS SECTION.

(E) THE LOCAL WORKFORCE DEVELOPMENT BOARD SHALL ALLOW ACCESS FOR THE DEPARTMENT OR THE DEPARTMENT'S DESIGNEE TO AUDIT ALL RECORDS RELATED TO ADULT LEARNING PROGRAMS FOR WHICH IT RECEIVES FUNDS. THE LOCAL WORKFORCE DEVELOPMENT BOARD SHALL REIMBURSE THIS STATE FOR ALL DISALLOWANCES FOUND IN THE AUDIT IN A MANNER DETERMINED BY THE DEPARTMENT.

(7) LOCAL WORKFORCE DEVELOPMENT BOARDS SHALL DISTRIBUTE FUNDS TO ELIGIBLE ADULT LEARNING PROVIDERS AS FOLLOWS:

(A) NOT LESS THAN 85% OF A GRANT AWARD SHALL BE USED TO SUPPORT PROGRAMS THAT IMPROVE READING, WRITING, AND MATH SKILLS TO WORKFORCE READINESS STANDARDS; ENGLISH AS A SECOND LANGUAGE PROGRAMS; G.E.D. PREPARATION PROGRAMS; HIGH SCHOOL COMPLETION PROGRAMS; OR WORKFORCE READINESS PROGRAMS IN THE LOCAL WORKFORCE DEVELOPMENT BOARD REGION. THESE PROGRAMS MAY INCLUDE THE PROVISION OF CAREER AND EDUCATIONAL INFORMATION, COUNSELING SERVICES, AND ASSESSMENT SERVICES.

(B) UP TO 15% OF A GRANT AWARD MAY BE USED TO SUPPORT WORKFORCE READINESS PROGRAMS FOR EMPLOYERS IN THE LOCAL WORKFORCE DEVELOPMENT BOARD REGION AS APPROVED BY THE DEPARTMENT. EMPLOYERS OR CONSORTIA OF EMPLOYERS WHOSE EMPLOYEES PARTICIPATE IN THESE PROGRAMS MUST PROVIDE MATCHING FUNDS IN A RATIO OF AT LEAST $1.00 OF PRIVATE FUNDS FOR EACH $1.00 OF STATE FUNDS.

(8) LOCAL WORKFORCE DEVELOPMENT BOARDS SHALL AWARD COMPETITIVE GRANTS TO ELIGIBLE ADULT LEARNING PROVIDERS FOR THE PURPOSE OF PROVIDING ADULT LEARNING PROGRAMS IN THE LOCAL WORKFORCE DEVELOPMENT BOARD REGION. APPLICATIONS SHALL BE IN A FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. IN AWARDING GRANTS, LOCAL WORKFORCE DEVELOPMENT BOARDS SHALL CONSIDER ALL OF THE FOLLOWING:

(A) THE ABILITY OF THE PROVIDER TO ASSESS INDIVIDUALS BEFORE ENROLLMENT USING DEPARTMENT-APPROVED ASSESSMENT TOOLS AND TO DEVELOP INDIVIDUAL ADULT LEARNER PLANS FROM THOSE ASSESSMENTS FOR EACH PARTICIPANT.

(B) THE ABILITY OF THE PROVIDER TO CONDUCT CONTINUING ASSESSMENTS IN A MANNER APPROVED BY THE DEPARTMENT TO DETERMINE PARTICIPANT PROGRESS TOWARD ACHIEVING THE GOALS ESTABLISHED IN INDIVIDUAL ADULT LEARNER PLANS.

(C) THE PAST EFFECTIVENESS OF AN ELIGIBLE PROVIDER IN IMPROVING ADULT LITERACY SKILLS AND, BEGINNING IN 2001-2002, THE SUCCESS OF AN ELIGIBLE PROVIDER IN MEETING OR EXCEEDING DEPARTMENT-APPROVED PERFORMANCE MEASURES.

(D) WHETHER THE PROGRAM IS OF SUFFICIENT INTENSITY AND DURATION FOR PARTICIPANTS TO ACHIEVE SUBSTANTIAL LEARNING GAINS.

(E) WHETHER THE PROGRAM USES RESEARCH-BASED INSTRUCTIONAL PRACTICES THAT HAVE PROVEN TO BE EFFECTIVE IN TEACHING ADULT LEARNERS.

(F) WHETHER THE PROGRAM USES ADVANCES IN TECHNOLOGY, AS APPROPRIATE, INCLUDING COMPUTERS.

(G) WHETHER THE PROGRAMS ARE STAFFED BY WELL-TRAINED TEACHERS, COUNSELORS, AND ADMINISTRATORS.

(H) WHETHER THE ACTIVITIES COORDINATE WITH OTHER AVAILABLE RESOURCES IN THE COMMUNITY, SUCH AS SCHOOLS, POSTSECONDARY INSTITUTIONS, JOB TRAINING PROGRAMS, AND SOCIAL SERVICE AGENCIES.

(I) WHETHER THE PROVIDER OFFERS FLEXIBLE SCHEDULES AND SUPPORT SERVICES, SUCH AS CHILD CARE AND TRANSPORTATION, THAT ENABLE PARTICIPANTS, INCLUDING INDIVIDUALS WITH DISABILITIES OR OTHER SPECIAL NEEDS, TO ATTEND AND COMPLETE PROGRAMS.

(J) WHETHER THE PROVIDER OFFERS ADEQUATE JOB AND POSTSECONDARY EDUCATION COUNSELING SERVICES.

(K) WHETHER THE PROVIDER CAN MAINTAIN AN INFORMATION MANAGEMENT SYSTEM THAT HAS THE CAPACITY TO REPORT PARTICIPANT OUTCOMES AND MONITOR PROGRAM PERFORMANCE AGAINST DEPARTMENT-APPROVED PERFORMANCE MEASURES.

(l) WHETHER THE PROVIDER WILL ALLOW ACCESS FOR THE LOCAL WORKFORCE DEVELOPMENT BOARD OR ITS DESIGNEE TO AUDIT ALL RECORDS RELATED TO ADULT LEARNING PROGRAMS FOR WHICH IT RECEIVES FUNDS. THE ADULT LEARNING PROVIDER SHALL REIMBURSE THE LOCAL WORKFORCE DEVELOPMENT BOARD FOR ALL DISALLOWANCES FOUND IN THE AUDIT.

(M) THE COST PER PARTICIPANT CONTACT HOUR OR UNIT OF MEASURABLE OUTCOME FOR EACH TYPE OF ADULT LEARNING PROGRAM FOR WHICH THE PROVIDER IS APPLYING.

(9) BEGINNING IN 2001-2002, CONTRACTS AWARDED BY LOCAL WORKFORCE DEVELOPMENT BOARDS TO ADULT LEARNING PROVIDERS SHALL COMPLY WITH THE PRIORITIES ESTABLISHED IN A DEPARTMENT-APPROVED STRATEGIC PLAN.

(10) ADULT LEARNING PROVIDERS THAT DO NOT AGREE WITH THE DECISIONS OF THE LOCAL WORKFORCE DEVELOPMENT BOARD IN ISSUING OR ADMINISTERING COMPETITIVE GRANTS MAY USE THE GRIEVANCE PROCEDURE ESTABLISHED BY THE DEPARTMENT.

(11) LOCAL WORKFORCE DEVELOPMENT BOARDS SHALL REIMBURSE ELIGIBLE ADULT LEARNING PROVIDERS UNDER THIS SECTION AS FOLLOWS:

(A) FOR A FIRST-TIME PROVIDER, AS FOLLOWS:

(i) FIFTY PERCENT OF THE CONTRACT AMOUNT SHALL BE ALLOCATED TO ELIGIBLE ADULT LEARNING PROVIDERS BASED UPON ENROLLMENT OF PARTICIPANTS IN ADULT LEARNING PROGRAMS. "ENROLLMENT" MEANS A PARTICIPANT ENROLLED IN THE PROGRAM WHO RECEIVED A PREENROLLMENT ASSESSMENT USING DEPARTMENT-APPROVED ASSESSMENT TOOLS AND FOR WHOM AN INDIVIDUAL ADULT LEARNER PLAN HAS BEEN DEVELOPED.

(ii) FIFTY PERCENT OF THE CONTRACT AMOUNT SHALL BE ALLOCATED TO ELIGIBLE ADULT LEARNING PROVIDERS BASED UPON THE FOLLOWING PERFORMANCE STANDARDS AS MEASURED IN A DEPARTMENT-APPROVED MANNER:

(A) THE PERCENTAGE OF PARTICIPANTS TAKING BOTH A PRETEST AND A POSTTEST IN ENGLISH LANGUAGE PROFICIENCY, READING, WRITING, AND MATH.

(B) THE PERCENTAGE OF PARTICIPANTS SHOWING IMPROVEMENT TOWARD GOALS IDENTIFIED IN THEIR INDIVIDUAL ADULT LEARNER PLAN.

(C) THE PERCENTAGE OF PARTICIPANTS ACHIEVING THEIR TERMINAL GOALS AS IDENTIFIED IN THEIR INDIVIDUAL ADULT LEARNER PLAN.

(B) BEGINNING IN 2001-2002, ELIGIBLE PROVIDERS THAT HAVE PROVIDED ADULT LEARNING PROGRAMS PREVIOUSLY UNDER THIS SECTION SHALL BE REIMBURSED 100% OF THE CONTRACT AMOUNT BASED UPON THE PERFORMANCE STANDARDS IN SUBDIVISION (A)(ii) AS MEASURED IN A MANNER DETERMINED BY THE DEPARTMENT.

(C) A PROVIDER IS ELIGIBLE FOR REIMBURSEMENT FOR A PARTICIPANT IN AN ADULT LEARNING PROGRAM UNTIL THE PARTICIPANT'S READING, WRITING, OR MATH PROFICIENCY, AS APPLICABLE, IS ASSESSED AT WORKFORCE READINESS LEVELS OR THE PARTICIPANT FAILS TO SHOW PROGRESS ON 2 SUCCESSIVE ASSESSMENTS AS DETERMINED BY THE DEPARTMENT.

(D) A PROVIDER IS ELIGIBLE FOR REIMBURSEMENT FOR A PARTICIPANT IN AN ENGLISH AS A SECOND LANGUAGE PROGRAM UNTIL THE PARTICIPANT IS ASSESSED AS HAVING ATTAINED BASIC ENGLISH PROFICIENCY OR THE PARTICIPANT FAILS TO SHOW PROGRESS ON 2 SUCCESSIVE ASSESSMENTS AS DETERMINED BY THE DEPARTMENT.

(E) A PROVIDER IS ELIGIBLE FOR REIMBURSEMENT FOR A PARTICIPANT IN A G.E.D. TEST PREPARATION PROGRAM UNTIL THE PARTICIPANT PASSES THE G.E.D. TEST OR THE PARTICIPANT FAILS TO SHOW PROGRESS ON 2 SUCCESSIVE ASSESSMENTS AS DETERMINED BY THE DEPARTMENT.

(F) A PROVIDER IS ELIGIBLE FOR REIMBURSEMENT FOR A PARTICIPANT IN A HIGH SCHOOL COMPLETION PROGRAM UNTIL THE PARTICIPANT EARNS A HIGH SCHOOL DIPLOMA OR THE PARTICIPANT FAILS TO SHOW PROGRESS AS DETERMINED BY THE DEPARTMENT.

(12) A PERSON WHO IS NOT ELIGIBLE TO BE A PARTICIPANT FUNDED UNDER THIS SECTION MAY RECEIVE ADULT LEARNING SERVICES UPON THE PAYMENT OF TUITION OR FEES FOR SERVICE. THE TUITION OR FEE LEVEL SHALL BE DETERMINED BY THE ADULT LEARNING PROVIDER AND APPROVED BY THE LOCAL WORKFORCE DEVELOPMENT BOARD.

(13) ADULT LEARNING PROVIDERS MAY COLLECT REFUNDABLE DEPOSITS FROM PARTICIPANTS FOR THE USE OF REUSABLE EQUIPMENT AND SUPPLIES AND MAY PROVIDE INCENTIVES FOR PROGRAM COMPLETION.

(14) A PROVIDER SHALL NOT BE REIMBURSED UNDER THIS SECTION FOR AN INDIVIDUAL WHO IS AN INMATE IN A STATE CORRECTIONAL FACILITY.

(15) IN ORDER TO ADMINISTER THE PARTNERSHIP FOR ADULT LEARNING SYSTEM UNDER THIS SECTION, THE DEPARTMENT SHALL DO ALL OF THE FOLLOWING:

(A) DEVELOP AND PROVIDE GUIDELINES TO LOCAL WORKFORCE DEVELOPMENT BOARDS FOR THE DEVELOPMENT OF STRATEGIC PLANS THAT INCORPORATE ADULT LEARNING.

(B) DEVELOP AND PROVIDE ADULT LEARNING MINIMUM PROGRAM PERFORMANCE STANDARDS TO BE IMPLEMENTED BY LOCAL WORKFORCE DEVELOPMENT BOARDS.

(C) IDENTIFY APPROVED ASSESSMENT TOOLS FOR ASSESSING A PARTICIPANT'S ENGLISH LANGUAGE PROFICIENCY, READING, MATH, AND WRITING SKILLS.

(D) APPROVE WORKFORCE READINESS STANDARDS FOR ENGLISH LANGUAGE PROFICIENCY, READING, MATH, AND WRITING SKILLS THAT CAN BE MEASURED BY DEPARTMENT-APPROVED, NATIONALLY RECOGNIZED ASSESSMENT TOOLS.

(16) OF THE AMOUNT ALLOCATED IN SUBSECTION (1), UP TO $200,000.00 IS ALLOCATED TO THE DEPARTMENT FOR THE DEVELOPMENT AND ADMINISTRATION OF A STANDARDIZED DATA COLLECTION SYSTEM. BEGINNING IN 2001-2002, LOCAL WORKFORCE DEVELOPMENT BOARDS AND ADULT LEARNING PROVIDERS RECEIVING FUNDING UNDER THIS SECTION SHALL USE THE STANDARDIZED DATA COLLECTION SYSTEM FOR ENROLLING PARTICIPANTS IN ADULT LEARNING PROGRAMS, TRACKING PARTICIPANT PROGRESS, REPORTING PARTICIPANT OUTCOMES, AND REPORTING OTHER PERFORMANCE MEASURES.

(17) A PROVIDER IS NOT REQUIRED TO USE CERTIFICATED TEACHERS OR CERTIFICATED COUNSELORS TO PROVIDE INSTRUCTIONAL AND COUNSELING SERVICES IN A PROGRAM FUNDED UNDER THIS SECTION.

(18) AS USED IN THIS SECTION:

(A) "ADULT EDUCATION", FOR THE PURPOSES OF COMPLYING WITH SECTION 3 OF ARTICLE VIII OF THE STATE CONSTITUTION OF 1963, MEANS A HIGH SCHOOL PUPIL RECEIVING EDUCATIONAL SERVICES IN A NONTRADITIONAL SETTING FROM A DISTRICT OR INTERMEDIATE DISTRICT IN ORDER TO RECEIVE A HIGH SCHOOL DIPLOMA.

(B) "ADULT LEARNING PROGRAM" MEANS A DEPARTMENT-APPROVED PROGRAM THAT IMPROVES READING, WRITING, AND MATH SKILLS TO WORKFORCE READINESS STANDARDS; AN ENGLISH AS A SECOND LANGUAGE PROGRAM; A G.E.D. PREPARATION PROGRAM; A HIGH SCHOOL COMPLETION PROGRAM; OR A WORKFORCE READINESS PROGRAM THAT ENHANCES EMPLOYMENT OPPORTUNITIES.

(C) "DEPARTMENT" MEANS THE DEPARTMENT OF CAREER DEVELOPMENT.

(D) "ELIGIBLE ADULT LEARNING PROVIDER" MEANS A DISTRICT, PUBLIC SCHOOL ACADEMY, INTERMEDIATE DISTRICT, COMMUNITY COLLEGE, UNIVERSITY, COMMUNITY-BASED ORGANIZATION, OR OTHER ORGANIZATION APPROVED BY THE DEPARTMENT THAT PROVIDES ADULT LEARNING PROGRAMS UNDER A CONTRACT WITH A LOCAL WORKFORCE DEVELOPMENT BOARD.

(E) "PARTICIPANT" MEANS AN INDIVIDUAL ENROLLED IN AN ADULT LEARNING PROGRAM AND RECEIVING SERVICES FROM AN ELIGIBLE ADULT LEARNING PROVIDER.

(F) "STRATEGIC PLAN" MEANS A DEPARTMENT-APPROVED DOCUMENT THAT INCORPORATES ADULT LEARNING GOALS AND OBJECTIVES FOR THE LOCAL WORKFORCE DEVELOPMENT BOARD REGION AND IS DEVELOPED JOINTLY BY THE LOCAL WORKFORCE DEVELOPMENT BOARD AND THE EDUCATION ADVISORY GROUPS.

(G) "WORKFORCE DEVELOPMENT BOARD" MEANS A LOCAL WORKFORCE DEVELOPMENT BOARD ESTABLISHED PURSUANT TO THE WORKFORCE INVESTMENT ACT OF 1998, PUBLIC LAW 105-220, 112 STAT. 936, AND THE SCHOOL-TO-WORK OPPORTUNITIES ACT OF 1994, PUBLIC LAW 103-239, 108 STAT. 568, OR THE EQUIVALENT.

(H) "WORKFORCE READINESS STANDARD" MEANS A DEPARTMENT-APPROVED LEVEL OF ENGLISH LANGUAGE, READING, WRITING, OR MATHEMATICS PROFICIENCY, OR ANY AND ALL OF THESE, AS DETERMINED BY RESULTS FROM ASSESSMENTS APPROVED FOR USE BY THE DEPARTMENT.

Sec. 147. (1) The allocations for 1998-99, 1999-2000, and 2000-2001, 2001-2002, AND 2002-2003 for the public school employees' retirement system pursuant to the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1467, shall be made using the entry age normal cost actuarial method and risk assumptions adopted by the public school employees retirement board and the department of management and budget. Effective October 1, 1998, the annual level percentage of payroll contribution rate for the 1998-99 state fiscal year is estimated at 11.12%, the THE annual level percentage of payroll contribution rate for the 1999-2000 state fiscal year is estimated at 11.66% ,and the annual level percentage of payroll contribution rate for the 2000-2001 state fiscal year is estimated at 11.66% 12.16%. The portion of the contribution rate assigned to districts and intermediate districts for 1998-99, 1999-2000, and 2000-2001 EACH FISCAL YEAR is all of the total percentage points. This contribution rate reflects an amortization period of 38 years for 1998-99, 37 years for 1999-2000 , and 36 years for 2000-2001. The public school employees' retirement system board shall notify each district and intermediate district by February 28 of each fiscal year of the estimated contribution rate for the next fiscal year.

(2) It is the intent of the legislature that the amortization period described in section 41(2) of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, be reduced to 30 years by the end of the 2005-2006 state fiscal year by reducing the amortization period by not more than 1 year each fiscal year.

Sec. 151. (1) The treasurer of each county shall furnish to the department, on or before August 1 of each year following the receipt of assessment rolls, a statement of the taxable value of each district and fraction of a district within the county, using forms furnished by the department. On or before May 1 of each year, the treasurer of each county shall submit to the department revisions to the taxable value for the immediately preceding year of each district and fraction of a district within the county, using forms furnished by the department. On or before October 1 of each year, the treasurer of each county shall submit to the department revisions to the taxable value for the 2 immediately preceding years AFTER 1993 of each district and fraction of a district within the county, using forms furnished by the department. The reports required by this subsection shall also contain the amount of ad valorem taxable value captured for school operating taxes under a tax increment financing plan under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672.

(2) Not later than the tenth day of each month, the tax tribunal created by the tax tribunal act, 1973 PA 186, MCL 205.701 to 205.779, shall report to the department the changes in taxable value for tax years after 1993 that are not reported to the department under subsection (1) and that are caused by tax tribunal decisions in the immediately preceding month for homestead and qualified agricultural property, as defined in section 1211 of the revised school code, MCL 380.1211, and for property that is not homestead or qualified agricultural property, in each district and intermediate district. The report shall also contain the amount of taxable value captured under a tax increment financing plan described in subsection (1) for school operating tax purposes.

Sec. 152. Except for reports due on other dates specified in this act, each district and intermediate district shall furnish to the department before the first Monday in November of each year those reports the department considers necessary for the determination of the allocation of funds under this act. In order to receive funds under this act, each district and intermediate district shall also furnish to the department the information the department considers necessary for the administration of this act, INCLUDING INFORMATION NECESSARY TO DETERMINE COMPLIANCE WITH ARTICLE 16, and for the provision of reports of educational progress to the senate and house committees responsible for education, the senate and house appropriations subcommittees responsible for appropriations to school districts, the senate and house fiscal agencies, and the department of management and budget STATE BUDGET DIRECTOR, as appropriate.

Sec. 163. (1) Except as provided in the revised school code OR IN SECTION 108, the board of a district or intermediate district shall not permit any of the following:

(a) A noncertificated teacher to teach in an elementary or secondary school or in an adult basic education or high school completion program.

(b) A noncertificated counselor to provide counseling services to pupils in an elementary or secondary school or in an adult basic education or high school completion program.

(2) Except as provided in the revised school code OR IN SECTION 108, a district or intermediate district employing teachers or counselors not legally certificated shall have deducted the sum equal to the amount paid the teachers or counselors for the period of noncertificated or illegal employment. Each intermediate superintendent shall notify the department of the name of the noncertificated teacher or counselor, and the district employing that individual and the amount of salary the noncertificated teacher or counselor was paid within a constituent district.

(3) If a school official is notified by the department that he or she is employing a nonapproved noncertificated teacher or counselor in violation of this section and knowingly continues to employ that teacher or counselor, the school official is guilty of a misdemeanor, punishable by a fine of $1,500.00 for each incidence.

Enacting section 1. In accordance with section 30 of article IX of the state constitution of 1963, total state spending in this amendatory act and in 1999 PA 119, 1998 PA 553, and 1998 PA 339 from state sources for fiscal year 1999-2000 is estimated at $10,125,829,300.00 and state appropriations to be paid to local units of government for fiscal year 1999-2000 are estimated at $9,977,476,500.00; total state spending in this amendatory act and in 1999 PA 119 from state sources for fiscal year 2000-2001 is estimated at $10,820,435,000.00 and state appropriations to be paid to local units of government for fiscal year 2000-2001 are estimated at $10,553,210,000.00; total state spending in this amendatory act from state sources for fiscal year 2001-2002 is estimated at $11,430,103,300.00 and state appropriations to be paid to local units of government for fiscal year 2001-2002 are estimated at $11,175,186,400.00; and total state spending in this amendatory act from state sources for fiscal year 2002-2003 is estimated at $11,791,973,800.00 and state appropriations to be paid to local units of government for fiscal year 2002-2003 are estimated at $11,536,849,500.00.

Enacting section 2. Sections 20b, 31c, 32, 36, 36a, and 91b of the state school aid act of 1979, 1979 PA 94, MCL 388.1620b, 388.1631c, 388.1632, 388.1636, 388.1636a, and 388.1691b, are repealed effective October 1, 2000.

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

A bill to amend 1979 PA 94, entitled "An act to make appropriations to aid in the support of the public schools and the intermediate school districts of the state; to make appropriations for certain other purposes relating to education; to provide for the disbursement of the appropriations; to supplement the school aid fund by the levy and collection of certain taxes; to authorize the issuance of certain bonds and provide for the security of those bonds; to prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to prescribe penalties; and to repeal acts and parts of acts," by amending sections 3, 6, 8, 11, 11f, 11g, 17b, 19, 20, 20j, 21b, 24, 25, 26a, 31a, 31d, 33, 37, 38, 39, 40, 41, 51a, 53a, 54, 56, 57, 61a, 62, 63, 67, 68, 74, 81, 91c, 94, 99, 101, 102, 105, 105b, 105c, 107, 147, 151, 152, and 163 (MCL 388.1603, 388.1606, 388.1608, 388.1611, 388.1611f, 388.1611g, 388.1617b, 388.1619, 388.1620, 388.1620j, 388.1621b, 388.1624, 388.1625, 388.1626a, 388.1631a, 388.1631d, 388.1633, 388.1637, 388.1638, 388.1639, 388.1640, 388.1641, 388.1651a, 388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662, 388.1663, 388.1667, 388.1668, 388.1674, 388.1681, 388.1691c, 388.1694, 388.1699, 388.1701, 388.1702, 388.1705, 388.1705b, 388.1705c, 388.1707, 388.1747, 388.1751, 388.1752, and 388.1763), sections 3, 25, and 151 as amended by 1997 PA 93, sections 6, 11, 11f, 11g, 17b, 20, 24, 26a, 31a, 41, 51a, 53a, 54, 56, 57, 61a, 62, 63, 67, 68, 74, 81, 94, 99, 101, 105, 107, and 147 as amended and sections 20j, 31d, 33, and 105c as added by 1999 PA 119, sections 8 and 39 as amended by 1997 PA 142, sections 19, 21b, 37, 38, 102, and 163 as amended by 1996 PA 300, section 40 as amended by 1991 PA 118, section 91c as added by 1995 PA 130, section 105b as added by 1997 PA 24, and section 152 as amended by 1993 PA 175, and by adding sections 11j, 11k, 11l, 18b, 18c, 20k, 22a, 22b, 22c, 25b, 32a, 32b, 32c, 32d, 32e, 32f, 32g, 32h, 35, 51c, 94a, 95, 96, 97, 98, 98a, and 108; and to repeal acts and parts of acts.

Leon Stille

Loren Bennett

Conferees for the Senate

Ron Jelinek

Tony Stamas

Conferees for the House

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

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

The motion prevailed.

The question being on the adoption of the conference report,

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

Roll Call No. 820 Yeas--68

Allen Faunce Kuipers Scott

Baird Frank Kukuk Scranton

Birkholz Garcia LaSata Shackleton

Bisbee Garza Martinez Sheltrown

Bishop Geiger Mead Shulman

Bradstreet Gieleghem Neumann Spade

Brater Gosselin Pappageorge Stallworth

Brown, B. Hager Patterson Stamas

Byl Hale Perricone Tabor

Callahan Hardman Pestka Thomas

Cassis Jansen Price Toy

Caul Jellema Quarles Van Woerkom

Clark, I. Johnson, Rick Reeves Vaughn

Daniels Julian Richardville Vear

DeHart Kilpatrick Richner Voorhees

DeVuyst Koetje Sanborn Wojno

DeWeese Kowall Schermesser Woronchak

Nays--40

Basham Gilbert Johnson, Ruth Pumford

Bogardus Godchaux Kelly Raczkowski

Bovin Green LaForge Rison

Brewer Hanley Law Rivet

Brown, C. Hansen Lockwood Rocca

Cherry Hart Mans Schauer

Clarke, H. Howell Middaugh Switalski

Dennis Jacobs Minore Tesanovich

DeRossett Jamnick Mortimer Vander Roest

Ehardt Jelinek Prusi Woodward

In The Chair: Scranton

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

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

______

Reps. Lockwood, Woodward, Minore, Jamnick, Basham and Jacobs, having reserved the right to explain their nay vote, made the following statement:

"Mr. Speaker and members of the House:

I voted no on Senate Bill 1044 for several reasons. First, there is a $35,000,000 reduction in General Fund spending for FY 2001 and a $215,000,000 reduction in General Fund spending for FY 2002. Even with the promise to restore the funding with an increase of $420,000,000, this sets a dangerous precedent for state General Fund support of schools across the state.

With the current budget surplus, Michigan could finally meet its obligations for funding special education. Unfortunately, this budget does not address that funding. Instead, the Governor's proposal shifts funding around without adding the needed additional dollars.

Finally, lowering class size is a proven method of improving student achievement. This budget provides a pittance for small class size, even with surplus."

Rep. Dennis, having reserved the right to explain her nay vote, made the following statement:

"Mr. Speaker and members of the House:

I voted no on Senate Bill 1044 for several reasons. First, there is a $35,000,000 reduction in General Fund spending for FY 2001 and a $215,000,000 reduction in General Fund spending for FY 2002. Even with the promise to restore the funding with an increase of $420,000,000l, this sets a dangerous precedent for state General Fund support of schools across the state.

With the current budget surplus, Michigan could finally meet its obligations for funding special education. Unfortunately, this budget does not address that funding. Instead, the Governor's proposal shifts funding around without adding the needed additional dollars.

Additionally, lowering class size is a proven method of improving student achievement. This budget provides a pittance for small class size, even with surplus.

Lastly, this is a direct reflection of tax-cuts gone amuck. By drastically reducing the General Fund budget through giving taxcuts to the wealthiest individuals and corporations in the state, the only way to shore up the general fund is to rob the school aid budget and balance it on the backs of the students across the state. Therefore, I voted no."

Rep. Bogardus, having reserved the right to explain her nay vote, made the following statement:

"Mr. Speaker and members of the House:

I voted no on Senate Bill 1044 because it breaks a promise to the school children of this state. Proposal A included general fund money for schools. This budget removes that funding. This budget provides almost no money for school building improvement even though we have the resources at this time to help local districts and ease the burden of local millage for infrastructure. Under this budget the state is not meeting its obligation to fund special education. This budget will have a far reaching negative impact on school funding."

Reps. Jelinek and Howell, having reserved the right to explain their nay vote, made the following statement:

"Mr. Speaker and members of the House:

I voted no on final passage of SB 1044 because there was no agreement to assure the inclusion of all line items of this bill that make it a good bill.

A good bill contains more than good increases in Basic Foundation grants, and these are good increases. However we need to adequately address: declining enrollments, school borrowing and school infrastructure.

The removal of 250 million dollars of GF/GP Funds is a revocation of an agreement on a belief of an agreement to fund schools fully.

As work progressed on this budget, we had to determine which worthy programs should be reduced in order to meet targets. Those reductions would not be necessary had the General Funds been retained and targets held at the proposed level."

Rep. Cameron Brown, having reserved the right to explain his nay vote, made the following statement:

"Mr. Speaker and members of the House:

My reason for voting no on SB 1044 (K-12 Budget) was simple. The decision to do so was difficult. All of the Superintendents from my district who contacted me instructed me to vote no on principle. They strongly disapprove of the general fund contribution reduction to the school aid fund. They feel that this is a violation of Proposal A passed by the people of Michigan. They believe this is a slippery slope and I agree with them. They also feel that the $15 million dollars being given to Detroit and any other 'take over' school is money that belongs to all schools. I agree. It is unfortunate to vote against this bill given the significant investment this bill makes in public education, especially early intervention programs. My thought is that it should go back to conference to restore the general fund contribution and remove the $15 million 'gift' to failing schools."

Rep. Middaugh, having reserved the right to explain her nay vote, made the following statement:

"Mr. Speaker and members of the House:

SB 1044 has many great aspects that will enhance education for the students in Cass and Van Buren Counties and I support those parts of the bill. I do not, however, support an additional $15 million appropriation for Detroit Public Schools over and above the amount already given to them. Also, I do not support the transfer of $250 million from the school aid fund to the general fund of the state. Let's go back to a second conference committee and make this bill better and preserve the balance of the school aid fund by keeping this $265 million in the fund."

Rep. Ruth Johnson, having reserved the right to explain her nay vote, made the following statement:

"Mr. Speaker and members of the House:

SB 1044 has many great aspects that will enhance education for the students in Oakland County and I support those parts of the bill. I do not, however, support an additional $15 million appropriation for Detroit Public Schools over and above the amount already given to them. Also, I do not support the transfer of $250 million from the school aid fund to the general fund of the state. Let's go back to a second conference committee and make this bill better and preserve the balance of the school aid fund by keeping this $265 million in the fund."

Rep. Clarke, having reserved the right to explain his nay vote, made the following statement:

"Mr. Speaker and members of the House:

I do not support SB 1044 because it does not properly fund districts' special education costs nor does it sufficiently reduce the inequity in the state's per-pupil foundation allowance grants. The special education funding scheme in this bill does not comply with the state constitution because it continues to use foundation allowance revenue to fund the state's obligation under the Headlee Amendment.

Notwithstanding the increases in the basic foundation grants, this bill does not adequately address the issues of declining enrollment, school borrowing and infrastructure needs. Also, removing 250 million dollars of GF/GP funds undermines the state's commitment to fund schools fully. The legislature would not have had to reduce the scope of some worthy programs by changing funding targets if it had retained all of the GF/GP funding."

Messages from the Senate

House Bill No. 5721, entitled

A bill to amend 1991 PA 179, entitled "Michigan telecommunications act," by amending sections 101, 103, 201, 203, 203a, 213, 302, 303, 304, 310, 312, 502, 503, 506, and 601 (MCL 484.2101, 484.2103, 484.2201, 484.2203, 484.2203a, 484.2213, 484.2302, 484.2303, 484.2304, 484.2310, 484.2312, 484.2502, 484.2503, 484.2506 and 484.2601), sections 101, 203, 213, 303, 304, 310, 312 and 601 as amended and sections 203a, 502, and 503 as added by 1995 PA 216 and section 506 as added by 1998 PA 259 and by adding sections 214, 316a, 507, and 701; and to repeal acts and parts of acts.

The Senate has substituted (S-14) the bill.

The Senate has passed the bill as substituted (S-14), ordered that it be given immediate effect and amended the title to read as follows:

A bill to amend 1991 PA 179, entitled "An act to regulate and insure the availability of certain telecommunication services; to prescribe the powers and duties of certain state agencies and officials; to prescribe penalties; to repeal certain acts and parts of acts; and to repeal this act on a specific date," by amending sections 101, 103, 201, 203, 203a, 207, 213, 302, 303, 304, 310, 312, 502, 503, 506, 601, and 604 (MCL 484.2101, 484.2103, 484.2201, 484.2203, 484.2203a, 484.2207, 484.2213, 484.2302, 484.2303, 484.2304, 484.2310, 484.2312, 484.2502, 484.2503, 484.2506, 484.2601, and 484.2604), sections 101, 203, 207, 213, 303, 304, 310, 312, 601, and 604 as amended and sections 203a, 502, and 503 as added by 1995 PA 216 and section 506 as added by 1998 PA 259, and by adding sections 214, 316a, 322, 507, and 701; and to repeal acts and parts of acts.

The Speaker announced that pursuant to Rule 45, the bill was laid over one day.

Rep. Raczkowski moved that Rule 45 be suspended.

The question being on the motion made by Rep. Raczkowski,

Rep. Kilpatrick demanded the yeas and nays.

The demand was supported.

The question being on the motion made by Rep. Raczkowski,

The motion did not prevail, 3/5 of the members present not voting therefor, by yeas and nays, as follows:

Roll Call No. 821 Yeas--58

Allen Geiger Kowall Richner

Birkholz Gilbert Kuipers Rocca

Bisbee Godchaux Kukuk Sanborn

Bishop Gosselin LaSata Scranton

Bradstreet Green Law Shackleton

Brown, C. Hager Mead Shulman

Byl Hart Middaugh Stamas

Cassis Howell Mortimer Tabor

Caul Jansen Pappageorge Toy

DeRossett Jelinek Patterson Van Woerkom

DeVuyst Jellema Perricone Vander Roest

DeWeese Johnson, Rick Pumford Vear

Ehardt Johnson, Ruth Raczkowski Voorhees

Faunce Julian Richardville Woronchak

Garcia Koetje

Nays--51

Baird Dennis Lockwood Schauer

Basham Frank Mans Schermesser

Bogardus Garza Martinez Scott

Bovin Gieleghem Minore Sheltrown

Brater Hale Neumann Spade

Brewer Hanley O'Neil Stallworth

Brown, B. Hansen Pestka Switalski

Callahan Hardman Price Tesanovich

Cherry Jacobs Prusi Thomas

Clark, I. Jamnick Quarles Vaughn

Clarke, H. Kelly Reeves Wojno

Daniels Kilpatrick Rison Woodward

DeHart LaForge Rivet

In The Chair: Scranton

______

Rep. Jacobs moved that Rep. Kilpatrick be excused temporarily from today's session.

The motion prevailed.

By unanimous consent the House returned to the order of

Reports of Select Committees

First Conference Report

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

House Bill No. 5277, entitled

A bill to make appropriations for the family independence agency and certain state purposes related to public welfare services for the fiscal year ending September 30, 2001; to provide for the expenditure of the appropriations; to create funds; to provide for the imposition of fees; to provide for reports; to provide for the disposition of fees and other income received by the state agency; and to provide for the powers and duties of certain individuals, local governments, and state departments, agencies, and officers.

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 and to the following amendments:

1. Amend page 1, line 1, by striking out all of part 1 and inserting:

"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 family independence agency for the fiscal year ending September 30, 2001, from the funds indicated in this part. The following is a summary of the appropriations in this part:

FAMILY INDEPENDENCE AGENCY

Full-time equated classified positions 13,499.6

Full-time equated unclassified positions 6.0

Total full-time equated positions 13,505.6

GROSS APPROPRIATION $ 3,599,927,500

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers $ 765,000

ADJUSTED GROSS APPROPRIATION $ 3,599,162,500

Federal revenues:

Total federal revenues 2,212,251,150

Special revenue funds:

Total private revenues 8,513,950

Total local revenues 110,646,200

Total other state restricted revenues 50,641,200

State general fund/general purpose $ 1,217,110,000

Sec. 102. EXECUTIVE OPERATIONS

Total full-time equated positions 925.3

Full-time equated unclassified positions 6.0

Full-time equated classified positions 919.3

Other unclassified salaries--6.0 FTE positions $ 492,300

Salaries and wages--692.3 FTE positions 34,379,900

Contractual services, supplies, and materials 10,313,300

Demonstration projects--11.0 FTE positions 10,672,200

End user support 9,036,300

Computer service fees 27,154,100

Client services system--22.0 FTE positions 13,333,800

Data system enhancement--26.0 FTE positions 37,976,200

Child support automation--28.0 FTE positions 65,239,500

Child support distribution computer system--8.0 FTE positions 17,132,800

Supplemental security income advocates, salaries & wages--16.0 FTE positions 1,022,200

Commission on disability concerns--8.0 FTE positions 785,700

Commission for the blind--108.0 FTE positions 17,621,100


GROSS APPROPRIATION $ 245,159,400

Appropriated from:

Interdepartmental grant revenues:

IDG-ADP user fees 150,000

ADJUSTED GROSS APPROPRIATION $ 245,009,400

Appropriated from:

Federal revenues:

Total federal revenues 158,399,800

Special revenue funds:

Total private revenues 1,840,000

Total local revenues 475,000

Total other state restricted revenues 477,300

State general fund/general purpose $ 83,817,300

Sec. 103. FAMILY INDEPENDENCE SERVICES ADMINISTRATION

Full-time equated classified positions 438.0

Salaries and wages--299.0 FTE positions $ 14,666,400

Contractual services, supplies, and materials 5,776,500

Child support incentive payments 32,409,600

Legal support contracts 117,496,400

State incentive payments 4,449,000

Employment and training support services 18,101,700

Project zero--84.0 FTE positions 13,975,200

Food stamp issuance 4,124,400

Wage employment verification reporting--2.0 FTE positions 5,171,000

Urban and rural empowerment/enterprise zones 100

Training and staff development--53.0 FTE positions 10,636,400

Community services block grants 21,400,000


GROSS APPROPRIATION $ 248,206,700

Appropriated from:

Interdepartmental grant revenues:

ADJUSTED GROSS APPROPRIATION $ 248,206,700

Appropriated from:

Federal revenues:

Total federal revenues 218,247,800

Special revenue funds:

Total local revenues 340,000

State general fund/general purpose $ 29,618,900

Sec. 104. CHILD AND FAMILY SERVICES

Full-time equated classified positions 104.3

Salaries and wages--43.3 FTE positions $ 2,685,000

Contractual services, supplies, and materials 1,683,500

Refugee assistance program--5.0 FTE positions 7,391,900

Foster care payments 192,882,000

Wayne County foster care payments 157,780,000

Adoption subsidies 157,262,200

Adoption support services--9.0 FTE positions 11,615,200

Youth in transition--10.0 FTE positions 11,327,900

Interstate compact 300,000

Children's benefit fund donations 21,000

Domestic violence prevention and treatment--6.0 FTE positions 11,228,500

Teenage parent counseling--4.0 FTE positions 4,417,600

Family preservation and prevention services--20.0 FTE positions 78,618,300

Black child and family institute 100,000

Rape prevention and services 1,100,000

Children's trust fund administration--7.0 FTE positions 459,100

Children's trust fund grants 3,615,000

Attorney general contract 2,458,700

Guardian contract 600,000

County shelters 300,000

Prosecuting attorney contracts 1,061,700


GROSS APPROPRIATION $ 646,907,600

Appropriated from:

Interdepartmental grant revenues:

ADJUSTED GROSS APPROPRIATION $ 646,907,600

Appropriated from:

Federal revenues:

Total federal revenues 341,295,700

Special revenue funds:

Private-children's benefit fund donations 21,000

Private-collections 4,101,300

Local funds - county payback 64,692,000

Children's trust fund 2,112,100

State general fund/general purpose $ 234,685,500

Sec. 105. JUVENILE JUSTICE SERVICES

Full-time equated classified positions 1,234.1

Personnel payroll costs--847.9 FTE positions $ 51,883,000

County juvenile officers 3,863,300

Child care fund 76,952,500

Juvenile justice operations 17,029,800

Community juvenile justice centers--107.0 FTE positions 7,784,700

Genesee Valley, Burton and Northwest detention centers--254.2 FTE positions 18,489,400

Federally funded activities--12.0 FTE positions 1,844,400

W.J. Maxey memorial fund 45,000

Regional detention services--5.0 FTE positions 1,217,500

Juvenile accountability incentive block grant--4.0 FTE positions 7,732,000

Juvenile boot camp program 1,600,000

Committee on juvenile justice administration--4.0 FTE positions 449,600

Committee on juvenile justice grants 5,000,000


GROSS APPROPRIATION $ 193,891,200

Appropriated from:

Federal revenues:

Total federal revenues 30,063,100

Special revenue funds:

Total private revenues 45,000

Local funds - county payback 44,641,700

State general fund/general purpose $ 119,141,400

Sec. 106. LOCAL OFFICE STAFF AND OPERATIONS

Full-time equated classified positions 10,161.9

Field staff, salaries and wages--7,184.5 FTE positions $ 294,072,100

Children and adult services, salaries and wages--2,826.9 FTE positions 119,502,700

Contractual services, supplies, and materials 30,267,300

Outstationed eligibility workers--60.0 FTE positions 5,000,000

Wayne County gifts and bequests 100,000

Volunteer services and reimbursement--90.5 FTE positions 7,269,800


GROSS APPROPRIATION $ 456,211,900

Appropriated from:

Federal revenues:

Total federal revenues 278,499,300

Special revenue funds:

Local funds - donated funds 193,100

Private funds - Wayne County gifts 100,000

Private funds - hospital contributions 2,406,650

State general fund/general purpose $ 175,012,850

Sec. 107. DISABILITY DETERMINATION SERVICES

Full-time equated classified positions 628.0

Disability determination operations--602.0 FTE positions $ 69,215,400

Medical consultation program--21.0 FTE positions 1,762,500

Retirement disability determination--5.0 FTE positions 615,000


GROSS APPROPRIATION $ 71,592,900

Appropriated from:

Interdepartmental grant revenues:

Department of management and budget - office of retirement systems 615,000

ADJUSTED GROSS APPROPRIATION $ 70,977,900

Federal revenues:

Total federal revenues 70,084,600

State general fund/general purpose $ 893,300

Sec. 108. CENTRAL SUPPORT ACCOUNTS

Rent $ 48,825,500

Occupancy charge 12,840,600

Travel 7,880,500

Equipment 3,052,900

Workers' compensation 5,369,900

Advisory commissions 17,900

Payroll taxes and fringe benefits 165,705,500


GROSS APPROPRIATION $ 243,692,800

Appropriated from:

Federal revenues:

Total federal revenues 137,423,450

Special revenue funds:

Local funds - county payback 304,400

State general fund/general purpose $ 105,964,950

Sec. 109. PUBLIC ASSISTANCE

Full-time equated classified positions 14.0

Family independence program $ 297,513,600

Transitional work support 15,000,000

State disability assistance payments 21,682,900

Food stamp program benefits 433,218,800

State supplementation 60,933,300

State supplementation administration 2,381,700

Homestead property tax credit for low income families 27,000,000

Low income energy assistance program--10.0 FTE positions 60,025,500

State emergency relief--4.0 FTE positions 42,083,400

Weatherization assistance 10,900,000

Day care services 523,525,800


GROSS APPROPRIATION $ 1,494,265,000

Appropriated from:

Interdepartmental grant revenues:

ADJUSTED GROSS APPROPRIATION $ 1,494,265,000

Appropriated from:

Federal revenues:

Total federal revenues 978,237,400

Special revenue funds:

Child support collections 41,311,800

Supplemental security income recoveries 4,440,000

Public assistance recoupment revenue 2,300,000

State general fund/general purpose $ 467,975,800".

2. Amend page 10, line 20, after "is" by striking out "$1,268,357,000.00" and inserting "$1,267,751,200.00".

3. Amend page 19, line 8, by striking out all of section 224.

4. Amend page 21, line 12, by striking out all of sections 404, 405, and 406 and inserting:

"Sec. 404. The department shall develop a plan based on recommendations from the department of civil rights, and Indian organizations such as the Michigan urban Indian consortium as the central representative of all human service-oriented off-reservation Indian organizations and the inter-tribal council of Michigan to assure that the community services block grant funds are equitably distributed. The plan must be developed by October 31, 2000, and the plan shall be delivered to the appropriations subcommittees on the family independence agency in the house and senate.

Sec. 405. The state general fund/general purpose contribution related to the Wayne County third circuit court cooperative reimbursement contract resides in the judiciary budget. There are no general fund/general purpose funds appropriated for this purpose in the family independence agency budget.".

5. Amend page 24, line 9, by striking out all of sections 410 and 411.

6. Amend page 24, following line 21, by inserting:

"Sec. 411. (1) From the funds appropriated in section 103 for employment and training support services, the department shall expend up to $1,000,000.00 in TANF funding that will be awarded to programs that have a proven track record of having accomplished the goals outlined in the intent of this programming for low-income fathers that meet all of the following criteria:

(a) The program shall be implemented as a pilot program.

(b) The program shall be developed through community partnerships that may include, but are not limited to, the local family independence agency office, friend of the court, prosecuting attorney, faith-based organizations, churches, and community based organizations who fulfill the intent of this section.

(c) Eligible participants shall include fathers of families with incomes that do not exceed 200% of the poverty guidelines published by the United States department of health and human services, including noncustodial and teen fathers.

(d) The low-income fatherhood pilot program shall produce all of the following results:

(i) Increase positive interaction with children or families.

(ii) Improve communication and positive interaction with the children's mother.

(iii) Fathers will be taught parenting skills including, but not limited to, problem solving, conflict resolution, strengthening families, and the healthy, responsible role of a father.

(iv) All fathers will be engaged in employment and training activities that will include, but are not limited to, all of the following:

(A) Job search strategies.

(B) GED completion.

(C) Career counseling.

(D) Business communication skills.

(E) Specific training programs including, but not limited to, tool and die, culinary arts, technology, and facilities maintenance.

(v) Increase financial support of the families.

(vi) All fathers shall complete the fatherhood curriculum similar to, but not limited to, the national fatherhood initiative or national center for fathering curriculum.

(vii) Marriage assessment programs that teach participants how to avoid failing at marriage in the future or work to strengthen existing marriages.

(viii) Divorce mediation.

(2) The department shall grant priority in funding independent contractors who secure at least 10% in matching funds. The matching funds may be fulfilled through local, state, or federal funds, or through in-kind or other donations. A contractor who cannot fulfill the match described in this subsection shall not be excluded from applying for a program contract.

(3) The local collaborative program shall provide the department with an interim report by March 15, 2001 and a final report not later than September 30, 2001 that includes all of the following:

(a) The number of participants served.

(b) The number of participants working at the time the report is completed.

(c) The percentage of participants in compliance with child support payment requirements.

(d) Any other information that the department considers relevant.

(4) From the funds appropriated in section 103 for low-income fatherhood pilot programs within employment and training support services, the department is authorized to make allocations of TANF funds only to the agencies that report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements. The use of TANF funds under this section should not be considered an ongoing commitment of funding.

Sec. 412. If title IV-D-related child support collections are escheated, the state budget director is authorized to adjust the sources of financing for the funds appropriated in section 103 for legal support contracts to reduce federal authorization by 66% of the escheated amount and increase general fund/general purpose authorization by the same amount. This budget adjustment is required to offset the loss of federal revenue due to the escheated amount being counted as title IV-D program income in accordance with federal regulations at 45 C.F.R. 304.50.

Sec. 413. The department shall develop a written policy concerning department employee conducted field investigations and home visits that will include all of the following:

(a) When and how investigations or home visits will occur.

(b) The circumstances when a nonemployee may accompany a department employee conducting an investigation or a home visit.

(c) Mandatory training on defusing threatening behavior for employees conducting investigations or home visits.

Sec. 414. (1) Of the funds appropriated in section 103 for community services block grants, $2,000,000.00 represents TANF funding earmarked for community action agencies.

(2) From the funds appropriated in section 103 for community services block grants, the department is authorized to make allocations of TANF funds only to the community action agencies that report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements. The use of TANF funds under this section should not be considered an ongoing commitment of funding.".

7. Amend page 27, line 7, after "family" by inserting "or the court denies the petition".

8. Amend page 32, line 11, after the first "parents" by striking out the balance of the subsection and inserting "and parents receiving adoption subsidies by 3% beginning with the first pay period in October 2000, and the department shall increase the rate of payment for child placing agencies and private residential treatment facilities by 3% effective February 15, 2001.".

9. Amend page 33, line 4, after "by" by striking out "June" and inserting "April".

10. Amend page 33, line 11, by striking out all of subsection (4).

11. Amend page 34, following line 5, by inserting:

"Sec. 521. The family independence agency expenditures for adoption placement services shall be audited in order to determine the average cost for each type or category of adoptive placement.

Sec. 522. From the funds appropriated in part 1 for family preservation and prevention services, $255,000.00 in TANF funds are allocated to the 17 clubs statewide of the Michigan Area Council of Boys and Girls Clubs of America for after-school programs.

Sec. 523. From the funds appropriated in section 104 for youth in transition, domestic violence prevention and treatment, teenage parent counseling, and boys and girls clubs program within family preservation and prevention services, the department is authorized to make allocations of TANF funds only to the agencies that report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements. The use of TANF funds under this section should not be considered an ongoing commitment of funding.".

12. Amend page 39, line 22, after "be" by striking out "$1,490.00" and inserting "$1,460.00".

13. Amend page 39, line 23, after "of" by striking out "$935.00" and inserting "$910.00".

14. Amend page 39, line 25, after "of" by striking out "$355.00" and inserting "$350.00".

15. Amend page 46, line 6, after "expend" by striking out "at least".

16. Amend page 53, line 6, after "a" by striking out "$25,000,000.00" and inserting "$9,135,800.00".

17. Amend page 56, line 7, by striking out all of sections 637 and 638 and inserting:

"Sec. 638. The department may transfer TANF funds to the department of education to be used in conjunction with school aid or other sources of available funds to support full-day Michigan school readiness programs or head start programs.".

18. Amend page 57, following line 12, by inserting:

"(4) The department shall grant priorities in funding to contractors who secure at least 10% in matching funds. The matching funds may either be fulfilled through local, state, or federal funds, or through in-kind or other donations.

(5) In order to receive TANF funds, the pilot program shall be structured to meet day care quality objectives established under the child care development fund program administered by the United States department of health and human services.".

19. Amend page 57, line 17, after "age." by inserting "It is the intent of the legislature that TANF funds are to be expended for the provision of the rate increase. These TANF funds may not be available after the fiscal year ending September 30, 2001. This funding is a 1-time only appropriation.".

20. Amend page 57, line 23, after "size." by inserting "The use of TANF funds under this section should not be considered an ongoing commitment of funding.".

21. Amend page 57, line 24, by striking out all of section 642.

22. Amend page 58, line 26, after "Sec. 643." by striking out the balance of the line through "day." on line 1 of page 59 and inserting "It is the intent of the legislature that an additional $3,000,000.00 in TANF funds shall be used to increase the reimbursement rate to shelters by $3.00 to $13.00 per day.".

23. Amend page 59, line 5, after "shelter." by inserting "From the funds appropriated in section 109 for homeless shelters within state emergency relief, the department is authorized to make allocations of TANF funds only to the agencies that report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements. The use of TANF funds under this section should not be considered an ongoing commitment of funding.".

24. Amend page 59, line 8, after "to" by striking out "$2,000.00" and inserting "$1,750.00".

25. Amend page 59, line 18, by striking out all of section 647.

26. Amend page 60, line 9, by striking out all of sections 650 and 651.

27. Amend page 60, following line 17, after "Sec. 652." by striking out "Each office of the friend of the court shall" and inserting "The department shall work in collaboration with each office of the friend of the court to".

28. Amend page 60, following line 17, following section 653, by striking out all of section 654 and inserting:

"Sec. 654. From the funds appropriated in section 104, the family independence agency shall expend $100,000.00 for developing and distributing pamphlets and other forms of public service information regarding procedures for individuals who surrender their newborns to an emergency service provider. The provisions of this section are contingent upon enactment of legislation with respect to the safe delivery act.".

29. Amend page 60, following line 17, section 655, after "up to" by striking out "50" and inserting "6".

30. Amend page 60, following line 17, following section 655, by inserting:

"Sec. 656. Funds appropriated under this act shall not be used to pay for the purchase, installation, repair, or maintenance of any air-conditioning unit or equipment unless either of the following conditions is met:

(a) The recipient requesting the payment provides to the department a certificate from a physician stating that the air-conditioning is medically required.

(b) The recipient is 55 years of age or older.

Sec. 657. (1) It is the intent of the legislature to offer quality before- or after-school programs that provide youth with a safe, engaging environment to motivate and inspire learning outside the traditional classroom setting. Before-school programs are limited to elementary school-aged children. Effective before- or after-school programs combine academic, enrichment, and recreation activities to guide learning and inspire children and youth in various activities. The before- or after-school programs can meet the needs of the communities served by the programs.

(2) The department shall work in collaboration with independent contractors to put into practice a pilot program establishing quality before- or after-school programs for school-aged children in kindergarten to ninth grades. In order for an independent contractor to receive TANF funds, a child served must be a member of a family with an income that does not exceed 200% of the federal poverty guidelines published by the United States department of health and human services.

(3) The department shall allocate through grants or contracts up to $16,000,000.00 in TANF funds for pilot programs. A county shall receive no more than 20% of the funds appropriated in part 1 for this program. From the funds appropriated in section 109 for before- or after-school pilot programs within day care services, the department is authorized to make allocations of TANF funds only to the agencies that report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements. The use of TANF funds under this section should not be considered an ongoing commitment of funding.

(4) The before- or after-school pilot programs shall include, at a minimum, at least 3 of the following topics:

(a) Pregnancy prevention.

(b) Chemical abuse and dependency including nonmedical services.

(c) Gang violence prevention.

(d) Academic assistance, including assistance with reading and writing.

(e) Preparation toward future self-sufficiency.

(f) Leadership development.

(g) Case management or mentoring.

(h) Parental involvement.

(i) Anger management.

(5) The department may enter into contracts with independent contractors including, but not limited to, faith-based organizations, boys or girls clubs, schools, or nonprofit organizations. The department shall grant priority in funding independent contractors who secure at least 10% in matching funds. The matching funds may either be fulfilled through local, state, or federal funds, or through in-kind or other donations. An independent contractor who cannot fulfill the match described in this subsection shall not be excluded from applying for a before- or after-school program contract.

(6) A referral to a pilot program may be made by, but is not limited to, any of the following: a teacher; counselor; parent; police officer; judge; or social worker.

(7) By August 30, 2001, the department before- or after-school pilot program expenditures shall be audited and the department shall work in collaboration with independent contractors to provide a report on the before- or after-school pilot program to the senate and house standing committees dealing with human services, the senate and house appropriations subcommittees for the family independence agency budget, and the senate and house fiscal agencies. The report shall include the number of participants and the average cost per participant, as well as changes noted in program participants in any of the following categories:

(a) Juvenile crime.

(b) Aggressive behavior.

(c) Academic achievement.

(d) Development of new skills and interests.

(e) School attendance and dropout rates.

(f) Behavioral changes in school.

Sec. 659. For the purpose of the family independence program eligibility, a recipient with a child under 6 years of age must meet work first participation requirements unless child care is not available and that fact is verified by the family independence program caseworker.

Sec. 660. From the funds appropriated in section 109 for food bank council activities within state emergency relief, the department is authorized to make allocations of TANF funds only to the agencies that report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements. The use of TANF funds under this section should not be considered an ongoing commitment of funding.

Sec. 661. From the funds appropriated in part 1 in section 109 for transitional work support, the department shall expend up to $15,000,000.00 in general fund/general purpose funds to develop and fund a transitional work support program. The department shall provide the house and senate appropriations subcommittees on the family independence agency budget with a report not later than September 30, 2001 that includes all of the following:

(a) The number of participants served.

(b) The average cost per program participant.

(c) Any other information that the department considers relevant.".

31. Amend page 61, following line 22, following section 705, by striking out all of section 706.

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

A bill to make appropriations for the family independence agency and certain state purposes related to public welfare services for the fiscal year ending September 30, 2001; to provide for the expenditure of the appropriations; to create funds; to provide for the imposition of fees; to provide for reports; to provide for the disposition of fees and other income received by the state agency; and to provide for the powers and duties of certain individuals, local governments, and state departments, agencies, and officers.

Mark Jansen

Laura M. Toy

Hubert Price, Jr.

Conferees for the House

Mike Goschka

Joel Gougeon

Robert L. Emerson

Conferees for the Senate

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

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

The motion prevailed.

The question being on the adoption of the conference report,

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

Roll Call No. 822 Yeas--99

Allen Faunce Kuipers Rivet

Baird Frank Kukuk Sanborn

Basham Garcia LaForge Schauer

Birkholz Garza LaSata Schermesser

Bisbee Gieleghem Lockwood Scott

Bishop Gilbert Mans Scranton

Bogardus Godchaux Martinez Shackleton

Bovin Green Mead Sheltrown

Brater Hager Middaugh Shulman

Brown, B. Hale Minore Spade

Brown, C. Hansen Mortimer Stallworth

Byl Hardman Neumann Stamas

Callahan Hart Pappageorge Switalski

Cassis Howell Patterson Tabor

Caul Jacobs Perricone Tesanovich

Cherry Jamnick Pestka Thomas

Clark, I. Jansen Price Toy

Clarke, H. Jelinek Prusi Van Woerkom

Daniels Jellema Pumford Vander Roest

DeHart Johnson, Rick Quarles Vaughn

Dennis Johnson, Ruth Raczkowski Voorhees

DeRossett Julian Reeves Wojno

DeVuyst Kelly Richardville Woodward

DeWeese Koetje Richner Woronchak

Ehardt Kowall Rison

Nays--4

Gosselin Law Rocca Vear

In The Chair: Scranton

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

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

Senate Bill No. 968, entitled

A bill to make, supplement, and adjust appropriations for various state departments and agencies for the fiscal year ending September 30, 2000; to provide for the expenditure of the appropriations; and to repeal acts and parts of acts.

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

The Conference Report was read as follows:

First Conference Report

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

Senate Bill No. 968, entitled

A bill to make, supplement, and adjust appropriations for various state departments and agencies for the fiscal year ending September 30, 2000; to provide for the expenditure of the appropriations; and to repeal acts and parts of acts.

Recommends:

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

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

A bill to make, supplement, and adjust appropriations for various state departments and agencies, the legislative branch, and the judicial branch for the fiscal year ending September 30, 2000; to provide for the expenditure of the appropriations; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 1999-2000

Sec. 101. SUMMARY

The amounts listed in this part are appropriated for the various state departments and agencies, subject to the conditions set forth in this act, for the fiscal year ending September 30, 2000, from the funds identified in this part. The following is a summary of the appropriations in this part:

SUMMARY

Full-time equated classified positions 20.0

GROSS APPROPRIATION $ 613,935,000

Total interdepartmental grants and intradepartmental transfers $ 1,149,000

ADJUSTED GROSS APPROPRIATION $ 612,786,000

Total federal revenues 134,271,800

Total local revenues 2,000,000

Total private revenues 0

Total other state restricted revenues 83,129,900

State general fund/general purpose $ 393,384,300

Sec. 102. DEPARTMENT OF AGRICULTURE

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 23,057,300

ADJUSTED GROSS APPROPRIATION $ 23,057,300

Total other state restricted revenues 6,307,300

State general fund/general purpose $ 16,750,000

(2) ANIMAL INDUSTRY

Bovine tuberculosis program $ 14,500,000


GROSS APPROPRIATION $ 14,500,000

Appropriated from:

State general fund/general purpose $ 14,500,000

(3) MARKET DEVELOPMENT

Food bank $ 250,000

Agriculture development initiatives $ 5,000,000


GROSS APPROPRIATION $ 5,250,000

Appropriated from:

Uncollected allowance recovery fund 5,000,000

State general fund/general purpose $ 250,000

(4) FAIRS AND EXPOSITIONS

Purses and supplements - fairs/licensed tracks $ 391,700

Standardbred Fedele Fauri futurity 18,600

Standardbred Michigan futurity 18,600

Licensed tracks-light horse racing 5,600

Standardbred breeders' awards 107,700

Sire stakes program 93,400

Standardbred training and stabling (700)

Thoroughbred program 49,800

Thoroughbred owners' awards (2,400)


GROSS APPROPRIATION $ 682,300

Appropriated from:

Agriculture equine industry development fund 682,300

State general fund/general purpose $ 0

(5) OFFICE OF RACING COMMISSIONER

Office of racing commissioner $ 425,000

Regulatory enhancements 150,000

Race horse drug testing-fairs 50,000


GROSS APPROPRIATION $ 625,000

Appropriated from:

Special revenue funds:

Agriculture equine industry development fund 625,000

State general fund/general purpose $ 0

(6) FOOD AND DAIRY

Food safety and quality assurance $ 2,000,000


GROSS APPROPRIATION $ 2,000,000

Appropriated from:

State general fund/general purpose $ 2,000,000

Sec. 103. CAPITAL OUTLAY

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 167,816,900

ADJUSTED GROSS APPROPRIATION $ 167,816,900

Total other state restricted revenues 30,651,400

State general fund/general purpose $ 137,165,500

(2) HIGHER EDUCATION

Universities - infrastructure, technology, equipment, and maintenance $ 44,989,800

Community colleges - infrastructure, technology, equipment, and maintenance 8,798,800

General degree reimbursement program - infrastructure, technology, equipment, and
maintenance 2,213,000


GROSS APPROPRIATION $ 56,001,600

Appropriated from:

State general fund/general purpose $ 56,001,600

(3) DEPARTMENT OF MANAGEMENT AND BUDGET

Detroit zoological park $ 10,000,000

Department of attorney general - law building remodeling 1,600,000

Department of corrections - consolidate intake unit project 5,000,000

Department of management and budget - building demolitions 5,000,000

Kalamazoo aviation history museum 3,000,000

Southwestern Michigan innovations center 5,000,000

Public broadcasting digital television and radio conversion 15,854,800

Department of state police - Niles state police post/public safety complex 6,500,000

Department of state-iron ore museum 500,000


GROSS APPROPRIATION $ 52,454,800

Appropriated from:

State general fund/general purpose $ 52,454,800

(4) DEPARTMENT OF NATURAL RESOURCES WATERWAYS BOATING

PROGRAM

Emergency local harbor dredging 10,000,000

Boating program, state harbors:

Emergency harbor dredging 4,000,000

Boating harbor projects, grants-in-aid:

City of Detroit, Wayne County, St. Aubin marina 3,000,000


GROSS APPROPRIATION $ 17,000,000

Appropriated from:

Special revenue funds:

State waterways fund 17,000,000

State general fund/general purpose $ 0

(5) MICHIGAN NATURAL RESOURCES TRUST FUND

Natural resources trust fund projects 13,651,400


GROSS APPROPRIATION $ 13,651,400

Appropriated from:

Special revenue funds:

Michigan natural resources trust fund 13,651,400

State general fund/general purpose $ 0

Michigan natural resources trust fund acquisition projects (by priority):

Cheboygan-Gaylord trail - phase 6, Cheboygan County (#99-442)

Dr. T.K. Lawless park north, Cass County (grant-in-aid to Cass County) (#99-226)

Park Lyndon expansion, Washtenaw County (grant-in-aid to Washtenaw County) (#99-323)

Harvey property purchase, Muskegon County (grant-in-aid to Montague Township)
(#99-210)

Frost property, Grand Traverse County (#99-294)

Oscoda riverwalk park, Iosco County (grant-in-aid to Oscoda Township) (#99-129)

Escanaba riverfront property acquisition, Delta County (grant-in-aid to City of Escanaba)
(#99-384)

Oakland Township park acquisition, Oakland County (grant-in-aid to Oakland Township)
(#99-128)

Carpenter lake acquisition, Oakland County (grant-in-aid to City of Southfield) (#99-272)

Jabara property, Antrim County (grant-in-aid to Antrim County) (#99-436)

Southside park land purchase, Calhoun County (grant-in-aid to City of Battle Creek)

(#99-187)

Marquette-Munising rail-trail, Marquette County (#99-290)

Markin Glen river access/Kalamazoo river valley trailway, Kalamazoo County
(grant-in-aid to Kalamazoo Township) (#99-082)

Arcadia south beach, Manistee County (grant-in-aid to Arcadia Township) (#99-127)

Eagle Harbor Township nature conservatory, Keweenaw County (grant-in-aid to

Eagle Harbor Township) (#99-267)

State wildlife area lump sum, various counties (#99-444)

All wildlife, game and mini game areas in the Saginaw Bay management unit,

Arenac County, Bay County, Clare County, Gladwin County, Huron County,
Isabella County, Midland County, Saginaw County, Sanilac County, and Tuscola County

All wildlife, game and mini game areas in the South central management unit,

Clinton County, Eaton County, Gratiot County, Hillsdale County, Ingham County,
Ionia County, Jackson County, Lenawee County, Livingston County, Montcalm County,
Shiawassee County, and Washtenaw County

All wildlife, game and mini game areas in the Southeastern management unit,

Genesee County, Lapeer County, Macomb County, Monroe County, Oakland County,
St. Clair County, and Wayne County

All wildlife, game and mini game areas in the Southwestern management unit,
Allegan County, Barry County, Berrien County, Branch County, Calhoun County,
Cass County, Kalamazoo County, Kent County, Muskegon County, Ottawa County,
St. Joseph County, and Van Buren County

All wildlife, game and mini game areas in the Northwestern management unit -
southern portion, Mason County, Mecosta County, Newaygo County, and Oceana County

Michigan natural resources trust fund development projects (by priority):

Ott preserve improvements, Calhoun County (grant-in-aid to Calhoun County) (#99-193)

Betsie valley trail, Benzie County (grant-in-aid to Benzie County) (#99-401)

Lakefront park improvements, Calhoun County (grant-in-aid to Village of Homer) (#99-070)

Trenton linked riverfront parks improvements, Wayne County (grant-in-aid to City of Trenton)
(#99-184)

Curtiss park improvements, Washtenaw County (grant-in-aid to City of Saline) (#99-016)

Riverfront park dock and pier, Berrien County (grant-in-aid to City of Niles) (#99-145)

Harbor breakwall walkway extension, Alpena County (grant-in-aid to City of Alpena)
(#99-353)

Paint river walk, Iron County (grant-in-aid to City of Crystal Falls) (#99-266)

County park revitalization, Luce County (grant-in-aid to Luce County) (#99-437)

Boyne river walk project, Charlevoix County (grant-in-aid to City of Boyne City) (#99-180)

Lillie park restoration/redevelopment, Washtenaw County (grant-in-aid to Pittsfield Township)

(#99-196)

Elberta historic waterfront trailhead park, Benzie County (grant-in-aid to Village of Elberta)

(#99-014)

Rockport picnic fishing pier, Alpena County (grant-in-aid to Alpena Township) (#99-262)

Hull park waterfront, Grand Traverse County (grant-in-aid to City of Traverse City) (#99-160)

Michigan beach park improvements, Charlevoix County (grant-in-aid to City of Charlevoix)
(#99-250)

(6) STATE AGENCY, UNIVERSITY, AND COMMUNITY COLLEGE BUILDING

PROJECTS

Eastern Michigan University - science buildings complex - for program and planning to

be paid for from university revenues $ 100

Ferris State University - engineering and technical center - for program and planning to

be paid for from university revenues 100

Michigan Technological University - integrated learning/information center - for program

and planning to be paid for from university revenues 100

Northern Michigan University - east campus facilities renovations - for program and

planning to be paid for from university revenues 100

Kellogg Community College - west Michigan center/manufacturing research - for program

and planning to be paid for from college revenues 100

Monroe Community College - performing arts and education building - for program and

planning to be paid for from college revenues 100

Montcalm Community College - Greenville technology and learning center - for program

and planning to be paid for from college revenues 100

St. Clair County Community College - general campus renovations - for program and
planning to be paid for from college revenues 100


GROSS APPROPRIATION $ 800

Appropriated from:

State general fund/general purpose $ 800

(7) STATE BUILDING AUTHORITY FINANCED CONSTRUCTION PROJECTS

Department of agriculture - animal health diagnostic laboratory - authorized for planning

in 1999 PA 265 - for final design and construction (total authorized cost $45,000,000;

state building authority share $44,999,900; state general fund share $100) $ 100

Department of state police - public safety communications system - authorized for

final design and construction under 1995 PA 128 (total authorized cost increased from

$205,857,200 to $234,157,200; state building authority share remains $184,426,000;

state general fund share increased from $21,431,200 to $49,731,200) 28,300,000

Alpena Community College - concrete technology center - authorized for final design and

construction under 1996 PA 321 (total authorized cost increased from $6,720,000 to

$7,127,700; state building authority share remains $3,359,900; Alpena Community

College share remains $3,360,000; state general fund share increased from $100 to

$407,800) 407,700

Central Michigan University - health professions building - authorized for planning in

1998 PA 515 - for final design and construction (total authorized cost $50,000,000; state
building authority share $37,499,800; Central Michigan University share $12,500,000;
state general fund share $200) 100

Grand Valley State University - health professions building - authorized for planning in
1999 PA 265 - for final design and construction (total authorized cost $53,000,000; state
building authority share $37,099,800; Grand Valley State University share $15,900,000;
state general fund share $200) 100

Gogebic Community College - general campus renovations - authorized for planning in
1999 PA 265 - for final design and construction (total authorized $1,400,000; state
building authority share $699,800; state lump sum planning account $700,000; state
general fund share $200) 100

Lake Superior State University - arts classroom building - authorized for planning in
1998 PA 538 - for final design and construction (total authorized cost $15,300,000;
state building authority share $7,999,800; Lake Superior State University share
$7,300,000; state general fund share $200) 100

Wayne State University - welcome center - authorized for planning in 1998 PA 538 - for
final design and construction (total authorized cost $18,500,000; state building authority
share $13,874,800; Wayne State University share $4,625,000; state general fund share
$200) 100


GROSS APPROPRIATION $ 28,708,300

Appropriated from:

State general fund/general purpose $ 28,708,300

Sec. 104. DEPARTMENT OF CAREER DEVELOPMENT

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 28,500,000

ADJUSTED GROSS APPROPRIATION $ 28,500,000

Total federal revenues 8,000,000

State general fund/general purpose $ 20,500,000

(2) DEPARTMENT GRANTS

Community service alliance $ 10,000,000

Focus: HOPE 10,500,000

Welfare-to-work programs 8,000,000


GROSS APPROPRIATION $ 28,500,000

Appropriated from:

Federal revenues:

HHS, temporary assistance for needy families 8,000,000

State general fund/general purpose $ 20,500,000

Sec. 105. DEPARTMENT OF CIVIL RIGHTS

(1) APPROPRIATION SUMMARY

Full-time equated classified positions 15.0

GROSS APPROPRIATION $ 1,000,000

ADJUSTED GROSS APPROPRIATION $ 1,000,000

Total federal revenues (750,000)

State general fund/general purpose $ 1,750,000

(2) CIVIL RIGHTS OPERATIONS

Full-time equated classified positions 15.0

Civil rights operations--15.0 FTE positions 1,000,000


GROSS APPROPRIATION $ 1,000,000

Appropriated from:

Federal revenues:

EEOC, state and local antidiscrimination agency contracts (750,000)

State general fund/general purpose $ 1,750,000

Sec. 106. DEPARTMENT OF CIVIL SERVICE

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 1,200,000

ADJUSTED GROSS APPROPRIATION $ 1,200,000

State general fund/general purpose $ 1,200,000

(2) CIVIL SERVICE OPERATIONS

Civil service operations $ 1,200,000


GROSS APPROPRIATION $ 1,200,000

Appropriated from:

State general fund/general purpose $ 1,200,000

Sec. 107. DEPARTMENT OF COMMUNITY HEALTH

(1) APPROPRIATION SUMMARY

Full-time equated classified positions 2.0

GROSS APPROPRIATION $ 17,204,300

ADJUSTED GROSS APPROPRIATION $ 17,204,300

Total federal revenues 10,855,300

Total local revenues 2,000,000

Total other state restricted revenues 500,000

State general fund/general purpose $ 3,849,000

(2) DEPARTMENTWIDE ADMINISTRATION

Departmental administration and management $ 7,000,000


GROSS APPROPRIATION $ 7,000,000

Appropriated from:

Federal revenues:

Total federal revenues 5,250,000

State general fund/general purpose $ 1,750,000

(3) COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES

PROGRAMS

Juvenile mental health services $ 4,455,300


GROSS APPROPRIATION $ 4,455,300

Appropriated from:

Federal revenues:

Total federal revenues 2,455,300

Special revenue funds:

Local revenue 2,000,000

State general fund/general purpose $ 0

(4) LABORATORY SERVICES

Full-time equated classified positions 2.0

Bovine tuberculosis programs--2.0 FTE positions $ 749,000


GROSS APPROPRIATION $ 749,000

Appropriated from:

State general fund/general purpose $ 749,000

(5) CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH

PROMOTION

Morris J. Hood Wayne State University diabetes outreach program $ 500,000

Public health traffic safety coordination 300,000


GROSS APPROPRIATION $ 800,000

Appropriated from:

Special revenue funds:

Total other state restricted revenues 500,000

State general fund/general purpose $ 300,000

(6) MEDICAL SERVICES ADMINISTRATION

Medical services administration $ 4,200,000


GROSS APPROPRIATION $ 4,200,000

Appropriated from:

Federal revenues:

Total federal revenues 3,150,000

State general fund/general purpose $ 1,050,000

Sec. 108. DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 3,000,000

ADJUSTED GROSS APPROPRIATION $ 3,000,000

State general fund/general purpose $ 3,000,000

(2) GRANTS

Fire and emergency training center $ 1,000,000

Regional EMS training center 2,000,000


GROSS APPROPRIATION $ 3,000,000

Appropriated from:

State general fund/general purpose $ 3,000,000

Sec. 109. DEPARTMENT OF CORRECTIONS

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ (3,622,800)

ADJUSTED GROSS APPROPRIATION $ (3,622,800)

State general fund/general purpose $ (3,622,800)

(2) CORRECTIONAL FACILITIES-ADMINISTRATION

Correctional facilities administration $ 1,377,200


GROSS APPROPRIATION $ 1,377,200

Appropriated from:

State general fund/general purpose $ 1,377,200

(3) TRAINING, COMMUNITY SUPPORT AND SUBSTANCE ABUSE PROGRAMS

New employee training $ (2,500,000)


GROSS APPROPRIATION $ (2,500,000)

Appropriated from:

State general fund/general purpose $ (2,500,000)

(4) BARAGA MAXIMUM CORRECTIONAL FACILITY - BARAGA

Personnel costs $ (700,000)


GROSS APPROPRIATION $ (700,000)

Appropriated from:

State general fund/general purpose $ (700,000)

(5) COOPER STREET CORRECTIONAL FACILITY - JACKSON

Personnel costs $ (1,100,000)


GROSS APPROPRIATION $ (1,100,000)

Appropriated from:

State general fund/general purpose $ (1,100,000)

(6) MACOMB CORRECTIONAL FACILITY - NEW HAVEN

Personnel costs $ (700,000)


GROSS APPROPRIATION $ (700,000)

Appropriated from:

State general fund/general purpose $ (700,000)

Sec. 110. DEPARTMENT OF EDUCATION

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 3,700,000

ADJUSTED GROSS APPROPRIATION $ 3,700,000

Total federal revenues 990,000

Total other state restricted revenues 740,000

State general fund/general purpose $ 1,970,000

(2) STANDARDS, ASSESSMENT, AND ACCREDITATION

Study of teacher preparation $ 240,000


GROSS APPROPRIATION $ 240,000

Appropriated from:

Certification fees 240,000

(3) INNOVATION AND COMMUNITY SERVICES

Innovation and community services operations $ 40,000


GROSS APPROPRIATION $ 40,000

Appropriated from:

Federal revenues:

Federal revenues 40,000

State general fund/general purpose $ 0

(4) GRANTS AND DISTRIBUTIONS

FEDERAL PROGRAMS:

Refugee children school impact grant $ 950,000

STATE PROGRAMS:

NAEP test incentive grants $ 220,000

Reading plan for Michigan 2,250,000


GROSS APPROPRIATION $ 3,420,000

Appropriated from:

Federal revenues 950,000

Special revenue fund:

Settlement revenues 500,000

State general fund/general purpose $ 1,970,000

Sec. 111. DEPARTMENT OF ENVIRONMENTAL QUALITY

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 350,000

ADJUSTED GROSS APPROPRIATION $ 305,000

Total other state restricted revenues 300,000

State general fund/general purpose $ 50,000

(2) FINANCE AND BUSINESS SERVICES

Automated data processing $ 300,000


GROSS APPROPRIATION $ 300,000

Appropriated from:

Federal revenues:

EPA, multiple grants 300,000

State general fund/general purpose $ 0

(3) GRANTS

Volunteer river, stream and creek cleanup program $ 50,000


GROSS APPROPRIATION $ 50,000

Appropriated from:

State general fund/general purpose $ 50,000

Sec. 112. FAMILY INDEPENDENCE AGENCY

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 160,703,400

ADJUSTED GROSS APPROPRIATION $ 160,703,400

Total federal revenues 88,145,000

Total other state restricted revenues (8,000,000)

State general fund/general purpose $ 80,558,400

(2) EXECUTIVE OPERATIONS

End user support $ 15,000,000


GROSS APPROPRIATION $ 15,000,000

Appropriated from:

Federal revenues:

Total federal revenues 4,500,000

State general fund/general purpose $ 10,500,000

(3) CENTRAL SUPPORT ACCOUNTS

Payroll taxes and fringe benefits $ 12,000,000


GROSS APPROPRIATION $ 12,000,000

Appropriated from:

Federal revenues:

Total federal revenues 12,000,000

Departmentwide lapse revenue (8,000,000)

State general fund/general purpose $ 8,000,000

(4) FAMILY INDEPENDENCE SERVICES ADMINISTRATION

Community services block grants $ 1,000,000

Family opportunity project 50,000,000

Teen pregnancy reduction project 20,000,000


GROSS APPROPRIATION $ 71,000,000

Appropriated from:

Federal revenues:

Total federal revenues 57,200,000

State general fund/general purpose $ 13,800,000

(5) CHILD AND FAMILY SERVICES

Domestic violence prevention and treatment $ 370,000

Family preservation and prevention services 3,000,000

Children's trust fund 13,145,200

Attorney general contract 375,000


GROSS APPROPRIATION $ 16,890,200

Appropriated from:

Federal revenues:

Total federal revenues (1,555,000)

State general fund/general purpose $ 18,445,200

(6) LOCAL OFFICE STAFF AND OPERATIONS

Food stamp reinvestment $ 18,813,200


GROSS APPROPRIATION $ 18,813,200

Appropriated from:

State general fund/general purpose $ 18,813,200

(7) PUBLIC ASSISTANCE

Homestead property tax credit for low income families $ 27,000,000


GROSS APPROPRIATION $ 27,000,000

Appropriated from:

Federal revenues:

Total federal revenues 16,000,000

State general fund/general purpose $ 11,000,000

Sec. 113. HIGHER EDUCATION

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 11,200,000

ADJUSTED GROSS APPROPRIATION $ 11,200,000

Total other state restricted revenues 11,200,000

State general fund/general purpose $ 0

(2) MICHIGAN MERIT AWARDS

Michigan merit awards 11,200,000


GROSS APPROPRIATION $ 11,200,000

Appropriated from:

Michigan merit award trust fund 11,200,000

State general fund/general purpose $ 0

Sec. 114. JUDICIARY

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 4,200,000

ADJUSTED GROSS APPROPRIATION $ 4,200,000

Total other state restricted revenues (200,000)

State general fund/general purpose $ 4,400,000

(2) SUPREME COURT

Implementation of commercial motor vehicle legislation $ 1,650,000


GROSS APPROPRIATION $ 1,650,000

Appropriated from:

Special fund revenues:

Law exam fees (200,000)

State general fund/general purpose $ 1,850,000

(3) TRIAL COURT OPERATIONS

Trial court improvements $ 2,300,000

Trial court operations-27th district court 250,000


GROSS APPROPRIATION $ 2,550,000

Appropriated from:

State general fund/general purpose $ 2,550,000

Sec. 115. LEGISLATURE

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 1,400,000

ADJUSTED GROSS APPROPRIATION $ 1,400,000

State general fund/general purpose $ 1,400,000

(2) LEGISLATURE

House of representatives - census tracking/reapportionment 500,000

Senate - census tracking/reapportionment 500,000


GROSS APPROPRIATION $ 1,000,000

Appropriated from:

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

(3) PROPERTY MANAGEMENT

Capitol building $ 400,000


GROSS APPROPRIATION $ 400,000

Appropriated from:

State general fund/general purpose $ 400,000

Sec. 116. DEPARTMENT OF MANAGEMENT AND BUDGET

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 37,150,000

ADJUSTED GROSS APPROPRIATION $ 37,150,000

Total other state restricted revenues 2,000,000

State general fund/general purpose $ 35,150,000

(2) GRANTS

Art and cultural grants $ 11,100,000

Council of state governments annual meeting 350,000


GROSS APPROPRIATION $ 11,450,000

Appropriated from:

State general fund/general purpose $ 11,450,000

(3) SPECIAL PROGRAMS

e-Michigan $ 23,200,000

Electronic funds transfer and on-line vendor enrollment 2,000,000

Census and redistricting project 500,000


GROSS APPROPRIATION $ 25,700,000

Appropriated from:

Special revenue funds:

State restricted fund 2,000,000

State general fund/general purpose $ 23,700,000

Sec. 117. MICHIGAN STRATEGIC FUND

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 50,000,000

ADJUSTED GROSS APPROPRIATION $ 50,000,000

State general fund/general purpose $ 50,000,000

(2) MICHIGAN STRATEGIC FUND

Michigan core communities fund $ 50,000,000


GROSS APPROPRIATION $ 50,000,000

Appropriated from:

State general fund/general purpose $ 50,000,000

Sec. 118. DEPARTMENT OF MILITARY AFFAIRS

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 900,000

ADJUSTED GROSS APPROPRIATION $ 900,000

State general fund/general purpose $ 900,000

(2) GRANTS

Vietnam veterans memorial $ 500,000


GROSS APPROPRIATION $ 500,000

Appropriated from:

State general fund/general purpose $ 500,000

(3) GRAND RAPIDS VETERANS' HOME

Grand Rapids veterans' home $ 400,000


GROSS APPROPRIATION $ 400,000

Appropriated from:

State general fund/general purpose $ 400,000

Sec. 119. DEPARTMENT OF NATURAL RESOURCES

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 46,594,700

Total interdepartmental grants and intradepartmental transfers 312,000

ADJUSTED GROSS APPROPRIATION $ 46,282,700

Total federal revenues 3,523,500

Total other state restricted revenues 16,509,200

State general fund/general purpose $ 26,250,000

(2) ADMINISTRATIVE SERVICES

Finance and operations services $ 100,000


GROSS APPROPRIATION $ 100,000

Appropriated from:

Special revenue funds:

Michigan natural resources trust fund 100,000

State general fund/general purpose $ 0

(3) FISHERIES MANAGEMENT

Fisheries resource management $ 960,000

Dober mine settlement project 312,000

Tribal fishing settlement 17,000,000


GROSS APPROPRIATION $ 18,272,000

Appropriated from:

Interdepartmental grant revenues:

IDG-MDEQ, environmental response fund 312,000

Special revenue funds:

Game and fish protection fund 960,000

State general fund/general purpose $ 17,000,000

(4) PARKS AND RECREATION

State parks $ 892,900


GROSS APPROPRIATION $ 892,900

Appropriated from:

Special revenue funds:

Off-road vehicle trail improvement fund 142,900

Park improvement fund 750,000

State general fund/general purpose $ 0

(5) FOREST RESOURCE MANAGEMENT

Forest fire protection $ 850,000


GROSS APPROPRIATION $ 850,000

Appropriated from:

State general fund/general purpose $ 850,000

(6) LAND AND MINERAL RESOURCES

Farmland and open space preservation $ 18,000

Resource mapping and aerial photography 1,023,500


GROSS APPROPRIATION $ 1,041,500

Appropriated from:

Federal revenues:

DOI, federal revenues 1,023,500

Special revenue funds:

Farmland and open space withdrawal fees 18,000

State general fund/general purpose $ 0

(7) LAW ENFORCEMENT

General law enforcement $ 1,500,000


GROSS APPROPRIATION $ 1,500,000

Appropriated from:

State general fund/general purpose $ 1,500,000

(8) PAYMENTS IN LIEU OF TAXES

Purchased land taxes/open space payments $ 100,000


GROSS APPROPRIATION $ 100,000

Appropriated from:

Special revenue funds:

Michigan natural resources trust fund 60,000

Game and fish protection fund 40,000

State general fund/general purpose $ 0

(9) GRANTS

Bovine tuberculosis programs $ 4,500,000

Federal - land and water conservation fund payments 1,200,000

National recreation trails 1,300,000

Nongame fish and wildlife trust fund 2,400,000

Snowmobile local grants program 1,500,000

Snowmobile law enforcement grants 500,000

Local recreation grants - grants-in-aid 12,438,300


GROSS APPROPRIATION $ 23,838,300

Appropriated from:

Federal revenues:

DOI, federal revenues 1,200,000

DOT, federal revenues 1,300,000

Special revenue funds:

Snowmobile trail improvement fund 1,500,000

Snowmobile registration fee revenue 500,000

Clean Michigan initiative fund - local recreation grants 12,438,300

State general fund/general purpose $ 6,900,000

Sec. 120. DEPARTMENT OF STATE

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 695,200

ADJUSTED GROSS APPROPRIATION $ 695,200

State general fund/general purpose $ 695,200

(2) DEPARTMENTAL SERVICES

Data processing $ 395,200


GROSS APPROPRIATION $ 395,200

Appropriated from:

State general fund/general purpose $ 395,200

(3) HISTORICAL PROGRAM

Historical program $ 300,000


GROSS APPROPRIATION $ 300,000

Appropriated from:

State general fund/general purpose $ 300,000

Sec. 121. DEPARTMENT OF STATE POLICE

(1) APPROPRIATION SUMMARY

Full-time equated classified positions 3.0

GROSS APPROPRIATION $ 10,664,000

Total interdepartmental grants and intradepartmental transfers 837,000

ADJUSTED GROSS APPROPRIATION $ 9,827,000

Total federal revenues (192,000)

Total other state restricted revenues (200,000)

State general fund/general purpose $ 10,219,000

(2) CENTRAL RECORDS

Full-time equated classified positions 3.0

Central records division--3.0 FTE positions $ 750,000

Law enforcement information technology projects $ 3,100,000


GROSS APPROPRIATION $ 3,850,000

Appropriated from:

Federal revenues:

Total federal revenues $ 300,000

State general fund/general purpose $ 3,550,000

(3) CRIMINAL JUSTICE DATA CENTER

Local LEIN services $ 300,000

Computer services 100,000


GROSS APPROPRIATION $ 400,000

Appropriated from:

State general fund/general purpose $ 400,000

(4) EMERGENCY MANAGEMENT

Grants to local government $ 197,000


GROSS APPROPRIATION $ 197,000

Appropriated from:

Federal revenues:

FEMA-PTED, hazardous material assistance program (492,000)

State general fund/general purpose $ 689,000

(5) UNIFORM SERVICES

Commercial mobile radio service projects $ 837,000

Uniform services 130,000

Firearms safety and awareness $ 150,000


GROSS APPROPRIATION $ 1,117,000

Appropriated from:

Interdepartmental grant revenues:

IDG-MDTR, commercial mobile radio service fees 837,000

State general fund/general purpose $ 280,000

(6) SPECIAL OPERATIONS

Firearm safety device grants to locals $ 1,000,000


GROSS APPROPRIATION $ 1,000,000

Appropriated from:

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

(7) CRIMINAL INVESTIGATIONS

Criminal investigations $ 500,000

Project exile coordinating commission $ 1,500,000


GROSS APPROPRIATION $ 2,000,000

Appropriated from:

Special revenue funds:

Forfeiture funds (200,000)

State general fund/general purpose $ 2,200,000

(8) DEPARTMENTWIDE APPROPRIATIONS

Fleet leasing $ 2,100,000


GROSS APPROPRIATION $ 2,100,000

Appropriated from:

State general fund/general purpose $ 2,100,000

Sec. 122. DEPARTMENT OF TRANSPORTATION

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 29,700,000

ADJUSTED GROSS APPROPRIATION $ 29,700,000

Total federal revenues 23,700,000

Total other state restricted revenues 6,000,000

State general fund/general purpose $ 0

(2) INTERCITY PASSENGER AND FREIGHT

Freight preservation and development $ 600,000


GROSS APPROPRIATION $ 600,000

Appropriated from:

Special revenue funds:

Comprehensive transportation fund 600,000

State general fund/general purpose $ 0

(3) PUBLIC TRANSPORTATION DEVELOPMENT

Bus capital $ 29,100,000


GROSS APPROPRIATION $ 29,100,000

Appropriated from:

Federal revenues:

DOT-federal transit act 23,700,000

Special revenue funds:

Comprehensive transportation fund 5,400,000

State general fund/general purpose $ 0

Sec. 123. DEPARTMENT OF TREASURY

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION $ 18,522,000

ADJUSTED GROSS APPROPRIATION $ 18,522,000

Total other state restricted revenues 17,322,000

State general fund/general purpose $ 1,200,000

(2) FINANCIAL PROGRAMS

Michigan merit award commission $ 1,000,000


GROSS APPROPRIATION $ 1,000,000

Appropriated from:

Special revenue funds:

Michigan merit award trust fund (12,000,000)

Tobacco settlement trust fund 13,000,000

State general fund/general purpose $ 0

(3) GRANTS

Commercial mobile radio service payments $ 16,000,000


GROSS APPROPRIATION $ 16,000,000

Appropriated from:

Special revenue funds:

Commercial mobile radio service fees 16,000,000

State general fund/general purpose $ 0

(4) REVENUE SHARING

Special census revenue sharing payments $ 1,200,000

Revenue sharing hold harmless payments $ 322,000


GROSS APPROPRIATION $ 1,522,000

Appropriated from:

State restricted revenues 322,000

State general fund/general purpose $ 1,200,000

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS


Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending in part 1 from state sources for fiscal year 1999-2000 is estimated at $476,514,200.00 in this act and state spending from state sources paid to local units of government for fiscal year 1999-2000 is as follows:

(a) Education, NAEP test incentives $ 220,000

(b) Community colleges - infrastructure, technology, equipment, and maintenance 8,798,250

(c) Judicial, trial court improvements 2,300,000

(d) Transportation, bus capital 5,400,000

(e) Treasury, commercial mobile radio service payments 7,200,000

(f) Management and budget, arts and cultural grants 11,100,000

(g) Natural resources trust fund grant-in-aid acquisition projects $ 6,665,400

Dr. T. K. Lawless park north, Cass County

Park Lyndon expansion, Washtenaw County

Harvey property purchase, Muskegon County

Oscoda riverwalk park, Iosco County

Acquisition of Escanaba riverfront property, Delta County

Oakland Township park acquisition, Oakland County

Carpenter lake acquisition, Oakland County

Jabara property, Antrim County

Southside park land purchase, Calhoun County

Markin Glen river access/Kalamazoo river valley trailway, Kalamazoo County

Arcadia south beach, Manistee County

Eagle Harbor Township nature conservatory, Keweenaw County

(h) Natural resources trust fund grant-in-aid development projects 3,078,000

Ott preserve improvements, Calhoun County

Betsie valley trail, Benzie County

Lakefront park improvements, Calhoun County

Trenton linked riverfront parks improvements, Wayne County

Curtiss park improvements, Washtenaw County

Riverfront park dock and pier, Berrien County

Harbor breakwall walkway extension, Alpena County

Paint river walk, Iron County

County park revitalization, Luce County

Boyne river walk project, Charlevoix County

Lillie park restoration/redevelopment, Washtenaw County

Elberta historic waterfront trailhead park, Benzie County

Rockport picnic fishing pier, Alpena County

Hull park waterfront, Grand Traverse County

Michigan beach park improvements, Charlevoix County

(i) Clean Michigan initiative fund - local recreation grant projects 12,438,300

(j) Snowmobile law enforcement grants 500,000

(k) Detroit zoological park 10,000,000

(l) Emergency local harbor dredging 10,000,000

(m) Alpena Community College-concrete technology center 407,700

(n) Career development, community service alliance 10,000,000

(o) Judiciary, Riverview court 250,000

(p) Judiciary, implementation of commercial motor vehicle legislation 1,650,000

(q) Strategic fund agency, core communities 50,000,000

(r) Treasury, special census revenue sharing 1,200,000

(s) State police, grants to local government 197,000

(t) Treasury, revenue sharing hold harmless payments 322,000


TOTAL $ 142,726,650

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

Sec. 211. The unexpended portions of the appropriations in part 1 for the departments and agencies listed in this section are considered work project appropriations. The projects will be accomplished by the use of department personnel and contracting with private consultants with estimated completion dates of September 30, 2002. The projects are as follows:

(a) Agriculture, bovine tuberculosis programs (estimated amount $14,500,000.00).

(b) Agriculture, fairs and expositions/horse racing grants/office of racing commission (estimated amount $1,307,300.00).

(c) Agriculture, food safety and quality assurance (estimated amount $2,000,000.00).

(d) Capital outlay, Detroit zoological park (estimated amount $10,000,000.00).

(e) Capital outlay, Niles state police post/public safety complex (estimated amount $6,500,000.00).

(f) Capital outlay, Kalamazoo aviation history museum (estimated amount $3,000,000.00).

(g) Capital outlay, southwest Michigan innovations center (estimated amount $5,000,000.00).

(h) Career development, focus: HOPE (estimated amount $10,500,000.00).

(i) Career development, community service alliance (estimated amount $10,000,000.00).

(j) Civil rights, staffing replacement plan (estimated amount $1,000,000.00).

(k) Civil service, HRMN fiscal year 2000 needs (estimated amount $1,200,000.00).

(l) Community health, QHP encounter data system (estimated amount $4,200,000.00).

(m) Community health, bovine tuberculosis programs (estimated amount $749,000.00).

(n) Community health, health insurance data automation (estimated amount $7,000,000.00).

(o) Community health, child car seat program (estimated amount $300,000.00).

(p) Community health, Wayne county juvenile health services (estimated amount $4,455,300.00).

(q) Consumer and industry services, fire and emergency training center (estimated amount $1,000,000.00).

(r) Consumer and industry services, regional EMS training center (estimated amount $2,000,000.00).

(s) Corrections, 800 MHz radios (estimated amount $1,377,200.00).

(t) Education, troops for teachers (estimated amount $40,000.00).

(u) Education, reading plan for Michigan (estimated amount $2,250,000.00).

(v) Education, NAEP test incentives (estimated amount $220,000.00).

(w) Education, refugee children school impact grant (estimated amount $950,000.00).

(x) Education, study of teacher preparation (estimated amount $240,000.00).

(y) Family independence agency, food stamp reinvestment (estimated amount $18,813,200.00).

(z) Family independence agency, p.c. upgrades (3 years) (estimated amount $15,000,000.00).

(aa) Family independence agency, teen pregnancy reduction project (estimated amount $20,000,000.00).

(bb) Family independence agency, family opportunity project (estimated amount $50,000,000.00).

(cc) Family independence agency community services block grants (estimated amount $1,000,000.00).

(dd) Higher education, Michigan merit awards (estimated amount $11,200,000.00).

(ee) Judiciary, trial court improvements (estimated amount $2,300,000.00).

(ff) Judiciary, implementation of commercial motor vehicle legislation (estimated amount $1,650,000.00).

(gg) Judiciary, 27th district court (estimated amount $250,000.00).

(hh) Management and budget, e-Michigan (estimated amount $23,200,000.00).

(ii) Management and budget, arts and cultural grants (estimated amount $11,100,000.00).

(jj) Management and budget, council of state governments annual meeting expenses (estimated amount $350,000.00).

(kk) Management and budget, EFT/vendor enrollment (estimated amount $2,000,000.00).

(ll) Management and budget, census and redistricting (estimated amount $500,000.00).

(mm) Military affairs, Vietnam veterans memorial (estimated amount $500,000.00).

(nn) Military affairs, Grand Rapids veterans' home (estimated amount $400,000.00).

(oo) Natural resources, bovine tuberculosis programs (estimated amount $4,500,000.00).

(pp) Natural resources, general law enforcement (estimated amount $1,500,000.00).

(qq) Natural resources, forest fire protection (estimated amount $850,000.00).

(rr) Natural resources, fisheries resource management (estimated amount $960,000.00).

(ss) Natural resources, Dober mine settlement project (estimated amount $312,000.00).

(tt) Natural resources, tribal fishing settlement (estimated amount $17,000,000.00).

(uu) State, branch computer upgrade (estimated amount $695,200.00).

(vv) State police, central records division (estimated amount $750,000.00).

(ww) State police, information technology (estimated amount $3,100,000.00).

(xx) State police, 911 priority projects (estimated amount $837,000.00).

(yy) State police, firearm safety and awareness (estimated amount $150,000.00).

(zz) State police, firearm safety device grants to locals (estimated amount $1,000,000.00).

(aaa) State police, project exile coordinating commission (estimated amount $1,500,000.00).

(bbb) Transportation, bus capital (estimated amount $29,100,000.00).

(ccc) Transportation, freight preservation and development (estimated amount $600,000.00).

(ddd) Treasury, MEAP test development (estimated amount $1,000,000.00).

(eee) Treasury, revenue sharing hold harmless payments (estimated amount $322,000.00).

Sec. 212. For the fiscal year ending September 30, 2000, all general fund-general purpose unreserved balances at the final close of the fiscal year are appropriated and shall be transferred to the countercyclical budget and economic stabilization fund pursuant to section 354(4) of the management and budget act, 1984 PA 431, MCL 18.1354.

Sec. 213. If total state revenues for the fiscal year ending September 30, 2000 have exceeded the revenue limit established under section 26 of article IX of the state constitution of 1963 by less than 1%, the appropriations contained in section 212 and section 212 of 1999 PA 124 shall be considered a deposit into the countercyclical budget and economic stabilization fund pursuant to the provisions of section 26 of article IX of the state constitution of 1963.

Sec. 214. If total state revenues for the fiscal year ending September 30, 2000 have exceeded the revenue limit established under section 26 of article IX of the state constitution of 1963 by 1% or more, the appropriations contained in section 212 and section 212 of 1999 PA 124 to the countercyclical budget and economic stabilization fund are appropriated and transferred back to the general fund. This transfer shall occur before the final book closing for the fiscal year ending September 30, 2000 is completed.

AGRICULTURE


Sec. 301. The department of agriculture shall provide to the senate and house of representatives appropriation committees and the fiscal agencies a report of the distribution of funds in part 1 for regulatory enhancements and race horse drug testing-fairs line items. This report shall be transmitted not later than October 15, 2000.

Sec. 302. (1) The office of racing commissioner shall provide a report that details the total dollars wagered and the breaks money from each of the 8 pari-mutuel tracks to each of the following:

(a) Each municipality where the pari-mutuel tracks are located.

(b) The senate and house of representatives appropriations committees.

(c) The fiscal agencies.

(2) The report described in subsection (1) shall be transmitted to the entities described in subsection (1) not later than October 15, 2000.

Sec. 303. Of the funds appropriated for food safety and quality assurance, the department shall allocate funding to provide a system that will provide the following:

(a) Establish inspection priorities based upon current risk knowledge.

(b) Provide for automatic data capture and uploading at the field level, eliminating the need for duplicative data entry.

(c) Provide for automatic information retrieval at the field and regional office levels.

(d) Provide a centralized complaint reporting and tracking system that will be phased in as funding becomes available.

(e) Provide web-based information for consumer access.

(f) Provide critical enforcement data for oversight and uniformity.

Sec. 304. Of the funds appropriated in part 1 for agriculture development initiatives, the department shall expend funds for local grant promotions for agricultural value initiatives. These funds shall not be expended until legislation is enacted to create the uncollectable allowance recovery fund and prescribe the uses of the fund.

CAPITAL OUTLAY


Sec. 401. (1) A university or community college shall not enter into a contract for new construction of a nonstate-funded project estimated to cost more than $1,000,000.00 unless the project is authorized by the joint capital outlay subcommittee (JCOS). The request for legislative authorization shall be initially submitted for review to the JCOS and the department. A nonstate-funded project request shall include a complete use and financing statement as defined by a policy adopted by the JCOS. The use and financing statement for a nonstate-funded project shall contain the estimated total construction cost and all associated estimated operating costs including a statement of anticipated project revenues. As used in this section, "new construction" includes land or property acquisition, remodeling, additions, and maintenance projects.

(2) A project that is constructed in violation of this section shall not receive state appropriations for purposes of operating the project, or support for future infrastructure enhancements that are necessitated, in part or in total, by construction of the project.

(3) A state agency, including the department of military and veterans affairs, shall not enter into a contract, including those for a direct federally-funded capital outlay construction or major maintenance or remodeling project if the total project is estimated to cost more than $1,000,000.00 and is to be constructed on state-owned lands, unless the project is approved by the department and by the JCOS. For projects over $1,000,000.00, the state agency shall submit a use and finance statement as required for community colleges and universities in subsection (1). As used in this subsection, "direct federally-funded" refers to a project for which federal payments are made directly to the construction vendor and not to the state of Michigan.

(4) A public body corporate created under section 28 of article VII of the state constitution of 1963 and the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by a contractual interlocal agreement between local participating economic development corporations formed under the economic development corporations act, 1974 PA 338, MCL 125.1601 to 125.1636, and the Michigan strategic fund shall not let a contract for new construction estimated to cost more than $1,000,000.00 unless the project is authorized by the JCOS through the approval of a use and financing statement. For purposes of this subsection, the use and financing statement for a project shall contain the estimated total construction cost and all associated estimated operating costs. As used in this subsection, "new construction" means land or property acquisition, remodeling or additions, lease or lease purchase, and maintenance projects for the corporate office of the public body corporate described in this subsection.

Sec. 402. The funds appropriated in part 1 for community colleges - infrastructure, technology, equipment, and maintenance shall be distributed as follows:

Alpena Community College $ 228,779

Bay de Noc Community College 178,179

Delta College 415,337

Glen Oaks Community College 138,689

Gogebic Community College 162,470

Grand Rapids Community College 476,445

Henry Ford Community College 427,944

Jackson Community College 293,954

Kalamazoo Valley Community College 292,030

Kellogg Community College 287,729

Kirtland Community College 143,847

Lake Michigan College 270,040

Lansing Community College 523,824

Macomb Community College 672,423

Mid Michigan Community College 166,853

Monroe County Community College 212,678

Montcalm Community College 151,742

C.S. Mott Community College 406,398

Muskegon Community College 207,754

North Central Michigan College 152,477

Northwestern Michigan College 389,093

Oakland Community College 793,048

St. Clair County Community College 247,268

Schoolcraft College 305,919

Southwestern Michigan College 215,606

Washtenaw Community College 370,481

Wayne County Community College 508,175

West Shore Community College 159,618


TOTAL $ 8,798,800

Sec. 403. The funds appropriated in part 1 for universities - infrastructure, technology, equipment, and maintenance shall be distributed as follows:

Central Michigan University $ 2,414,349

Eastern Michigan University 2,457,092

Ferris State University 1,563,312

Grand Valley State University 1,611,467

Lake Superior State University 401,768

Michigan State University 9,114,794

Michigan Technological University 1,555,463

Northern Michigan University 1,464,553

Oakland University 1,416,381

Saginaw Valley State University 748,659

University of Michigan-Ann Arbor 10,165,837

University of Michigan-Dearborn 773,316

University of Michigan-Flint 665,265

Wayne State University 7,142,002

Western Michigan University 3,495,535


Total $ 44,989,793

Sec. 404. The distributions provided for community colleges and for universities in part 1 shall not be made until the community college or university submits to the state budget director a 5-year comprehensive capital outlay plan for fiscal year 2001 through fiscal year 2004-2005 pursuant to section 242 of the management and budget act, 1984 PA431, MCL 18.1242.

Sec. 405. The planning approval requirements by the JCOS for the animal health diagnostic laboratory are waived pursuant to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594. The project is authorized to move into final design and construction.

Sec. 406. (1) Except as otherwise provided in subsection (2), the funds appropriated in part 1 for public broadcasting digital conversion shall be distributed as follows:

WGVU-TV, Grand Valley State University $ 1,424,891

WKAR-TV, Michigan State University 1,218,017

WNMU-TV, Northern Michigan University 1,315,357

WFUM-TV, University of Michigan-Flint 1,130,085

WDCQ-TV, Delta College 2,052,825

WCMU-TV, Central Michigan University 5,633,121

WTVS-TV, Detroit 1,271,210

WGVU-Radio, Grand Valley State University 217,115

WKAR-Radio, Michigan State University 108,558

WNMU-Radio, Northern Michigan University 379,952

WFUM-Radio, WUOM-Radio, University of Michigan 398,045

WCMU-Radio, Central Michigan University 325,673

WDET-Radio, Wayne State University 54,279

WEMU-Radio, Eastern Michigan University 54,279

WIAA-Radio, Interlochen 108,558

WBLU-Radio, Blue Lake Music Camp 108,558

WMUK-Radio, Western Michigan University 54,279

(2) Funds shall not be distributed to a public broadcasting entity described in subsection (1), unless that public broadcasting entity agrees to prohibit all of the following:

(a) The rental, sale, or exchange of the name or other personally identifiable information of a contributor or a donor to any federal, state, or local candidate, political party, independent, or political committee.

(b) The disclosure of the name or other personally identifiable information of a contributor or donor to any nonaffiliated third party unless:

(i) The public broadcasting entity clearly and conspicuously discloses to the contributor or donor that such information may be disclosed to a nonaffiliated third party.

(ii) The contributor or donor is given the opportunity, before disclosure of the information, to direct that personally identifiable information not be disclosed to a nonaffiliated third party.

(iii) The contributor or donor is provided an explanation of how the contributor or donor may exercise the nondisclosure option described in subsection (ii).

(3) Upon conversion to digital technology, public television stations shall provide the state of Michigan with a daytime television channel for educational and governmental use statewide.

Sec. 407. The department of natural resources shall enter into agreements with local units of government for the purpose of administering the grants identified in part 1. Among other provisions, the agreements shall require that grant recipients agree to dedicate to public outdoor recreation uses, in perpetuity, the land acquired or developed; to replace lands converted or lost to other than public outdoor recreation use; and for parcels acquired over 5 acres, to either convey to the state any mineral interests acquired by the grant recipient with an exception allowed for a share of the mineral interests acquired, which share is based on the portion of the fair market value of the property that was provided by the local cash contribution of the grant recipient, or provide the state with a nonparticipating 1/6 minimum royalty interest in any acquired minerals that are retained by the grant recipient. The agreements shall also provide that the full payments of grants can be made only after proof of acquisition, or completion of the development project, is submitted by the grant recipient and all costs are verified by the department of natural resources.

Sec. 408. The department of natural resources shall take steps necessary to make available federal or other funds that may become available for the purpose for which natural resources trust fund appropriations are made in part 1, and to use any or all of the appropriations to meet matching requirements which are determined to be in the best interest of the state.

Sec. 409. Any unobligated balance in any natural resources trust fund appropriation made under part 1 shall not revert to the fund from which appropriated at the close of the fiscal year, but shall continue until the purpose for which it was appropriated is completed for a period not to exceed 3 fiscal years. The unexpended balance of any natural resources trust fund appropriation made in part 1 remaining after the purpose for which it was appropriated is completed shall revert to the Michigan natural resources trust fund and be made available for appropriation.

Sec. 410. If a person or organization has acquired an option on a parcel of property prior to final determination by the department of natural resources and the Michigan natural resources trust fund board, the property shall not be considered for acquisition unless the department and board can demonstrate that a clear recreational advantage exists in obtaining the parcel of property for the people of the state at a reasonable fair market value.

Sec. 411. As required by section 1903(3) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.1903, the grants-in-aid to local units of government shall be awarded pursuant to this act.

Sec. 413. The following project costs/financing are adjusted as indicated for correctional facility projects authorized by 1998 PA 273:

(a) For Cooper street correctional facility the total project cost is increased from $7,100,000.00 to $8,200,000.00. The state building authority share remains $5,000,000.00; the state general fund share remains $120,000.00; and the federal funds share is increased from $1,980,000.00 to $3,080,000.00.

(b) For camp Pugsley correctional facility the total project cost is reduced from $28,000,000.00 to $26,900,000.00; the state building authority share is reduced from $27,720,000.00 to $26,620,000.00; and the state general fund share remains $280,000.00.

(c) For the new level IV correctional facility at Ionia, the total project cost remains $80,500,000.00. The state building authority share is increased from $33,479,900.00 to $34,579,900.00; the state general fund share remains $100.00; and the federal funds share is reduced from $47,020,000.00 to $45,920,000.00.

Sec. 413a. (1) Funds appropriated in section 103(3) for building demolition shall be used to demolish state-owned, tax-reverted properties. The director may provide that tax-reverted properties be demolished or may coordinate rehabilitation efforts when it is determined to be in the best interest of the state due to health and public safety concerns or major disrepair.

(2) Funds appropriated in this section may be used to cover all costs associated with demolition, including, but not limited to, environmental studies, abatement, and excavation, as well as necessary and reasonable administrative costs related to project management.

Sec. 413b. (1) From the funds appropriated in part 1, to the department of state for the iron ore museum, the department of state shall undertake a work project and make expenditures up to $500,000.00 to expand the Michigan iron industry museum in Negaunee.

(2) The purpose of this work project is to expand the exhibit space at the museum for artifact protection, additional exhibit displays, and public programming, especially for school-age children. The department of state shall accomplish its construction objective by using standard state procurement procedures and performance billings and payments. The estimated completion cost to be incurred by the department of state is $500,000.00, and the anticipated completion date is September 30, 2004.

(3) The funding appropriated for this work project shall not lapse at the end of the fiscal year but shall continue to be available for expenditure until the project is completed or the funding is depleted, whichever occurs first.

Sec. 413c. The funds appropriated in part 1 for the Kalamazoo aviation history museum shall only be expended if Michigan is selected as the project site.

DEPARTMENT OF COMMUNITY HEALTH


Sec. 414. From the funds appropriated in part 1 for public health traffic safety coordination, $300,000.00 shall be allocated for a child car seat safety grant program for the purpose of providing grants for training, promotion, and education concerning the child restraint system use requirements established in sections 710d and 710e of the Michigan vehicle code, 1949 PA 300, MCL 257.710d and 257.710e.

EXECUTIVE OFFICE


Sec. 415. Funds collected by the executive office under sections 55, 57, 58, and 59 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.255, 24.257, 24.258, and 24.259, and section 203 of the legislative council act, 1986 PA 268, MCL 4.1203, are appropriated for all expenses necessary to provide for the costs of publication and distribution. The funds appropriated under this section are allotted for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

DEPARTMENT OF ENVIRONMENTAL QUALITY


Sec. 416. The appropriation in part 1 for the volunteer river, stream, and creek cleanup program shall be granted for river debris cleanup projects conducted in the year 2000. The local matching requirement in section 8802(4) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.8802, may be satisfied by local contributions, landfill fee credits, and donated equipment.

FAMILY INDEPENDENCE AGENCY


Sec. 417. The family independence agency, with the approval of the state budget director, is authorized to realign sources of financing authorizations in 1999 PA 135 in order to maximize temporary assistance for needy families' maintenance of effort countable expenditures. This realignment of financing shall not be made until 30 days after notifying the chairs of the house and senate appropriations subcommittees on the family independence agency budget and house and senate fiscal agencies, and shall not produce an increase or decrease in any line-item expenditure authorization.

Sec. 418. If title IV-D related child support collections are escheated, the state budget director is authorized to adjustthe sources of financing in the legal support contracts line item to reduce federal authorization by 66% of the escheated amount and increase general fund/general purpose authorization by the same amount. As used in this section, "Title IV-D" means part D of title IV of the social security act, chapter 531, 49 Stat. 620, 42 U.S.C. 651 to 655, 656 to 660, and 663 to 669b.

JUDICIARY


Sec. 421. The audit conducted by the legislative auditor general pursuant to section 53 of article IV of the state constitution of 1963 shall include a review of trial court improvement projects.

Sec. 422. The funds appropriated in part 1 for the implementation of commercial motor vehicle legislation shall be used only for trial court costs associated with implementing 1 or more of the following:

(a) 2000 PA 93.

(b) 2000 PA 94.

(c) 2000 PA 95.

(d) 2000 PA 96.

(e) 2000 PA 97.

(f) 2000 PA 98.

LEGISLATURE


Sec. 425. Any unexpended funds appropriated in part 1 to the senate and house of representatives for census tracking/reapportionment shall not lapse to the general fund at the close of the fiscal year and shall remain available in succeeding fiscal years for the purpose for which they were appropriated.

MANAGEMENT AND BUDGET


Sec. 429. Of the funds appropriated in part 1 for arts and cultural grants, the department of management and budget shall award a grant of $500,000.00 to the Jesse Besser museum in Alpena.

MICHIGAN STRATEGIC FUND


Sec. 430. (1) The funding appropriated in part 1 for the Michigan core communities fund will be used to create an urban revitalization infrastructure program in the Michigan strategic fund for economic development awards to create new jobs or contribute to redevelopment and encourage private investment in core communities.

(2) Awards will be provided to qualified local governmental units as defined in the obsolete property rehabilitation act, 2000 PA 146, or certified technology parks, as defined in the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174. All qualified local governmental units and certified technology parks will be notified of the Michigan core communities fund within 15 days of the effective date of this act.

(3) Awards can be used only for land and property acquisition and assembly, demolition, site development, utility modifications and improvements, street and road improvements, telecommunication infrastructure, site location and relocation, infrastructure improvements, and costs related to any of these, at the discretion of the Michigan economic development corporation.

(4) Funding may be provided in the form of loans, grants, sales or cash flow participation agreements, guarantees, or any combination of these. A cash match of at least 10%, or local repayment guarantee with a dedicated funding source, is required. Priority shall be given to projects which are integrated with existing economic development programs, and to projects in proportion to the amount that local matching rates exceed 10%.

(5) The Michigan economic development corporation shall have all administrative responsibility for the Michigan core communities fund and shall establish application and application scoring criteria and approve awards. The Michigan economic development corporation may utilize up to 1/2 of 1% of the fund for administrative purposes.

(6) Funds will be awarded through an open competitive process based on criteria including the following: project impact, project marketability, lack of adequate infrastructure or land assembly financing sources, local administrative capacity, and the level of local matching funds. Awardees shall agree to expedite the local development process, such as fast-track permitting procedures, streamlined regulatory requirements, standardized construction and building codes, and the use of competitive construction permitting fees.

(7) The appropriation of the Michigan core communities fund is a work project appropriation and any unencumbered or unallotted funds are carried forward into the following fiscal year. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project to be carried out is to provide awards to qualified local governmental units and certified technology parks for local economic development projects as defined by this section.

(b) The project will be accomplished through contracts.

(c) The total estimated cost of all awards is identified in the line-item appropriation.

(d) The tentative completion date is September 30, 2005.

(8) Funds will be awarded as part of 4 separate application periods. Deadlines for submitting applications for each of the 4 periods will be no later than September 1, 2000, January 1, 2001, April 1, 2001, and July 1, 2001. Awards for each of the application periods will be made on a quarterly basis.

(9) Not more than $12,500,000.00 will be awarded per application period, and no single project shall be awarded more than $10,000,000.00.

(10) Fifteen days prior to award of the funds, notification shall be provided to the speaker of the house of representatives, the senate majority leader, the members of the house and senate appropriations committees, and the house and senate fiscal agencies.

(11) Funds shall not be awarded for any of the following purposes:

(a) Land sited for use as, or support for, a gaming facility or as a stadium or arena for use by a professional sports team.

(b) Land or other facilities owned or operated by a gaming facility or by a stadium or arena for use by a professional sports team.

(c) Publicly owned land or facilities which may directly or indirectly support a gaming facility or a stadium or arena by a professional sports team.

(12) By December 31 of each year that the Michigan core communities fund continues in operation, the Michigan economic development corporation shall submit to the chairs of the appropriations committees in the house of representatives and senate a report detailing the awards made.

(13) As used in this section, "Michigan economic development corporation" means the public body corporate created under section 28 of article VII of the state constitution of 1963 and the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by a contractual interlocal agreement effective April 5, 1999 between local participating economic development corporations formed under the economic development corporations act, 1974 PA338, MCL 125.1601 to 125.1636, and the Michigan strategic fund. If the Michigan economic development corporation is unable for any reason to perform its duties under this act, the Michigan strategic fund may exercise those duties.

MILITARY AFFAIRS


Sec. 450. The appropriation in part 1 for the Vietnam veterans memorial shall be expended for construction and related professional design services upon certification that donations and other funds have been secured sufficient to meet total project costs, and after department of management and budget approval of final design specifications and site.

DEPARTMENT OF NATURAL RESOURCES


Sec. 501. The appropriation in part 1 for local recreation grants shall be allocated and awarded in accordance with part 716 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.71601 to 324.71607.

Sec. 502. The unexpended portion of the appropriation in part 1 for the department of natural resources for local recreation grants is considered a work project appropriation. The purpose of this appropriation is to provide grants to local governmental units for local recreation capital improvement projects. Capital improvement projects include the construction, expansion, development, or rehabilitation of recreational facilities. The estimated completion date for these grant projects is September 30, 2004.

Sec. 503. The appropriation contained in part 1 for federal land and water conservation fund payments shall be considered a work project pursuant to section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a. The projects will be accomplished by the use of department personnel and contracting with private consultants with estimated completion dates of September 30, 2004.

Sec. 504. The appropriation contained in part 1 for the snowmobile local grants program and snowmobile law enforcement grants shall be considered work projects pursuant to section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a. The projects will be accomplished by the use of department personnel and contracting with private consultants with estimated completion dates of September 30, 2001.

Sec. 505. The appropriation contained in part 1 for general law enforcement is to be used to purchase and install computers in the patrol cars used by conservation officers. The department of natural resources shall not use these funds for any other purpose and shall make every effort to complete the purchase and installation of these computers in a timely manner.

Sec. 506. (1) The appropriation in part 1 for the Great Lakes fishing settlement and gill net removal shall be expended in accordance with the terms of a settlement agreement to which the state is a party to be entered in the case of United States v Michigan, No. 2:73-cv-26 (WD Mich).

(2) The appropriation in part 1 for the Great Lakes fishing settlement and gill net removal shall not be released by the department of management and budget until the settlement agreement described in subsection (1) is adopted, entered, or issued by the federal court. In the event that no settlement agreement to which the state of Michigan is a party is filed on or before August 11, 2000, the funds appropriated in part 1 for the Great Lakes fishing settlement and gill net removal shall revert to the general fund and be made available for appropriation.

(3) In the event that the settlement agreement described in subsection (1) does not provide that, subject to a congressional appropriation, the department of interior will provide a minimum of $7,500,000.00, the funds appropriated in part 1 for the Great Lakes fishing settlement and gill net removal shall revert to the general fund and be made available for appropriation.

(4) In the event that the settlement agreement described in subsection (1) does not provide that, for the life of the agreement, there shall be no commercial use of large mesh gill nets in waters south of the 45th parallel and west of the Leelanau peninsula, the funds appropriated in part 1 for the Great Lakes fishing settlement and gill net removal shall revert to the general fund and be made available for appropriation.

(5) Of the funds appropriated in part 1 for the Great Lakes fishing settlement and gill net removal, $1,000,000.00 shall be used by the department of natural resources for fisheries enforcement and assessment activities, including the purchase of necessary vessels and equipment.

(6) The department of natural resources shall submit an annual report beginning September 30, 2001 to the speaker of the house of representatives, the senate majority leader, and the governor on the status of the enforcement and implementation of the settlement agreement described in subsection (1).

DEPARTMENT OF STATE


Sec. 551. The $100,000.00 appropriated in part 1 to the department of state, for the Michigan historical center foundation challenge grant, is contingent upon the foundation providing a dollar for dollar cash match.

STATE POLICE


Sec. 575. Of the funds appropriated in section 121(4) for grants to local government, $197,000.00 shall be distributed to the city of Gaylord to reimburse the cost of infrastructure damage and road repair caused by a high-wind natural disaster.

Sec. 576. The funds appropriated in section 121 for the central records division shall be expended for the purposes of conducting criminal history background checks on persons applying through the department of consumer and industry services for a license or certificate of registration to operate a child care organization under section 1(e), (f)(iii), or (f)(iv) of 1973 PA 116, MCL 722.111, and persons applying through the family independence agency to become an enrolled day care aide or an enrolled relative care provider.

Sec. 577. The funds appropriated in section 121 for firearms safety and awareness shall be expended by the department of state police, in collaboration with the Michigan state university school of criminal justice, to develop a curriculum for K-12 students on gun awareness and safety and to train 400 police officers to deliver the curriculum to school-age youth. The gun safety curriculum shall include teaching children to prevent gun accidents by instructing them to "stop, don't touch, leave the area, and tell an adult" should a child encounter a gun. The curriculum shall not include instruction on how to use a gun.

Sec. 578. (1) The funds appropriated in section 121 for firearm safety device grants to locals shall be expended to provide local units with firearm safety devices for distribution to persons residing in the grantees' respective communities. The department of state police shall establish guidelines for the distribution of firearm safety devices to local units for their distribution to firearm owners.

(2) The state shall not be liable for any injury resulting from the use of the safety device, or any injury or death resulting from the discharge of a firearm equipped with a safety device provided under this act.

Sec. 579. The funds appropriated in section 121 for the project exile coordinating commission shall be expended to provide information, training, and technical assistance to law enforcement and prosecution, to coordinate criminal prosecutions under firearms laws of this state and federal law and penalties under those laws, and to provide funding to law enforcement agencies and prosecutors in the form of grants and loans for these stated purposes. Funds may be expended to hire a sufficient number of prosecutors and support staff as deemed necessary by the commission to fulfill the purposes of the commission. Funds may be expended on programs to inform the public of the commission and its duties.

Sec. 580. Expenditures for new criminal justice information technology initiatives, from the funds appropriated for law enforcement information technology project in part 1, shall be consistent with the standards and guidelines of the criminal justice information systems policy council for integrated and inter-operable criminal justice information systems.

DEPARTMENT OF TRANSPORTATION


Sec. 601. From the funds appropriated in part 1 of 1999 PA 136, $2,000,000.00 is allocated for a rail infrastructure loan program. The program shall provide noninterest bearing loans for rail infrastructure improvements. The department shall evaluate loan applications according to the relative merit of the project in conjunction with program goals. The transportation commission shall approve the loans. The loans shall fund not less than 90% of the rail portion of project costs, and the loan repayment period shall not exceed 10 years. Local governments, railroads, and current or potential users of freight railroad services are eligible applicants. At the end of the fiscal year, unexpended funds shall remain in the rail infrastructure loan program and shall be available to be allocated for the purposes of the program in the succeeding fiscal year. Money that is received by this state as repayment for rail infrastructure loans made pursuant to this program shall remain within the rail infrastructure loan program and shall be allocated for the purposes of the program. The state's total contribution to the rail infrastructure loan program shall not exceed $15,000,000.00.

Sec. 602. (1) There is appropriated $100,000,000.00 from the state trunkline fund for the build Michigan III program.

(2) If the transfer of funds authorized in section 358 of Senate Bill No. 1275 of the 90th Legislature is less than $62,900,000.00, the appropriation in subsection (1) for the build Michigan III program shall be reduced by the same amount the transfer is less than $62,900,000.00.

(3) Funds from the countercyclical budget and economic stabilization fund deposited in the state trunkline fund and intended for the build Michigan III program shall not lapse at the close of the fiscal year, and shall remain in the state trunkline fund and shall carry forward and be available for appropriation for debt service payments, maintenance, and construction costs associated with the build Michigan III program.

Sec. 603. It is the intent of the legislature to review, prior to beginning construction, all build Michigan III projects approved by the department to be funded with state transportation revenues. No late than October 31, 2000, the department shall report to the senate and house of representatives appropriations subcommittees on transportation and the senate and house fiscal agencies the following information regarding those build Michigan III projects approved by the department to be funded, in whole or in part, from state transportation revenues:

(a) Project description.

(b) Total project costs.

(c) The amount of total project costs funded from state transportation revenues.

(d) The amount of local match, if any.

(e) The life-cycle cost analysis required under section 1h of 1951 PA 51, MCL 247.651h.

DEPARTMENT OF TREASURY


Sec. 701. There is appropriated for write-offs and advances an amount equal to total write-offs and advances for the local government programs, but not to exceed current year authorizations that would otherwise lapse to the general fund.

Sec. 702. The appropriation contained in part 1 for special census revenue sharing payments is to make special census revenue sharing payments to eligible cities, villages, and townships pursuant to the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921. The department of treasury shall transmit special census revenue sharing payments to eligible cities, villages, and townships by July 31, 2000. These payments shall be made to cities, villages, and townships that were certified to be eligible by June 30, 1997. The payments shall reflect the amount of special census revenue sharing payments each eligible city, village, and township would have received in the fiscal year ending June 30, 2000.

Sec. 703. The appropriation in part 1 for supplemental revenue sharing payments-counties will be distributed to counties whose 2000 population according to the United States bureau of the census is less than the counties 1990 population according to the United States bureau of the census. Each county who experiences this population decline shall be eligible to receive a supplemental payment equal to the difference between the amount of fiscal year 2000-2001 total revenue sharing payments the county would have received utilizing their 1990 population and the amount of revenue sharing payments the county received in fiscal year 2000-2001 pursuant to the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921. The department of treasury shall reduce these supplemental payments proportionally if the amount appropriated in part 1 is insufficient to fully fund these payments. The supplemental payments to eligible counties shall be distributed by September 30, 2001.

MISCELLANEOUS


Sec. 801. Section 710 of 1999 PA 136 is repealed.

Sec. 802. Section 501 of 1999 PA 265 is repealed.

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

A bill to make, supplement, and adjust appropriations for various state departments and agencies, the legislative branch, and the judicial branch for the fiscal year ending September 30, 2000; to provide for the expenditure of the appropriations; and to repeal acts and parts of acts.

Harry Gast

George A. McManus, Jr.

Alma Wheeler Smith

Conferees for the Senate

Terry Geiger

Jon Jellema

Hubert Price, Jr.

Conferees for the House

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

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

The motion prevailed.

The question being on the adoption of the conference report,

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

Roll Call No. 823 Yeas--102

Allen Faunce LaForge Rivet

Baird Frank LaSata Rocca

Basham Garcia Law Sanborn

Birkholz Garza Lockwood Schauer

Bisbee Geiger Mans Schermesser

Bishop Gieleghem Martinez Scott

Bogardus Gilbert Mead Scranton

Bovin Godchaux Middaugh Shackleton

Bradstreet Green Minore Sheltrown

Brater Hager Mortimer Shulman

Brewer Hale Neumann Spade

Brown, B. Hansen O'Neil Stallworth

Brown, C. Hardman Pappageorge Switalski

Byl Hart Patterson Tabor

Callahan Howell Perricone Tesanovich

Cassis Jacobs Pestka Thomas

Caul Jamnick Price Toy

Cherry Jansen Prusi Van Woerkom

Clark, I. Jelinek Pumford Vander Roest

Clarke, H. Jellema Quarles Vaughn

Daniels Johnson, Rick Raczkowski Vear

DeHart Johnson, Ruth Reeves Voorhees

Dennis Julian Richardville Wojno

DeRossett Koetje Richner Woodward

DeVuyst Kowall Rison Woronchak

DeWeese Kukuk

Nays--4

Gosselin Kilpatrick Kuipers Stamas

In The Chair: Scranton

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

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

______

Rep. Raczkowski moved that when the House adjourns today it stand adjourned until Wednesday, June 21, at 12:01 a.m.

The motion prevailed.

Notices

I hereby give notice that on the next legislative session day I will move to discharge the Committee on Energy and Technology from further consideration of House Bill No. 5116.

Rep. Middaugh

By unanimous consent the House returned to the order of

Motions and Resolutions

Reps. Caul, Geiger, Rocca, Woronchak, Howell, Tabor, Richardville, Julian, Gilbert, DeRossett, Hager, Bradstreet, Pumford, Mead, Toy, Godchaux, DeVuyst, Cassis, Hale, Middaugh, Kelly, Sheltrown, Switalski, Martinez, Birkholz, Koetje, Faunce, Voorhees, Ehardt, Baird, Prusi, LaForge, Shulman, Van Woerkom, Vander Roest, Mortimer, Richner, Vaughn, Raczkowski, Brater, Ruth Johnson, Scranton and Vear offered the following resolution:

House Resolution No. 381.

A resolution to oppose the Department of Community Health proceeding with any competitive bid process or returning to a fee-for-service system for specialty services without the input of the Michigan Legislature.

Whereas, The Michigan Constitution (Article VIII, Section 8) states "Institutions, programs, and services for the care, treatment, education or rehabilitation of those inhabitants who are physically, mentally, or otherwise seriously disabled shall always be fostered and supported"; and

Whereas, The Michigan Mental Health Code, 1974 PA 258, provides for the establishment of a state department (Department of Community Health) in order to fulfill the state's obligations. Section 116 of the Code, being MCL
§ 330.1116, provides, in subsection (2)(b), for this department "...to shift primary responsibility for the direct delivery of public mental health services from the state to a community mental health services program whenever the community mental health services program has demonstrated a willingness and capacity to provide an adequate and appropriate system of mental health services for the citizens of that service area"; and

Whereas, Michigan counties, at the direction of and with full knowledge and support of the state, have been successfully involved in the delivery of mental health care since 1963. In actively pursuing these efforts, the counties have assumed long-term local obligations to facilitate infrastructure and program development for the delivery of mental health services; and

Whereas, The diverse and vulnerable populations addressed in the Department of Community Health's position paper on Competition for Management of Publicly Funded Specialty Services require specialized care by appropriate professional staff and tailored individual and family treatment plans; and

Whereas, It is highly questionable that the assumptions made using a "one size fits all" concept in developing the plan set forth in the department's position paper are in the best interest of those populations needing such diverse services; and

Whereas, There is mounting concern regarding the scope of services to be included in the contracts as well as the regional concept, yet to be defined, compared to the current systems for care delivery; and

Whereas, These concerns focus on anticipated problems with transportation access and increased costs, potential for diminished personalized services, increased response times in emergencies, and multiple other service delivery issues associated with the proposed concept and resultant changes; now, therefore, be it

Resolved by the House of Representatives, That we oppose the Department of Community Health proceeding with any competitive bid process or returning to a fee-for-service system for specialty services without significant input from the Michigan Legislature--that input taking the form of enabling legislation, resolution, or other means of communication with the department; and be it further

Resolved, That copies of this resolution be transmitted to the Department of Community Health.

The resolution was referred to the Committee on House Oversight and Operations.

Reps. Vaughn, Scott and Hansen offered the following resolution:

House Resolution No. 382.

A resolution to memorialize the Congress of the United States to call for a conference to create a new international monetary system.

Whereas, In 1944, economists from forty-four countries met at Bretton Woods, New Hampshire, to lay the groundwork for the establishment of the International Monetary Fund. This multinational organization attempted to set standards and practices for currency valuation to bring stability to a world shaken by global depression and world war. Since that time, the IMF also became involved in trade efforts and investment strategies for developing nations; and

Whereas, The world has changed dramatically over the past five and one-half decades. International finance challenges and resources have also changed a great deal, and the IMF has implemented major policy shifts as well; and

Whereas, There has been a notable impact on international finance from the abandonment of the gold standard in 1971. There also seems to be an increase in financial crises in different parts of the world, especially in the past few years. IMF programs trying to help emerging economies have been ineffective in many of the countries receiving loans; and

Whereas, There is growing concern about the damage that could occur if the bubble of financial speculation bursts. Developing economies are particularly vulnerable; now, therefore, be it

Resolved by the House of Representatives, That we memorialize the Congress of the United States to call for a conference to create a new international monetary system. We urge that the new convocation work in the following areas:

(1) Creating a new international monetary system to eliminate gradually the mechanisms that have led to undue speculation,

(2) Evaluating the possibility of anchoring currency values to meaningful reference points to better control the movement of currency rates,

(3) Proposing the creation of new credit lines oriented to developing investments in goods and services of true economic value, and

(4) Defining consistent infrastructure project goals; and be it further

Resolved, That copies of this resolution be transmitted to the President of the United States Senate, the Speaker of the United States House of Representatives, and the members of the Michigan congressional delegation.

The resolution was referred to the Committee on House Oversight and Operations.

Reps. Richner, Middaugh, Julian, DeVuyst, Kelly, Sheltrown, Switalski, Neumann, Rocca, Birkholz, Koetje, Faunce, Voorhees, Ehardt, Richardville, Shulman, Van Woerkom, Vander Roest, Caul, Mortimer, Vaughn, Raczkowski, Jellema, Shackleton, DeRossett, Tabor and Vear offered the following resolution:

House Resolution No. 383.

A resolution to memorialize the Congress of the United States to allocate sufficient revenue to dredge federally authorized and nonauthorized commercial and recreational harbors and navigational channels.

Whereas, Since 1997, Lakes Michigan, Huron, and Erie have receded more than 3 feet and Lakes Superior and Ontario are down 1 1/2 feet. Moreover, Lake St. Clair water levels are at their lowest point since 1965, and federal forecasters predict another 11-inch drop is possible by next year if dry weather persists. Not long ago, water levels were at their highest since the 1860s, when measurements were first recorded; and

Whereas, The Great Lakes, as the largest freshwater basin in the world, are a treasured resource. The continued use of these waters for commercial and recreational navigation depends upon regular dredgings of harbors, ports, marinas, and shipping channels. Dredging is not only important for safe navigation, but for maintaining water supply intakes, bridges and utility crossings, and the remediation of contaminated sediments; and

Whereas, Congress authorizes the United States Army Corps of Engineers to maintain nearly 35 commerical and recreational harbors and navigational channels in Michigan, Wisconsin, and Minnesota. Due to record low water levels, the Corps of Engineers is unable to keep certain navigational channels maintained at the required depths of 30 feet. Within the last year, 1000-foot freighters, the standard vessel of the Great Lakes fleet, were grounded both in the
St. Mary's River and Lake St. Clair. Moreover, vessels are having to navigate at less than full capacity, driving transport costs up considerably. Inadequate depths for safe and efficient vessel passage affect local economies that rely heavily on the transport of such bulk commodities as iron ore, coal, grain, limestone, salt, and petroleum products; and

Whereas, Michigan, in comparison to other states, has received an inequitable allocation of federal funds. For example, last year New York received $250 million in federal funds to dredge the Hudson River. In comparison, the entire state of Michigan, in 1999, received less than $10 million in federal funding. Further, from 1963 to the present, Michigan only received a paltry $6.6 million to dredge the St. Clair River; and

Whereas, Michigan is the number one state in the nation in recreational boat ownership. As a major state industry, recreational boating, which is represented by boat manufacturers and retailers, marina operators, marine suppliers, and sport fishers, annually adds several billion dollars to the regional economy; and

Whereas, The Corps of Engineers is not authorized to dredge privately owned marinas or nonauthorized state and municipal-operated commerical and recreational harbors and navigational channels. As a result, the recreational boating industry is damaged as even modest dredging projects can cost in the tens of thousands of dollars; now, therefore, be it

Resolved by the House of Representatives, That we memorialize the Congress of the United States to allocate sufficient revenue to dredge federally authorized and nonauthorized state commerical and recreational harbors; and be it further

Resolved, That a copy of this resolution be transmitted to the Speaker of the United States House of Representatives, the President of the United States Senate, and the members of the Michigan congressional delegation.

The resolution was referred to the Committee on Great Lakes and Tourism.

Reps. Julian, Cassis, DeHart, Lockwood, DeVuyst, Kelly, Gieleghem, Switalski, Neumann, Cherry, Rocca, Martinez, Birkholz, Koetje, Bishop, Faunce, Kukuk, Voorhees, Ehardt, Baird, Spade, Prusi, Richardville, Shulman, Van Woerkom, Hansen, Gosselin, Caul, Mortimer, Richner, Vaughn, Raczkowski, Brater, Garcia, Scranton, DeRossett, Tabor, Jamnick and Vear offered the following resolution:

House Resolution No. 384.

A resolution to congratulate the Corunna High School Odyssey of the Mind Division III World Champion Team.

Whereas, We join with entire community of Corunna as they celebrate the accomplishments of the World Champion Corunna High School Odyssey of the Mind Team. We proudly commend the hard work and ingenuity of these seven outstanding students and their coach upon winning the prestigious honor of being named the Odyssey of the Mind Division III World Champions; and

Whereas, Odyssey of the Mind is an educational program which challenges students to develop teamwork while honing their skills in solving complex problems in various situations. The Odyssey of the Mind program was founded in 1979 by Dr. Sam Mickulus of New Jersey as a distinctive way for students to utilize their classroom education for solving problems while fostering leadership and comradeship between team members. Seeing the unique opportunities this program provided to students, Corunna schools formed Odyssey of the Mind teams in 1984 and have participated in the program ever since; and

Whereas, The Division III World Champion Corunna High School Odyssey of the Mind Team is comprised of seven distinguished members which include: Betsy Brown, Walker Foland, Jason Goodrich, Gary Gregoricka, Holly Noetzel, Adam Spencer, and Kristy Walters. Their team coach is Dan Flynn, who was a member of the 1991 World Champion Team from Corunna High School; and

Whereas, The Corunna High School Odyssey of the Mind Team competed with other teams from across Michigan in order to earn the opportunity to participate at the world championship. The Corunna High School team traveled to the University of Tennessee in Knoxville to participate in the four day world competition held from May 31 to June 3, 2000. The Corunna team competed with students from across the United States and from several other countries, including: Australia, China, Germany, Japan, Kazakhstan, Lithuania, Poland, Singapore, and many others; and

Whereas, The Corunna High School Odyssey of the Mind Team was challenged to solve a series of problems by creating long-term plans and also working in spontaneous situations to solve problems. For their hard work and resourcefulness, the Corunna team placed first in their division, making them the Division III World Champions. They also won the coveted Renatra Fusca award for the creativity they employed in solving the spontaneous portion of the challenge; now, therefore, be it

Resolved by the House of Representatives, That an unanimous accolade of tribute be hereby accorded to congratulate the members of the Corunna High School Odyssey of the Mind Team for their successful season which resulted in being named the Division III World Champions. We offer our sincerest wishes for their continued success, both in and out of the classroom; and be it further

Resolved, That a copy of this resolution be transmitted to Corunna High School and the members and coach of the Odyssey of the Mind Team as evidence of our esteem.

Pending the reference of the resolution to a committee,

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

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

The question being on the adoption of the resolution,

The resolution was adopted.

Reps. Cherry, Cassis, DeHart, Hale, Middaugh, Frank, Hanley, Julian, Lockwood, Kelly, Thomas, Wojno, Gieleghem, Sheltrown, Jacobs, Switalski, Neumann, Rocca, Martinez, Scott, Birkholz, Bishop, Faunce, Voorhees, Ehardt, Baird, Spade, Prusi, Richardville, LaForge, Van Woerkom, Hansen, Gosselin, Caul, Mortimer, Vaughn, Rivet, Brater, Bogardus, Reeves, Bovin, Ruth Johnson, Kowall, Scranton, DeRossett and Jamnick offered the following resolution:

House Resolution No. 385.

A resolution memorializing the Federal Trade Commission to investigate the recent surge in gasoline prices in Michigan and to report its findings quickly in order to alleviate this burden on Michigan consumers.

Whereas, Michigan drivers have been stunned by the rapid increases in gasoline prices. Service station employees often make daily trips up their ladders to record double-digit increases in the price of gasoline. Although the entire country has struggled with price increases, Michigan and other Midwest states face a particularly harsh burden; and

Whereas, Oil industry experts point to a number of factors causing prices to rise, from a local pipeline rupture to increased global demand and lower supplies. Many, however, question the extent of the price increases. The unprecedented price surge to near record levels in such a short period of time raises the possibility that oil companies are engaging in price fixing or otherwise colluding to exploit the current situation to gouge consumers. While some fluctuation in prices is natural and expected, surely the oil companies are not surprised that motorists drive more in the summer. The failure of the oil industry to prepare for an anticipated increase in demand raises suspicions that the neglect was deliberate; and

Whereas, The Clinton administration has prudently directed the Federal Trade Commission to review the causes of the recent tremendous increases in gasoline prices in the Midwest. The administration's request for an expedited review is to be applauded. We encourage the Federal Trade Commission to comply with this directive with all due haste. Corrective actions will take time and the sooner we understand why prices have risen so much and whether such increases have been warranted, the sooner the federal government can work to reduce prices; now, therefore, be it

Resolved by the House of Representatives, That we memorialize the Federal Trade Commission to investigate the recent surge in gasoline prices in Michigan and to report its findings quickly in order to alleviate this burden on Michigan consumers; and be it further

Resolved, That a copy of this resolution be transmitted to the Federal Trade Commmission as a symbol of our concern over this issue.

The resolution was referred to the Committee on House Oversight and Operations.

Reps. Hardman, DeHart, Hale, Hanley, Quarles, Kelly, Thomas, Gieleghem, Jacobs, Switalski, Neumann, Cherry, Scott, Birkholz, Voorhees, Ehardt, Baird, Spade, Prusi, LaForge, Van Woerkom, Hansen, Richner, Vaughn, Rivet, Brater, Bogardus, DeRossett and Jamnick offered the following resolution:

House Resolution No. 386.

A resolution honoring Reverend Dr. Gregory G.M. Ingram an Aspirant for Episcopal Service in the African Methodist Episcopal Church.

Whereas, It is with great pleasure to join the Ingram Partnership Team for Episcopal Service and the congregation of Oak Grove African Methodist Episcopal Church in honoring Reverend Dr. Gregory G.M. Ingram as Aspirant for Episcopal Service in the African Methodist Episcopal Church. This tribute banquet is being held on June 24, 2000, at Cobo Hall in the great city of Detroit, where many great leaders have been produced. We are pleased to add our expressions of praise and acknowledgment on this special occasion; and

Whereas, Reverend Dr. Ingram holds a Bachelor of Arts Degree from Wilberforce University, a Master of Arts Degree in teaching from Antioch College, a Master of Divinity Degree from Garrett Theological Seminary and a Doctor of Ministry Degree from United Theological Seminary; and

Whereas, Reverend Dr. Ingram has written a number of publications that are heralded throughout African Methodism, including The Spiritual Aptitude Test (S.A.T.) Manual for African Methodism, a textbook for teaching new members and nurturing others in the Church, Convenants and Stewardship: A Life of Giving, a guidebook on stewardship and tithing. The Master's Men Ministry - A Christian Manual For Manhood, and his most recent work published in 1998, Equipping The Saints For Service; and

Whereas, Reverend Dr. Ingram has also edited three additional publications: Go Preach My Gospel, Ain't That Good News and Meditation Messages in Celebration of African Methodism Bicentennial Year 1787-1987. He chaired the stewardship task force that produced A Manual on Tithing and Stewardship for the African Methodist Episcopal Church, Division of Stewardship Education. This is a first of its kind among any African American Denomination; and

Whereas, Reverend Dr. Gregory G.M. Ingram is the Senior Minister of Oak Grove African Methodist Episcopal Church and one of the denomination's most knowledgeable preachers in the area of stewardship and tithing. For the past 25 years, Reverend Dr. Ingram has demonstrated a passionate commitment to the future of the Church of Allen, and thanks to his leadership over the past 13 years, Oak Grove has become one of the premier churches in African Methodism. He has distinguished himself not only within his denomination but also throughout the ecumenical community for his expertise in the areas of stewardship, church growth, mission, and ministry; and

Whereas, Clearly his family, church, and the people of his community are important to him. He addresses their concerns, gives wise counsel, and assumes a prominent and caring role for the benefit of all. We are proud to pay tribute to such a distinguished gentleman; and

Whereas, When the general conference of the African Methodist Episcopal Church convenes in Cincinnati, Ohio, in July, Reverend Dr. Ingram will present himself as one of the Aspirants for Episcopal Service; now, therefore, be it

Resolved by the House of Representatives, That the members of the legislative body join to honor Reverend Dr. Gregory G.M. Ingram upon his aspiration to serve as bishop in the African Methodist Episcopal Church; and be it further

Resolved, That a copy of this resolution be transmitted to Reverend Dr. Gregory G.M. Ingram as a token of our respect for his fine work in African Methodism.

Pending the reference of the resolution to a committee,

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

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

The question being on the adoption of the resolution,

The resolution was adopted.

Reps. Shackleton, Cassis, DeHart, Julian, Sheltrown, Switalski, Neumann, Rocca, Birkholz, Koetje, Bishop, Faunce, Voorhees, Ehardt, Baird, Spade, Shulman, Van Woerkom, LaSata, Vander Roest, Hansen, Gosselin, Mortimer, Richner, Vaughn, Raczkowski, Kowall, Garcia, DeRossett, Jamnick and Vear offered the following resolution:

House Resolution No. 387.

A resolution recognizing Guy Bowman as he steps down as President of the Michigan Propane Gas Association.

Whereas, It is a great privilege to join with the family, friends, and employees of Guy Bowman to recognize the many great contributions he has made to the people of Schoolcraft county; and

Whereas, Mr. Bowman, a lifelong resident of Schoolcraft county, attended Doyle Township Grade School as a young child and graduated from Manistique High School in 1974; and

Whereas, It was during the summers of his high school years that Guy Bowman began working for his dad at Bowman Gas, earning fifty cents per hour, claiming the company could not pay him what he was worth. Mr. Bowman married his wife, Cheryl, in 1978, and they have two children, Stephanie and Kristopher. In 1991, Mr. Bowman purchased Bowman Gas from his father keeping the company in the family. Now, he could pay himself what he was worth; and

Whereas, Mr. Bowman is recognized as a generous and caring employer. Bowman Gas employees are treated like family and several have worked for the company for many years; and

Whereas, Guy Bowman has given back to his community throughout his life. He served as a past trustee on the Doyle Township Board and he is a former fire chief of the Doyle Township Volunteer Fire Department. He continues to be a volunteer with the fire department even today. Mr. Bowman is the president of the Michigan Propane Gas Association, the present treasurer of the Schoolcraft County Chiefs Association, and a member of the Doyle Township Board of Review. He also supports many local charities and school events; now, therefore, be it

Resolved by the House of Representatives, That the members of this legislative body recognize Guy Bowman as he steps down as the President of the Michigan Propane Gas Association since 1998; and be it further

Resolved, That a copy of this resolution be transmitted to Guy Bowman and his family as an expression of our respect for his achievements and our best wishes for the future.

Pending the reference of the resolution to a committee,

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

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

The question being on the adoption of the resolution,

The resolution was adopted.

Reps. Scott, DeHart, Hale, Hanley, Quarles, Kelly, Thomas, Wojno, Gieleghem, Jacobs, Switalski, Neumann, Cherry, Birkholz, Ehardt, Baird, Spade, Prusi, LaForge, LaSata, Hansen, Mortimer, Richner, Vaughn, Rivet, Brater, Bogardus, DeRossett, Jamnick and Vear offered the following resolution:

House Resolution No. 388.

A resolution honoring Reverend Cecil Andrew Poe, Ph.D.

Whereas, It is a pleasure to join with the family, friends, and congregation in congratulating Cecil Andrew Poe, Ph.D., Pastor of Leland Missionary Baptist Church, in Detroit, at his installation celebration on Sunday, June 25, 2000; and

Whereas, Cecil A. Poe was born on August 7, 1948, in Birmingham, Alabama, and is the eldest of sixteen children. Reverend Poe accepted Christ as his Lord and Savior at the early age of ten. He grew up in Detroit, where he was very active in Sunday School affairs. After graduating from Cass Technical High School, Dr. Poe enrolled in the Detroit Institute of Technology. Later, he transferred to the International School of Lithography, Colorado Springs, Colorado, where he graduated in 1972 with an Associate of Arts Degree. He earned a diploma in Church School Administration in 1975 from the Detroit Bible College. This marked the beginning of his commitment, hunger, and thirst for the gospel of Jesus Christ; and

Whereas, Reverend Poe preached the gospel in January, 1979, at Mt. Hebron Baptist Church in Detroit. He was ordained by the Reverend Dr. Eugene Rhodes of Leland Baptist Church, Detroit, on May 30, 1982. He and his family were transferred from Detroit to Olathe, Kansas, and there he joined the Second Baptist Church. He was pastorate to that flock faithfully from 1983 until 1989. Reverend Poe was called to the pastorate of the Forest Grove Baptist Church in Kansas City, Kansas, on February 7, 1990, where he served until September, 1997; and

Whereas, In the secular environment, Reverend Cecil Andrew Poe, Ph.D. worked in sales and marketing, printing/graphics, and was a lecturer. He has traveled throughout the Pacific, Asia, South America, Western and Central Europe, and parts of Africa, including South Africa. He speaks French, German, and Japanese fluently; and

Whereas, God had a plan for the Poe family and brought them back to Detroit, where Reverend Poe accepted a position at Charter School Administration Services as Regional Director of out-of-state schools. On April 16, 2000, Leland Missionary Baptist Church called Dr. Cecil Poe as their fifth pastor; now, therefore, be it

Resolved by the House of Representatives, That the members of this legislative body commemorate this installation celebration of Reverend Cecil Andrew Poe, Ph.D. as the fifth pastor of Leland Missionary Baptist Church; and be it further

Resolved, That copies of this resolution be forwarded to Reverend Poe and Leland Missionary Baptist Church, as evidence of our esteem.

Pending the reference of the resolution to a committee,

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

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

The question being on the adoption of the resolution,

The resolution was adopted.

Reps. Dennis, DeHart, Hale, Hanley, Kelly, Thomas, Wojno, Gieleghem, Jacobs, Switalski, Neumann, Cherry, Scott, Birkholz, Ehardt, Baird, Spade, Prusi, LaForge, Van Woerkom, LaSata, Hansen, Mortimer, Vaughn, Rivet, Brater, Bogardus, DeRossett, Jamnick and Vear offered the following resolution:

House Resolution No. 389.

A resolution as a memorial for Mr. Robert A. Warren.

Whereas, The members of this legislative body, on behalf of all of the citizens of this state, would like to express their deepest sympathy to the family and friends of Mr. Robert A. Warren. His recent death has left all who knew him deeply saddened and stirred with memories of the many contributions he made to Muskegon Heights as a longtime member of the community and as former Mayor. Gone from our midst is a dedicated public servant who made it his mission in life to promote Muskegon Heights; and

Whereas, Robert Warren moved to Muskegon Heights in 1966 to work as a mathematics teacher and two years later was named assistant principal of Muskegon Heights High School. In 1972, he was appointed the Muskegon Heights School District's administrative assistant for instruction and served as assistant superintendent from 1976 until 1991; and

Whereas, Serving others was a well-established trait of Mr. Warren's. He was first elected to the Muskegon Heights City Council in 1979. Four years later, Mr. Warren became the first African-American Mayor of Muskegon Heights and remained Mayor until November of 1999. Mr. Warren was a tireless and effective advocate for Muskegon Heights and worked hard for his constituents. His leadership, concern, and contributions earned the respect of his colleagues on the City Council and in neighboring cities; and

Whereas, A well-known figure in the Muskegon community, Mr. Warren was involved in many community activities and also hosted a local cable television program profiling people he called heroes of the community. In 1976,
Mr. Warren was honored by the Urban League of Greater Muskegon with the Jonathan Walker Award as the person who did the most to advance the cause of racial harmony; now, therefore be it

Resolved by the House of Representatives, That we hereby offer a unanimous accolade of tribute as a memorial for Mr. Robert A. Warren; and be it further

Resolved, That a copy of this resolution be transmitted to his wife, Mrs. Edna Warren, as an enduring testimony to the high esteem in which his life and memory are held by the people of Michigan.

The question being on the adoption of the resolution,

The resolution was adopted.

Reps. Ruth Johnson, Cassis, DeHart, Hale, Julian, DeVuyst, Thomas, Wojno, Jacobs, Switalski, Neumann, Cherry, Rocca, Scott, Birkholz, Koetje, Bishop, Faunce, Kukuk, Voorhees, Ehardt, Baird, Shulman, Van Woerkom, LaSata, Vander Roest, Hansen, Gosselin, Caul, Mortimer, Richner, Vaughn, Raczkowski, Brater, Bogardus, Garcia, Scranton, DeRossett, Tabor and Vear offered the following resolution:

House Resolution No. 390.

A resolution recognizing the Michigan Dental Association and the Delta Dental Plan of Michigan.

Whereas, We are pleased to honor the Michigan Dental Association and its members and the Delta Dental Plan of Michigan for their work with the Donated Dental Services program; and

Whereas, A volunteer cadre of 603 volunteer dentists and 108 volunteer laboratories generously donate treatment for seriously neglected dental problems for disabled and elderly individuals throughout the state; and

Whereas, The Michigan Donated Dental Services Program has recently reached a huge milestone of providing over $2,000,000 worth of donated services since the program began in October 1995; now, therefore, be it

Resolved by the House of Representatives, That this legislative body commends the Michigan Dental Association and its members along with the Delta Dental Plan of Michigan for providing more than $2,000,000 of dental care to the citizens of Michigan, and extends best wishes for continued success and vigor in the years ahead; and be it further

Resolved, That a copy of this resolution be transmitted to the Michigan Dental Association and the Delta Dental Plan of Michigan as a token of our esteem.

Pending the reference of the resolution to a committee,

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

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

The question being on the adoption of the resolution,

The resolution was adopted.

Reps. Richner, Pappageorge, Scranton, Kuipers, Jellema, Birkholz, Koetje, Vander Roest, Van Woerkom and Faunce offered the following resolution:

House Resolution No. 391.

A resolution to memorialize the Congress of the United States to rescind the federal 4.3-cent gasoline tax for budget reduction.

Whereas, Fuel prices have taken an unprecedented and untenable leap in recent months, and, particularly, in recent weeks. This situation puts at risk many of Michigan's most important industries such as manufacturing, agriculture, and tourism, as well as threatening other components of our long economic upswing; and

Whereas, Many of the solutions to the oil price increases are long-term in nature, including loosening OPEC's stranglehold on production and refocusing our efforts to reduce consumption. A number of short-term options exist as well, especially in the area of tax relief; and

Whereas, Excise taxes on motor fuels are a classic example of a legitimate user fee. Those who benefit from our nation's road and bridge infrastructures help support the maintenance and upgrading of the system. One glaring exception to this general rule, however, is the federal 4.3-cent gasoline excise tax for budget reduction. This imposition, which was created under the Omnibus Budget Reconciliation Act of 1993 in an effort to help control our then rapidly growing budget deficit problems, had absolutely no connection with the use of our nation's roadways. The entire proceeds of the tax were dedicated to the federal government's general fund; and

Whereas, Although recent legislation will convert the 4.3-cent excise tax to a user fee, this change will in effect make permanent an excise tax on gasoline that was originally only intended to be a temporary budget-reduction tool. In an effort to cut gasoline prices and promote rational tax policy, a number of measures have been introduced in the Congress to either temporarily roll back or permanently repeal the 4.3-cent excise tax on gasoline for budget reduction. The passage of a bill to rescind this 4.3-cent excise tax is an important and critical first step in controlling spiraling gasoline prices; now, therefore, be it

Resolved by the House of Representatives, That we hereby memorialize the Congress of the United States to rescind the 4.3-cent gasoline tax for budget reduction; and be it further

Resolved, That a copy of this document be presented to the President of the United States Senate, The Speaker of the United States House of Representatives, and the members of the Michigan congressional delegation.

The resolution was referred to the Committee on House Oversight and Operations.

Reps. Bishop, Cassis, DeHart, Hale, Middaugh, Julian, Lockwood, DeVuyst, Wojno, Sheltrown, Switalski, Rocca, Birkholz, Koetje, Faunce, Kukuk, Gilbert, Voorhees, Ehardt, Richardville, Shulman, Van Woerkom, LaSata, Vander Roest, Hansen, Cameron Brown, Gosselin, Caul, Mortimer, Richner, Vaughn, Raczkowski, Bogardus, Reeves, Ruth Johnson, Kowall, Garcia, Scranton, DeRossett, Tabor and Vear offered the following concurrent resolution:

House Concurrent Resolution No. 110.

A concurrent resolution to memorialize the Congress of the United States to take swift action to address the problems of unacceptably high gas prices.

Whereas, In an amazingly short period of time, gasoline prices have skyrocketed across the country. In our region, this surge has been even more dramatic, with increases of the average price of regular per gallon rising by 50 cents or more within a few days. Prices in Michigan and other Midwestern states are substantially higher than in other parts of the country; and

Whereas, What is perhaps most disturbing about the increase is the fact that there is no natural disaster, no international crisis, and no major change in the infrastructure of the oil-producing nations or the supply system that has caused prices to spiral upward. While Michigan's situation has been made worse by a pipeline break in Jackson County, this does not explain the magnitude of the price rise. Instead, artificial conditions seem to be at the center of the issue. These include OPEC decisions to limit production solely to raise per-barrel prices of crude oil, some policies put in place in this country, and restrictions on domestic production of oil and refining; and

Whereas, The widespread impact of the gas price increases makes it imperative for federal authorities to take action. Individuals and businesses face painful changes if prices remain at these levels for long. The remarkable strength of the American economy will face its greatest threat if prices do not return to more reasonable ranges. Inflation may cripple our nation once again. Families are already facing serious problems. These will magnify across our state and nation until a lasting solution is found; now, therefore, be it

Resolved by the House of Representatives (the Senate concurring), That we memorialize the Congress of the United States to take swift action to address the problems of unacceptably high gas prices; and be it further

Resolved, That copies of this resolution be transmitted to the President of the United States Senate, the Speaker of the United States House of Representatives, and the members of the Michigan congressional delegation.

The concurrent resolution was referred to the Committee on House Oversight and Operations.

Reports of Select Committees

House Bill No. 5274, entitled

A bill to make appropriations for the department of career development and the Michigan strategic fund and certain other state purposes for the fiscal year ending September 30, 2001; to provide for the expenditure of the appropriations; and to provide for the disposition of fees and other income received by the state agencies.

(For text of conference report, see today's journal, p. 1833.)

The Senate has adopted the report of the second Committee of Conference.

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

House Bill No. 5276, entitled

A bill to make appropriations for the department of environmental quality for the fiscal year ending September 30, 2001; to provide for the expenditure of those appropriations; to create funds and accounts; to require reports; to prescribe certain powers and duties of certain state agencies and officials; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by the various state agencies.

(For text of conference report, see today's journal, p. 1792.)

The Senate has adopted the report of the Committee of Conference.

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

House Bill No. 5278, entitled

A bill to make appropriations for the departments of attorney general, civil rights, civil service, management and budget, state, and treasury, the executive office, and the legislative branch for the fiscal year ending September 30, 2001; to provide for the expenditure of these appropriations; to provide for the funding of certain work projects; to provide for the imposition of certain fees; to establish or continue certain funds, programs, and categories; to transfer certain funds; to prescribe certain requirements for bidding on state contracts; to provide for disposition of year-end balances for the fiscal year ending September 30, 2001; to prescribe the powers and duties of certain principal executive departments and state agencies, officials, and employees; and to provide for the disposition of fees and other income received by the various principal executive departments and state agencies.

(For text of conference report, see today's journal, p. 1778.)

The Senate has adopted the report of the Committee of Conference.

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

Second Conference Report

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

House Bill No. 5275, entitled

A bill to make appropriations for the department of consumer and industry services and certain other state purposes for the fiscal year ending September 30, 2001; to provide for the expenditure of those appropriations; to provide for the imposition of certain fees; to provide for the disposition of fees and other income received by the state agencies; to provide for reports to certain persons; and to prescribe powers and duties of certain state departments and certain state and local agencies and officers.

Recommends:

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

A bill to make appropriations for the department of consumer and industry services and certain other state purposes for the fiscal year ending September 30, 2001; to provide for the expenditure of those appropriations; to provide for the imposition of certain fees; to provide for the disposition of fees and other income received by the state agencies; to provide for reports to certain persons; and to prescribe powers and duties of certain state departments and certain state and local agencies and officers.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. The amounts listed in this part are appropriated for the department of consumer and industry services, subject to the conditions set forth in this act, for the fiscal year ending September 30, 2001, from the funds identified in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

APPROPRIATION SUMMARY:

Full-time equated unclassified positions 64.5

Full-time equated classified positions 4,182.4

GROSS APPROPRIATION $ 529,806,600

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers 109,200

ADJUSTED GROSS APPROPRIATION $ 529,697,400

Federal revenues:

Total federal revenues 237,626,000

Special revenue funds:

Total local revenues 0

Total private revenues 745,900

Total other state restricted revenues 207,513,200

State general fund/general purpose $ 83,812,300

Sec. 102. EXECUTIVE DIRECTION

Full-time equated unclassified positions 64.5

Full-time equated classified positions 94.0

Unclassified salaries $ 5,511,000

Energy office--9.0 FTE positions 2,558,800

Executive director programs--13.0 FTE positions 2,091,400

Policy development--10.0 FTE positions 1,442,000

Utility consumer representation 550,000

Regulatory efficiency improvements/backlog reduction initiative 750,000

MES board of review program--21.0 FTE positions 1,703,400

Bureau of hearings--41.0 FTE positions 4,236,700


GROSS APPROPRIATION $ 18,843,300

Appropriated from:

Federal revenues:

DOE-OEERE, multiple grants 2,127,900

DOL-ETA, unemployment insurance 2,109,300

DOL, multiple grants for safety and health 154,300

Special revenue funds:

Bank fees 177,800

Boiler fee revenue 84,600

Construction code fund 406,700

Consumer finance fees 91,500

Corporation fees 305,200

Credit union fees 136,100

Elevator fees 38,600

Fees and collections/asbestos 10,900

Fire service fees 23,800

Health professions regulatory fund 1,330,600

Health systems fees and collections 66,000

Insurance regulatory fees 629,700

Licensing and regulation fees 451,100

Liquor license fees 100,000

Liquor purchase revolving fund 1,222,200

Manufactured housing commission fees 155,000

Michigan state housing development authority fees and charges 313,800

Motor carrier fees 27,600

Property development fees 4,500

Public utility assessments 1,973,300

Safety education and training fund 199,300

Second injury fund 68,100

Securities fees 170,500

Self-insurers security fund 17,900

Silicosis and dust disease fund 26,100

Utility consumer representation fund 550,000

Worker's compensation administrative revolving fund 60,100

State general fund/general purpose $ 5,810,800

Sec. 103. COUNCIL FOR ARTS AND CULTURAL AFFAIRS

Full-time equated classified positions 9.0

Administration--9.0 FTE positions $ 887,500

Arts and cultural grants 25,648,700


GROSS APPROPRIATION $ 26,536,200

Appropriated from:

Federal revenues:

NFAH-NEA, promotion of the arts, state and regional programs 700,000

Special revenue funds:

State general fund/general purpose $ 25,836,200

Sec. 104. FIRE SAFETY

Full-time equated classified positions 57.0

Office of fire safety--57.0 FTE positions $ 4,885,800


GROSS APPROPRIATION $ 4,885,800

Appropriated from:

Interdepartmental grant revenues:

IDG from department of community health, inspection contract 109,200

Federal revenues:

Federal funds 1,298,300

Special revenue funds:

Fire alarm regulation fees 89,300

Fire service fees 1,802,500

State general fund/general purpose $ 1,586,500

Sec. 105. MANAGEMENT SERVICES

Full-time equated classified positions 178.0

Administrative services--84.0 FTE positions $ 5,884,100

Technology support--94.0 FTE positions 13,724,200

Insurance automation 750,000

Health services information systems 750,000

Rent 7,143,900

Building occupancy charges - property development services 6,683,400

Worker's compensation 1,055,000

Special project advances 740,000


GROSS APPROPRIATION $ 36,730,600

Appropriated from:

Federal revenues:

DOL-ETA, unemployment insurance 296,300

DOL, multiple grants for safety and health 549,900

Federal funds 426,700

HHS, federal funds 37,000

Special revenue funds:

Private-special project advances 740,000

Bank fees 356,300

Boiler fee revenue 227,100

Construction code fund 1,165,300

Consumer finance fees 148,600

Corporation fees 1,938,000

Credit union fees 250,800

Elevator fees 267,000

Fees and collections/asbestos 88,200

Fire service fees 31,700

Health professions regulatory fund 4,350,800

Health systems fees and collections 464,700

Insurance regulatory fees 2,441,300

Licensing and regulation fees 2,031,800

Liquor purchase revolving fund 7,931,400

Manufactured housing commission fees 121,800

Michigan state housing development authority fees and charges 2,560,900

Motor carrier fees 198,600

Property development fees 29,000

Public utility assessments 2,323,700

Safety education and training fund 677,900

Second injury fund 303,300

Securities fees 666,300

Self-insurers security fund 79,000

Silicosis and dust disease fund 113,100

Tax tribunal fees 41,000

Worker's compensation administrative revolving fund 1,333,600

State general fund/general purpose $ 4,539,500

Sec. 106. CORPORATION AND LAND DEVELOPMENT BUREAU

Full-time equated classified positions 101.0

Manufactured housing commission, per diem $50.00 $ 7,800

Manufactured housing and land resources program--15.0 FTE positions 1,502,400

Corporate services--61.0 FTE positions 5,030,200

Investment oversight--12.0 FTE positions 1,104,500

Local manufactured housing communities inspections 250,000

Property development group--13.0 FTE positions 1,420,400

Remonumentation grants 5,000,000


GROSS APPROPRIATION $ 14,315,300

Appropriated from:

Special revenue funds:

Corporation fees 6,555,900

Limited liability partnership revenue 10,000

Manufactured housing commission fees 1,916,800

Property development fees 237,400

Remonumentation fees 5,595,200

State general fund/general purpose $ 0

Sec. 107. OFFICE OF FINANCIAL AND INSURANCE SERVICES

Full-time equated classified positions 278.0

Administration--27.0 FTE positions $ 3,203,200

Policy and consumer services--37.0 FTE positions 2,956,900

Securities regulation--18.0 FTE positions 1,511,200

Bank regulation--50.0 FTE positions 5,362,000

Credit union regulation--43.0 FTE positions 3,713,900

Consumer finance regulation--21.0 FTE positions 1,909,300

Insurance financial evaluation--46.0 FTE positions 5,553,800

Insurance licensing and enforcement--36.0 FTE positions 3,477,500


GROSS APPROPRIATION $ 27,687,800

Appropriated from:

Federal revenues:

Federal funds 50,600

Special revenue funds:

Private-travel funds 5,900

Bank fees 6,224,800

Consumer finance fees 2,255,700

Credit union fees 4,451,300

Insurance continuing education fees 532,400

Insurance licensing and regulation fees 2,619,500

Insurance regulatory fees 9,504,200

Multiple employer welfare arrangement 66,000

Securities fees 1,977,400

State general fund/general purpose $ 0

Sec. 108. PUBLIC SERVICE COMMISSION

Full-time equated classified positions 143.0

Administration, planning and regulation--143.0 FTE positions $ 15,411,200


GROSS APPROPRIATION $ 15,411,200

Appropriated from:

Federal revenues:

DOE-OEERE, multiple grants 146,000

DOT-RSPA, gas pipeline safety 274,100

Special revenue funds:

Motor carrier fees 1,849,500

Public utility assessments 13,141,600

State general fund/general purpose $ 0

Sec. 109. LIQUOR CONTROL COMMISSION

Full-time equated classified positions 179.0

Management support services--39.0 FTE positions $ 2,873,900

Liquor licensing and enforcement--140.0 FTE positions 10,698,000

Liquor law enforcement grants 6,000,000

Grant to department of agriculture for wine industry council 457,200


GROSS APPROPRIATION $ 20,029,100

Appropriated from:

Special revenue funds:

Liquor license revenue 10,953,100

Liquor purchase revolving fund 8,618,800

Nonretail liquor license revenue 457,200

State general fund/general purpose $ 0

Sec. 110. MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY

Full-time equated classified positions 234.0

Payments on behalf of tenants $ 70,000,000

Housing and rental assistance program--227.0 FTE positions 22,662,700

Automatic data processing--7.0 FTE positions 989,600

Homeless program 5,290,800


GROSS APPROPRIATION $ 98,943,100

Appropriated from:

Federal revenues:

HUD, lower income housing assistance program 84,272,800

Special revenue funds:

Michigan state housing development authority fees and charges 14,670,300

State general fund/general purpose $ 0

Sec. 111. TAX TRIBUNAL

Full-time equated classified positions 14.0

Operations--14.0 FTE positions $ 1,638,700


GROSS APPROPRIATION $ 1,638,700

Appropriated from:

Special revenue funds:

Tax tribunal fees 629,400

State general fund/general purpose $ 1,009,300

Sec. 112. GRANTS

Fire protection grants $ 7,421,000

Regional communications emergency operations mobile command post 50,000


GROSS APPROPRIATION $ 7,471,000

Appropriated from:

Special revenue funds:

Liquor purchase revolving fund 7,421,000

State general fund/general purpose $ 50,000

Sec. 113. HEALTH REGULATORY SYSTEMS

Full-time equated classified positions 344.0

Health systems administration--181.0 FTE positions $ 16,768,400

Nursing home quality incentive grants--3.0 FTE positions 10,000,000

Emergency medical services program state staff--7.0 FTE positions 888,600

Radiological health administration and projects--24.0 FTE positions 1,948,900

Substance abuse program administration--4.0 FTE positions 401,500

Emergency medical services grants and contracts 1,062,100

Health services--125.0 FTE positions 13,027,800


GROSS APPROPRIATION $ 44,097,300

Appropriated from:

Federal revenues:

Federal funds 18,096,500

Special revenue funds:

Controlled substance license fees 1,343,300

Health professions regulatory fund 10,422,800

Health systems fees and collections 3,687,100

Nurse professional fund 450,000

State general fund/general purpose $ 10,097,600

Sec. 114. REGULATORY SERVICES

Full-time equated classified positions 313.0

AFC, children's welfare and day care licensure--313.0 FTE positions $ 25,580,400


GROSS APPROPRIATION $ 25,580,400

Appropriated from:

Federal revenues:

HHS, federal funds 10,973,200

Special revenue funds:

Health systems fees and collections 152,700

Licensing fees 482,800

State general fund/general purpose $ 13,971,700

Sec. 115. OCCUPATIONAL REGULATION

Full-time equated classified positions 238.0

Commissions and boards $ 41,900

Code enforcement--99.0 FTE positions 7,724,700

Code enforcement flexibility 1,155,500

Boiler inspection program--18.0 FTE positions 1,509,700

Elevator inspection program--23.0 FTE positions 1,817,500

Commercial services--98.0 FTE positions 9,056,700


GROSS APPROPRIATION $ 21,306,000

Appropriated from:

Special revenue funds:

Boiler fee revenue 1,653,800

Construction code fund 8,672,200

Elevator fees 1,923,300

Homeowner construction lien recovery fund 1,528,900

Licensing and regulation fees 7,003,300

Real estate appraiser continuing education fund 45,000

Real estate education fund 217,500

State general fund/general purpose $ 262,000

Sec. 116. EMPLOYMENT RELATIONS

Full-time equated classified positions 28.0

Fact finding and arbitration $ 154,300

Employment and labor relations--28.0 FTE positions 2,935,500


GROSS APPROPRIATION $ 3,089,800

Appropriated from:

Federal revenues:

EEOC, federal funds 30,000

Special revenue funds:

Publication revenue 10,000

State general fund/general purpose $ 3,049,800

Sec. 117. SAFETY AND REGULATION

Full-time equated classified positions 282.0

Commissions and boards $ 27,700

Employment standards enforcement--38.0 FTE positions 2,539,800

Subgrantees 1,076,900

Occupational safety and health--244.0 FTE positions 22,287,200


GROSS APPROPRIATION $ 25,931,600

Appropriated from:

Federal revenues:

DOL, multiple grants for safety and health 12,252,300

Special revenue funds:

Fees and collections/asbestos 694,200

Safety education and training fund 5,608,700

State general fund/general purpose $ 7,376,400

Sec. 118. WORKER'S DISABILITY COMPENSATION

Full-time equated classified positions 171.4

Administration--119.0 FTE positions $ 8,345,700

Board of magistrates administration--8.0 FTE positions 1,822,500

Appellate commission administration--11.4 FTE positions 847,400

Supplemental benefit fund 1,300,000

Insurance funds administration--33.0 FTE positions 10,175,900

Automatic data processing 506,000

Grant to department of career development, hire the handicapped program 50,000


GROSS APPROPRIATION $ 23,047,500

Appropriated from:

Special revenue funds:

Second injury fund 6,471,300

Self-insurers security fund 1,724,900

Silicosis and dust disease fund 2,535,700

Worker's compensation administrative revolving fund 2,093,100

State general fund/general purpose $ 10,222,500

Sec. 119. UNEMPLOYMENT AGENCY

Full-time equated classified positions 1,519.0

Worker's compensation $ 765,000

Rent 6,087,000

Building occupancy charges - property development service 3,725,800

Unemployment program--1,441.7 FTE positions 94,742,800

Advocacy assistance program--8.0 FTE positions 1,536,200

Special audit and collections program--34.0 FTE positions 2,157,400

Training program for agency staff--2.1 FTE positions 2,779,600

Expanded fraud control program--33.2 FTE positions 2,468,100


GROSS APPROPRIATION $ 114,261,900

Appropriated from:

Federal revenues:

DOL, employment and training administration 518,600

DOL, unemployment insurance 99,163,400

Federal Reed act funds 4,148,800

Special revenue funds:

Contingent fund, penalty and interest account 10,431,100

State general fund/general purpose $ 0

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2000-2001 is $291,325,500.00 and state spending from state resources to be paid to local units of government for fiscal year 2000-2001 is $33,921,000.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:

DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

Arts and cultural grants $ 15,000,000

Fire protection grants 7,421,000

Liquor law enforcement 6,000,000

Local manufactured housing inspections 250,000

Remonumentation grants 5,000,000

Subgrantees 250,000


Total department of consumer and industry services $ 33,921,000

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

Sec. 203. As used in this appropriation act:

(a) "AFC" means adult foster care.

(b) "Department" means the department of consumer and industry services.

(c) "DOE" means the United States department of energy.

(d) "DOE-OEERE" means the DOE office of energy efficiency and renewable energy.

(e) "DOL" means the United States department of labor.

(f) "DOL-OSHA" means the DOL occupational safety and health administration.

(g) "DOT" means the United States department of transportation.

(h) "DOT-RSPA" means the DOT research and special programs administration.

(i) "Fiscal agencies" means Michigan house fiscal agency and Michigan senate fiscal agency.

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

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

(l) "HHS-HCFA" means the HHS health care financing administration.

(m) "HHS-SSA" means HHS social security administration.

(n) "HUD" means the United States department of housing and urban development.

(o) "IDG" means interdepartmental grant.

(p) "MIOSHA" means the Michigan occupational safety and health administration.

(q) "NFAH" means the national foundation of the arts and the humanities.

(r) "NFAH-NEA" means the NFAH national endowment for the arts.

Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.

Sec. 205. (1) Beginning October 1, a hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department 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 rendering a state department or agency unable to deliver basic services. The state budget director shall report by the thirtieth of each month to the chairpersons of the senate and house of representatives standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous month and the justification for the exception.

Sec. 206. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $23,500,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $12,200,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $180,800.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $50,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 207. At least 60 days before beginning any effort to privatize, the department shall submit a complete project plan to the appropriate senate and house of representatives appropriations subcommittees and the senate and house fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the fiscal agencies and to all members of the senate and house of representatives appropriate appropriations subcommittees within 30 months.

Sec. 208. The department shall continue to pilot the use of the Internet to fulfill the reporting requirements of this act. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on the Internet or legislative Intranet site. All members of the senate and house of representatives appropriations subcommittees and senate and house fiscal agencies shall be notified in writing of the Internet or Intranet site of any such report. Quarterly, the department shall provide a cumulative listing of the reports submitted during the most recent 3-month period along with the Internet or Intranet site of each report. The department shall continue to distribute all of these reports to the legislature in the current printed format.

Sec. 209. Funds appropriated in part 1 shall not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods or services, or both, are available.

Sec. 210. The director of each department receiving appropriations in part 1 shall take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies, or both. Each director shall strongly encourage firms with which the department contracts to subcontract with certified businesses in depressed and deprived communities for services, supplies, or both.

Sec. 211. Of the funds appropriated in part 1 that are in units other than the grants unit, the department shall not provide grants to local government agencies, institutions of higher education, or nonprofit organizations unless the department or the fund provides notice of the grant to all members of the appropriations subcommittees of the house and senate at least 10 days before the grant is issued or at least 72 hours before any announcement to local governmental units or the public.

Sec. 213. The department shall establish and maintain affirmative action programs based on guidelines developed by the state equal opportunity workforce planning council which was created by Executive Order No. 1996-13 in order to receive general fund/general purpose dollars.

DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES


Sec. 301. The appropriation in part 1 for fire protection grants from the liquor purchase revolving fund shall be appropriated to cities, villages, and townships with state-owned facilities for fire services, instead of taxes, in accordance with 1977 PA 289, MCL 141.951 to 141.956.

Sec. 302. The funds collected by the office of financial and insurance services in connection with a conservatorship pursuant to section 32 of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1682, shall be appropriated for all expenses necessary to provide for the required services. Funds are available for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 303. The funds collected by the department from corporations being liquidated pursuant to the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302, shall be appropriated for all expenses necessary to provide for the required services. Funds are available for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 304. The department may make available to interested entities otherwise unavailable customized listings of nonconfidential information in its possession, such as names and addresses of licensees, and charge for this information as follows: base fee for 1 to 1,000 records at the cost to the department; 1,001 to 10,000 records at 2.5 cents per record; and 10,001 or more records at .5 cents per record. The revenue received from this service may be used to offset expenses of programs as appropriated in part 1. The balance of this revenue collected and unexpended at the end of the fiscal year shall revert to the appropriate restricted revenue account or fund or, in absence of such an account or fund, to the general fund. The department shall submit an annual report on or before June 1, 2001 to all members of the appropriate subcommittees of the house and senate appropriations committees that states the amount of revenue received from the sale of information.

Sec. 305. The appropriation in part 1 may be used for per diem payments to the members of commissions or boards for a full day of committee work at which a quorum is present or for performing official business as authorized by each respective commission or board. The per diem payments shall be at a rate as follows:

(a) Michigan board of chiropractic medicine $50.00 per day

(b) Michigan board of dentistry $50.00 per day

(c) Michigan board of medicine $50.00 per day

(d) Board of nursing $50.00 per day

(e) Michigan board of optometry $50.00 per day

(f) Michigan board of osteopathic medicine and surgery $50.00 per day

(g) Michigan board of pharmacy $50.00 per day

(h) Michigan board of podiatric medicine and surgery $50.00 per day

(i) Michigan board of psychology $50.00 per day

(j) Michigan board of physical therapy $50.00 per day

(k) Physicians' assistants task force $50.00 per day

(l) Michigan board of veterinary medicine $50.00 per day

(m) Michigan board of occupational therapists $50.00 per day

(n) Michigan board of professional counselors $50.00 per day

(o) Health occupations council $50.00 per day

(p) Board of accountancy $50.00 per day

(q) Board of architects $50.00 per day

(r) Athletic board of control $50.00 per day

(s) Board of barber examiners $50.00 per day

(t) Residential builders' and maintenance and alteration contractor's board $50.00 per day

(u) Carnival-amusement safety board $50.00 per day

(v) Collection practices board $50.00 per day

(w) Board of cosmetology $50.00 per day

(x) Employment agency board $50.00 per day

(y) Board of professional engineers $50.00 per day

(z) Board of land surveyors $50.00 per day

(aa) Board of landscape architects $50.00 per day

(bb) Board of marriage counselors $50.00 per day

(cc) Board of examiners in mortuary science $50.00 per day

(dd) Nursing home administrators' board $50.00 per day

(ee) Board of real estate brokers and salespersons $50.00 per day

(ff) Ski area safety board $50.00 per day

(gg) Board of examiners of social workers $50.00 per day

(hh) Commission on professional and occupational licensure $50.00 per day

(ii) Board of real estate appraisers $50.00 per day

(jj) Utility consumer participation board $50.00 per day

(kk) Construction code commission $50.00 per day

(ll) Plumbing board $50.00 per day

(mm) Electrical board $50.00 per day

(nn) Barrier free design board $50.00 per day

(oo) Mechanical board $50.00 per day

(pp) Boiler board $50.00 per day

(qq) Elevator board $50.00 per day

(rr) General industry safety standards commission $50.00 per day

(ss) General industry safety standards advisory committees $50.00 per day

(tt) Construction safety standards commission $50.00 per day

(uu) Construction safety standards advisory committees $50.00 per day

(vv) Board of health and safety compliance appeals $50.00 per day

(ww) Occupation health standards commission $50.00 per day

(xx) Fire safety board $50.00 per day

(yy) Occupational health standards advisory committee $50.00 per day

Sec. 306. (1) The Michigan council for arts and cultural affairs in the department shall administer the arts and cultural grants appropriated in part 1. The council shall provide for fair and independent decisions on arts and cultural grant requests based upon published criteria to evaluate program quality. This criteria shall include a prohibition of art projects that include displays of human wastes on religious symbols, displays of sex acts, and depictions of flag desecration. The council shall seek to award grants on an equitable geographic basis to the extent possible given the quality of grant applications received. Priority shall be given to projects that serve multiple counties and that leverage significant additional public and private investment. Counties, cities, villages, townships, community foundations, and organizations, including science museums/centers, may apply for the following categories of grants:

(a) Anchor organization program for organizations that serve a statewide audience. Anchor organizations shall demonstrate a commitment to education, to mentoring smaller organizations, and to reaching underserved audiences.

(b) Arts projects program.

(c) Arts and learning program.

(d) Artists in schools program.

(e) Arts organization development program.

(f) Capitol improvement projects for cities, villages, and townships (CTV) program.

(g) Local, regional, or statewide arts agencies services program.

(h) Regional regranting program.

(i) Partnership program.

(j) Discretionary grants program.

(k) Rural arts and cultural projects.

(2) The council shall establish a regional services provider subcategory within the arts projects program to serve mid-level and larger organizations that serve a regional audience. Organizations receiving grants within this subcategory shall demonstrate that they have regional impact as well as a commitment to education, to mentoring smaller organizations, and to reaching underserved audiences.

(3) Potential applicants, including anchor organizations, that are considered ineligible to apply for grants and applicants that are unsuccessful in obtaining a grant shall be provided by the council with the following:

(a) A written rationale as to why the potential applicant was considered ineligible or why the applicant's grant was not funded.

(b) A description of actions the potential applicant or applicant needs to take in order to become eligible or to receive funding in future years.

(4) The council shall distribute the funds appropriated in part 1 in a manner which achieves the following criteria:

(a) Supports the development of the regional services provider subcategory and provides sufficient funding to organizations meeting the criteria for this subcategory as described in subsection (2) and the council's guidelines.

(b) Preserves the funding capacity for the council to provide sufficient funding to new applicants for the anchor organization program that meet the criteria for this category as described in subsection (1)(a) and the council's guidelines.

(5) Funds allocated outside of the categories described in subsection (4)(a) and (b) shall be allocated to the remaining grant categories in the same general proportions as the council has allocated funding to these categories in recent fiscal years.

(6) The appropriation for arts and cultural grants in part 1 and disbursed under this section shall, at a minimum, be matched on an equal dollar-for-dollar basis from local and private contributions paid and received by each awardee receiving grants under this section. The dollar-for-dollar match may include the reasonable value of services, materials, and equipment as allowed under the federal internal revenue code for charitable contributions subject also to the preapproval of such a match by the Michigan council for arts and cultural affairs. The council shall receive proof of the entire amount of the matching funds, services, materials, or equipment by the end of the award period. The council shall submit a report to all members of the appropriate subcommittees of the house and senate appropriations committees regarding those counties, cities, villages, townships, community foundations, and organizations failing to meet their matching requirements by the end of the award period.

(7) Before any amount appropriated for arts and cultural grants in part 1 may be expended for a grant to eligible applicants for the purposes in this section, the department shall execute a grant agreement with each grantee. The grant agreement shall specify the criteria included in this section with which the application complies. The grant agreement shall include a list of the projects funded. All members of the appropriate subcommittees of the house and senate appropriations committees shall receive a summary of the projects funded for each grant recipient by November 1, 2000.

(8) By February 1, 2001, the department shall report to all members of the appropriate subcommittees of the house and senate appropriations committees on how the council intends to implement the arts and cultural grants program for the following fiscal year, including the process for evaluating organization quality, efforts to achieve an equitable geographic distribution of grants, and a summary of any revisions to the guidelines for the council's grant programs. The department shall submit copies of the guidelines for each grant category to all members of the appropriate subcommittees by February 1, 2001.

(9) The department shall submit a report to all members of the appropriate house and senate appropriations subcommittees and the fiscal agencies by October 1, 2000, listing the grant applicants under this section. The report shall include the following:

(a) The amount requested by the applicant.

(b) Any amount awarded to the applicant.

(c) The grant category under which the applicant applied.

(d) The county in which the organization resides.

(e) The expected number of patrons during the grant period.

(f) The amount of matching funds proposed to be contributed by the applicant.

(g) The organization's score as determined by the relevant peer review panel during the application evaluation process.

(10) By September 1, 2001, the department shall submit to the fiscal agencies and to all members of the appropriate house and senate appropriations subcommittees a summary of the regranted awards made by regranting organizations from funds appropriated in part 1. For each regranting organization, the report shall include the following:

(a) The name of each grantee.

(b) The amount received by the grantee.

(c) The county in which the grantee resides.

(11) Counties, cities, villages, townships, community foundations, and organizations receiving funds under this section shall provide the following reports to the Michigan council for arts and cultural affairs and to all members of the appropriate subcommittees of the house and senate appropriations committees and the fiscal agencies:

(a) A final report covering the grant period and due within 30 days after the end of the grant period indicating at least the following:

(i) Revenues and expenditures, indicating whether revenues are from private donations or fees.

(ii) Number of employees.

(iii) Number of new hires.

(iv) Number of patrons attracted during the grant period.

(b) For awardees receiving grants greater than $100,000.00, a copy of the awardee's annual report and audit report for the fiscal year in which the majority of the grant took place due within 90 days after the end of the awardee's fiscal year. The audit report shall include an audit of grant funds. A representative sampling of grant agreements shall be audited by the state auditor general. The audit report shall be submitted to all members of the appropriate subcommittees of the house and senate appropriations committees for review. These awardees shall also submit the information in subdivision (a) on a quarterly basis for the immediately preceding quarter due on January 7, April 7, July 7, and October 7 of each year.

(12) The recipients of grant funds under this section shall be announced by the department by October 1, 2000. The department shall, within 1 day following the final council vote, provide all members of the appropriate subcommittees of the house and senate appropriations committees and each legislator whose district is receiving a grant with a list of grant awardees.

(13) A grant awarded under this section and the matching funds which conferred eligibility for the grant award shall be used by the recipient of the grant award and shall not be redistributed by that recipient to any other entity unless specifically provided for in the grant agreement between the funded grant awardee and the Michigan council for arts and cultural affairs.

(14) The applicants for arts and cultural grant funds shall be charged a nonrefundable application fee of $100.00 or 1% of the grant, whichever is less. The application fee may be used by the department to recover direct and indirect costs as appropriated in part 1.

(15) It is the intent of the legislature that the Michigan council for arts and cultural affairs continue to take appropriate steps to ensure that all organizations receiving state arts anchor organization grants have combined grant awards, as defined above, of no more than 15.0% of operating revenue for the fiscal year ending September 30, 2005 and beyond. As used in this subsection, "operating revenue" is defined in the same manner as it was defined during the fiscal year 2000 state arts anchor organization application process.

(16) The council shall continue and expand its efforts to encourage and support nonprofit arts and cultural organizations transitioning from solely volunteer-based organizations to professional directed operations. This includes the provision of funds and services from the arts organization development, partnership, arts projects, regional services provider, and regional regranting programs as well as the rural arts and culture initiative to support professional development within these organizations. Criteria for support include the requirement of collaboration between these organizations and other community organizations.

(17) Any organizations receiving grants within the anchor organization program category in excess of 10.0% of their operating revenue, as defined in subsection (15), for the fiscal year ending September 30, 2000, shall not receive a combined grant award from all grant categories, except the partnership program, that is greater than the combined grant award from these categories that the organization received for the fiscal year ending September 30, 2000.

(18) The council shall make available to an awardee any written comments that are available regarding that awardee's application and peer review process.

(19) The council shall provide for fair, equitable, and efficient distribution of funds granted through the regional regranting program. The council shall provide for an annual assessment of grant management and distribution of mini-grant awards by designated regional regranting agencies and review the methodology employed and report these findings to all members of the appropriate house and senate subcommittees of the appropriations committee.

(20) The council shall use its best efforts to reestablish an arts organization development program which provides funding for organizations that deliver services to cultural groups and individual artists in all disciplines and that foster long-term development of a community or region. Projects and programs funded through this program shall be designed to strengthen Michigan families and communities by ensuring full public access to quality arts and cultural activities, promoting cultural tourism, and providing for quality arts and cultural education.

(21) The council shall use its best efforts to provide total grant awards in the anchor organization program at a level not to exceed 65% of the total amount appropriated for arts and cultural grants.

(22) The council shall assess its granting processes and procedures to strengthen consumer and industry access to arts and cultural information, services, and funding opportunities and shall explore new technology applications. The council shall report these findings and shall provide a progress report on steps taken to implement the new initiatives prescribed by the legislature in this section by February 1, 2001, to all members of the appropriate appropriations subcommittees of the house and senate appropriations committees.

(23) The council shall take all necessary steps to implement the recommendations made by the auditor general as a result of the auditor general's most recent performance audit of the council as reviewed in the auditor general's June 2000 audit report. The council shall provide a progress report to the appropriate appropriations subcommittees by February 1, 2001 on the specific steps taken to implement these recommendations.

Sec. 307. The department may receive and expend contributions from public, private, and federal sources, except state agencies, for the purpose of acquiring or constructing art objects or promoting or preserving the arts in or on state properties. Expenditures of any funds received shall be consistent with the purposes of the Faxon-McNamee art in public places act, 1980 PA 105, MCL 18.71 to 18.81. Any funds received under this section are considered a work project account and may be carried forward into the succeeding fiscal year.

Sec. 308. The Michigan state housing development authority shall annually present a report to all members of the appropriate subcommittees of the house and senate appropriations committees on the status of the authority's housing production goals under all financing programs established or administered by the authority. The report shall give special attention to efforts to raise affordable multifamily housing production goals.

Sec. 309. The department shall assess and collect fees in the licensing and regulation of child care organizations as defined in 1973 PA 116, MCL 722.111 to 722.128, and adult foster care facilities as defined in the adult foster care facility licensing act, 1979 PA 218, MCL 400.701 to 400.737. Fees collected by the department shall not exceed the deducts in part 1 and shall be used exclusively for the purpose of licensing and regulating child care organizations and adult foster care facilities.

Sec. 310. The appropriation in part 1 for the department, bureau of safety and regulation, safety education and training division, includes funding for on-site consultation and education and training programs. The appropriation in part 1 anticipates that 90% of the on-site consultation program costs and 50% of the education and training program costs will be supported by federal OSHA funds and the remaining 10% and 50% respectively will be supported by safety education and training funds. If federal OSHA funding does not become available to cover up to 90% of the program costs for on-site consultation and 50% for education and training, up to 50% of the program costs for on-site consultation and 90% of the program costs for education and training may be paid from the safety education and training fund as a match for available federal funds.

Sec. 311. The funds collected by the department for licenses, permits, and other elevator regulation fees set forth in R 408.8151 of the Michigan administrative code and as determined under section 8 of 1976 PA 333, MCL 338.2158, and section 16 of 1967 PA 227, MCL 408.816, that are unexpended at the end of the fiscal year shall carry forward to the subsequent fiscal year. The department shall submit a report on an annual basis to all members of the appropriate subcommittees of the house and senate appropriations committees on the amount of funds available under this section.

Sec. 312. If the revenue collected by the department for occupational safety and health, health systems administration, or radiological health administration and projects from fees and collections exceeds the amount appropriated in part 1, the revenue may be carried forward into the subsequent fiscal year. The revenue carried forward under this section shall be used as the first source of funds in the subsequent fiscal year.

Sec. 313. Money appropriated under this act for fire safety programs shall not be expended unless, in accordance with section 2c of the fire prevention code, 1941 PA 207, MCL 29.2c, inspection and plan review fees will be charged according to the following schedule:

Operation and maintenance inspection fee

Facility type Facility size Fee

Hospitals Any $8.00 per bed

Plan review and construction inspection fees for hospitals and schools

Project cost range FeeMMMM

$101,000.00 or less minimum fee of $125.00

$101,001.00 to $1,500,000.00 $1.24 per $1,000.00

$1,500,001.00 to $10,000,000.00 $0.90 per $1,000.00

$10,000,001.00 or more $0.70 per $1,000.00

or a maximum fee of $50,000.00.

Sec. 314. The department shall furnish the clerk of the house, the secretary of the senate, and all members of the house and senate appropriations committees with a summary of any evaluation reports and subsequent approvals or disapprovals of juvenile residential facilities operated by the family independence agency, as required by 1973 PA 116, MCL 722.116. If no evaluations are conducted during the fiscal year, the department shall notify the fiscal agencies and all members of the appropriate subcommittees of the house and senate appropriation committees.

Sec. 315. (1) From the amount appropriated in part 1 to health systems administration, the department shall provide funding for not less than 113 inspectors to annually survey and investigate the care and services delivered in nursing homes, county medical care facilities, and hospital long-term care units in accordance with provisions in the public health code, 1978 PA 368, MCL 333.1101 to 333.25211, and federal Medicare and Medicaid certification standards.

(2) The department, in keeping with the severity of the allegations, shall investigate complaints alleging poor care and services occurring on nights or weekends in nursing homes, county medical care facilities, and hospital long-term care units by conducting on-site investigations on nights or weekends.

Sec. 316. If the revenue collected by the department from licensing and regulation fees exceeds the amount appropriated in part 1, the revenue may be carried forward into the subsequent fiscal year. The revenue carried forward under this section shall be used as the first source of funds in the subsequent fiscal year.

Sec. 317. Funds earned or authorized by the United States department of labor in excess of the gross appropriation in part 1 for the Michigan unemployment agency from the United States department of labor are appropriated and may be expended for staffing and related expenses incurred in the operation of its programs. These funds may be spent after the department notifies all members of the appropriate subcommittees of the house and senate appropriations committees of the purpose and amount of each grant award.

Sec. 319. The department shall sell documents at a price not to exceed the cost of production and distribution. Money received from the sale of these documents shall revert to the department. The funds are available for expenditure when they are received by the department of treasury and may only be used for costs directly related to the continued updating and distribution of the documents pursuant to this section. This section applies only for the following documents:

(a) Corporation and securities division documents, reports, and papers required or permitted by law pursuant to section 1060(5) of the business corporation act, 1972 PA 284, MCL 450.2060.

(b) The subdivision control manual, the state boundary commission operations manual, and other local government assistance manuals.

(c) The Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1101 to 436.2303, with amendments.

(d) The mobile home commission act, 1987 PA 96, MCL 125.2301 to 125.2349; the business corporation act, 1972 PA 284, MCL 450.1101 to 450.2098; the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192; and the uniform securities act, 1964 PA 265, MCL 451.501 to 451.818.

(e) Labor law books.

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

(g) Minimum design standards for health care facilities.

Sec. 320. (1) The department shall develop a nursing home quality care incentive program. The purpose of the program will be to provide financial incentives for nursing homes to develop high quality care services. Grants shall be awarded to nursing homes that can demonstrate an existing commitment to providing high quality care.

(2) The department shall develop the specific criteria for the awarding of these grants. At a minimum, these criteria shall include some measure of resident satisfaction with the level of care provided. The criteria may also include the results of the facility's annual survey conducted by the department. The department shall post criteria for this grant program on the Internet and shall make the criteria available in written format upon request.

(3) The department shall notify nursing home care providers of the criteria to be used in awarding grants by January1, 2001.

Sec. 321. The department shall report to the fiscal agencies and all members of the appropriations subcommittees on March 1, 2001 and September 1, 2001 on the initial and follow-up surveys conducted on all nursing homes in this state. The report shall include all of the following information:

(a) The number of surveys conducted.

(b) The number requiring follow-up surveys.

(c) The number referred to the Michigan public health institute for remediation.

(d) The number of citations per home.

(e) The number of night and weekend complaints filed.

(f) The number of night and weekend responses to complaints conducted by the department.

(g) The average length of time for the department to respond to a complaint filed against a nursing home.

(h) The number and percentage of citations appealed.

(i) The number and percentage of citations overturned and/or modified.

Sec. 322. The department, bureau of safety and regulation, shall provide an annual report by February 1 of each year to the fiscal agencies and to all members of the appropriate house and senate appropriations subcommittees on the number of individuals killed and the number of individuals injured on the job within industries regulated by the bureau during the preceding calendar year.

Sec. 323. The department shall report by November 1, 2000 to the legislature and the fiscal agencies the status of the nursing home complaint investigation backlog and any suggested revisions to current statute or promulgated rules that will assist in improving the effectiveness of the nursing home survey and complaint investigation process.

Sec. 324. As a condition for receiving the general fund/general purpose appropriations in part 1 for health systems administration, the department shall provide assistance to any person making an oral request for a nursing home investigation in putting his or her request into writing, shall initiate investigations on all written nursing home complaints filed with the department within 15 days of receipt of the complaint, and shall provide a written response to the complainant within 30 days of receipt of the written complaint.

Sec. 326. It is the intent of the legislature that the unemployment agency, during its transition to the remote initial claims system, operate a sufficient number of unemployment agency offices, including itinerant or satellite offices, within Michigan's Upper Peninsula to ensure that the citizens of the Upper Peninsula can access these offices without excessive travel or, in cases where unemployment claims are filed or renewed by phone, without excessive long distance toll charges.

Sec. 328. The department shall continue to work with grantees supported through the appropriation in part 1 for emergency medical services grants and contracts to ensure that a sufficient number of qualified emergency medical services personnel exist to serve rural areas of the state.

Sec. 329. (1) Of the funds appropriated in part 1 to the office of financial and insurance services created under Executive Order No. 4 of 2000, the funds allocated to the office of financial and insurance services and the commissioner of the office of financial and insurance services under the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302, shall be accounted for separately by the department from any other funds of the office of financial and insurance services and shall be separated and allocated as restricted funds to be held and expended only in the manner provided for under section 225 of the insurance code of 1956, 1956 PA 218, MCL 500.225, and this act.

(2) The director shall report to all members of the appropriate house and senate appropriations subcommittee by February 1, 2001 regarding the expenditures for the previous fiscal year from insurance regulatory fees for the following:

(a) The executive direction unit.

(b) The management services unit.

(c) The salary and expenditures of the commissioner of financial and insurance services.

Sec. 330. In response to recent changes in the administrative rules governing day care facilities, the appropriation in part 1 for AFC, children's welfare and day care licensure, shall allow the department to add up to 20 additional staff above the level appropriated as of September 30, 2000. These new positions shall support day care licensing activities that promote a higher quality environment for children in day care facilities.

Sec. 331. (1) The department in consultation with nursing home provider groups, the department of community health, the state long-term care ombudsman, and the federal health care finance administration shall clarify the following terms as those terms are used in title XVIII and title XIX and applied by the department to provide more consistent regulation of nursing homes in Michigan:

(a) Immediate jeopardy.

(b) Harm.

(c) Potential harm.

(d) Avoidable.

(e) Unavoidable.

(2) The department shall semiannually provide for joint training with nursing home surveyors and providers on at least 1 of the 10 most frequently issued federal citations in this state during the past calendar year. The department shall provide a mechanism to measure the effect of the training and shall report to the legislature on the effect of the training by January 15, 2001.

Sec. 332. From the appropriations in part 1 for occupational safety and health, the department shall provide funding for 31 general industry safety inspectors, 24 construction industry safety inspectors, and 27 industrial hygienists.

Sec. 333. Of the funds appropriated in part 1 for nursing home quality incentive grants, no funds shall be distributed to a nursing home under the program unless that nursing home posts the executive summary of the nursing home's last annual inspection in a conspicuous place within the nursing home for public review.

Sec. 334. It is the intent of the legislature that the unemployment agency work collaboratively with the department of career development to ensure each 1-stop center has the ability to assist individuals or respond to inquiries regarding unemployment benefits and the remote initial claims system.

Sec. 339. (1) The department shall post on the Internet the executive summary of the latest inspection for each licensed nursing home.

(2) It is the intent of the legislature that the department work toward posting inspection summaries for licensed day care centers on the Internet.

Sec. 340. The funding appropriated in part 1 for the regional communications emergency operations mobile command post shall be provided to the Oakland County sheriff's department and shall be matched on an equal dollar-for-dollar basis.

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

A bill to make appropriations for the department of consumer and industry services and certain other state purposes for the fiscal year ending September 30, 2001; to provide for the expenditure of those appropriations; to provide for the imposition of certain fees; to provide for the disposition of fees and other income received by the state agencies;

to provide for reports to certain persons; and to prescribe powers and duties of certain state departments and certain state and local agencies and officers.

Jon Jellema

Janet Kukuk

Conferees for the House

Loren Bennett

Leon Stille

Joe Young, Jr.

Conferees for the Senate

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

Messages from the Senate

House Bill No. 5833, entitled

A bill to amend 1961 PA 108, entitled "An act to provide for loans by the state of Michigan to school districts for the payment of principal and interest upon school bonds; to prescribe the terms and conditions of the loans and the conditions upon which levies for bond principal and interest shall be included in computing the amount to be so loaned by the state; to prescribe the powers and duties of the superintendent of public instruction and the state treasurer in relation to such loans; to provide for the repayment of such loans; to provide incentives for repayment of such loans; to provide for other matters in respect to such loans; and to make an appropriation," by amending the title and sections 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 9b, 10, 10a, 11, and 12 (MCL 388.951, 388.952, 388.953, 388.954, 388.954a, 388.955, 388.956, 388.957, 388.958, 388.959, 388.959b, 388.960, 388.960a, 388.961, and 388.962), the title and sections 6 and 9 as amended and section 9b as added by 1991 PA 65, sections 2, 4, and 11 as amended by 1992 PA 228, section 3 as amended by 1985 PA 25, section 4a as amended by 1991 PA 22, section 5 as amended by 1983 PA 124, and section 10 as amended and section 10a as added by 1989 PA 6, and by adding sections 1a, 9c, 10b, 10c, and 11a; and to repeal acts and parts of acts.

The Senate has concurred in the House amendment to the Senate substitute (S-1).

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

House Bill No. 5690, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," (MCL 324.101 to 324.90106) by adding sections 32610 and 32611.

The Senate has amended the bill as follows:

1. Amend page 2, line 23, after "TO," by inserting "THE PREVENTION AND MANAGEMENT OF NON-NATIVE SPECIES,".

The Senate has passed the bill as amended, ordered that it be given immediate effect and pursuant to Joint Rule 20, inserted the full title.

The Speaker announced that pursuant to Rule 45, the bill was laid over one day.

House Bill No. 5691, entitled

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending sections 32501, 32502, 32503, 32504, 32505, 32510, 32511, 32512, 32513, 32514, and 32515 (MCL 324.32501, 324.32502, 324.32503, 324.32504, 324.32505, 324.32510, 324.32511, 324.32512, 324.32513, 324.32514, and 324.32515), sections 32501, 32502, 32503, 32504, 32505, 32510, 32511, 32512, 32514, and 32515 as added by 1995 PA 59 and section 32513 as amended by 1999 PA 106, and by adding section 32510a and part 326.

The Senate has substituted (S-3) the bill.

The Senate has passed the bill as substituted (S-3), ordered that it be given immediate effect and amended the title to read as follows:

A bill to amend 1994 PA 451, entitled "An act to protect the environment and natural resources of the state; to codify, revise, consolidate, and classify laws relating to the environment and natural resources of the state; to regulate the discharge of certain substances into the environment; to regulate the use of certain lands, waters, and other natural resources of the state; to prescribe the powers and duties of certain state and local agencies and officials; to provide for certain charges, fees, and assessments; to provide certain appropriations; to prescribe penalties and provide remedies; to repeal certain parts of this act on a specific date; and to repeal certain acts and parts of acts," (MCL 324.101 to 324.90106) by adding part 326.

The Speaker announced that pursuant to Rule 45, the bill was laid over one day.

House Bill No. 5766, entitled

A bill to amend 1986 PA 281, entitled "The local development financing act," by amending sections 2, 4, 10, and 12 (MCL 125.2152, 125.2154, 125.2160, and 125.2162), section 2 as amended by 1998 PA 92 and sections 4, 10, and 12 as amended by 1993 PA 333, and by adding section 12a.

The Senate has substituted (S-1) the bill.

The Senate has passed the bill as substituted (S-1), ordered that it be given immediate effect and amended the title to read as follows:

A bill to amend 1986 PA 281, entitled "An act to encourage local development to prevent conditions of unemployment and promote economic growth; to provide for the establishment of local development finance authorities and to prescribe their powers and duties; to provide for the creation of a board to govern an authority and to prescribe its powers and duties; to provide for the creation and implementation of development plans; to authorize the acquisition and disposal of interests in real and personal property; to permit the issuance of bonds and other evidences of indebtedness by an authority; to prescribe powers and duties of certain state officers and agencies; to reimburse authorities for certain losses of tax increment revenues; and to authorize and permit the use of tax increment financing," by amending the title and sections 2, 3, 4, 10, and 12 (MCL 125.2152, 125.2153, 125.2154, 125.2160, and 125.2162), the title and sections 4, 10, and 12 as amended by 1993 PA 333, and section 2 as amended by 1998 PA 92, section 3 as added by 1986 PA 281, and by adding section 12a.

The Speaker announced that pursuant to Rule 45, the bill was laid over one day.

______

Rep. Switalski moved that the House adjourn.

The motion prevailed, the time being 11:55 p.m.

Associate Speaker Pro Tempore Scranton declared the House adjourned until Wednesday, June 21, at 12:01 a.m.

GARY L. RANDALL

Clerk of the House of Representatives.