LABORAND ECONOMIC GROWTH FY 2008-09 Budget

Summary: House Bill 5809 (S-1) as passed by the Senate

Analyst: Mark Wolf

June 24, 2008

		FY 2008-09 Revised Exec	FY 2008-09 House	FY 2008-09 Senate	*Difference: Senate* *From FY 2007-08 YTD*
	FY 2007-08 YTD	5-7-08	3-20-2008	5-27-08	*Amount*	%
IDG/IDT	34,472,800	$30,724,200	$30,724,200	30,724,300	(3,748,500)	(10.9)
Federal	820,712,500	875,637,300	831,637,300	875,637,200	54,924,700	6.7
Local	15,884,700	15,889,200	15,889,200	15,889,200	4,500	0.0
Private	5,314,300	5,314,300	5,314,300	5,314,300	0	0.0
Restricted	389,120,700	385,719,100	385,937,600	386,308,000	(2,812,700)	(0.7)
GF/GP	46,002,700	103,707,800	94,850,100	45,850,100	(152,600)	(0.3)
Gross	$1,311,507,700	$1,362,852,700	$1,364,352,700	$1,359,723,100	$48,215,400	3.7
FTEs	4,351.0	4,358.5	4,351.0	4,353.5	(3.0)	0.1

Note: FY 2007-08 figures reflect supplementals, Executive Orders, and legislative transfers throughJune 24, 2008.

Overview

The Department of Labor and Economic Growth (DLEG) has primary responsibility for the regulatory functions that relate specifically to commercial, business, and workers’ issues. It also includes various employment training-related programs for displaced workers, adults, and youth, and employment services for the disabled as well as welfare recipients.

Major Budget Issues

Major Budget Changes From FY 2007-08 YTD Appropriations	FY 2007-08 YTD	Exec Change From YTD	House Change From YTD	Senate Change From YTD
*1. Workforce Training Program Subgrantees* The Executive and the House add $40.0 million GF/GP for the No Worker Left Behind Program. The Revised Executive and Senate increased federal WIA authorization by $44.0 million to reflect WIA PY 2008-09 allocation. The Executive, House, and Senate increase federal TAA authorization by $6.4 million.	Gross Federal GF/GP	$184,587,800 184,587,800 $0	$90,440,800 50,440,800 $40,000,000	$46,440,800 6,440,800 $40,000,000	$50,440,800 50,440,800 $0
2. *Michigan* *Nursing Corps Program* Executiveand House add $8.5 million for the Michigan Nursing Corps program to rapidly prepare new nursing faculty and recruit displaced workers with bachelor's degreesin scienceto earnan acceleratedone-year nursing certification. The Senate reduces by $1.0 million from YTD.	Gross GF/GP	$1,500,000 $1,500,000	$8,500,000 $8,500,000	$8,500,000 $8,500,000	($1,000,000) ($1,000,000)
*3. Office of Financial and Insurance Regulation* The Executive, House, and Senate adds 50.0 FTEs and $5.4 million in industry-paid fees to improve regulation or maintain statutorily-required regulatory activities related to mortgage lending, payday lending, securities, banking and credit unions, and insurance.	FTEs Gross Federal Restricted	298.0 $45,903,300 50,400 45,852,900	50.0 $5,389,900 0 5,389,900	43.0 $4,608,400 0 4,608,400	50.0 $5,389,900 0 5,389,900
*4. OFIR IT System Integration* Adds $1.4 million Restricted for the first year of a two-year IT project integrating OFIR's IT systems concerning insurance, banking, and credit union regulatory activities. (Estimated costs in FY 2010 are $1.1 million.)	Gross Restricted	N/A N/A	$1,377,000 1,377,000	$1,377,000 1,377,000	$1,377,000 1,377,000
*5. Jobs, Education, and Training (JET) Program* Reduces by 36.0 positions and $4.5 million (IDG-DHS) to more accurately reflect program personnel needs and to reflect lower than anticipated referrals to Michigan Rehabilitation Service. The Senate increases funding by $100.	FTE Gross IDG	93.0 $22,877,800 22,877,800	(36.0) ($4,467,600) (4,467,600)	(36.0) ($4,467,600) (4,467,600)	(36.0) ($4,467,500) (4,467,500)
*7. MSHDA Payments on Behalf of Tenants* Adds $5.0 million Federal for payments on behalf of tenants in the low-income housing choice voucher program.	Gross Federal	$140,000,000 140,000,000	$5,000,000 5,000,000	$5,000,000 5,000,000	$5,000,000 5,000,000
*8. Remonumentation Grants* Decreases authorization for grants based on estimated revenue.	Gross Restricted	$14,000,000 14,000,000	($3,000,000) (3,000,000)	($3,000,000) (3,000,000)	($3,000,000) (3,000,000)
*9. Occupational Regulation (Commercial Services)* Adds 11.0 FTEs and $1.0 million Restricted to crack down on unlicensed activity within the accounting, real estate, and building construction industries.	FTEs Gross Restricted	156.0 $17,651,200 17,651,200	11.0 $1,050,000 1,050,000	11.0 $1,050,000 1,050,000	11.0 $1,050,000 1,050,000
*10. LCC: Direct Shipper Enforcement Fund* Adds $120,000 from the Direct Shipper Enforcement Fund related to enforcement of regulations concerning the direct shipment of wine.	Gross Restricted	N/A N/A	$120,000 120,000	$120,000 120,000	$120,000 120,000
*12. Internal Audit Consolidation* Reduces 5.0 FTEs related to consolidation of internal audit activities within DMB. Funding will remain within DLEG budget, and bill be recorded as anIDG in the DMB budget.	FTE Gross Federal Restricted	5.0 $560,100 68,700 491,400	(5.0) $0 0 0	(5.0) $0 0 0	(5.0) $0 0 0
*13. Human Resources Consolidation* Reduces 22.0 FTEs and $2.4 million related to consolidation of human resources activities within DMB. Also eliminates $259,700 in HR optimization charges	FTE Gross Federal Restricted	22.0 $2,619,800 1,800,400 819,400	(22.0) ($2,619,800) (1,800,400) (819,400)	(22.0) ($2,619,800) (1,800,400) (819,400)	(22.0) ($2,619,800) (1,800,400) (819,400)
*14. Focus: HOPE* Eliminates $140,000 for a pilot study on improving job placement and retention of welfare recipients.	Gross Restricted	$140,000 140,000	($140,000) (140,000)	($140,000) (140,000)	($140,000) (140,000)
*15. Liquor Enforcement Grants* Adds $500,000 for liquor law enforcement grants from increased revenue generated from sale of development district and redevelopment project licenses.	Gross Restricted	$6,507,000 6,507,000	$93,000 93,000	$93,000 93,000	$93,000 93,000
*16. State Office of Administrative Hearings and Rules* Adds 7.0 FTEs and $640,700 (IDG-DHS) to support the increased volume of administrative hearings concerning DHS benefits. The Senate added a placeholder for teach tenure hearings.	Gross IDG	$3,338,000 3,338,000	$640,700 640,700	$640,700 640,700	$640,800 640,800
*17. Deaf and Hard of Hearing Interpreters* Adds $75,000 to expand availability of interpreters for the deaf and hard of hearing on account of increase revenue from interpreter testing fees.	Gross Restricted	N/A N/A	$75,000 75,000	$75,000 75,000	$75,000 75,000
*18. Fire Protection Grants* The House adds $1.0 million from the Liquor Purchasing Revolving Fund for fire protection grants to cities with state-owned property. The Executive and Senate maintain current year funding levels.	Gross Restricted	$10,910,500 10,910,500	$0 0	$1,000,000 1,000,000	$0 0
*19. Centers for Independent Living* The House Increases funding for centers for independent living, which provide supportive services to persons with disabilities, by $500,000. The Senate increases funding by $163,300.	Gross Federal Private GF/GP	$3,079,700 870,200 100,000 2,109,500	$0 0 0 0	$500,000 0 0 $500,000	$163,300 0 0 $163,300
*20. FY 2008-09 Economic Increases* Includes contractual 1.0% wage increases and adjustments for insurance and retirement (includes $119,000 Gross forDIT economics).	Gross IDG Federal Local Restricted GF/GP	N/A N/A N/A N/A N/A N/A	$1,994,900 91,300 935,000 4,500 976,700 (12,600)	$1,994,900 91,300 935,000 4,500 976,700 (12,600)	$1,994,900 91,300 935,000 4,500 976,700 (12,600)

Major Budget Changes From FY 2007-08 YTD Appropriations

FY 2007-08 YTD

Exec Change

From YTD

House Change

From YTD

Senate Change

From YTD

1. Workforce Training Program Subgrantees

The Executive and the House add $40.0 million GF/GP for the No Worker Left Behind Program. The Revised Executive and Senate increased federal WIA authorization by $44.0 million to reflect WIA PY 2008-09 allocation. The Executive, House, and Senate increase federal TAA authorization by $6.4 million.

Gross

Federal

GF/GP

$184,587,800

184,587,800

$90,440,800

50,440,800

$40,000,000

$46,440,800

6,440,800

$40,000,000

$50,440,800

50,440,800

2. Michigan Nursing Corps Program

Executiveand House add $8.5 million for the Michigan Nursing Corps program to rapidly prepare new nursing faculty and recruit displaced workers with bachelor's degreesin scienceto earnan acceleratedone-year nursing certification. The Senate reduces by $1.0 million from YTD.

Gross

GF/GP

$1,500,000

$1,500,000

$8,500,000

$8,500,000

$8,500,000

$8,500,000

($1,000,000)

($1,000,000)

3. Office of Financial and Insurance Regulation

The Executive, House, and Senate adds 50.0 FTEs and $5.4 million in industry-paid fees to improve regulation or maintain statutorily-required regulatory activities related to mortgage lending, payday lending, securities, banking and credit unions, and insurance.

FTEs

Gross

Federal

Restricted

298.0

$45,903,300

50,400

45,852,900

50.0

$5,389,900

5,389,900

43.0

$4,608,400

4,608,400

50.0

$5,389,900

5,389,900

4. OFIR IT System Integration

Adds $1.4 million Restricted for the first year of a two-year IT project integrating OFIR's IT systems concerning insurance, banking, and credit union regulatory activities. (Estimated costs in FY 2010 are $1.1 million.)

Gross

Restricted

N/A

N/A

$1,377,000

1,377,000

$1,377,000

1,377,000

$1,377,000

1,377,000

5. Jobs, Education, and Training (JET) Program

Reduces by 36.0 positions and $4.5 million (IDG-DHS) to more accurately reflect program personnel needs and to reflect lower than anticipated referrals to Michigan Rehabilitation Service. The Senate increases funding by $100.

FTE

Gross

IDG

93.0

$22,877,800

22,877,800

(36.0)

($4,467,600)

(4,467,600)

(36.0)

($4,467,600)

(4,467,600)

(36.0)

($4,467,500)

(4,467,500)

7. MSHDA Payments on Behalf of Tenants

Adds $5.0 million Federal for payments on behalf of tenants in the low-income housing choice voucher program.

Gross

Federal

$140,000,000

140,000,000

$5,000,000

5,000,000

$5,000,000

5,000,000

$5,000,000

5,000,000

8. Remonumentation Grants

Decreases authorization for grants based on estimated revenue.

Gross

Restricted

$14,000,000

14,000,000

($3,000,000)

(3,000,000)

($3,000,000)

(3,000,000)

($3,000,000)

(3,000,000)

9. Occupational Regulation (Commercial Services)

Adds 11.0 FTEs and $1.0 million Restricted to crack down on unlicensed activity within the accounting, real estate, and building construction industries.

FTEs

Gross

Restricted

156.0

$17,651,200

17,651,200

11.0

$1,050,000

1,050,000

11.0

$1,050,000

1,050,000

11.0

$1,050,000

1,050,000

10. LCC: Direct Shipper Enforcement Fund

Adds $120,000 from the Direct Shipper Enforcement Fund related to enforcement of regulations concerning the direct shipment of wine.

Gross

Restricted

N/A

N/A

$120,000

120,000

$120,000

120,000

$120,000

120,000

12. Internal Audit Consolidation

Reduces 5.0 FTEs related to consolidation of internal audit activities within DMB. Funding will remain within DLEG budget, and bill be recorded as anIDG in the DMB budget.

FTE

Gross

Federal

Restricted

5.0

$560,100

68,700

491,400

(5.0)

13. Human Resources Consolidation

Reduces 22.0 FTEs and $2.4 million related to consolidation of human resources activities within DMB. Also eliminates $259,700 in HR optimization charges

FTE

Gross

Federal

Restricted

22.0

$2,619,800

1,800,400

819,400

(22.0)

($2,619,800)

(1,800,400)

(819,400)

(22.0)

($2,619,800)

(1,800,400)

(819,400)

(22.0)

($2,619,800)

(1,800,400)

(819,400)

14. Focus: HOPE

Eliminates $140,000 for a pilot study on improving job placement and retention of welfare recipients.

Gross

Restricted

$140,000

140,000

($140,000)

(140,000)

($140,000)

(140,000)

($140,000)

(140,000)

15. Liquor Enforcement Grants

Adds $500,000 for liquor law enforcement grants from increased revenue generated from sale of development district and redevelopment project licenses.

Gross

Restricted

$6,507,000

6,507,000

$93,000

93,000

$93,000

93,000

$93,000

93,000

16. State Office of Administrative Hearings and Rules

Adds 7.0 FTEs and $640,700 (IDG-DHS) to support the increased volume of administrative hearings concerning DHS benefits. The Senate added a placeholder for teach tenure hearings.

Gross

IDG

$3,338,000

3,338,000

$640,700

640,700

$640,700

640,700

$640,800

640,800

17. Deaf and Hard of Hearing Interpreters

Adds $75,000 to expand availability of interpreters for the deaf and hard of hearing on account of increase revenue from interpreter testing fees.

Gross

Restricted

N/A

N/A

$75,000

75,000

$75,000

75,000

$75,000

75,000

18. Fire Protection Grants

The House adds $1.0 million from the Liquor Purchasing Revolving Fund for fire protection grants to cities with state-owned property. The Executive and Senate maintain current year funding levels.

Gross

Restricted

$10,910,500

10,910,500

$1,000,000

1,000,000

19. Centers for Independent Living

The House Increases funding for centers for independent living, which provide supportive services to persons with disabilities, by $500,000. The Senate increases funding by $163,300.

Gross

Federal

Private

GF/GP

$3,079,700

870,200

100,000

2,109,500

$500,000

$500,000

$163,300

$163,300

20. FY 2008-09 Economic Increases

Includes contractual 1.0% wage increases and adjustments for insurance and retirement (includes $119,000 Gross forDIT economics).

Gross

IDG

Federal

Local

Restricted

GF/GP

N/A

N/A

$1,994,900

91,300

935,000

4,500

976,700

(12,600)

$1,994,900

91,300

935,000

4,500

976,700

(12,600)

$1,994,900

91,300

935,000

4,500

976,700

(12,600)

Major Boilerplate Changes From FY 2007-08
**Sec. 205. Hiring Freeze -RETAINED Imposes a hiring freeze on the department, and permits the state budget director to grant exceptions to the hiring freeze in certain limited circumstances. The House adds an exception to the hiring freeze for the Public Service Commission for House Bill 5524 (the re-write of P.A. 141). The Executive, House, and Senate make minor revisions. The Senate does not concur with the House** in providing an exemption for the MPSC.
**Sec. 215. Report on Policy Changes -Retained Requires the department to submit a report on policy changes made to implement recently enacted legislation and prohibiting the department from promulgating administrative rules that have disproportionate impact on small businesses. The Executive and House delete this section. The Senate** retains this section.
**Sec. 219. Employee Interaction with Legislature -Retained Prohibits the department from taking disciplinary action against employees who communicate with the Legislature. The Executive and House delete this section. The Senate** retains this section.
**Sec. 222. (Governmental Efficiency Commission -NEW The Senate** added language requiring the department to review the determinations of the Legislative Commission on Governmental Efficiency to determine their applicability to the department and the costs and benefits of implementing recommendations.
**Sec. 224. (Out-of-State Travel for Training -NEW The Senate** added language prohibiting out-of-state travel by more than one departmental employee for professional development or training, except where more than one person is required to attend and travel is funded by non-state resources.
**Sec. 225. (Transparency in State Expenditures -NEW The Senate** added language requiring the department to develop a website detailing all expenditures made in the fiscal year.
**Sec. 319. Unemployment Taxes and PEOs -NEW The Senate** added language prohibiting the department from expending funds for the UIA to combine entities within aPEO into a single account or single rate unless there is clear evidence that the primary purpose of thePEO is to reduce the unemployment taxes of the employers.
**Sec. 335. MPSC Report on Low Income and Energy Efficiency Fund Grant Awards- RETAINED Requires the Public Service Commission to issue a report on grant awards from the Low Income and Energy Efficiency Fund. The Executive deleted this section. The House and Senate** retain this section.
*Sec. 336. Office of Financial and Insurance Regulation Expenditure Report* - RETAINED Requires OFIR to issue a report on expenditures of each OFIR division in the preceding fiscal year. The Executive deletes this section. The House and Senate retain this section.
**Sec. 337. Credit Scoring in Insurance Rate Setting -DELETED Prohibits using appropriations for implementing prohibitions on the use of credit scoring in insurance rate setting. The Executive and House delete this section. The Senate** retains this section.
**Sec. 340. Health Maintenance Organization Quarterly and Annual Reports -RETAINED Requires OFIR to provide the fiscal agencies with copies of quarterly and annual reports of health maintenance organizations (HMOs). The Executive deletes this section. The House and Senate** retain this section.
**Sec. 355. Ergonomic Rules -REVISED Prohibits using funds for promulgation of ergonomic rules that are more stringent than voluntary federal standards. The Executive and House delete this section. The Senate** revises this section to state that funding for MIOSHA in part 1 shall only be used to administer worker safety programs, and no funding shall be used to support the Occupational Health Standards Commission or the General Industry Safety Standards Commission.
**Sec. 357. Real Estate Law and Rules Book -REVISED Allocates up to $50,000 for printing the Real Estate Law and Rules Book (Red Book), and requires the department to make printed copies of the book available at cost. The Executive, House, and Senate** delete the allocation of funds for this purpose.
**Sec. 365. CET Grants -RETAINED Allocates at least $40,000 from the amount appropriated for theMichigan occupational safety and health consultation education and training (CET) grants to nonprofit organizations representing the aggregate industry. The Executive and House delete this section. The Senate** retains this section.
**Sec. 370(2). Cities of Promise Allocation -DELETED The Executive, House, and Senate** delete the statement of legislative intent allocating at least $750,000 from the cities of promise blight elimination program toSaginaw andFlint.
**Sec. 375. MPSC Low Income and Energy Efficiency Grant Awards Process -RETAINED Requires the MPSC to set an application deadline of May 1st and award deadline of October 1st for issuing LIEEF grant awards. The Executive deletes this section. The House and Senate** incorporate this section into Section 335.
**Sec. 376. LCC Report on Revenue Losses -DELETED Requires the Liquor Control Commission to issue a report byJanuary 15, 2008 on the amount of revenue lost due to out of state liquor purchases for individual consumption or illegal resale. The Executive, House, and Senate** delete this provision.
**Sec. 377(2). Workforce Investment Act Funds Expenditures -RETAINED Requires the department to report the amount of workforce investment act funds appropriated in the fiscal year. The Executive deletes this provision. The House and Senate** retain this provision.
**Sec. 378. SOAHR Decisions in Public Assistance Cases -NEW The Senate** adds intent language for the State Office of Administrative Hearings and Rules to work the Center for Civil Justice to develop a system to post on-line SOAHR decisions concerning Medicaid and cash, emergency, and food assistance.
**Sec. 403. Local Match of Vocational Rehabilitation Facilities Establishment Grants -DELETED Sets a maximum local match requirement for vocational rehabilitation facilities establishment grants at 21.3%. The Executive deletes this provision. The House and Senate** retain this provision.
**Sec. 404. Vocational Rehabilitation Independent Living -REVISED The Executive adds that funds appropriated for vocational rehabilitation independent living not used to match federal funding to be used for the development of new independent living centers in areas currently unserved or underserved. The House provides that the $500,000 increase for this line item may be used for the development of new independent living centers in areas currently unserved or underserved. The Senate** provides that funds may be used by existing sites to serve underserved areas.
**Sec. 407. Workforce Development Boards -REVISED Requires local workforce boards to establish education advisory groups consisting of school administrators, workforce board members, employers, labor interests, educators, and parents of school children. The House and Senate** permit local boards to add to the education advisory group representatives of organizations that provide school-based curriculum and youth programs on entrepreneurship, work-readiness skills, and financial literacy.
**Sec. 408. Enhance Local Access to Baccalaureate Degree Opportunities -DELETED Statement of legislative intent to identify ways of enhancing local access to baccalaureate programs in applied science and technology through the community college system. Permits funds to be used for a study such programs would be useful and could be developed quickly. The Executive, House, and Senate** delete this section.
**Sec. 432. No Worker Left Behind Report -REVISED The Executive and Senate change the dates for the NLWB program from 71/2008 for the period8/1/2007 -5/30/2008 to a report by12/15/2009 for the period10/1/2008 - 9/30/2009. The House retained the current dates, but update the year. The Senate** also requires a report by12/15/2008 for the period10/1/2007 - 9/30/2008.
**Sec. 432a. No Worker Left Behind -NEW The House adds boilerplate concerning the $40.0 million increase in funding for NWLB. The section allocates $30.0 million for worker training in in-demand fields, $5.0 million for adult basic education, remedial education, and other training for individuals not ready for post-secondary training; and $5.0 million for capacity building at community colleges and other public, associates-degree granting institutions. The House also requires funds to be used to provide training to food stamp recipients and distributed in a manner that leverages federal, local, and private funds. The House Committee also adds intent language requiring the department to work with local workforce development partners and the Lewis College of Business to assist the college in participating in the program, and adds language permitting a portion of the $30.0 million allocated for training to be utilized by libraries to assist in providing training in in-demand occupations, based on demonstrated need. The Senate** retains the overall structure of the House language. It allocates at least $70.0 million for the program and, without setting specific amounts, directs that funds be used for worker training, adult education, and capacity building at community colleges. The Senate does not provide funds to community colleges through a competitive granting process, and does not include the House's provisions regarding the Lewis College of Business or the allocation of funds to public libraries.
**Sec. 437. Welfare to Work– REVISED Allocates $140,000 to Focus: Hope to design a pilot program to improve job placement and retention of welfare recipients. Directs Focus: Hope to work collaboratively with Department of Human Services Jobs, Employment, Training Program andMichigan community colleges and universities. The Executive, House, and Senate delete this section. The Senate** adds language allocating $200,000 for one grant to expand a program of an employer that (1) focuses on retaining low-wage workers receiving public assistance; (2) has at least an 80% retention rate; (3) includes more than one employer; (4) has a DHS caseworker on the employer's worksite; splits the costs of the case worker with federal TANF funds and the employer's own funds; (6) provides life and work-related skills training; (7) impacts at least three counties; and (8) includes partnerships with local government, nonprofits, and community colleges.
**Sec. 439. Land Bank Fast Track Authority -REVISED Allocates $400,000 from LBFTA funds appropriated in part 1 to be used for additional maintenance or demolition of tax reverted property. The Executive and Senate delete this section. The House** retains this section, but reduces the allocation from $400,000 to a $100 placeholder.
**Sec. 439. Focus: HOPE Career Prep Pilot Program -NEW The Senate** added language providing a $100 placeholder allocation to Focus: HOPE to implement a pilot career prep program for welfare recipients in Genesee and Wayne counties, based on the program designed from funds provided in FY 2007-08 (2007 PA 118, Section 437).
**Sec. 440. Gang Diversion -NEW The Senate** adds language setting aside a portion of the WIA Statewide Activities funds to support coordinated activities of the local Michigan Works! agency and law enforcement for gang diversion activities and support services to at-risk youthWyoming,Detroit, and Benton Harbor.
**Sec. 441. SOAHR Teacher Tenure Hearings -NEW The Senate** added language specifying the $100 GF/GP placeholder for SOAHR is to be used to reduce the backlog of teacher tenure cases.

Major Boilerplate Changes From FY 2007-08

Sec. 205. Hiring Freeze -RETAINED

Imposes a hiring freeze on the department, and permits the state budget director to grant exceptions to the hiring freeze in certain limited circumstances. The House adds an exception to the hiring freeze for the Public Service Commission for House Bill 5524 (the re-write of P.A. 141). The Executive, House, and Senate make minor revisions. The Senate does not concur with the House in providing an exemption for the MPSC.

Sec. 215. Report on Policy Changes -Retained

Requires the department to submit a report on policy changes made to implement recently enacted legislation and prohibiting the department from promulgating administrative rules that have disproportionate impact on small businesses. The Executive and House delete this section. The Senate retains this section.

Sec. 219. Employee Interaction with Legislature -Retained

Prohibits the department from taking disciplinary action against employees who communicate with the Legislature. The Executive and House delete this section. The Senate retains this section.

Sec. 222. (Governmental Efficiency Commission -NEW

The Senate added language requiring the department to review the determinations of the Legislative Commission on Governmental Efficiency to determine their applicability to the department and the costs and benefits of implementing recommendations.

Sec. 224. (Out-of-State Travel for Training -NEW

The Senate added language prohibiting out-of-state travel by more than one departmental employee for professional development or training, except where more than one person is required to attend and travel is funded by non-state resources.

Sec. 225. (Transparency in State Expenditures -NEW

The Senate added language requiring the department to develop a website detailing all expenditures made in the fiscal year.

Sec. 319. Unemployment Taxes and PEOs -NEW

The Senate added language prohibiting the department from expending funds for the UIA to combine entities within aPEO into a single account or single rate unless there is clear evidence that the primary purpose of thePEO is to reduce the unemployment taxes of the employers.

Sec. 335. MPSC Report on Low Income and Energy Efficiency Fund Grant Awards- RETAINED

Requires the Public Service Commission to issue a report on grant awards from the Low Income and Energy Efficiency Fund. The Executive deleted this section. The House and Senate retain this section.

Sec. 336. Office of Financial and Insurance Regulation Expenditure Report - RETAINED

Requires OFIR to issue a report on expenditures of each OFIR division in the preceding fiscal year. The Executive deletes this section. The House and Senate retain this section.

Sec. 337. Credit Scoring in Insurance Rate Setting -DELETED

Prohibits using appropriations for implementing prohibitions on the use of credit scoring in insurance rate setting. The Executive and House delete this section. The Senate retains this section.

Sec. 340. Health Maintenance Organization Quarterly and Annual Reports -RETAINED

Requires OFIR to provide the fiscal agencies with copies of quarterly and annual reports of health maintenance organizations (HMOs). The Executive deletes this section. The House and Senate retain this section.

Sec. 355. Ergonomic Rules -REVISED

Prohibits using funds for promulgation of ergonomic rules that are more stringent than voluntary federal standards. The Executive and House delete this section. The Senate revises this section to state that funding for MIOSHA in part 1 shall only be used to administer worker safety programs, and no funding shall be used to support the Occupational Health Standards Commission or the General Industry Safety Standards Commission.

Sec. 357. Real Estate Law and Rules Book -REVISED

Allocates up to $50,000 for printing the Real Estate Law and Rules Book (Red Book), and requires the department to make printed copies of the book available at cost. The Executive, House, and Senate delete the allocation of funds for this purpose.

Sec. 365. CET Grants -RETAINED

Allocates at least $40,000 from the amount appropriated for theMichigan occupational safety and health consultation education and training (CET) grants to nonprofit organizations representing the aggregate industry. The Executive and House delete this section. The Senate retains this section.

Sec. 370(2). Cities of Promise Allocation -DELETED

The Executive, House, and Senate delete the statement of legislative intent allocating at least $750,000 from the cities of promise blight elimination program toSaginaw andFlint.

Sec. 375. MPSC Low Income and Energy Efficiency Grant Awards Process -RETAINED

Requires the MPSC to set an application deadline of May 1st and award deadline of October 1st for issuing LIEEF grant awards. The Executive deletes this section. The House and Senate incorporate this section into Section 335.

Sec. 376. LCC Report on Revenue Losses -DELETED

Requires the Liquor Control Commission to issue a report byJanuary 15, 2008 on the amount of revenue lost due to out of state liquor purchases for individual consumption or illegal resale. The Executive, House, and Senate delete this provision.

Sec. 377(2). Workforce Investment Act Funds Expenditures -RETAINED

Requires the department to report the amount of workforce investment act funds appropriated in the fiscal year. The Executive deletes this provision. The House and Senate retain this provision.

Sec. 378. SOAHR Decisions in Public Assistance Cases -NEW

The Senate adds intent language for the State Office of Administrative Hearings and Rules to work the Center for Civil Justice to develop a system to post on-line SOAHR decisions concerning Medicaid and cash, emergency, and food assistance.

Sec. 403. Local Match of Vocational Rehabilitation Facilities Establishment Grants -DELETED

Sets a maximum local match requirement for vocational rehabilitation facilities establishment grants at 21.3%. The Executive deletes this provision. The House and Senate retain this provision.

Sec. 404. Vocational Rehabilitation Independent Living -REVISED

The Executive adds that funds appropriated for vocational rehabilitation independent living not used to match federal funding to be used for the development of new independent living centers in areas currently unserved or underserved. The House provides that the $500,000 increase for this line item may be used for the development of new independent living centers in areas currently unserved or underserved. The Senate provides that funds may be used by existing sites to serve underserved areas.

Sec. 407. Workforce Development Boards -REVISED

Requires local workforce boards to establish education advisory groups consisting of school administrators, workforce board members, employers, labor interests, educators, and parents of school children. The House and Senate permit local boards to add to the education advisory group representatives of organizations that provide school-based curriculum and youth programs on entrepreneurship, work-readiness skills, and financial literacy.

Sec. 408. Enhance Local Access to Baccalaureate Degree Opportunities -DELETED

Statement of legislative intent to identify ways of enhancing local access to baccalaureate programs in applied science and technology through the community college system. Permits funds to be used for a study such programs would be useful and could be developed quickly. The Executive, House, and Senate delete this section.

Sec. 432. No Worker Left Behind Report -REVISED

The Executive and Senate change the dates for the NLWB program from 71/2008 for the period8/1/2007 -5/30/2008 to a report by12/15/2009 for the period10/1/2008 - 9/30/2009. The House retained the current dates, but update the year. The Senate also requires a report by12/15/2008 for the period10/1/2007 - 9/30/2008.

Sec. 432a. No Worker Left Behind -NEW

The House adds boilerplate concerning the $40.0 million increase in funding for NWLB. The section allocates $30.0 million for worker training in in-demand fields, $5.0 million for adult basic education, remedial education, and other training for individuals not ready for post-secondary training; and $5.0 million for capacity building at community colleges and other public, associates-degree granting institutions. The House also requires funds to be used to provide training to food stamp recipients and distributed in a manner that leverages federal, local, and private funds. The House Committee also adds intent language requiring the department to work with local workforce development partners and the Lewis College of Business to assist the college in participating in the program, and adds language permitting a portion of the $30.0 million allocated for training to be utilized by libraries to assist in providing training in in-demand occupations, based on demonstrated need. The Senate retains the overall structure of the House language. It allocates at least $70.0 million for the program and, without setting specific amounts, directs that funds be used for worker training, adult education, and capacity building at community colleges. The Senate does not provide funds to community colleges through a competitive granting process, and does not include the House's provisions regarding the Lewis College of Business or the allocation of funds to public libraries.

Sec. 437. Welfare to Work– REVISED

Allocates $140,000 to Focus: Hope to design a pilot program to improve job placement and retention of welfare recipients. Directs Focus: Hope to work collaboratively with Department of Human Services Jobs, Employment, Training Program andMichigan community colleges and universities. The Executive, House, and Senate delete this section. The Senate adds language allocating $200,000 for one grant to expand a program of an employer that (1) focuses on retaining low-wage workers receiving public assistance; (2) has at least an 80% retention rate; (3) includes more than one employer; (4) has a DHS caseworker on the employer's worksite; splits the costs of the case worker with federal TANF funds and the employer's own funds; (6) provides life and work-related skills training; (7) impacts at least three counties; and (8) includes partnerships with local government, nonprofits, and community colleges.

Sec. 439. Land Bank Fast Track Authority -REVISED

Allocates $400,000 from LBFTA funds appropriated in part 1 to be used for additional maintenance or demolition of tax reverted property. The Executive and Senate delete this section. The House retains this section, but reduces the allocation from $400,000 to a $100 placeholder.

Sec. 439. Focus: HOPE Career Prep Pilot Program -NEW

The Senate added language providing a $100 placeholder allocation to Focus: HOPE to implement a pilot career prep program for welfare recipients in Genesee and Wayne counties, based on the program designed from funds provided in FY 2007-08 (2007 PA 118, Section 437).

Sec. 440. Gang Diversion -NEW

The Senate adds language setting aside a portion of the WIA Statewide Activities funds to support coordinated activities of the local Michigan Works! agency and law enforcement for gang diversion activities and support services to at-risk youthWyoming,Detroit, and Benton Harbor.

Sec. 441. SOAHR Teacher Tenure Hearings -NEW

The Senate added language specifying the $100 GF/GP placeholder for SOAHR is to be used to reduce the backlog of teacher tenure cases.