No. 47

STATE OF MICHIGAN

Journal of the Senate

96th Legislature

REGULAR SESSION OF 2011

Senate Chamber, Lansing, Thursday, May 26, 2011.

10:00 a.m.

The Senate was called to order by the President, Lieutenant Governor Brian N. Calley.

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

Anderson—present Hood—present Pappageorge—present

Bieda—present Hopgood—present Pavlov—present

Booher—present Hune—present Proos—present

Brandenburg—present Hunter—present Richardville—present

Casperson—present Jansen—present Robertson—present

Caswell—present Johnson—present Rocca—present

Colbeck—present Jones—present Schuitmaker—present

Emmons—present Kahn—present Smith—present

Gleason—present Kowall—present Walker—present

Green—present Marleau—present Warren—present

Gregory—present Meekhof—present Whitmer—present

Hansen—present Moolenaar—present Young—present

Hildenbrand—present Nofs—present

Army Chaplain Lieutenant Colonel James R. Chapin, Jr., of Wesleyan Church of Farwell offered the following invocation:

Almighty and everlasting Father, we bow today in humbled prayer that You, O loving Father, would keep the families and loved ones of our fallen heros within Your divine protection, and may You grant them peace. Incline our hearts, the citizens of this great nation, and the state of Michigan to be ever mindful to show brotherly love and affection toward one another and that Thou, our eternal God and source of light that never dims, will most graciously be pleased to lead, guide, and direct us to do justice, to love mercy, and to walk humbly before You in all things, so that we may continue to live free and joyous lives.

In Your holy name, I pray. Amen.

The President, Lieutenant Governor Calley, led the members of the Senate in recital of the Pledge of Allegiance.

Motions and Communications

Senator Warren entered the Senate Chamber.

Senator Hopgood moved that Senators Hood, Hunter and Smith be temporarily excused from today’s session.

The motion prevailed.

Senator Meekhof moved that rule 3.902 be suspended to allow guests admittance to the Senate floor, including the center aisle, and to sit in the Senators’ chairs.

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

Senator Meekhof moved that rule 3.901 be suspended to allow photographs to be taken from the Senate floor, including the center aisle and Gallery.

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

Recess

Senator Meekhof moved that the Senate recess subject to the call of the Chair.

The motion prevailed, the time being 10:05 a.m.

11:15 a.m.

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

During the recess, Senator Pappageorge presented the 17th Annual Memorial Day Ceremony in honor of the military personnel who served during wartime. The ceremony was accompanied by the Department of Michigan VFW State Honor Guard, Kalamazoo Pipe Band, and VFW Post Commanders.

Senator Jansen introduced Deborah Drick, his chief of staff, who sang the “National Anthem.”

Senator Pappageorge introduced Laura DeRoo, mother of fallen soldier Army Sergeant Gabriel G. DeRoo of Paw Paw and a founding member of Western Michigan American Gold Star Mothers of Kalamazoo; and Katie Youmans Eichler, widow of fallen soldier Army Sergeant Joshua V. Youmans of Flushing, who both addressed the Senate.

Senator Gregory conducted a roll call of Michigan fallen soldiers since the 2010 Memorial Day Ceremony.

Senators Booher, Brandenburg, Caswell, Emmons, Gleason, Green, Hansen, Jones, Kahn, Kowall, Moolenaar, Nofs, Pavlov, Proos, Richardville and Walker acknowledged the casualties with memorial flags.

A moment of silence was observed in memory of the fallen soldiers.

First Sergeant Tim Bender of the Kalamazoo Pipe Band played “Taps.”

The Kalamazoo Pipe Band played “Amazing Grace.”

Senator Pappageorge acknowledged Senator Gregory, himself, and all guests who serve and have served in the military.

During the recess, Senators Smith, Hood and Hunter entered the Senate Chamber.

Senators Whitmer and Bieda asked and were granted unanimous consent to make statements and moved that the statements be printed in the Journal.

The motion prevailed.

Senator Whitmer’s statement is as follows:

I would like to extend my thanks to Senator Pappageorge for such a wonderful ceremony and carrying on the tradition here. Deb, you sang beautifully, and it was a privilege to listen to you. I just wanted to tell you that I am honored to have with me as a guest today George Olshove, who is a veteran of World War II in the 340th U.S. Army Corps of Engineers. He is also the father of one of our former Senate colleagues, Dennis Olshove.

George served with distinction in the 340th U.S. Army Corps of Engineers during World War II. His unit was activated just months following the attack on Pearl Harbor to construct the Alaskan Military Highway to aid in defending our great country from possible attack.

Following the work on the Alaskan Military Highway, the unit was transferred to the South Pacific, working in such locations as Australia, New Guinea, the Dutch Indies, and the Philippines. It is because of the hard work and patriotism from George and his kindred and the rest of the 340th U.S. Army Corps of Engineers that I am truly humbled to have him sit with me today on the Senate floor.

So please recognize his distinguished service to Michigan as well as to this great United States of America.

Senator Bieda’s statement is as follows:

I want to thank Senator Pappageorge and everyone who was involved in putting the ceremony together today. I would like you to also join me in welcoming not only a constituent, but someone who has been a very special part of my life, my father, who is a veteran of the Korean War era, Joseph Bieda.

The following communication was received and read:

Office of the Senate Majority Leader

May 24, 2011

Pursuant to Senate Rule 3.203, I am hereby re-referring Senate Bill 391 from the Senate Committee on Energy and Technology to the Senate Committee on Finance.

Should you have any questions regarding this matter, please do not hesitate to contact me.

Sincerely,

Randy Richardville

Senate Majority Leader

The communication was referred to the Secretary for record.

Senator Meekhof moved that rule 2.106 be suspended to allow committees to meet during Senate session.

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

Senators Kahn and Johnson asked and were granted unanimous consent to make statements and moved that the statements be printed in the Journal.

The motion prevailed.

Senator Kahn’s statement is as follows:

Today, Senators Richardville, Rocca, and I would like to welcome our special guests to the Capitol for the Second Annual Chaldean American Legislative Day. Over the years, I have personally met many of you and have developed meaningful relationships. Thank you for being involved in your communities and here at the State Legislature as well.

Sixty-one percent of Chaldean households own at least one business and 39 percent own two or more. The Chaldean American Chamber of Commerce represents more than 12,000 estimated Chaldean-owned businesses in Michigan. We join with the entire state in acknowledging the contributions of Chaldean Americans, as this entrepreneurial community is an important part of Michigan’s diverse history.

Colleagues, Senators Richardville, Rocca, and I encourage everyone to stop by the Speaker’s library to say hello and have some lunch. Would you please help us welcome our good friends here to the Senate Chamber.

Senator Johnson’s statement is as follows:

I just wanted to take the time to ask my colleagues to acknowledge a very special young man who is special in my life. It is my oldest son, someone I grow more and more proud of each day, the youngest Bert Johnson in training.

Recess

Senator Meekhof moved that the Senate recess until 1:30 p.m.

The motion prevailed, the time being 11:24 a.m.

The Senate reconvened at the expiration of the recess and was called to order by the President, Lieutenant Governor Calley.

The Secretary announced that the following House bills were received in the Senate and filed on Wednesday, May 25:

House Bill Nos. 4379 4384 4385 4386 4387

The Secretary announced the enrollment printing and presentation to the Governor on Wednesday, May 25, for his approval the following bill:

Enrolled Senate Bill No. 102 at 11:03 a.m.

The Secretary announced that the following official bills and joint resolution were printed on Wednesday, May 25, and are available at the legislative website:

Senate Bill Nos. 391 392 393 394 395 396 397 398

House Bill Nos. 4668 4669 4670 4671 4672 4673 4674 4675 4676 4677 4678

House Joint Resolution BB

By unanimous consent the Senate proceeded to the order of

Third Reading of Bills

Senator Meekhof moved that the following bill be placed at the head of the Third Reading of Bills calendar:

House Bill No. 4314

The motion prevailed.

The following bill was read a third time:

House Bill No. 4314, entitled

A bill to amend 1991 PA 179, entitled “Michigan telecommunications act,” by amending sections 101, 102, 103, 201, 202, 205, 210, 213, 303, 304, 305, 305a, 305b, 309, 310a, 313, 315, 316, 353a, 401, 502, and 503 (MCL 484.2101, 484.2102, 484.2103, 484.2201, 484.2202, 484.2205, 484.2210, 484.2213, 484.2303, 484.2304, 484.2305, 484.2305a, 484.2305b, 484.2309, 484.2310a, 484.2313, 484.2315, 484.2316, 484.2353a, 484.2401, 484.2502, and 484.2503), sections 101, 102, 103, 201, 202, 205, 210, 213, 303, 304, 305, 309, 315, 316, 401, and 502 as amended and sections 305a, 305b, 310a, and 353a as added by 2005 PA 235 and section 503 as amended by 2000 PA 295, and by adding section 305c; and to repeal acts and parts of acts.

The question being on the passage of the bill,

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

Roll Call No. 255 Yeas—32

Anderson Hildenbrand Kahn Proos

Bieda Hood Kowall Richardville

Booher Hopgood Marleau Robertson

Brandenburg Hune Meekhof Rocca

Colbeck Hunter Moolenaar Schuitmaker

Emmons Jansen Nofs Walker

Green Johnson Pappageorge Warren

Hansen Jones Pavlov Whitmer

Nays—1

Caswell

Excused—1

Smith

Not Voting—4

Casperson Gleason Gregory Young

In The Chair: President

Senator Meekhof moved to reconsider the vote by which the bill was passed.

The question being on the motion to reconsider,

Senator Meekhof moved that further consideration of the bill be postponed temporarily.

The motion prevailed.

By unanimous consent the Senate returned to the order of

Messages from the Governor

The following message from the Governor was received:

Date: May 24, 2011

Time: 3:52 p.m.

To the President of the Senate:

Sir—I have this day approved and signed

Enrolled Senate Bill No. 318 (Public Act No. 36), being

An act to amend 1909 PA 279, entitled “An act to provide for the incorporation of cities and for revising and amending their charters; to provide for certain powers and duties; to provide for the levy and collection of taxes by cities, borrowing of money, and issuance of bonds or other evidences of indebtedness; to validate actions taken, bonds issued, and obligations heretofore incurred; to prescribe penalties and provide remedies; and to repeal acts and parts of acts on specific dates,” by amending section 36a (MCL 117.36a), as amended by 2011 PA 7.

(Filed with the Secretary of State on May 25, 2011, at 10:45 a.m.)

Respectfully,

Rick Snyder

Governor

By unanimous consent the Senate proceeded to the order of

Resolutions

Senators Proos, Hansen, Green, Pavlov, Robertson and Casperson offered the following resolution:

Senate Resolution No. 57.

A resolution to memorialize the President and the United States Congress to support the continued and increased importation of oil derived from Canadian oil sands and to urge the United States Secretary of State to approve the TransCanada Keystone Coast Expansion pipeline project.

Whereas, Despite efforts to increase the use of renewable energy, the United States is still many years away from ending its dependence on nonrenewable resources. In order to fuel our economy, the United States will need more oil and natural gas; and

Whereas, The United States is the largest consumer of oil in the world. More than half the oil we consume is imported from countries in volatile regions of the world. This dependence on foreign oil has created difficult geopolitical relationships with damaging consequences for our national security; and

Whereas, Canada, our friendly neighbor to the north, contains vast oil reserves, second in size only to those in Saudi Arabia. Most of these reserves are contained in oil sands located in the western Canadian province of Alberta. Oil sands account for more than half of Canada’s total oil output, and oil sands production is predicted to increase significantly; and

Whereas, Growing oil sands production in Canada has the potential to substantially reduce U.S. dependence on foreign oil. Canada is already the largest supplier of oil to the United States. Expanded production from Alberta’s oil sands offers the potential for this proportion to increase; and

Whereas, Canadians and Americans share the closest energy relationship in the world. Energy infrastructure, including oil and gas pipeline networks and electricity grids, is tightly integrated between our two countries; and

Whereas, Increasing U.S. imports of Canadian oil will lead to the expansion of oil refineries and pipelines, providing growing investments in the U.S. and more American jobs. Oil companies are investing huge sums to upgrade and expand refineries to make gasoline and other refined products from oil derived from Canadian oil sands. Thousands of construction jobs would be created in the Midwest as a result of this investment; and

Whereas, The money that America uses to buy Canadian oil will likely end up being spent on American goods and services. This contrasts with money sent to purchase oil from other regions of the world, which may be used to further anti-democratic agendas; now, therefore, be it

Resolved by the Senate, That we memorialize the President and the United States Congress to support the continued and increased importation of oil derived from Canadian oil sands, and we urge the U.S. Secretary of State to approve the TransCanada Keystone Coast Expansion pipeline project that has been awaiting a presidential permit since 2008 to reduce dependence on unstable governments, improve our national security, and strengthen ties with an important ally; and be it further

Resolved, That copies of this resolution be transmitted to the Office of the President of the United States, the U.S. Secretary of State, the President of the United States Senate, the Speaker of the United States House of Representatives, and the members of the Michigan congressional delegation.

Pending the order that, under rule 3.204, the resolution be referred to the Committee on Government Operations,

Senator Meekhof moved that the rule be suspended.

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

The question being on the adoption of the resolution,

Senator Meekhof moved that the resolution be referred to the Committee on Energy and Technology.

The motion prevailed.

Senators Booher, Brandenburg, Caswell, Kowall and Marleau were named co‑sponsors of the resolution.

Senator Meekhof moved that consideration of the following resolutions be postponed for today:

Senate Resolution No. 30

Senate Concurrent Resolution No. 13

House Concurrent Resolution No. 7

House Concurrent Resolution No. 8

Senate Resolution No. 27

Senate Resolution No. 34

Senate Resolution No. 39

The motion prevailed.

Introduction and Referral of Bills

House Bill No. 4379, entitled

A bill to amend 1994 PA 451, entitled “Natural resources and environmental protection act,” by amending section 30929 (MCL 324.30929), as added by 2004 PA 522.

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

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

House Bill No. 4384, entitled

A bill to amend 1975 PA 238, entitled “Child protection law,” by amending section 7b (MCL 722.627b), as added by 1997 PA 167.

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

The bill was read a first and second time by title and referred to the Committee on Families, Seniors and Human Services.

House Bill No. 4385, entitled

A bill to amend 1975 PA 238, entitled “Child protection law,” (MCL 722.621 to 722.638) by adding section 7k.

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

The bill was read a first and second time by title and referred to the Committee on Families, Seniors and Human Services.

House Bill No. 4386, entitled

A bill to amend 1975 PA 238, entitled “Child protection law,” by amending section 7 (MCL 722.627), as amended by 2008 PA 300.

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

The bill was read a first and second time by title and referred to the Committee on Families, Seniors and Human Services.

House Bill No. 4387, entitled

A bill to amend 1975 PA 238, entitled “Child protection law,” by amending section 7b (MCL 722.627b), as added by 1997 PA 167.

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

The bill was read a first and second time by title and referred to the Committee on Families, Seniors and Human Services.

By unanimous consent the Senate returned to the order of

Third Reading of Bills

By unanimous consent the Senate returned to consideration of the following bill:

House Bill No. 4314, entitled

(This bill was passed earlier today and the motion to reconsider the vote postponed. See p. 1098.)

The question being on the motion to reconsider the vote by which the bill was passed,

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

The question being on the passage of the bill,

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

Roll Call No. 256 Yeas—37

Anderson Hansen Kahn Richardville

Bieda Hildenbrand Kowall Robertson

Booher Hood Marleau Rocca

Brandenburg Hopgood Meekhof Schuitmaker

Casperson Hune Moolenaar Smith

Colbeck Hunter Nofs Walker

Emmons Jansen Pappageorge Warren

Gleason Johnson Pavlov Whitmer

Green Jones Proos Young

Gregory

Nays—1

Caswell

Excused—0

Not Voting—0

In The Chair: President

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

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

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

“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; and to repeal acts and parts of acts,”.

The Senate agreed to the full title.

By unanimous consent the Senate returned to the order of

Conference Reports

House Bill No. 4325, entitled

A bill to amend 1979 PA 94, entitled “The state school aid act of 1979,” by amending the title and sections 2, 3, 6, 11, 11a, 11g, 11j, 11k, 11m, 15, 18, 20, 20d, 22a, 22b, 24, 24a, 24c, 26a, 26b, 31a, 31d, 31f, 32b, 32d, 32j, 39, 39a, 40, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 98, 99, 104, 107, 109, 147, and 152a (MCL 388.1602, 388.1603, 388.1606, 388.1611, 388.1611a, 388.1611g, 388.1611j, 388.1611k, 388.1611m, 388.1615, 388.1618, 388.1620, 388.1620d, 388.1622a, 388.1622b, 388.1624, 388.1624a, 388.1624c, 388.1626a, 388.1626b, 388.1631a, 388.1631d, 388.1631f, 388.1632b, 388.1632d, 388.1632j, 388.1639, 388.1639a, 388.1640, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656, 388.1661a, 388.1662, 388.1674, 388.1681, 388.1694a, 388.1698, 388.1699, 388.1704, 388.1707, 388.1709, 388.1747, and 388.1752a), the title as amended by 2003 PA 158, sections 3, 6, 11a, 11g, 11k, 15, 18, 20, 20d, 22b, 24, 24a, 26b, 31a, 31d, 31f, 32b, 32d, 32j, 39, 51c, 51d, 53a, 54, 61a, 62, 74, 98, 99, 107, and 147 as amended by 2010 PA 110, sections 11, 11m, 22a, 51a, and 56 as amended and section 152a as added by 2010 PA 217, sections 11j, 24c, 26a, 39a, 81, 94a, and 104 as amended by 2010 PA 204, section 40 as amended by 2000 PA 297, and section 109 as amended by 1994 PA 283, by amending the heading of article I, and by adding section 22f and articles II, III, and IV; and to repeal acts and parts of acts.

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

The Conference Report was read as follows:

First Conference Report

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

House Bill No. 4325, entitled

A bill to amend 1979 PA 94, entitled “The state school aid act of 1979,” by amending the title and sections 2, 3, 6, 11, 11a, 11g, 11j, 11k, 11m, 15, 18, 20, 20d, 22a, 22b, 24, 24a, 24c, 26a, 26b, 31a, 31d, 31f, 32b, 32d, 32j, 39, 39a, 40, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 98, 99, 104, 107, 109, 147, and 152a (MCL 388.1602, 388.1603, 388.1606, 388.1611, 388.1611a, 388.1611g, 388.1611j, 388.1611k, 388.1611m, 388.1615, 388.1618, 388.1620, 388.1620d, 388.1622a, 388.1622b, 388.1624, 388.1624a, 388.1624c, 388.1626a, 388.1626b, 388.1631a, 388.1631d, 388.1631f, 388.1632b, 388.1632d, 388.1632j, 388.1639, 388.1639a, 388.1640, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656, 388.1661a, 388.1662, 388.1674, 388.1681, 388.1694a, 388.1698, 388.1699, 388.1704, 388.1707, 388.1709, 388.1747, and 388.1752a), the title as amended by 2003 PA 158, sections 3, 6, 11a, 11g, 11k, 15, 18, 20, 20d, 22b, 24, 24a, 26b, 31a, 31d, 31f, 32b, 32d, 32j, 39, 51c, 51d, 53a, 54, 61a, 62, 74, 98, 99, 107, and 147 as amended by 2010 PA 110, sections 11, 11m, 22a, 51a, and 56 as amended and section 152a as added by 2010 PA 217, sections 11j, 24c, 26a, 39a, 81, 94a, and 104 as amended by 2010 PA 204, section 40 as amended by 2000 PA 297, and section 109 as amended by 1994 PA 283, by amending the heading of article I, and by adding sections 22f and articles II, III, and IV; and to repeal acts and parts of acts.

Recommends:

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

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

A bill to amend 1979 PA 94, entitled “The state school aid act of 1979,” by amending the title and sections 2, 6, 11, 11a, 11g, 11j, 11k, 11m, 15, 18, 20, 20d, 22a, 22b, 22d, 22e, 24, 24a, 24c, 26a, 26b, 31a, 31d, 31f, 32b, 32d, 32j, 39, 39a, 40, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 93, 94a, 98, 99, 104, 107, 109, 147, and 152a (MCL 388.1602, 388.1606, 388.1611, 388.1611a, 388.1611g, 388.1611j, 388.1611k, 388.1611m, 388.1615, 388.1618, 388.1620, 388.1620d, 388.1622a, 388.1622b, 388.1622d, 388.1622e, 388.1624, 388.1624a, 388.1624c, 388.1626a, 388.1626b, 388.1631a, 388.1631d, 388.1631f, 388.1632b, 388.1632d, 388.1632j, 388.1639, 388.1639a, 388.1640, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656, 388.1661a, 388.1662, 388.1674, 388.1681, 388.1693, 388.1694a, 388.1698, 388.1699, 388.1704, 388.1707, 388.1709, 388.1747, and 388.1752a), the title as amended by 2003 PA 158, sections 6, 11a, 11g, 11k, 15, 18, 20, 20d, 22b, 22d, 24, 24a, 26b, 31a, 31d, 31f, 32b, 32d, 32j, 39, 51c, 51d, 53a, 54, 61a, 62, 74, 98, 99, 107, and 147 as amended by 2010 PA 110, sections 11, 11m, 22a, 51a, and 56 as amended and section 152a as added by 2010 PA 217, sections 11j, 22e, 24c, 26a, 39a, 81, 94a, and 104 as amended and section 93 as added by 2010 PA 204, section 40 as amended by 2000 PA 297, and section 109 as amended by 1994 PA 283, by amending the heading of article I, and by adding sections 12, 22f, 147a, 147b and articles II, III, and IV; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

An act to make appropriations to aid in the support of the public schools, ~~and the~~ intermediate school districts, community colleges, and public universities 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 create certain funds and provide for their expenditure; to prescribe penalties; and to repeal acts and parts of acts.

~~Article 1~~ARTICLE I

STATE AID TO PUBLIC SCHOOLS, EARLY CHILDHOOD, AND ADULT EDUCATION

Sec. 2. ~~For the purposes of this act~~ As used in this article and article IV, the words and phrases defined in sections 3 to 6 have the meanings ascribed to them in those sections.

Sec. 6. (1) “Center program” means a program operated by a district or by an intermediate district for special education pupils from several districts in programs for pupils with autism spectrum disorder, pupils with severe cognitive impairment, pupils with moderate cognitive impairment, pupils with severe multiple impairments, pupils with hearing impairment, pupils with visual impairment, and pupils with physical impairment or other health impairment. Programs for pupils with emotional impairment 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, 20 USC 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 and high school graduation rate” means the annual completion and pupil dropout rate that is calculated by the center pursuant to nationally recognized standards.

(3) “District and high school graduation report” means a report of the number of pupils, excluding adult participants, in the district for the immediately preceding school year, adjusted for those pupils who have transferred into or out of the district or high school, who leave high school with a diploma or other credential of equal status.

(4) “Membership”, except as otherwise provided in this ~~act,~~ article, means for a district, public school academy, university school, or intermediate district the sum of the product of ~~.75~~ .90 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~~ .10 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. For the purposes of this section and section 6a, for a school of excellence that is a cyber school, as defined in section 551 of the revised school code, MCL 380.551, and is in compliance with section 553a of the revised school code, MCL 380.553a, a pupil’s participation in the cyber school’s educational program is considered regular daily attendance. The amount of the foundation allowance for a pupil in membership is determined under section 20. In making the calculation of membership, all of the following, as applicable, apply to determining the membership of a district, public school academy, university school, or intermediate district:

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

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

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

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

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

(f) A pupil enrolled in a career and technical 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 as follows:

(i) A special education pupil who is enrolled and receiving instruction in a special education program or service approved by the department, who does not have a high school diploma, and who is less than 26 years of age as of September 1 of the current school year shall be counted in membership.

(ii) A pupil who is determined by the department to meet all of the following may be counted in membership:

(A) Is enrolled in a public school academy or an alternative education high school diploma program, that is primarily focused on educating homeless pupils and that is located in a city with a population of more than ~~750,000.~~500,000.

(B) Had dropped out of school for more than 1 year and has re-entered school.

(m) An individual who has obtained a high school diploma shall not be counted in membership. An individual who has obtained a general educational development (G.E.D.) certificate shall not be counted in membership unless the individual is a student with a disability as defined in R 340.1702 of the Michigan administrative code. 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 energy, labor, and economic growth,~~ workforce development agency, 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 unless a written agreement signed by all parties designates the party or parties in which the pupil shall be counted in membership, and the instructional time scheduled for the pupil in the district or intermediate district shall be included in the full-time equated membership determination under subdivision (q). However, for pupils receiving instruction in both a public school academy and in a district or intermediate district but not as a part of a cooperative education program, the following apply:

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

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

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

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

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

(r) ~~Except as otherwise provided in this subdivision, full-time~~ 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. However, beginning in 2012-2013, 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 the same number used for determining full-time equated memberships for pupils in grades 1 to 12.

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

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

(u) If, as a result of a disciplinary action, a district determines through the district’s alternative or disciplinary education program that the best instructional placement for a pupil is in the pupil’s home or otherwise apart from the general school population, 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 or otherwise apart from the general school population, 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 or otherwise apart from the general school population under the supervision of a certificated teacher.

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

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

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

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

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

(x) For 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~~ .90 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~~ .10 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) If a district’s membership for a particular fiscal year, as otherwise calculated under this subsection, would be less than 1,550 pupils and the district has 4.5 or fewer pupils per square mile, as determined by the department, and, beginning in 2007-2008, if the district does not receive funding under section 22d(2), the district’s membership shall be considered to be the membership figure calculated under this subdivision. If a district educates and counts in its membership pupils in grades 9 to 12 who reside in a contiguous district that does not operate grades 9 to 12 and if 1 or both of the affected districts request the department to use the determination allowed under this sentence, the department shall include the square mileage of both districts in determining the number of pupils per square mile for each of the districts for the purposes of this subdivision. The membership figure calculated under this subdivision is the greater of the following:

(i) The average of the district’s membership for the 3-fiscal-year period ending with that fiscal year, calculated by adding the district’s actual membership for each of those 3 fiscal years, as otherwise calculated under this subsection, and dividing the sum of those 3 membership figures by 3.

(ii) The district’s actual membership for that fiscal year as otherwise calculated under this subsection.

(z) If a public school academy that is not in its first or second year of operation closes at the end of a school year and does not reopen for the next school year, the department shall adjust the membership count of the district in which a former pupil of the public school academy enrolls and is in regular daily attendance for the next school year to ensure that the district receives the same amount of membership aid for the pupil as if the pupil were counted in the district on the supplemental count day of the preceding school year.

(aa) Full-time equated memberships for preprimary-aged special education pupils who are not enrolled in kindergarten but are enrolled in a classroom program under R 340.1754 of the Michigan administrative code shall be determined by dividing the number of class hours scheduled and provided per year by 450. Full-time equated memberships for preprimary-aged special education pupils who are not enrolled in kindergarten but are receiving ~~nonclassroom~~ early childhood special education services under R 340.1755 of the Michigan administrative code shall be determined by dividing the number of hours of service scheduled and provided per year per pupil by 180.

(bb) A pupil of a district that begins its school year after Labor day who is enrolled in an intermediate district program that begins before Labor day shall not be considered to be less than a full-time pupil solely due to instructional time scheduled but not attended by the pupil before Labor day.

(cc) For the first year in which a pupil is counted in membership on the pupil membership count day in a middle college program, ~~described in section 64,~~ the membership is the average of the full-time equated membership on the pupil membership count day and on the supplemental count day for the current school year, as determined by the department. If a pupil was counted by the operating district on the immediately preceding supplemental count day, the pupil shall be excluded from the district’s immediately preceding supplemental count for purposes of determining the district’s membership.

(dd) A district that educates a pupil who attends a United States Olympic education center may count the pupil in membership regardless of whether or not the pupil is a resident of this state.

(ee) A pupil enrolled in a district other than the pupil’s district of residence pursuant to section 1148(2) of the revised school code, MCL 380.1148, shall be counted in the educating district.

(5) “Public school academy” means that term as defined in 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 is not required for any of the following:

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

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

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

(e) A pupil enrolled in a district other than the pupil’s district of residence if the pupil is enrolled in accordance with section 105 or 105c.

(f) A 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 pupil would otherwise attend in the district of residence or by an employee of the district of residence. A person who intentionally makes a false report of a crime to law enforcement officials for the purposes of this subdivision is subject to section 411a of the Michigan penal code, 1931 PA 328, MCL 750.411a, which provides criminal penalties for that conduct. As used in this subdivision:

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

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

(g) 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.

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

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

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

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

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

(v) The pupil is enrolled in an alternative or disciplinary education program described in section 25.

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

(j) A pupil who is the child of a person who works at the district or who is the child of a person who worked at the district as of the time the pupil first enrolled in the district but who no longer works at the district due to a workforce reduction. As used in this subdivision, “child” includes an adopted child, stepchild, or legal ward.

(k) An expelled pupil who has been denied reinstatement by the expelling district and is reinstated by another school board under section 1311 or 1311a of the revised school code, MCL 380.1311 and 380.1311a.

(l) A pupil enrolled in a district other than the pupil’s district of residence in a middle college program ~~described~~ ~~in section 64~~ if the pupil’s district of residence and the enrolling district are both constituent districts of the same intermediate district.

(m) A pupil enrolled in a district other than the pupil’s district of residence who attends a United States Olympic education center.

(n) A pupil enrolled in a district other than the pupil’s district of residence pursuant to section 1148(2) of the revised school code, MCL 380.1148.

(o) A pupil who enrolls in a district other than the pupil’s district of residence as a result of the pupil’s school not making adequate yearly progress under the no child left behind act of 2001, Public Law 107-110.

However, if a district educates pupils who reside in another district and if the primary instructional site for those pupils is established by the educating district after 2009-2010 and is located within the boundaries of that other district, the educating district must have the approval of that other district to count those pupils in membership.

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

(a) Except as provided in subdivision (b), the ~~fourth~~ first Wednesday ~~after Labor day~~ in October each school year or, for a district or building in which school is not in session on that Wednesday due to conditions not within the control of school authorities, with the approval of the superintendent, the immediately following day on which school is in session in the district or building.

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

(i) Fourth Wednesday in July.

(ii) ~~Fourth~~ First Wednesday ~~after Labor day.~~in October.

(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. Except as otherwise provided in this subsection, 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. 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. In addition, a pupil who was enrolled and in attendance in a district, intermediate district, or public school academy before the pupil membership count day or supplemental count day of a particular year but was expelled or suspended on the pupil membership count day or supplemental count day shall only be counted as 1.0 full-time equated membership if the pupil resumed attendance in the district, intermediate district, or public school academy within 45 days after the pupil membership count day or supplemental count day of that particular year. 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 district of the first class”, “first class school district”, and “district of the first class” mean a district that had at least 60,000 pupils in membership for the immediately preceding fiscal year.

(12) “School fiscal year” means a fiscal year that commences July 1 and continues through June 30.

(13) “State board” means the state board of education.

(14) “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.

(15) “Supplemental count day” means the day on which the supplemental pupil count is conducted under section 6a.

(16) “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)(c) to (o). 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.

(17) “State school aid fund” means the state school aid fund established in section 11 of article IX of the state constitution of 1963.

(18) “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.

(19) “Textbook” means a book, electronic book, or other instructional print or electronic resource that is selected and approved by the governing board of a district and that contains a presentation of principles of a subject, or that is a literary work relevant to the study of a subject required for the use of classroom pupils, or another type of course material that forms the basis of classroom instruction.

(20) “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.~~article.

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

Sec. 11. (1) Subject to subsection ~~(5),~~ (3), for the fiscal year ending September 30, 2011, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of ~~$10,937,260,500.00~~ $10,757,260,500.00 from the state school aid fund and the sum of $18,642,400.00 from the general fund. For the fiscal year ending September 30, 2011, there is also appropriated the remaining balance of the federal funding awarded to this state under title XIV of the American recovery and reinvestment act of 2009, Public Law 111-5, estimated at $184,256,600.00, to be used solely for the purpose of funding the primary funding formula calculated under section 20, in accordance with federal law. Subject to subsection (3), for the fiscal year ending September 30, 2012, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $10,887,098,700.00 from the state school aid fund and the sum of $118,642,400.00 from the general fund. In addition, all other available federal funds, except those otherwise appropriated under section 11p, are appropriated for the fiscal year ending September 30, 2011 and for the fiscal year ending September 30, 2012.

(2) The appropriations under this section shall be allocated as provided in this ~~act.~~ article. Money appropriated under this section from the general fund shall be expended to fund the purposes of this ~~act~~ article 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 be deposited into the school aid stabilization fund created in section 11a. For 2009~~-~~2010 only, if the department~~ ~~determines before bookclosing for the 2009~~-~~2010 state fiscal year that the maximum amount appropriated under this section~~ ~~from the state school aid fund for 2009~~-~~2010 exceeds the amount necessary to fully fund allocations under this act from the~~ ~~state school aid fund for 2009~~-~~2010 and that state support for elementary and secondary education for 2009~~-~~2010 will fall~~ ~~below the level of support needed to comply with the maintenance of effort provisions under title XIV of the American recovery~~ ~~and reinvestment act of 2009, Public Law 111~~-~~5, then there is appropriated for 2009~~-~~2010 from the school aid stabilization~~ ~~fund an amount equal to $30,000,000.00 or the amount that the department determines is necessary for the state support for~~ ~~elementary and secondary education to meet the level of support needed to comply with the maintenance of effort provisions~~ ~~under title~~ ~~XIV of the American recovery and reinvestment act of 2009, Public Law 111~~-~~5, whichever is greater. The department~~ ~~shall use any funds appropriated under this subsection as follows:~~

~~(a) First, to allocate $10,000,000.00 to provide funding to each intermediate district in an amount equal to the product of~~ ~~14.75% multiplied by the amount of funding allocated to that intermediate district under section 81 for 2009~~-~~2010 under 2010~~ ~~PA 110.~~

~~(b) Second, to allocate the amount necessary, estimated at $10,000,000.00, to provide funding under this subdivision to~~ ~~districts for which the amount of per~~-~~pupil funding calculated and allocated under section 11p(2) is less than $154.00. The~~ ~~payment to a district under this subdivision is an amount equal to the difference between $154.00 and the per~~-~~pupil funding~~ ~~amount calculated and allocated under section 11p(2) for the district, multiplied by the district’s 2010~~-~~2011 membership used~~ ~~for the October 2010 payment.~~

~~(c) Third, to allocate any remaining funds to reduce the amount of the per~~-~~pupil reduction under section 11d(1) for~~ ~~2009‑2010.~~

~~(3) If the maximum amount appropriated under this section from the state school aid fund and the school aid stabilization~~ ~~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, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51c, 53a, 56, and 152a shall be made in full. In addition,~~ ~~for districts beginning operations after 1994~~-~~95 that qualify for payments under section 22b, payments under section 22b~~ ~~shall be made so that the qualifying districts receive the lesser of an amount equal to the 1994~~-~~95 foundation allowance of~~ ~~the district in which the district beginning operations after 1994~~-~~95 is located or $5,500.00. The amount of the payment to be~~ ~~made under section 22b for these qualifying districts shall be as calculated under section 22a, with the balance of the payment~~ ~~under section~~ ~~22b being subject to the proration otherwise provided under this subsection and subsection (4). If proration is~~ ~~necessary, state payments under each of the other sections of this act from all state funding sources shall be prorated in the~~ ~~manner prescribed in subsection (4) as necessary to reflect the amount available for expenditure from the state school aid~~ ~~fund for the affected fiscal year. However, if the department of treasury determines that proration will be required under this~~ ~~subsection, or if the department of treasury determines that further proration is required under this subsection after an initial~~ ~~proration has already been made for a fiscal year, 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) If proration is necessary under subsection (3), the department shall calculate the proration in district and intermediate~~ ~~district payments that is required under subsection (3) as follows:~~

~~(a) The department shall calculate the percentage of total state school aid allocated under this act for the affected fiscal year~~ ~~for each of the following:~~

(i~~) Districts.~~

(ii~~) Intermediate districts.~~

(~~iii) Entities other than districts or intermediate districts.~~

~~(b) The department shall recover a percentage of the proration amount required under subsection (3) that is equal to the~~ ~~percentage calculated under subdivision (a)(~~i~~) for districts by reducing payments to districts. This reduction shall be made by~~ ~~calculating an equal dollar amount per pupil as necessary to recover this percentage of the proration amount and reducing each~~ ~~district’s total state school aid from state sources, other than payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f,~~ ~~51a(2), 51a(12), 51c, 53a, and 152a, by that amount.~~

~~(c) The department shall recover a percentage of the proration amount required under subsection (3) that is equal to the~~ ~~percentage calculated under subdivision (a)(~~ii~~) for intermediate districts by reducing payments to intermediate districts. This~~ ~~reduction shall be made by reducing the payments to each intermediate district, other than payments under sections 11f, 11g,~~ ~~26a, 26b, 51a(2), 51a(12), 53a, 56, and 152a, on an equal percentage basis.~~

~~(d) The department shall recover a percentage of the proration amount required under subsection (3) that is equal to the~~ ~~percentage calculated under subdivision (a)(iii) for entities other than districts and intermediate districts by reducing payments~~ ~~to these entities. This reduction shall be made by reducing the payments to each of these entities, other than payments under~~ ~~sections 11j, 26a, and 26b, on an equal percentage basis.~~

(3) ~~(5)~~ Any general fund allocations under this ~~act~~ article that are not expended by the end of the state fiscal year are transferred to the school aid stabilization fund created under section 11a.

Sec. 11a. (1) The school aid stabilization fund is created as a separate account within the state school aid fund established by section 11 of article IX of the state constitution of 1963.

(2) The state treasurer may receive money or other assets from any source for deposit into the school aid stabilization fund. The state treasurer shall deposit into the school aid stabilization fund all of the following:

(a) Unexpended and unencumbered state school aid fund revenue for a fiscal year that remains in the state school aid fund as of the bookclosing for that fiscal year.

(b) Money statutorily dedicated to the school aid stabilization fund.

(3) Money available in the school aid stabilization fund may not be expended without a specific appropriation from the school aid stabilization fund. Money in the school aid stabilization fund shall be expended only for purposes for which state school aid fund money may be expended.

(4) The state treasurer shall direct the investment of the school aid stabilization fund. The state treasurer shall credit to the school aid stabilization fund interest and earnings from fund investments.

(5) Money in the school aid stabilization fund at the close of a fiscal year shall remain in the school aid stabilization fund and shall not lapse to the unreserved school aid fund balance or the general fund.

(6) If the maximum amount appropriated under section 11 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, there is appropriated from the school aid stabilization fund to the state school aid fund an amount equal to the projected shortfall as determined by the department of treasury, but not to exceed available money in the school aid stabilization fund. If the money in the school aid stabilization fund is insufficient to fully fund an amount equal to the projected shortfall, the state budget director shall notify the legislature as required under section 11(3) and state payments in an amount equal to the remainder of the projected shortfall shall be prorated in the manner provided under section 11(4).

(7) For ~~2010-2011,~~ 2011-2012, in addition to the appropriations in section 11, there is appropriated from the school aid stabilization fund to the state school aid fund the amount necessary to fully fund the allocations under this ~~act.~~article.

Sec. 11g. (1) From the appropriation in section 11, there is allocated for this section an amount not to exceed $39,000,000.00 for the fiscal year ending September 30, ~~2011~~ 2012 and for each succeeding fiscal year through the fiscal year ending September 30, 2015, after which these payments will cease. These allocations are for paying the amounts described in subsection (3) to districts and intermediate districts, other than those receiving a lump-sum payment under section 11f(2), that were not plaintiffs in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492 and that, on or before March 2, 1998, submitted to the state treasurer a waiver resolution described in section 11f. The amounts paid under this section represent offers of settlement and compromise of any claim or claims that were or could have been asserted by these districts and intermediate districts, as described in this section.

(2) This section does not create any obligation or liability of this state to any district or intermediate district that does not submit a waiver resolution described in section 11f. This section and any other provision of this ~~act~~ article 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 1 of the following:

(a) If the district or intermediate district does not borrow money and issue bonds under section 11i, 1/30 of the total amount listed in section 11h for the district or intermediate district through the fiscal year ending September 30, 2013.

(b) If the district or intermediate district borrows money and issues bonds under section 11i, an amount in each fiscal year calculated by the department of treasury that is equal to the debt service amount in that fiscal year on the bonds issued by that district or intermediate district under section 11i and that will result in the total payments made to all districts and intermediate districts in each fiscal year under this section being no more than the amount appropriated under this section in each fiscal year.

(4) The entire amount of each payment under this section each fiscal year shall be paid on May 15 of the applicable fiscal year or on the next business day following that date. If a district or intermediate district borrows money and issues bonds under section 11i, the district or intermediate district shall use funds received under this section to pay debt service on bonds issued under section 11i. If a district or intermediate district does not borrow money and issue bonds under section 11i, the district or intermediate district shall use funds received under this section only for the following purposes, in the following order of priority:

(a) First, to pay debt service on voter-approved bonds issued by the district or intermediate district before the effective date of this section.

(b) Second, to pay debt service on other limited tax obligations.

(c) Third, for deposit into a sinking fund established by the district or intermediate district under the revised school code.

(5) To the extent payments under this section are used by a district or intermediate district to pay debt service on debt payable from millage revenues, and to the extent permitted by law, the district or intermediate district may make a corresponding reduction in the number of mills levied for debt service.

(6) A district or intermediate district may pledge or assign payments under this section as security for bonds issued under section 11i, but shall not otherwise pledge or assign payments under this section.

Sec. 11j. From the appropriation in section 11, there is allocated an amount not to exceed ~~$5,167,800.00~~ $93,575,300.00 for ~~2010-2011~~ 2011-2012 for payments to the school loan bond redemption fund in the department of treasury on behalf of districts and intermediate districts. Notwithstanding section 11 or any other provision of this act, funds allocated under this section are not subject to proration and shall be paid in full.

Sec. 11k. For ~~2010-2011,~~ 2011-2012, there is appropriated from the general fund to the school loan revolving fund an amount equal to the amount of school bond loans assigned to the Michigan finance authority, not to exceed the total amount of school bond loans held in reserve as long-term assets. As used in this section, “school loan revolving fund” means that fund created in section 16c of the shared credit rating act, 1985 PA 227, MCL 141.1066c.

Sec. 11m. From the appropriations in section 11, there is allocated for ~~2009-2010 an amount not to exceed $12,000,000.00~~ ~~and for~~ 2010-2011 ~~there is allocated~~ an amount not to exceed ~~$45,000,000.00~~ $15,000,000.00 and there is allocated for 2011-2012 an amount not to exceed $20,000,000.00 for fiscal year cash-flow borrowing costs solely related to the state school aid fund established by section 11 of article IX of the state constitution of 1963.

Sec. 12. It is the intent of the legislature to appropriate and allocate for the fiscal year ending September 30, 2013 the same amounts of money from the same sources for the same purposes as are appropriated and allocated under this article for the fiscal year ending September 30, 2012, as adjusted for changes in pupil membership, taxable values, special education costs, and available revenue. These adjustments will be determined after the January 2012 consensus revenue estimating conference.

Sec. 15. (1) If a district or intermediate district fails to receive its proper apportionment, the department, upon satisfactory proof that the district or intermediate district was entitled justly, shall apportion the deficiency in the next apportionment. Subject to subsections (2) and (3), if a district or intermediate district has received more than its proper apportionment, the department, upon satisfactory proof, shall deduct the excess in the next apportionment. Notwithstanding any other provision in this ~~act,~~ article, state aid overpayments to a district, other than overpayments in payments for special education or special education transportation, may be recovered from any payment made under this ~~act~~ article other than a special education or special education transportation payment. State aid overpayments made in special education or special education transportation payments may be recovered from subsequent special education or special education transportation payments.

(2) If the result of an audit conducted by or for the department affects the current fiscal year membership, affected payments shall be adjusted in the current fiscal year. A deduction due to an adjustment made as a result of an audit conducted by or for the department, or as a result of information obtained by the department from the district, an intermediate district, the department of treasury, or the office of auditor general, shall be deducted from the district’s apportionments when the adjustment is finalized. At the request of the district and upon the district presenting evidence satisfactory to the department of the hardship, the department may grant up to an additional 4 years for the adjustment if the district would otherwise experience a significant hardship.

(3) If, because of the receipt of new or updated data, the department determines during a fiscal year that the amount paid to a district or intermediate district under this act for a prior fiscal year was incorrect under the law in effect for that year, the department may make the appropriate deduction or payment in the district’s or intermediate district’s allocation for the fiscal year in which the determination is made. The deduction or payment shall be calculated according to the law in effect in the fiscal year in which the improper amount was paid.

(4) Expenditures made by the department under this ~~act~~ article that are caused by the write-off of prior year accruals may be funded by revenue from the write-off of prior year accruals.

(5) In addition to funds appropriated in section 11 for all programs and services, there is appropriated for ~~2010-2011~~ 2011‑2012 for obligations in excess of applicable appropriations an amount equal to the collection of overpayments, but not to exceed amounts available from overpayments.

Sec. 18. (1) Except as provided in another section of this ~~act,~~ article, each district or other entity shall apply the money received by the district or entity under this ~~act~~ article to salaries and other compensation of teachers and other employees, tuition, transportation, lighting, heating, ventilation, water service, the purchase of textbooks which are designated by the board to be used in the schools under the board’s charge, other supplies, and any other school operating expenditures defined in section 7. However, not more than 20% of the total amount received by a district under article 2 or intermediate district under article 8 may be transferred by the board to either the capital projects fund or to the debt retirement fund for debt service. The money shall not be applied or taken for a purpose other than as provided in this section. The department shall determine the reasonableness of expenditures and may withhold from a recipient of funds under this ~~act~~ article the apportionment otherwise due upon a violation by the recipient.

(2) Within 30 days after a board adopts its annual operating budget for the following school fiscal year, or after a board adopts a subsequent revision to that budget, the district shall make all of the following available through a link on its website home page, or may make the information available through a link on its intermediate district’s website home page, in a form and manner prescribed by the department:

(a) The annual operating budget and subsequent budget revisions.

(b) Using data that have already been collected and submitted to the department, a summary of district expenditures for the most recent fiscal year for which they are available, expressed in the following 2 pie charts:

(i) A chart of personnel expenditures, broken into the following subcategories:

(A) Salaries and wages.

(B) Employee benefit costs, including, but not limited to, medical, dental, vision, life, disability, and long-term care benefits.

(D) All other personnel costs.

(ii) A chart of all district expenditures, broken into the following subcategories:

(A) Instruction.

(B) Support services.

(D) Operations and maintenance.

(i) The current collective bargaining agreement for each bargaining unit.

(ii) Each health care benefits plan, including, but not limited to, medical, dental, vision, disability, long-term care, or any other type of benefits that would constitute health care services, offered to any bargaining unit or employee in the district.

(iii) The audit report of the audit conducted under subsection (4) for the most recent fiscal year for which it is available.

(iv) The bids required under section 5 of the public employee health benefits act, 2007 PA 106, MCL 124.75.

(d) The total salary and a description and cost of each fringe benefit included in the compensation package for the superintendent of the district and for each employee of the district whose salary exceeds $100,000.00.

(e) The annual amount spent on dues paid to associations.

(f) The annual amount spent on lobbying or lobbying services. As used in this subdivision, “lobbying” means that term as defined in section 5 of 1978 PA 472, MCL 4.415.

(3) For the information required under subsection (2)(a), (2)(b)(i), and (2)(c), an intermediate district shall provide the same information in the same manner as required for a district under subsection (2).

(4) For the purpose of determining the reasonableness of expenditures and whether a violation of this ~~act~~ article has occurred, all of the following apply:

(a) The department shall require that each district and intermediate district have an audit of the district’s or intermediate district’s financial and pupil accounting records conducted at least annually at the expense of the district or intermediate district, as applicable, by a certified public accountant or by the intermediate district superintendent, as may be required by the department, or in the case of a district of the first class by a certified public accountant, the intermediate superintendent, or the auditor general of the city.

(b) If a district operates in a single building with fewer than 700 full-time equated pupils, if the district has stable membership, and if the error rate of the immediately preceding 2 pupil accounting field audits of the district is less than 2%, the district may have a pupil accounting field audit conducted biennially but must continue to have desk audits for each pupil count. The auditor must document compliance with the audit cycle in the pupil auditing manual. As used in this subdivision, “stable membership” means that the district’s membership for the current fiscal year varies from the district’s membership for the immediately preceding fiscal year by less than 5%.

~~(c) An intermediate district’s annual financial audit shall be accompanied by the intermediate district’s pupil accounting~~ ~~procedures report.~~

(c) ~~(d)~~ A district’s or intermediate district’s annual financial audit shall include an analysis of the financial and pupil accounting data used as the basis for distribution of state school aid.

(d) ~~(e)~~ The pupil and financial accounting records and reports, audits, and management letters are subject to requirements established in the auditing and accounting manuals approved and published by the department.

(e) ~~(f) Except as otherwise provided in this subsection, a~~ All of the following shall be done not later than November 15 each year:

(i) A district shall file the annual financial audit reports with the intermediate district ~~not later than 120 days after the end of~~ ~~each school fiscal year~~ and the department.

(ii) The intermediate district shall file the annual financial audit reports for the intermediate district with the department.

(iii) The intermediate district shall ~~forward the annual financial~~ enter the pupil membership audit reports for its constituent districts and for the intermediate district, ~~and the pupil accounting procedures report~~ for the pupil membership count day and supplemental count day, ~~to the department not later than November 15 of each year.~~in the Michigan student data system.

(f) ~~(g)~~ The annual financial audit reports and pupil accounting procedures reports shall be available to the public in compliance with the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

(g) ~~(h)~~ Not later than ~~December~~ January 31 of each year, the department shall notify the state budget director and the legislative appropriations subcommittees responsible for review of the school aid budget of districts and intermediate districts that have not filed an annual financial audit and pupil accounting procedures report required under this section for the school year ending in the immediately preceding fiscal year.

(5) By November 15 of each year, each district and intermediate district shall submit to the center, in a manner prescribed by the center, annual comprehensive financial data consistent with accounting manuals and charts of accounts approved and published by the department. For an intermediate district, the report shall also contain the website address where the department can access the report required under section 620 of the revised school code, MCL 380.620. The department shall ensure that the prescribed Michigan public school accounting manual chart of accounts includes standard conventions to distinguish expenditures by allowable fund function and object. The functions shall include at minimum categories for instruction, pupil support, instructional staff support, general administration, school administration, business administration, transportation, facilities operation and maintenance, facilities acquisition, and debt service; and shall include object classifications of salary, benefits, including categories for active employee health expenditures, purchased services, supplies, capital outlay, and other. Districts shall report the required level of detail consistent with the manual as part of the comprehensive annual financial report. ~~The department shall make this information available online to districts and intermediate districts, and shall include per-pupil~~ ~~amounts spent on instruction and instructional support service functions, and indicate how much of those costs were attributable~~ ~~to salaries. Districts and intermediate districts shall include a link on their websites to the website where the department posts~~ ~~this information.~~

(6) By September 30 of each year, each district and intermediate district shall file with the department the special education actual cost report, known as “SE-4096”, on a form and in the manner prescribed by the department.

(7) By October 7 of each year, each district and intermediate district shall file with the center the transportation expenditure report, known as “SE-4094”, on a form and in the manner prescribed by the center.

(8) The department shall review its pupil accounting and pupil auditing manuals at least annually and shall periodically update those manuals to reflect changes in this ~~act.~~article.

(9) If a district that is a public school academy purchases property using money received under this ~~act,~~ article, the public school academy shall retain ownership of the property unless the public school academy sells the property at fair market value.

(10) If a district or intermediate district does not comply with subsections (4), (5), (6), and (7), the department shall withhold all state school aid due to the district or intermediate district under this ~~act,~~ article, beginning with the next payment due to the district or intermediate district, until the district or intermediate district complies with subsections (4), (5), (6), and (7). If the district or intermediate district does not comply with subsections (4), (5), (6), and (7) by the end of the fiscal year, the district or intermediate district forfeits the amount withheld.

~~Article 2~~

Sec. 20. (1) For ~~2009-2010 and for 2010-2011,~~ 2011-2012, the basic foundation allowance is ~~$8,489.00.~~$8,019.00.

(2) 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).

(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 had a foundation allowance for the immediately preceding state fiscal year that was at least equal to the sum of $7,108.00 plus the total dollar amount of all adjustments made from 2006-2007 to the immediately preceding state fiscal year in the lowest foundation allowance among all districts, but less than 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 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 $20.00) times (the difference between the district’s foundation allowance for the immediately preceding state fiscal year and the sum of $7,108.00 plus the total dollar amount of all adjustments made from 2006-2007 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 $7,108.00 plus the total dollar amount of all adjustments made from 2006-2007 to the immediately preceding state fiscal year in the lowest foundation allowance among all districts]. For ~~2009-2010 and for 2010-2011,~~ 2011-2012, for a district that had a foundation allowance for the immediately preceding state fiscal year that was at least equal to the sum of $7,108.00 plus the total dollar amount of all adjustments made from 2006-2007 to the immediately preceding state fiscal year in the lowest foundation allowance among all districts, but less than the basic foundation allowance for the immediately preceding state fiscal year, the district shall receive a foundation allowance in an amount equal to the district’s foundation allowance for ~~the immediately preceding state fiscal year.~~ 2010-2011, minus $470.00. However, the foundation allowance for a district that had less than the basic foundation allowance for 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 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 for 2011-2012 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.~~2010-2011, minus $470.00.

(c) Except as otherwise provided in subdivision (d), for a district that in the 1994-95 state fiscal year had a foundation allowance greater than $6,500.00, the district’s foundation allowance is an amount equal to the sum of the district’s foundation allowance for the immediately preceding state fiscal year plus the lesser of the increase in the basic foundation allowance for the current state fiscal year, as compared to the immediately preceding state fiscal year, or the product of the district’s foundation allowance for the immediately preceding state fiscal year times the percentage increase in the United States consumer price index in the calendar year ending in the immediately preceding fiscal year as reported by the May revenue estimating conference conducted under section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b. Except as otherwise provided in subdivision (d), for 2011-2012, for a district that in the 1994-1995 state fiscal year had a foundation allowance greater than $6,500.00, the district’s foundation allowance is an amount equal to the district’s foundation allowance for the 2010‑2011 fiscal year minus $470.00.

(d) ~~If House Bill No. 6212 of the 95th Legislature is enacted into law, then beginning in 2011~~-~~2012, for~~ For a district that in the 1994-95 state fiscal year had a foundation allowance greater than $6,500.00 and that had a foundation allowance for the 2009-2010 state fiscal year, as otherwise calculated under this section, that was less than the basic foundation allowance, the district’s foundation allowance for 2011-2012 and each succeeding fiscal year shall be considered to be an amount equal to the basic foundation allowance.

(e) 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) For a district that received a payment under section 22c as that section was in effect 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 as that section was in effect for 2001-2002.

(g) For a district that received a payment under section 22c as that section was in effect for 2006-2007, the district’s 2006‑2007 foundation allowance shall be considered to have been an amount equal to the sum of the district’s actual 2006-2007 foundation allowance as otherwise calculated under this section plus the per pupil amount of the district’s equity payment for 2006-2007 under section 22c as that section was in effect for 2006-2007.

(4) 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 the basic foundation allowance for the current state fiscal year, whichever is less, minus the difference between the sum of the product of the taxable value per membership pupil of all property in the district that is nonexempt property times the district’s certified mills and, for a district with certified mills exceeding 12, the product of the taxable value per membership pupil of property in the district that is commercial personal property times the certified mills minus 12 mills and the quotient of the ad valorem property tax revenue of the district captured under tax increment financing acts divided by the district’s membership excluding special education pupils. 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 the difference between the district’s foundation allowance for the current state fiscal year and the district’s foundation allowance for 1998-99, minus the difference between the sum of the product of the taxable value per membership pupil of all property in the district that is nonexempt property times the district’s certified mills and, for a district with certified mills exceeding 12, the product of the taxable value per membership pupil of property in the district that is commercial personal property times the certified mills minus 12 mills and the quotient of the ad valorem property tax revenue of the district captured under tax increment financing acts 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 the purposes of state law, federal funding awarded to this state under title XIV of the American~~ ~~recovery and reinvestment act of 2009, Public Law 111~~-~~5, that is appropriated under section 11 and allocated under section 22b,~~ ~~is considered to be part of the state portion of a district’s foundation allowance and is considered to be part of the total state~~ ~~school aid paid to a public school academy.~~

(5) The allocation calculated under this section for a pupil shall be based on the foundation allowance of the pupil’s district of residence. However, for a pupil enrolled in a district other than the pupil’s district of residence, if the foundation allowance of the pupil’s district of residence has been adjusted pursuant to subsection ~~(19),~~ (15), the allocation calculated under this section shall not include the adjustment described in subsection ~~(19).~~(15). For a pupil enrolled pursuant to section 105 or 105c in a district other than the pupil’s district of residence, the allocation calculated under this section shall be based on the lesser of the foundation allowance of the pupil’s district of residence or the foundation allowance of the educating district. For a pupil in membership in a K-5, K-6, or K-8 district who is enrolled in another district in a grade not offered by the pupil’s district of residence, the allocation calculated under this section shall be based on the foundation allowance of the educating district if the educating district’s foundation allowance is greater than the foundation allowance of the pupil’s district of residence. ~~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, the allocation calculated under this section is an amount per membership pupil other than special education pupils in the public school academy or university school equal to the foundation allowance of the district in which the public school academy or university school is located or the state maximum public school academy allocation, whichever is less. However, a public school academy or university school that had an allocation under this subsection before 2009-2010 that was 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 shall not have that allocation reduced as a result of the 2010 amendment to this subsection. Notwithstanding section 101, for a public school academy that begins operations 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 101(3). 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 calculated under this section for a public school academy located in the district shall be reduced by an amount equal to the difference between the sum of the product of the taxable value per membership pupil of all property in the district that is nonexempt property times the district’s certified mills and, for a district with certified mills exceeding 12, the product of the taxable value per membership pupil of property in the district that is commercial personal property times the certified mills minus 12 mills and the quotient of the ad valorem property tax revenue of the district captured under tax increment financing acts 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,~~ article, 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 an amount calculated under subsection (9); if the number of mills the district may levy on a~~ ~~principal residence, qualified agricultural property, qualified forest property, supportive housing property, industrial personal~~ ~~property, and commercial personal property under section 1211 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 amount calculated~~ ~~under this subsection in an amount equal to the amount the district would have received had it levied those mills, as determined~~ ~~by the department of treasury. A district shall not receive a separate supplemental amount calculated under this subsection for~~ ~~a fiscal year unless in the calendar year ending in the fiscal year the district levies the district’s certified mills on property that~~ ~~is nonexempt 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 principal residence, qualified agricultural property, qualified forest property, supportive housing property, industrial personal~~ ~~property, and commercial personal property are exempt and not to levy school operating taxes on a principal residence, qualified~~ ~~agricultural property, qualified forest property, supportive housing property, industrial personal property, and commercial~~ ~~personal property as provided in section 1211 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 calculated under this~~ ~~subsection for 1994~~-~~95 and each succeeding fiscal year a separate supplemental amount in an amount equal to the amount~~ ~~the district would have received per membership pupil had it levied school operating taxes on a principal residence, qualified~~ ~~agricultural property, qualified forest property, supportive housing property, industrial personal property, and commercial~~ ~~personal property at the rate authorized for the district under section 1211 of the revised school code, MCL 380.1211, and~~ ~~levied school operating taxes on all property at the rate authorized for the district under section 1211(2) of the revised school~~ ~~code, MCL 380.1211, as determined by the department of treasury. If in the calendar year ending in the fiscal year a district~~ ~~does not levy the district’s certified mills on property that is nonexempt property, the amount calculated under this subsection~~ ~~will be reduced by the same percentage as the millage actually levied compares to the district’s certified mills.~~

(8) ~~(10)~~ Subject to subsection (4), for a district that is formed or reconfigured after June 1, 2002 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 or affected districts. ~~The calculation under this subsection shall take into~~ ~~account a district’s per pupil allocation under section 20j(2).~~

(9) ~~(11)~~ 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.

(10) ~~(12)~~ State payments related to payment of the foundation allowance for a special education pupil are not calculated under this section but are instead calculated under section 51a.

(11) ~~(13)~~ 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 the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, 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 ~~2009-2010 and for 2010-2011,~~ 2011-2012, the index shall be ~~1.00.~~ 0.93575. 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.

(12) ~~(14)~~ If the principals at the revenue estimating conference reach a consensus on the index described in subsection ~~(13)(c),~~ (11)(c), the lowest foundation allowance among all districts for the subsequent state fiscal year shall be at least the amount of that consensus index multiplied by the lowest foundation allowance among all districts for the immediately preceding state fiscal year.

~~(15) If at the January revenue estimating conference it is estimated that pupil membership, excluding intermediate district~~ ~~membership, for the subsequent state fiscal year will be greater than 101% of the pupil membership, excluding intermediate~~ ~~district membership, for the current state fiscal year, then it is the intent of the legislature that the executive budget proposal for~~ ~~the school aid budget for the subsequent state fiscal year include a general fund/general purpose allocation sufficient to support~~ ~~the membership in excess of 101% of the current year pupil membership.~~

~~(16) For a district that had combined state and local revenue per membership pupil in the 1993~~-~~94 state fiscal year of more~~ ~~than $6,500.00, that had fewer than 7 pupils in membership in the 1993~~-~~94 state fiscal year, that has at least 1 child educated~~ ~~in the district in the current state fiscal year, and that levies the number of mills of school operating taxes authorized for~~ ~~the district under section 1211 of the revised school code, MCL 380.1211, a minimum amount of combined state and local~~ ~~revenue shall be calculated for the district as provided under this subsection. The minimum amount of combined state and local~~ ~~revenue for 1999~~-~~2000 shall be $67,000.00 plus the district’s additional expenses to educate pupils in grades 9 to 12 educated~~ ~~in other districts as determined and allowed by the department. The minimum amount of combined state and local revenue~~ ~~under this subsection, before adding the additional expenses, shall increase each fiscal year by the same percentage increase~~ ~~as the percentage increase in the basic foundation allowance from the immediately preceding fiscal year to the current fiscal~~ ~~year. The state portion of the minimum amount of combined state and local revenue under this subsection shall be calculated~~ ~~by subtracting from the minimum amount of combined state and local revenue under this subsection the sum of the district’s~~ ~~local school operating revenue and an amount equal to the product of the sum of the state portion of the district’s foundation~~ ~~allowance plus the amount calculated under section 20j times the district’s membership. As used in this subsection, “additional~~ ~~expenses” means the district’s expenses for tuition or fees, not to exceed the basic foundation allowance for the current state~~ ~~fiscal year, 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.~~

(13) ~~(17)~~ 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 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. A district receiving an adjustment under this subsection shall not receive as a result of this adjustment an amount that exceeds 50% of the amount the district received as a result of this adjustment for 2010-2011. This adjustment shall not be made after 2011-2012.

(14) ~~(18)~~ For a district in which an industrial facilities exemption certificate that abated taxes on property with a state equalized valuation greater than the total state equalized valuation of the district at the time the certificate was issued or $700,000,000.00, whichever is greater, was issued under 1974 PA 198, MCL 207.551 to 207.572, before the calculation of the district’s 1994‑95 foundation allowance, the district’s foundation allowance for 2002-2003 is an amount equal to the sum of the district’s foundation allowance for 2002-2003, as otherwise calculated under this section, plus $250.00. A district receiving an adjustment under this subsection shall not receive as a result of this adjustment an amount that exceeds 50% of the amount the district received as a result of this adjustment for 2010-2011. This adjustment shall not be made after 2011-2012.

(15) ~~(19)~~ For a district that received a grant under former section 32e for 2001-2002, the district’s foundation allowance for 2002-2003 and each succeeding fiscal year shall be adjusted to be an amount equal to the sum of the district’s foundation allowance, as otherwise calculated under this section, plus the quotient of 100% of the amount of the grant award to the district for 2001-2002 under former section 32e divided by the number of pupils in the district’s membership for 2001-2002 who were residents of and enrolled in the district. Except as otherwise provided in this subsection, a district qualifying for a foundation allowance adjustment under this subsection shall use the funds resulting from this adjustment for at least 1 of grades K to 3 for purposes allowable under former section 32e as in effect for 2001-2002, and may also use these funds for an early intervening program described in subsection (20). For an individual school or schools operated by a district qualifying for a foundation allowance under this subsection that have been determined by the department to meet the adequate yearly progress standards of the federal no child left behind act of 2001, Public Law 107-110, in both mathematics and English language arts at all applicable grade levels for all applicable subgroups, the district may submit to the department an application for flexibility in using the funds resulting from this adjustment that are attributable to the pupils in the school or schools. The application shall identify the affected school or schools and the affected funds and shall contain a plan for using the funds for specific purposes identified by the district that are designed to reduce class size, but that may be different from the purposes otherwise allowable under this subsection. The department shall approve the application if the department determines that the purposes identified in the plan are reasonably designed to reduce class size. If the department does not act to approve or disapprove an application within 30 days after it is submitted to the department, the application is considered to be approved. If an application for flexibility in using the funds is approved, the district may use the funds identified in the application for any purpose identified in the plan. A district receiving an adjustment under this subsection shall not receive as a result of this adjustment an amount that exceeds 68.5% of the amount the district received as a result of this adjustment for 2010-2011. This adjustment shall not be made after 2011-2012.

~~(20) An early intervening program that uses funds resulting from the adjustment under subsection (19) shall meet either or~~ ~~both of the following:~~

~~(a) Shall monitor individual pupil learning for pupils in grades K to 3 and provide specific support or learning strategies~~ ~~to pupils in grades K to 3 as early as possible in order to reduce the need for special education placement. The program shall~~ ~~include literacy and numeracy supports, sensory motor skill development, behavior supports, instructional consultation for~~ ~~teachers, and the development of a parent/school learning plan. Specific support or learning strategies may include support in~~ ~~or out of the general classroom in areas including reading, writing, math, visual memory, motor skill development, behavior, or~~ ~~language development. These would be provided based on an understanding of the individual child’s learning needs.~~

~~(b) Shall provide early intervening strategies for pupils in grades K to 3 using schoolwide systems of academic and behavioral~~ ~~supports and shall be scientifically research~~-~~based. The strategies to be provided shall include at least pupil performance~~ ~~indicators based upon response to intervention, instructional consultation for teachers, and ongoing progress monitoring. A~~ ~~schoolwide system of academic and behavioral support should be based on a support team available to the classroom teachers.~~ ~~The members of this team could include the principal, special education staff, reading teachers, and other appropriate personnel~~ ~~who would be available to systematically study the needs of the individual child and work with the teacher to match instruction~~ ~~to the needs of the individual child.~~

(16) ~~(21)~~ For a district that levied 1.9 mills in 1993 to finance an operating deficit, the district’s foundation allowance shall be calculated as if those mills were included as operating mills in the calculation of the district’s 1994-1995 foundation allowance. A district is not entitled to any retroactive payments for fiscal years before 2006-2007 due to this subsection. A district receiving an adjustment under this subsection shall not receive more than $800,000.00 for a fiscal year as a result of this adjustment. A district receiving an adjustment under this subsection shall not receive as a result of this adjustment an amount that exceeds 50% of the amount the district received as a result of this adjustment for 2010-2011. This adjustment shall not be made after 2011-2012.

(17) ~~(22)~~ For a district that levied 2.23 mills in 1993 to finance an operating deficit, the district’s foundation allowance shall be calculated as if those mills were included as operating mills in the calculation of the district’s 1994-1995 foundation allowance. A district is not entitled to any retroactive payments for fiscal years before 2006-2007 due to this subsection. A district receiving an adjustment under this subsection shall not receive more than $500,000.00 for a fiscal year as a result of this adjustment. A district receiving an adjustment under this subsection shall not receive as a result of this adjustment an amount that exceeds 50% of the amount the district received as a result of this adjustment for 2010-2011. This adjustment shall not be made after 2011-2012.

(18) ~~(23)~~ 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.

(19) ~~(24)~~ If an amendment to section 2 of article VIII of the state constitution of 1963 allowing state aid to some or all nonpublic schools is approved by the voters of this state, each foundation allowance or per pupil payment calculation under this section may be reduced.

(20) ~~(26)~~ As used in this section:

(a) “Certified mills” means the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94.

(b) “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.

(c) “Combined state and local revenue per membership pupil” means the district’s combined state and local revenue divided by the district’s membership excluding special education pupils.

(d) “Current state fiscal year” means the state fiscal year for which a particular calculation is made.

(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) “Maximum public school academy allocation”, except as otherwise provided in this subdivision, means the maximum per‑pupil allocation as calculated by adding the highest per-pupil allocation among all public school academies 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 $20.00) times (the difference between the highest per-pupil allocation among all public school academies for the immediately preceding state fiscal year and the sum of $7,108.00 plus the total dollar amount of all adjustments made from 2006-2007 to the immediately preceding state fiscal year in the lowest per-pupil allocation among all public school academies) divided by the difference between the basic foundation allowance for the current state fiscal year and the sum of $7,108.00 plus the total dollar amount of all adjustments made from 2006-2007 to the immediately preceding state fiscal year in the lowest per-pupil allocation among all public school academies]. For ~~2009-2010 and 2010-2011,~~ 2011-2012, maximum public school academy allocation means ~~$7,580.00.~~$7,110.00.

(i) “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.

(j) “Nonexempt property” means property that is not a principal residence, qualified agricultural property, qualified forest property, supportive housing property, industrial personal property, or commercial personal property.

(k) “Principal residence”, “qualified agricultural property”, “qualified forest property”, “supportive housing property”, “industrial personal property”, and “commercial personal property” mean those terms as defined in section 1211 of the revised school code, MCL 380.1211.

(l) “School operating purposes” means the purposes included in the operation costs of the district as prescribed in sections 7 and 18.

(m) “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.

(n) “Tax increment financing acts” means 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, the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, or the corridor improvement authority act, 2005 PA 280, MCL 125.2871 to 125.2899.

(o) “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. 20d. In making the final determination required under former section 20a of a district’s combined state and local revenue per membership pupil in 1993-94 and in making calculations under section 20 for ~~2010-2011,~~ 2011-2012, the department and the department of treasury shall comply with all of the following:

(a) For a district that had combined state and local revenue per membership pupil in the 1994-95 state fiscal year of $6,500.00 or more and served as a fiscal agent for a state board designated area vocational education center in the 1993-94 school year, total state school aid received by or paid on behalf of the district pursuant to this act in 1993-94 shall exclude payments made under former section 146 and under section 147 on behalf of the district’s employees who provided direct services to the area vocational education center. Not later than June 30, 1996, the department shall make an adjustment under this subdivision to the district’s combined state and local revenue per membership pupil in the 1994-95 state fiscal year and the department of treasury shall make a final certification of the number of mills that may be levied by the district under section 1211 of the revised school code, MCL 380.1211, as a result of the adjustment under this subdivision.

(b) If a district had an adjustment made to its 1993-94 total state school aid that excluded payments made under former section 146 and under section 147 on behalf of the district’s employees who provided direct services for intermediate district center programs operated by the district under article 5, if nonresident pupils attending the center programs were included in the district’s membership for purposes of calculating the combined state and local revenue per membership pupil for 1993-94, and if there is a signed agreement by all constituent districts of the intermediate district that an adjustment under this subdivision shall be made, the foundation allowances for 1995-96 and 1996-97 of all districts that had pupils attending the intermediate district center program operated by the district that had the adjustment shall be calculated as if their combined state and local revenue per membership pupil for 1993-94 included resident pupils attending the center program and excluded nonresident pupils attending the center program.

Sec. 22a. (1) From the appropriation in section 11, there is allocated an amount not to exceed ~~$5,796,241,000.00 for~~ ~~2009‑2010 and an amount not to exceed $5,764,000,000.00~~ $5,737,000,000.00 for 2010-2011 and an amount not to exceed $5,691,000,000.00 for 2011-2012 for payments to districts, qualifying university schools, and qualifying public school academies to guarantee each district, qualifying university school, and qualifying public school academy an amount equal to its 1994-95 total state and local per pupil revenue for school operating purposes under section 11 of article IX of the state constitution of 1963. Pursuant to section 11 of article IX of the state constitution of 1963, this guarantee does not apply to a district in a year in which the district levies a millage rate for school district operating purposes less than it levied in 1994. However, subsection (2) applies to calculating the payments under this section. Funds allocated under this section that are not expended in the state fiscal year for which they were allocated, as determined by the department, may be used to supplement the allocations under sections 22b and 51c in order to fully fund those calculated allocations for the same fiscal year.

(2) To ensure that a district receives an amount equal to the district’s 1994-95 total state and local per pupil revenue for school operating purposes, there is allocated to each district a state portion of the district’s 1994-95 foundation allowance in an amount calculated as follows:

(a) Except as otherwise provided in this subsection, the state portion of a district’s 1994-95 foundation allowance is an amount equal to the district’s 1994-95 foundation allowance or $6,500.00, whichever is less, minus the difference between the sum of the product of the taxable value per membership pupil of all property in the district that is nonexempt property times the district’s certified mills and, for a district with certified mills exceeding 12, the product of the taxable value per membership pupil of property in the district that is commercial personal property times the certified mills minus 12 mills and the quotient of the ad valorem property tax revenue of the district captured under tax increment financing acts 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 tax increment financing acts divided by the district’s membership.

(3) Beginning in 2003-2004, for pupils in membership in a qualifying public school academy or qualifying university school, there is allocated under this section 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) “Certified mills” means the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94.

(d) “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.

(e) “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, qualified agricultural property, qualified forest property, supportive housing property, industrial personal property, and commercial personal property could be reduced as provided in section 1211 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.

(f) “Homestead”, “qualified agricultural property”, “qualified forest property”, “supportive housing property”, “industrial personal property”, and “commercial personal property” mean those terms as defined in section 1211 of the revised school code, MCL 380.1211.

(g) “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.

(h) “Nonexempt property” means property that is not a principal residence, qualified agricultural property, qualified forest property, supportive housing property, industrial personal property, or commercial personal property.

(i) “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.

(j) “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.

(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) “Tax increment financing acts” means 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, the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, or the corridor improvement authority act, 2005 PA 280, MCL 125.2871 to 125.2899.

(m) “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, qualified agricultural property, qualified forest property, supportive housing property, industrial personal property, and commercial personal property may be reduced as provided in section 1211 of the revised school code, MCL 380.1211, the taxable value of homestead, qualified agricultural property, qualified forest property, supportive housing property, industrial personal property, and commercial personal 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 state funds appropriated in section 11, there is allocated for ~~2009-2010 an amount not to exceed~~ ~~$3,289,000,000.00 and there is allocated for~~ 2010-2011 an amount not to exceed ~~$3,573,500,000.00~~ $3,558,424,700.00 and there is allocated for 2011-2012 an amount not to exceed $3,032,300,000.00 for discretionary nonmandated payments to districts under this section. Funds allocated under this section that are not expended in the state fiscal year for which they were allocated, as determined by the department, may be used to supplement the allocations under sections 22a and 51c in order to fully fund those calculated allocations for the same fiscal year.

(2) In addition to the funds allocated in subsection (1), ~~there is allocated an amount estimated at $450,000,000.00 for~~ ~~2009‑2010 and~~ there is allocated an amount estimated at $184,256,600.00 for 2010-2011 from the federal funds awarded to this state under title XIV of the American recovery and reinvestment act of 2009, Public Law 111-5. These funds shall be distributed in a form and manner determined by the department based on an equal dollar amount per the number of membership pupils used to calculate the final state aid payment of the immediately preceding fiscal year and shall be expended in a manner prescribed by federal law.

(3) Subject to subsection (4) and section 11, 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.

(4) In order to receive an allocation under subsection (1), each district shall do all of the following:

(a) 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. Also, if the revised school code is amended to require annual assessments at additional grade levels, in order to receive an allocation under this section each district shall comply with that requirement.

(b) Comply with sections 1278a and 1278b of the revised school code, MCL 380.1278a and 380.1278b.

(c) Furnish data and other information required by state and federal law to the center and the department in the form and manner specified by the center or the department, as applicable.

(d) Comply with section 1230g of the revised school code, MCL 380.1230g.

(5) Districts are encouraged to use funds allocated under this section for the purchase and support of payroll, human resources, and other business function software that is compatible with that of the intermediate district in which the district is located and with other districts located within that intermediate district.

(6) From the allocation in subsection (1), the department shall pay up to $1,000,000.00 in litigation costs incurred by this state related to commercial or industrial property tax appeals, including, but not limited to, appeals of classification, that impact revenues dedicated to the state school aid fund.

(7) From the allocation in subsection (1), the department shall pay up to $1,000,000.00 in litigation costs incurred by this state associated with lawsuits filed by 1 or more districts or intermediate districts against this state. If the allocation under this section is insufficient to fully fund all payments required under this section, the payments under this subsection shall be made in full before any proration of remaining payments under this section.

(8) It is the intent of the legislature that all constitutional obligations of this state have been fully funded under sections 22a, 31d, 51a, ~~and 51c.~~ 51c, and 152a. If a claim is made by an entity receiving funds under this ~~act~~ article that challenges the legislative determination of the adequacy of this funding or alleges that there exists an unfunded constitutional requirement, the state budget director may escrow or allocate from the discretionary funds for nonmandated payments under this section the amount as may be necessary to satisfy the claim before making any payments to districts under subsection (3). If funds are escrowed, the escrowed funds are a work project appropriation and the funds are carried forward into the following fiscal year. The purpose of the work project is to provide for any payments that may be awarded to districts as a result of litigation. The work project shall be completed upon resolution of the litigation.

(9) If the local claims review board or a court of competent jurisdiction makes a final determination that this state is in violation of section 29 of article IX of the state constitution of 1963 regarding state payments to districts, the state budget director shall use work project funds under subsection (8) or allocate from the discretionary funds for nonmandated payments under this section the amount as may be necessary to satisfy the amount owed to districts before making any payments to districts under subsection (3).

(10) If a claim is made in court that challenges the legislative determination of the adequacy of funding for this state’s constitutional obligations or alleges that there exists an unfunded constitutional requirement, any interested party may seek an expedited review of the claim by the local claims review board. If the claim exceeds $10,000,000.00, this state may remove the action to the court of appeals, and the court of appeals shall have and shall exercise jurisdiction over the claim.

(11) If payments resulting from a final determination by the local claims review board or a court of competent jurisdiction that there has been a violation of section 29 of article IX of the state constitution of 1963 exceed the amount allocated for discretionary nonmandated payments under this section, the legislature shall provide for adequate funding for this state’s constitutional obligations at its next legislative session.

(12) If a lawsuit challenging payments made to districts related to costs reimbursed by federal title XIX medicaid funds is filed against this state, then, for the purpose of addressing potential liability under such a lawsuit, the state budget director may place funds allocated under this section in escrow or allocate money from the funds otherwise allocated under this section, up to a maximum of 50% of the amount allocated in subsection (1). If funds are placed in escrow under this subsection, those funds are a work project appropriation and the funds are carried forward into the following fiscal year. The purpose of the work project is to provide for any payments that may be awarded to districts as a result of the litigation. The work project shall be completed upon resolution of the litigation. In addition, this state reserves the right to terminate future federal title XIX medicaid reimbursement payments to districts if the amount or allocation of reimbursed funds is challenged in the lawsuit. As used in this subsection, “title XIX” means title XIX of the social security act, 42 USC 1396 to 1396v.

Sec. 22d. (1) From the appropriation in section 11, an amount not to exceed $2,025,000.00 is allocated for ~~2010-2011~~ 2011‑2012 for ~~additional payments to small, geographically isolated~~ supplemental payments to rural districts under this section.

(2) From the allocation under subsection (1), there is allocated for ~~2010-2011~~ 2011-2012 an amount not to exceed $750,000.00 for payments under this subsection to districts that meet all of the following:

(a) Operates grades K to 12.

(b) Has fewer than 250 pupils in membership.

(i) Is located in the Upper Peninsula at least 30 miles from any other public school building.

(ii) Is located on an island that is not accessible by bridge.

(3) The amount of the additional funding to each eligible district under subsection (2) shall be determined under a spending plan developed as provided in this subsection and approved by the superintendent of public instruction. The spending plan shall be developed cooperatively by the intermediate superintendents of each intermediate district in which an eligible district is located. The intermediate superintendents shall review the financial situation of each eligible district, determine the minimum essential financial needs of each eligible district, and develop and agree on a spending plan that distributes the available funding under subsection (2) to the eligible districts based on those financial needs. The intermediate superintendents shall submit the spending plan to the superintendent of public instruction for approval. Upon approval by the superintendent of public instruction, the amounts specified for each eligible district under the spending plan are allocated under subsection (2) and shall be paid to the eligible districts in the same manner as payments under section 22b.

(4) Subject to subsection (6), from the allocation in subsection (1), there is allocated for ~~2010-2011~~ 2011-2012 an amount not to exceed $1,275,000.00 for payments under this subsection to districts that meet all of the following:

(a) The district has 5.0 or fewer pupils per square mile as determined by the department.

(b) The district has a total square mileage greater than 200.0 or is 1 of 2 districts that have consolidated transportation services and have a combined total square mileage greater than 200.0.

(5) The funds allocated under subsection (4) shall be allocated on an equal per pupil basis.

(6) A district receiving funds allocated under subsection (2) is not eligible for funding allocated under subsection (4).

Sec. 22e. (1) ~~Beginning in 2008~~-~~2009, an~~ For 2011-2012, an amount ~~will be~~ is allocated ~~each fiscal year~~ from the appropriation in section 11 for additional payments under this subsection to districts that meet the eligibility requirements under subsection (2). For ~~2010-2011,~~ 2011-2012, there is allocated for this purpose from the appropriation in section 11 an amount not to exceed ~~$1,300,000.00.~~$700,000.00. These additional payments shall not be made after 2011‑2012.

(2) To be eligible for a payment under subsection (1), a district must be determined by the department and the department of treasury to meet all of the following:

(a) The district levies 1 of the following operating millage amounts:

(i) All of the operating millage it is authorized to levy under section 1211 of the revised school code, MCL 380.1211.

(ii) The amount of operating millage it is authorized to levy after a voluntary reduction of its operating millage rate adopted by the board of the district.

(iii) The amount of operating millage it is authorized to levy after a millage reduction required under the limitation of section 31 of article IX of the state constitution of 1963, if a ballot question asking for approval to levy millage in excess of the limitation has been rejected in the district.

(b) The district receives a reduced amount of local school operating revenue under section 1211 of the revised school code, MCL 380.1211, as a result of the exemptions of industrial personal property and commercial personal property that were enacted in 2007 PA 37.

(d) The district has 500 or fewer pupils in membership.

(3) Subject to subsection (4), the amount of the additional funding to each eligible district under subsection (1) is the sum of the following and shall be paid to the eligible districts in the same manner as payments under section 22b:

(a) The product of the taxable value of the district’s industrial personal property for the calendar year ending in the fiscal year multiplied by the total number of mills the district levies on nonexempt property under section 1211 of the revised school code, MCL 380.1211, for that calendar year.

(b) The product of the taxable value of the district’s commercial personal property for the calendar year ending in the fiscal year multiplied by the lesser of 12 mills or the total number of mills the district levies on nonexempt property under section 1211 of the revised school code, MCL 380.1211, for that calendar year.

(4) The amount of the additional funding to an eligible district under subsection (1) for a fiscal year shall not exceed 15% of the total amount allocated under subsection (1) for that fiscal year.

(5) If the total amount of the payments calculated under subsection (3) for a fiscal year exceeds the allocation under subsection (1) for that fiscal year, the payment to each district under subsection (1) shall be prorated on an equal percentage basis.

~~(6) In addition to the amount allocated under subsection (1), for 2010~~-~~2011 only there is also allocated from the appropriation~~ ~~in section 11 the amount of $500,000.00 to a district that is eligible for a payment under subsection (1) and that levied 1.8 mills~~ ~~in 1993 to finance an operating deficit.~~

Sec. 22f. (1) From the appropriation in section 11, there is allocated for 2011-2012 only an amount not to exceed $154,000,000.00 to provide incentive payments to districts that meet financial best practices under this section. The money allocated in this section represents a portion of the year-end state school aid fund balance for 2010-2011. The amount of the incentive payment is an amount equal to $100.00 per pupil. A district shall receive an incentive payment under this section if the district satisfies at least 4 of the following requirements not later than June 1, 2012:

(a) If a district provides medical, pharmacy, dental, vision, disability, long-term care, or any other type of benefit that would constitute a health care services benefit, to employees and their dependents, the district does not pay on behalf of any employee a total amount that is greater than the state maximum allowable employer contribution for health care services benefits, as described in subsection (3), depending on the coverage option.

(b) If a district provides medical, pharmacy, dental, vision, disability, long-term care, or any other type of benefit that would constitute a health care services benefit, to employees and their dependents, the district is the policyholder for each of its insurance policies that covers 1 or more of these benefits. A district that does not directly employ its staff is considered to have satisfied this requirement.

(c) If a district did not enter into an agreement with the department to develop a service consolidation plan to reduce school operating costs under former section 11d as it was in effect for 2010-2011, the district enters into an agreement with the department to develop a service consolidation plan that is in compliance with department guidelines described in subsection (2). If a district entered into an agreement with the department to develop a service consolidation plan under former section 11d, the district continues to implement that plan and report to the department not later than February 1 of each fiscal year the district’s progress in implementing that plan.

(d) The district has obtained competitive bids on the provision of pupil transportation, food service, custodial, or 1 or more other noninstructional services with a value of at least $50,000.00.

(e) The district provides to parents and community members a dashboard or report card demonstrating the district’s efforts to manage its finances responsibly. The dashboard or report card shall include at least all of the following for the 3 most recent school years for which the data are available:

(i) Graduation and dropout rates.

(ii) Average class size in grades kindergarten to 3.

(iii) College readiness as measured by Michigan merit examination test scores.

(iv) Elementary and middle school MEAP scores.

(v) Teacher, principal, and superintendent salary information including at least minimum, average, and maximum pay levels.

(vi) General fund balance.

(vii) The total number of days of instruction provided.

(2) The department shall maintain the guidelines for the service consolidation plans that were developed for former section 11d as it was in effect for 2010-2011. The guidelines may identify, but are not limited to, allowable cost-sharing arrangements for the provision of noninstructional and instructional services and the creation of joint operating agreements between and among districts, intermediate districts, and other units of local government. The department shall create benchmarks to measure success in implementing service consolidation plans, including, but not limited to, demonstrated cost reductions and efficiency. In determining eligibility for incentive payments, the department shall recognize service consolidation and cooperation and cost reductions already in effect as well as continued progress.

(3) For the purposes of this section, the state maximum allowable employer contribution on behalf of any employee is an amount equal to 90% of the combined total costs for the employee for the school fiscal year for medical, pharmacy, dental, vision, disability, long-term care, or any other type of benefit that would constitute a health care services benefit for each of the following coverage options:

(a) Employee only coverage.

(b) Employee and spouse coverage.

(c) Employee and children coverage.

(d) Full family coverage.

(4) A district that accepts funds allocated under this section acknowledges that the incentive payment under this section is for 2011-2012 only and that funds will not be appropriated for the purposes of this section for subsequent fiscal years.

(5) If the department determines that a district has intentionally submitted false information in order to qualify for an incentive payment under this section, the district forfeits an amount equal to the amount it received under this section from its total state school aid for 2012-2013.

Sec. 24. (1) From the appropriation in section 11, there is allocated for ~~2010-2011~~ 2011-2012 an amount not to exceed $8,000,000.00 for payments to the educating district or intermediate district for educating pupils assigned by a court or the department of human services to reside in or to attend a juvenile detention facility or child caring institution licensed by the department of human services and approved by the department to provide an on-grounds education program. The amount of the payment under this section to a district or intermediate district shall be calculated as prescribed under subsection (2).

(2) The total amount allocated under this section shall be allocated by paying to the educating district or intermediate district an amount equal to the lesser of the district’s or intermediate district’s added cost or the department’s approved per pupil allocation for the district or intermediate district. For the purposes of this subsection:

(a) “Added cost” means 100% of the added cost each fiscal year for educating all pupils assigned by a court or the department of human services to reside in or to attend a juvenile detention facility or child caring institution licensed by the department of human services or the department of ~~energy, labor, and economic growth~~ licensing and regulatory affairs and approved by the department to provide an on-grounds education program. 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, in whole or in part, 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.

(b) “Department’s approved per pupil allocation” for a district or intermediate district shall be determined by dividing the total amount allocated under this section for a fiscal year by the full-time equated membership total for all pupils approved by the department to be funded under this section for that fiscal year for the district or intermediate district.

(3) 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.

(4) Special education pupils funded under section 53a shall not be funded under this section.

Sec. 24a. From the appropriation in section 11, ~~there is allocated an amount not to exceed $1,751,300.00 for 2009~~-~~2010 and~~ there is allocated an amount not to exceed ~~$1,440,000.00~~ $1,197,500.00 for ~~2010-2011~~ 2011-2012 for payments to intermediate districts for pupils who are placed in juvenile justice service facilities operated by the department of human services. Each intermediate district shall receive an amount equal to the state share of those costs that are clearly and directly attributable to the educational programs for pupils placed in facilities described in this section that are located within the intermediate district’s boundaries. The intermediate districts receiving payments under this section shall cooperate with the department of human services to ensure that all funding allocated under this section is utilized by the intermediate district and department of human services for educational programs for pupils described in this section. Pupils described in this section are not eligible to be funded under section 24. However, a program responsibility or other fiscal responsibility associated with these pupils shall not be transferred from the department of human services to a district or intermediate district unless the district or intermediate district consents to the transfer.

Sec. 24c. From the appropriation in section 11, there is allocated an amount not to exceed $742,300.00 for ~~2010-2011~~ 2011-2012 for payments to districts for pupils who are enrolled in a nationally administered community-based education and youth mentoring program, known as the youth challenge program, that is located within the district and is administered by the department of military and veterans affairs. Both of the following apply to a district receiving payments under this section:

(a) The district shall contract with the department of military and veterans affairs to ensure that all funding allocated under this section is utilized by the district and the department of military and veterans affairs for the youth challenge program.

(b) The district may retain for its administrative expenses an amount not to exceed 3% of the amount of the payment the district receives under this section.

Sec. 26a. From the state school aid fund appropriation in section 11, there is allocated an amount not to exceed $26,300,000.00 for ~~2010-2011~~ 2011-2012 to reimburse districts and intermediate districts pursuant to section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied in ~~2010.~~ 2011. The allocations 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. 26b. (1) From the appropriation in section 11, there is allocated for ~~2010-2011~~ 2011-2012 an amount not to exceed ~~$3,400,000.00~~ $2,890,000.00 for payments to districts, intermediate districts, and community college districts for the portion of the payment in lieu of taxes obligation that is attributable to districts, intermediate districts, and community college districts pursuant to section 2154 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.2154.

(2) If the amount appropriated under this section is not sufficient to fully pay obligations under this section, payments shall be prorated on an equal basis among all eligible districts, intermediate districts, and community college districts.

~~Article 3~~

Sec. 31a. (1) From the state school aid fund money appropriated in section 11, there is allocated for ~~2010-2011~~ 2011‑2012 an amount not to exceed $317,695,500.00 for payments to eligible districts and eligible public school academies under this section. Subject to subsection (14), the amount of the additional allowance under this section, other than funding under subsection (6) or (7), 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, 42 USC 1751 to 1769i, 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 in the form and manner prescribed by the center. However, for a public school academy that began operations as a public school academy after the pupil membership count day of the immediately preceding school year, the basis for the additional allowance under this section shall be the number of actual pupils in membership in the public school academy who met the income eligibility criteria for free breakfast, lunch, or milk in the current state fiscal year, as determined under the Richard B. Russell national school lunch act.

(2) To be eligible to receive funding under this section, other than funding under subsection (6) or (7), a district or public school academy that has not been previously determined to be eligible shall apply to the department, in a form and manner prescribed by the department, and a district or public school academy must meet all of the following:

(a) The sum of the district’s or public school academy’s combined state and local revenue per membership pupil in the current state fiscal year, as calculated under section 20, ~~plus the amount of the district’s per pupil allocation under section 20j(2),~~ is less than or equal to the basic foundation allowance under section 20 for the current state fiscal year.

(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 amount calculated under section 20, ~~plus the amount of the district’s per pupil allocation under section 20j(2),~~ not to exceed the basic foundation allowance under section 20 for the current state fiscal year, or of the public school academy’s per membership pupil amount calculated under section 20 for the current state fiscal year. 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 amount calculated 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; for school health clinics; and for the purposes of subsection (5), (6), or (7). In addition, a district that is a school district of the first class or a district or public school academy in which at least 50% of the pupils in membership 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), may use not more than 20% of the funds it receives under this section for school security. A district or public school academy 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 include, but are not limited to, tutorial services, early childhood programs to serve children age 0 to 5, and reading programs as described in former section 32f as in effect for 2001-2002. A tutorial method may be conducted 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) Except as otherwise provided in subsection (12), 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 pay for costs associated with the operation of the school breakfast program.

(6) From the funds allocated under subsection (1), there is allocated for ~~2010-2011~~ 2011-2012 an amount not to exceed $3,557,300.00 to support child and adolescent health centers. These grants shall be awarded for 5 consecutive years beginning with 2003-2004 in a form and manner approved jointly by the department and the department of community health. Each grant recipient shall remain in compliance with the terms of the grant award or shall forfeit the grant award for the duration of the 5-year period after the noncompliance. To continue to receive funding for a child and adolescent health center under this section a grant recipient shall ensure that the child and adolescent health center has an advisory committee and that at least one-third of the members of the advisory committee are parents or legal guardians of school-aged children. A child and adolescent health center program shall recognize the role of a child’s parents or legal guardian in the physical and emotional well-being of the child. Funding under this subsection shall be used to support child and adolescent health center services provided to children up to age 21. If any funds allocated under this subsection are not used for the purposes of this subsection for the fiscal year in which they are allocated, those unused funds shall be used that fiscal year to avoid or minimize any proration that would otherwise be required under subsection (14) for that fiscal year.

(7) From the funds allocated under subsection (1), there is allocated for ~~2010-2011~~ 2011-2012 an amount not to exceed $5,150,000.00 for the state portion of the hearing and vision screenings as described in section 9301 of the public health code, 1978 PA 368, MCL 333.9301. A local public health department shall pay at least 50% of the total cost of the screenings. The frequency of the screenings shall be as required under R 325.13091 to R 325.13096 and R 325.3271 to R 325.3276 of the Michigan administrative code. Funds shall be awarded in a form and manner approved jointly by the department and the department of community health. Notwithstanding section 17b, payments to eligible entities under this subsection shall be paid on a schedule determined by the department.

(8) 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.

(9) 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.

(10) Subject to subsections (5), (6), (7), (12), and (13), 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 subsections (5), (6), (7), (12), and (13), 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.

(11) A district or public school academy may use funds received under this section for adult high school completion, general educational development (G.E.D.) test preparation, adult English as a second language, or adult basic education programs described in section 107.

(12) For an individual school or schools operated by a district or public school academy receiving funds under this section that have been determined by the department to meet the adequate yearly progress standards of the no child left behind act of 2001, Public Law 107-110, in both mathematics and English language arts at all applicable grade levels for all applicable subgroups, the district or public school academy may submit to the department an application for flexibility in using the funds received under this section that are attributable to the pupils in the school or schools. The application shall identify the affected school or schools and the affected funds and shall contain a plan for using the funds for specific purposes identified by the district that are designed to benefit at-risk pupils in the school, but that may be different from the purposes otherwise allowable under this section. The department shall approve the application if the department determines that the purposes identified in the plan are reasonably designed to benefit at-risk pupils in the school. If the department does not act to approve or disapprove an application within 30 days after it is submitted to the department, the application is considered to be approved. If an application for flexibility in using the funds is approved, the district may use the funds identified in the application for any purpose identified in the plan.

(13) A district or public school academy that receives funds under this section may use funds it receives under this section to implement and operate an early intervening program for pupils in grades K to 3 that meets either or both of the following:

(a) Monitors individual pupil learning and provides specific support or learning strategies to pupils as early as possible in order to reduce the need for special education placement. The program shall include literacy and numeracy supports, sensory motor skill development, behavior supports, instructional consultation for teachers, and the development of a parent/school learning plan. Specific support or learning strategies may include support in or out of the general classroom in areas including reading, writing, math, visual memory, motor skill development, behavior, or language development. These would be provided based on an understanding of the individual child’s learning needs.

(b) Provides early intervening strategies using school-wide systems of academic and behavioral supports and is scientifically research-based. The strategies to be provided shall include at least pupil performance indicators based upon response to intervention, instructional consultation for teachers, and ongoing progress monitoring. A school-wide system of academic and behavioral support should be based on a support team available to the classroom teachers. The members of this team could include the principal, special education staff, reading teachers, and other appropriate personnel who would be available to systematically study the needs of the individual child and work with the teacher to match instruction to the needs of the individual child.

(14) 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).

(15) 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.

~~(16) Except as otherwise provided in subsection (18), 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 11.5% of the sum of the district’s foundation allowance or public school academy’s~~ ~~per pupil allocation under section 20, plus the amount of the district’s per pupil allocation under section 20j(2), not to exceed~~ ~~the basic foundation allowance under section 20 for the current state fiscal year.~~

~~(17) A district that does not meet the eligibility requirement under subsection (2)(a) is eligible for funding under this section~~ ~~if at least 75% of the pupils in membership in the district 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), the district receives~~ ~~an adjustment under section 20(19), and the district does not receive any state portion of its foundation allowance as calculated~~ ~~under section 20. A district 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 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 11.5% of the sum of the district’s foundation allowance under section 20, not to exceed the basic~~ ~~foundation allowance under section 20 for the current state fiscal year.~~

~~(18) For a district described in subsection (16), the total allocation to the district otherwise due under this section, after any~~ ~~reduction under subsection (14), shall be further reduced by~~ ~~25%.~~

(16) ~~(19)~~ 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 level 2 on the most recent MEAP English language arts, mathematics, or science test for which results for the pupil have been received. For pupils for whom the results of the Michigan merit examination 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 proficiency on the reading component of the most recent Michigan merit examination for which results for the pupil have been received, did not achieve proficiency on the mathematics component of the most recent Michigan merit examination for which results for the pupil have been received, or did not achieve basic competency on the science component of the most recent Michigan merit examination 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 arts or mathematics.

(17) A district or public school academy that receives funds under this section may use funds received under this section to provide an anti-bullying or crisis intervention program.

Sec. 31d. (1) From the appropriations in section 11, there is allocated an amount not to exceed $22,495,100.00 for ~~2010-2011~~ 2011-2012 for the purpose of making payments to districts and other eligible entities under this section.

(2) The amounts allocated from state sources 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 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 payments made under this section to districts and other eligible entities that are not required under section 1272a of the revised school code, MCL 380.1272a, to provide a school lunch program shall be in an amount not to exceed $10.00 per eligible pupil plus 5 cents for each free lunch and 2 cents for each reduced price lunch provided, as determined by the department.

(5) From the federal funds appropriated in section 11, there is allocated for ~~2010-2011~~ 2011-2012 all available federal funding, estimated at $400,000,000.00, for the national school lunch program and all available federal funding, estimated at $2,506,000.00, for the emergency food assistance program.

(6) Notwithstanding section 17b, payments to eligible entities other than districts under this section shall be paid on a schedule determined by the department.

(7) In purchasing food for a school lunch program funded under this section, preference shall be given to food that is grown or produced by Michigan businesses if it is competitively priced and of comparable quality.

Sec. 31f. (1) From the appropriations in section 11, there is allocated an amount not to exceed $9,625,000.00 for ~~2010-2011~~ 2011-2012 for the purpose of making payments to districts to reimburse for the cost of providing breakfast.

(2) The funds allocated under this section for school breakfast programs shall be made available to all eligible applicant districts that meet all of the following criteria:

(a) The district participates in the federal school breakfast program and meets all standards as prescribed by 7 CFR parts 220 and 245.

(b) Each breakfast eligible for payment meets the federal standards described in subdivision (a).

(3) The payment for a district under this section is at a per meal rate equal to the lesser of the district’s actual cost or 100% of the statewide average cost of a breakfast served, as determined and approved by the department, less federal reimbursement, participant payments, and other state reimbursement. The statewide average cost shall be determined by the department using costs as reported in a manner approved by the department for the preceding school year.

(4) Notwithstanding section 17b, payments under this section may be made pursuant to an agreement with the department.

(5) In purchasing food for a school breakfast program funded under this section, preference shall be given to food that is grown or produced by Michigan businesses if it is competitively priced and of comparable quality.

Sec. 32b. (1) From the funds appropriated under section 11, there is allocated an amount not to exceed ~~$6,000,000.00~~ $5,900,000.00 for ~~2010-2011~~ 2011-2012 for competitive grants to intermediate districts for the creation and continuance of great start communities or other community purposes as identified by the early childhood investment corporation. These dollars may not be expended until both of the following conditions have been met:

(a) The early childhood investment corporation has identified matching dollars of at least an amount equal to the amount of the matching dollars for 2006-2007.

(b) The executive committee of the corporation includes, in addition to the members of the executive committee provided for by the interlocal agreement creating the corporation under the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.510 to 124.512, 4 members appointed by the governor as provided in this subdivision. Not later than 30 days after the convening of a regular legislative session in an odd-numbered year, the speaker of the house of representatives, the house minority leader, the senate majority leader, and the senate minority leader shall each submit to the governor a list of 3 or more individuals as nominees for appointment as members of the executive committee of the corporation. The corporation shall notify each of the legislative leaders of this requirement to submit a list of nominees not later than 30 days before the date that the list is due. Within 60 days of the submission to the governor of nominees by each of the 4 legislative leaders, the governor shall appoint 1 member of the executive committee from each list of nominees submitted by each of the 4 legislative leaders. A member appointed under this subdivision shall serve a term as a member of the executive committee through the next regular legislative session unless he or she resigns or is otherwise unable to serve. When a vacancy occurs other than by expiration of a term, the corporation shall notify the legislative leader who originally nominated the member of the vacancy and that legislative leader shall submit to the governor a list of 3 or more individuals as nominees for appointment to fill the vacancy within 30 days after being notified by the corporation of the vacancy. The governor shall make an appointment to fill that vacancy in the same manner as the original appointment not later than 60 days after the date the vacancy occurs.

(2) The early childhood investment corporation shall award grants to eligible intermediate districts in an amount to be determined by the corporation.

(3) In order to receive funding, each intermediate district applicant shall agree to convene a local great start collaborative to address the availability of the 6 components of a great start system in its communities: physical health, social-emotional health, family supports, basic needs, economic stability and safety, and parenting education and early education and care, to ensure that every child in the community is ready for kindergarten. Specifically, each grant will fund the following:

(a) The completion of a community needs assessment and strategic plan for the creation of a comprehensive system of early childhood services and supports, accessible to all children from birth to kindergarten and their families.

(b) Identification of local resources and services for children with disabilities, developmental delays, or special needs and their families.

(d) Evaluation of local programs.

(4) Not later than December 1 of each fiscal year, for the grants awarded under this section for the immediately preceding fiscal year, the department shall provide to the house and senate appropriations subcommittees on state school aid, the state budget director, and the house and senate fiscal agencies a report detailing the amount of each grant awarded under this section, the grant recipients, the activities funded by each grant under this section, and an analysis of each grant recipient’s success in addressing the development of a comprehensive system of early childhood services and supports.

(5) An intermediate district receiving funds under this section may carry over any unexpended funds received under this section into the next fiscal year and may expend those unused funds in the next fiscal year. A recipient of a grant shall return any unexpended grant funds to the department in the manner prescribed by the department not later than September 30 of the next fiscal year after the fiscal year in which the funds are received.

(6) Beginning with 2012-2013, it is the intent of the legislature to transfer funding for great start collaboratives under this section into an early childhood block grant program, along with funding for great start readiness programs under section 32d and funding for great parents, great start programs under section 32j. The early childhood block grant program will allocate funds to intermediate districts and consortia of intermediate districts to act as fiduciaries and provide administration of regional early childhood programs in conjunction with their regional great start collaborative to improve program quality, evaluation, and efficiency for early childhood programs. The department shall work with intermediate districts, districts, great start collaboratives, and the early childhood investment corporation to establish a revised funding formula, application process, program criteria, and data reporting requirements for 2012-2013. Not later than January 1, 2012, the department shall report to the legislature its recommendations for the revisions required under this subsection.

(7) ~~(6)~~ Notwithstanding section 17b, payments under this section may be made pursuant to an agreement with the department.

Sec. 32d. (1) For ~~2010-2011,~~ 2011-2012, there is allocated to eligible ~~districts~~ intermediate districts and consortia of intermediate districts for great start readiness programs an amount not to exceed ~~$89,400,000.00~~ $104,275,000.00 from the state school aid fund money appropriated in section 11. ~~In addition, from the general fund appropriation~~ ~~in section 11, there is allocated an amount not to exceed $8,875,000.00 for competitive great start readiness program grants.~~ Funds allocated under this section shall be used to provide part-day or full-day comprehensive free compensatory programs designed to do 1 or both of the following:

(a) 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~~ meet the participant eligibility and prioritization guidelines as defined by the state board.

(b) Provide preschool and parenting education programs similar to those under former section 32b as in effect for 2001-2002. Beginning in 2007-2008, funds spent by a district for programs described in this subdivision shall not exceed the lesser of the amount spent by the district under this subdivision for 2006-2007 or the amount spent under this subdivision in any subsequent fiscal year.

(2) ~~To be eligible to receive payments under this section, a district shall comply with this section and section 39. To receive~~ ~~competitive grant payments under this section, an eligible grant recipient shall comply with this section and section 32~~l.Funds allocated under this section shall be allocated to intermediate districts or consortia of intermediate districts. An intermediate district or consortium of intermediate districts receiving funding under this section shall act as the fiduciary for the great start readiness programs. For 2011-2012, the fiduciary intermediate districts and consortia of intermediate districts shall allocate the funding under this section as follows:

(a) An amount not to exceed $95,400,000.00 allocated to districts and consortia of districts as directed by the department based on the formula in section 39. In order to be eligible to receive funds allocated under this subdivision from an intermediate district or consortium of intermediate districts, a district or consortium of districts shall comply with this section and section 39.

(b) An amount not to exceed $8,875,000.00 allocated in grants to competitive great start readiness programs as directed by the department based on the grant award process in section 32l. In order to be eligible to receive funds allocated under this section from an intermediate district or consortium of intermediate districts, a competitive great start readiness program shall comply with this section and section 32l.

(3) In addition to the allocation under subsection (1), from the general fund money appropriated under section 11, there is allocated an amount not to exceed $300,000.00 for ~~2010-2011~~ 2011-2012 for a competitive grant to continue a longitudinal evaluation of children who have participated in great start readiness programs.

(4) To be eligible for funding under this section, a program shall prepare children for success in school through comprehensive part-day or ~~full-day~~ school-day programs that contain all of the following program components, as determined by the department:

(a) Participation in a collaborative recruitment and enrollment process. At a minimum, the process shall include all other funded preschool programs that may serve children in the same geographic area, to assure that each child is enrolled in the program most appropriate to his or her needs and to maximize the use of federal, state, and local funds.

(b) An age-appropriate educational curriculum that is in compliance with the early childhood standards of quality for prekindergarten children adopted by the state board.

(d) Health and developmental screening services for all program participants.

(e) Referral services for families of program participants to community social service agencies, as appropriate.

(f) Active and continuous involvement of the parents or guardians of the program participants.

(g) A plan to conduct and report annual great start readiness program evaluations and continuous improvement plans using criteria approved by the department.

(h) Participation in a multidistrict, multiagency, school readiness advisory committee that provides for the involvement of classroom teachers, parents or guardians of program participants, and community, volunteer, and social service agencies and organizations, as appropriate. The advisory committee shall review the program components listed in this subsection and make recommendations for changes to the great start readiness program for which it is an advisory committee.

(i) ~~For great start readiness programs operated by a district or consortium of districts, provide for the~~ The ongoing articulation of the ~~early childhood,~~ kindergarten , and first grade programs offered by the ~~district or districts.~~program provider.

(5) An application for funding under this section shall provide for the following, in a form and manner determined by the department:

(a) Ensure compliance with all program components described in subsection (4).

(b) Ensure that more than 75% of the children participating in an eligible great start readiness program are children who live with families with a household income that is equal to or less than 300% of the federal poverty level.

(i) Teachers possessing proper training. For programs ~~the district manages itself,~~ managed directly by an intermediate district, a valid teaching certificate and an early childhood ~~(ZA)~~ (ZA or ZS) endorsement are required. This provision does not apply to a an intermediate district or competitive program that subcontracts with an eligible child development program. In that situation, a teacher must have a valid Michigan teaching certificate with an early childhood ~~(ZA)~~ (ZA or ZS) endorsement, a valid Michigan elementary teaching certificate with a child development associate credential, or a bachelor’s degree in child development with specialization in preschool teaching. However, ~~both of~~ ~~the following apply to this subparagraph:~~

~~(A) If a~~ if an intermediate district demonstrates to the department that it is unable to fully comply with this subparagraph after making reasonable efforts to comply, teachers who have significant but incomplete training in early childhood education or child development may be employed by the intermediate district if the intermediate district provides to the department, and the department approves, a plan for each teacher to come into compliance with the standards in this subparagraph. A teacher’s compliance plan must be completed within 4 2 years of the date of employment. Progress toward completion of the compliance plan shall consist of at least 2 courses per calendar year.

~~(B) For a subcontracted program, the department shall consider a teacher with 90 credit hours and at least 4 years’ teaching~~ ~~experience in a qualified preschool program to meet the requirements under this subparagraph.~~

(ii) Paraprofessionals possessing proper training in early childhood development, including an associate’s degree in early childhood education or child development or the equivalent, or a child development associate (CDA) credential. ~~, or the equivalent~~ ~~as approved by the state board.~~ However, if a an intermediate district demonstrates to the department that it is unable to fully comply with this subparagraph after making reasonable efforts to comply, the intermediate district may employ paraprofessionals who have completed at least 1 course that earns college credit in early childhood education or child development if the intermediate district provides to the department, and the department approves, a plan for each paraprofessional to come into compliance with the standards in this subparagraph. A paraprofessional’s compliance plan must be completed within 2 years of the date of employment. Progress toward completion of the compliance plan shall consist of at least 2 courses or 60 clock hours of training per calendar year.

(d) Include a program budget that contains only those costs that are not reimbursed or reimbursable by federal funding, that are clearly and directly attributable to the great start readiness program, and that would not be incurred if the program were not being offered. The program budget shall indicate the extent to which these funds will supplement other federal, state, local, or private funds. Funds received under this section shall not be used to supplant any federal funds by the applicant to serve children eligible for a federally funded existing preschool program that has the capacity to serve those children.

(6) For a grant recipient that enrolls pupils in a ~~full-day~~ school-day program funded under this section, each child enrolled in the ~~full-day~~ school-day program shall be counted as 2 children served by the program for purposes of determining the number of children to be served and for determining the amount of the grant award. A grant award shall not be increased solely on the basis of providing a ~~full-day~~ school-day program. ~~As used in this subsection, “full~~-~~day program”~~ ~~means a program that operates for at least the same length of day as a district’s first grade program for a minimum of 4 days per~~ ~~week, 30 weeks per year. A classroom that offers a full~~-~~day program must enroll all children for the full day to be considered~~ ~~a full-day program.~~

(7) ~~A district or consortium of districts~~ An intermediate district or consortium of intermediate districts receiving a grant under this section may contract with for-profit or nonprofit preschool center providers that meet all requirements of subsection (4) and retain for administrative services an amount equal to not more than 5% of the grant amount. A An intermediate district, or consortium of intermediate districts, or competitive grant program may expend not more than 10% of the total grant amount for administration of the program.

(8) Any public or private for-profit or nonprofit legal entity or agency may apply for a competitive grant under this section. However, a district or intermediate district may not apply for a competitive grant under this section unless the district, intermediate district, or consortium of districts or intermediate districts is acting as a local grantee for the federal head start program operating under the head start act, 42 USC 9831 to 9852.

(9) A recipient of funds under this section shall report to the department ~~on the midyear report~~ in a form and manner prescribed by the department the number of children participating in the program who meet the income or other eligibility criteria prescribed by the department 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 subsection (5)(b), a recipient 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 department of human services in a manner consistent with maximizing the amount of spending that may be claimed for temporary assistance for needy families maintenance of effort purposes.

(10) As used in this section: ~~, “part-day~~

(a) “Part-day program” means a program that operates at least 4 days per week, 30 weeks per year, for at least 3 hours of teacher-child contact time per day but for fewer hours of teacher-child contact time per day than a ~~full-day~~ school-day program. ~~as defined in subsection (6).~~

(b) “School-day program” means a program that operates for at least the same length of day as a district’s first grade program for a minimum of 4 days per week, 30 weeks per year. A classroom that offers a school-day program must enroll all children for the school day to be considered a school-day program.

(11) A ~~district or intermediate district~~ grant recipient receiving funds under this section is encouraged to establish a sliding scale of tuition rates based upon a child’s family income for the purpose of expanding eligible programs under this section. A ~~district or intermediate district~~ grant recipient may charge tuition for programs provided under this section according to that sliding scale of tuition rates on a uniform basis for any child who does not meet the program eligibility requirements under this section.

(12) Beginning with 2012-2013, it is the intent of the legislature to transfer funding for great start readiness programs under this section into an early childhood block grant program, along with funding for great start collaboratives under section 32b and funding for great parents, great start programs under section 32j. The early childhood block grant program will allocate funds to intermediate districts and consortia of intermediate districts to act as fiduciaries and provide administration of regional early childhood programs in conjunction with their regional great start collaborative to improve program quality, evaluation, and efficiency for early childhood programs. The department shall work with intermediate districts, districts, great start collaboratives, and the early childhood investment corporation to establish a revised funding formula, application process, program criteria, and data reporting requirements for 2012-2013. Not later than January 1, 2012, the department shall report to the legislature its recommendations for the revisions required under this subsection.

Sec. 32j. (1) From the appropriations in section 11, there is allocated an amount not to exceed $5,000,000.00 for ~~2010-2011~~ 2011-2012 for great parents, great start grants to intermediate districts to provide programs for parents with young children. The purpose of these programs is to encourage early mathematics and reading literacy, improve school readiness, reduce the need for special education services, and foster the maintenance of stable families by encouraging positive parenting skills.

(2) To qualify for funding under this section, a program shall provide services to all families with children age 5 or younger residing within the intermediate district who choose to participate, including at least all of the following services:

(a) Providing parents with information on child development from birth to age 5.

(b) Providing parents with methods to enhance parent-child interaction that promote social and emotional development and age-appropriate language, mathematics, and early reading skills for young children; including, but not limited to, encouraging parents to read to their preschool children at least 1/2 hour per day.

(c) Providing parents with examples of learning opportunities to promote intellectual, physical, and social growth of young children, including the acquisition of age-appropriate language, mathematics, and early reading skills.

(d) Promoting access to needed community services through a community-school-home partnership.

(3) To receive a grant under this section, an intermediate district shall submit a plan to the department not later than October 15, ~~2010~~ 2011 in the form and manner prescribed by the department. The plan shall do 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) that targets resources based on family need and provides for educators trained in child development to help parents understand their role in their child’s developmental process, thereby promoting school readiness and mitigating the need for special education services.

(b) Demonstrate an adequate collaboration of local entities involved in providing programs and services for preschool children and their parents and, where there is a great start collaborative, demonstrate that the planned services are part of the community’s great start strategic plan.

(c) 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 intermediate district receiving a grant under this section shall agree to include a data collection system approved by the department. 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) The department or superintendent, as applicable, shall do all of the following:

(a) The superintendent shall approve or disapprove the plans and notify the intermediate district of that decision not later than November 15, ~~2010.~~ 2011. The amount allocated to each intermediate district shall be at least an amount equal to 100% of the intermediate district’s ~~2009-2010~~ 2010-2011 payment under this section.

(b) 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).

~~(c) The department shall submit a report to the state budget director and the senate and house fiscal agencies summarizing~~ ~~the data collection reports described in subsection (4) by December 1 of each year.~~

(6) An intermediate district receiving funds under this section shall use the funds only for the program funded under this section. An intermediate district receiving funds under this section may carry over any unexpended funds received under this section into the next fiscal year and may expend those unused funds in the next fiscal year. A recipient of a grant shall return any unexpended grant funds to the department in the manner prescribed by the department not later than September 30 of the next fiscal year after the fiscal year in which the funds are received.

(7) Beginning with 2012-2013, it is the intent of the legislature to transfer funding for great parents, great start programs under this section into an early childhood block grant program, along with funding for great start collaboratives under section 32b and funding for great start readiness programs under section 32d. The early childhood block grant program will allocate funds to intermediate districts and consortia of intermediate districts to act as fiduciaries and provide administration of regional early childhood programs in conjunction with their regional great start collaborative to improve program quality, evaluation, and efficiency for early childhood programs. The department shall work with intermediate districts, districts, great start collaboratives, and the early childhood investment corporation to establish a revised funding formula, application process, program criteria, and data reporting requirements for 2012-2013. Not later than January 1, 2012, the department shall report to the legislature its recommendations for the revisions required under this subsection.

Sec. 39. (1) A district receiving funds from an intermediate district or consortium of intermediate districts under section 32d shall submit a preapplication, in a form and manner 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, which is endorsed by the local great start collaborative and is part of the community’s great start strategic plan that includes, but is not limited to, great start readiness program and head start providers, and shall identify all of the following:

(a) The estimated total number of children in the community who meet the criteria of section 32d and how that calculation was made.

(b) The estimated number of children in the community who meet the criteria of 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 32d including a verification of physical facility and staff resources capacity.

(d) The estimated number of children who meet the criteria of 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.

(2) A district receiving funds from an intermediate district or consortium of intermediate districts under section 32d shall also submit a final application for approval, in a form and manner prescribed by the department, by a date specified by the department, that details how the district complies with the program components established by the department pursuant to section 32d.

(3) The number of prekindergarten children construed to be in need of special readiness assistance under section 32d shall be calculated for each district in the following manner: 1/2 of the percentage of the district’s pupils in grades 1 to 5 who are eligible for free lunch, as determined using the district’s pupil membership count as of the pupil membership count day in the school year prior to the fiscal year for which the calculation is made, under the Richard B. Russell national school lunch act, 42 USC 1751 to 1769i, shall be multiplied by the average kindergarten enrollment of the district on the pupil membership count day of the 2 immediately preceding fiscal years.

(4) ~~Beginning in 2008~~-~~2009, the~~ The initial allocation for each fiscal year to each eligible district under section 32d shall be determined by multiplying the number of children determined by the formula under subsection (3) or the number of children the district indicates it will be able to serve under subsection (1)(c), whichever is less, by $3,400.00 and shall be distributed among districts in decreasing order of concentration of eligible children as determined by the formula under subsection (3). If the number of children a district indicates it will be able to serve under subsection (1)(c) includes children able to be served in a ~~full-day~~ school-day program, then the number able to be served in a ~~full-day~~ school-day program shall be doubled for the purposes of making this calculation of the lesser of the number of children determined by the formula under subsection (3) and the number of children the district indicates it will be able to serve under subsection (1)(c) and determining the amount of the initial allocation to the district under section 32d. A district may contract with a head start agency to serve children enrolled in head start with a ~~full-day~~ school-day program by blending head start funds with a part-day great start readiness program allocation. All head start and great start readiness program policies and regulations apply to the blended program.

(5) If funds ~~appropriated~~ allocated for eligible districts in section 32d remain after the initial allocation under subsection (4), the allocation under this subsection shall be distributed to each eligible district under section 32d in decreasing order of concentration of eligible children as determined by the formula under subsection (3). The allocation shall be determined by multiplying the number of children each eligible district served in the immediately preceding fiscal year ~~, including the number~~ ~~of children the district would have served if it had not satisfied all or part of the reduction under section 11d from funding under~~ ~~this section,~~ or the number of children the district indicates it will be able to serve under subsection (1)(c), whichever is less, minus the number of children for which the district received funding in subsection (4) by $3,400.00.

(6) If funds ~~appropriated~~ allocated for eligible districts in section 32d remain after the allocations under subsections (4) and (5), remaining funds shall be distributed to each eligible district under section 32d in decreasing order of concentration of eligible children as determined by the formula under subsection (3). If the number of children the district indicates it will be able to serve under subsection (1)(c) exceeds the number of children for which funds have been received under subsections (4) and (5), the allocation under this subsection shall be determined by multiplying the number of children the district indicates it will be able to serve under subsection (1)(c) less the number of children for which funds have been received under subsections (4) and (5) by $3,400.00 until the funds allocated for eligible districts in section 32d are distributed.

(7) If a district is participating in a program under section 32d for the first year, the maximum allocation under this section is 32 multiplied by $3,400.00.

(8) A district that offers supplementary ~~day~~ child 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 section 32d over other eligible districts. As used in this subsection, “full-day program” means a program that provides supplementary child care that totals at least 10 hours of programming per day.

(9) For any district with 315 or more eligible pupils, the number of eligible pupils shall be 65% of the number calculated using the formula under subsection (3). However, none of these districts may have less than 315 pupils for purposes of calculating the tentative allocation for eligible districts under section 32d.

(10) 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 great start readiness program without additional funds under section 32d, the district may include additional eligible children but shall not receive additional funding under section 32d for those children.

(11) A consortium of 2 or more districts shall be eligible for an allocation under section 32d if the districts designate a district or intermediate district to serve as the fiscal agent for the consortium’s allocation. A consortium shall submit a single application for the total number of children to be served. The consortium may decide, with approval of all consortium members, to serve numbers of children based on the allocation to each district or based on the allocation to the entire consortium, allowing children residing in any district in the consortium to be served by the consortium at any location.

Sec. 39a. (1) From the federal funds appropriated in section 11, there is allocated for ~~2010-2011~~ 2011-2012 to districts, intermediate districts, and other eligible entities all available federal funding, estimated at $761,973,600.00, for the federal programs under the no child left behind act of 2001, Public Law 107-110. These funds are allocated as follows:

(a) An amount estimated at $10,808,600.00 to provide students with drug- and violence-prevention programs and to implement strategies to improve school safety, funded from DED-OESE, drug-free schools and communities funds.

(b) An amount estimated at $7,461,800.00 for the purpose of improving teaching and learning through a more effective use of technology, funded from DED-OESE, educational technology state grant funds.

(c) An amount estimated at $109,411,900.00 for the purpose of preparing, training, and recruiting high-quality teachers and class size reduction, funded from DED-OESE, improving teacher quality funds.

(d) An amount estimated at $10,322,300.00 for programs to teach English to limited English proficient (LEP) children, funded from DED-OESE, language acquisition state grant funds.

(e) An amount estimated at $8,550,000.00 for the Michigan charter school subgrant program, funded from DED-OESE, charter school funds.

(f) An amount estimated at $1,760,000.00 for rural and low income schools, funded from DED-OESE, rural and low income school funds.

(g) An amount estimated at $1,000.00 to help schools develop and implement comprehensive school reform programs, funded from DED-OESE, title I and title X, comprehensive school reform funds.

(h) An amount estimated at $517,479,800.00 to provide supplemental programs to enable educationally disadvantaged children to meet challenging academic standards, funded from DED-OESE, title I, disadvantaged children funds.

(i) An amount estimated at $2,152,700.00 for the purpose of providing unified family literacy programs, funded from DED‑OESE, title I, even start funds.

(j) An amount estimated at $8,807,200.00 for the purpose of identifying and serving migrant children, funded from DED‑OESE, title I, migrant education funds.

(k) An amount estimated at $24,733,200.00 to promote high-quality school reading instruction for grades K-3, funded from DED-OESE, title I, reading first state grant funds.

(l) An amount estimated at $2,849,000.00 for the purpose of implementing innovative strategies for improving student achievement, funded from DED-OESE, title VI, innovative strategies funds.

(m) An amount estimated at $40,050,000.00 for the purpose of providing high-quality extended learning opportunities, after school and during the summer, for children in low-performing schools, funded from DED-OESE, twenty-first century community learning center funds.

(n) An amount estimated at $17,586,100.00 to help support local school improvement efforts, funded from DED-OESE, title I, local school improvement grants.

(2) From the federal funds appropriated in section 11, there is allocated for ~~2010-2011~~ 2011-2012 to districts, intermediate districts, and other eligible entities all available federal funding, estimated at $32,359,700.00, for the following programs that are funded by federal grants:

(a) An amount estimated at $600,000.00 for acquired immunodeficiency syndrome education grants, funded from HHS – center for disease control, AIDS funding.

(b) An amount estimated at $1,814,100.00 to provide services to homeless children and youth, funded from DED-OVAE, homeless children and youth funds.

(c) An amount estimated at $1,445,600.00 for serve America grants, funded from the corporation for national and community service funds.

(d) An amount estimated at $28,500,000.00 for providing career and technical education services to pupils, funded from DED-OVAE, basic grants to states.

(3) To the extent allowed under federal law, the funds allocated under subsection (1)(h), (i), (k), and (n) may be used for 1 or more reading improvement programs that meet at least 1 of the following:

(a) A research-based, validated, structured reading program that aligns learning resources to state standards and includes continuous assessment of pupils and individualized education plans for pupils.

(b) A mentoring program that is a research-based, validated program or a statewide 1-to-1 mentoring program and is designed to enhance the independence and life quality of pupils who are mentally impaired by providing opportunities for mentoring and integrated employment.

(c) A cognitive development program that is a research-based, validated educational service program focused on assessing and building essential cognitive and perceptual learning abilities to strengthen pupil concentration and learning.

(d) A structured mentoring-tutorial reading program for pupils in preschool to grade 4 that is a research-based, validated program that develops individualized educational plans based on each pupil’s age, assessed needs, reading level, interests, and learning style.

(4) All federal funds allocated under this section shall be distributed in accordance with federal law and with flexibility provisions outlined in Public Law 107-116, and in the education flexibility partnership act of 1999, Public Law 106-25. Notwithstanding section 17b, payments of federal funds to districts, intermediate districts, and other eligible entities under this section shall be paid on a schedule determined by the department.

(5) For the purposes of applying for federal grants appropriated under this ~~act,~~ article, the department shall allow an intermediate district to submit a ~~consolidated~~ consortium application on behalf of 2 or more districts with the agreement of those districts as appropriate according to federal rules and guidelines.

(6) As used in this section:

(a) “DED” means the United States department of education.

(b) “DED-OESE” means the DED office of elementary and secondary education.

(c) “DED-OVAE” means the DED office of vocational and adult education.

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

(e) “HHS-ACF” means the HHS administration for children and families.

~~Article 4~~

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 state budget director.~~

~~Article 5~~

Sec. 51a. (1) From the appropriation in section 11, there is allocated for ~~2009-2010 an amount not to exceed $1,016,342,000.00~~ ~~and there is allocated for~~ 2010-2011 an amount not to exceed ~~$1,057,883,000.00~~ $947,683,000.00 and there is allocated for 2011-2012 an amount not to exceed $977,469,100.00 from state sources and all available federal funding under sections 611 to 619 of part B of the individuals with disabilities education act, 20 USC 1411 to 1419, estimated at ~~$350,700,000.00 for 2009~~-~~2010 and estimated at~~ $385,700,000.00 for 2010-2011, and estimated at $363,400,000.00 for 2011-2012, 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. All federal funds allocated under this section in excess of those allocated under this section for 2002-2003 may be distributed in accordance with the flexible funding provisions of the individuals with disabilities education act, Public Law 108‑446, including, but not limited to, 34 CFR 300.206 and 300.208. Notwithstanding section 17b, payments of federal funds to districts, intermediate districts, and other eligible entities under this section shall be paid on a schedule determined by the department.

(2) From the funds allocated under subsection (1), there is allocated each fiscal year the amount necessary, estimated at ~~$234,780,000.00 for 2009~~-~~2010 and estimated at $248,200,000.00~~ $236,300,000.00 for 2010-2011 and estimated at $245,500,000.00 for 2011-2012, for payments toward reimbursing districts and intermediate districts for 28.6138% of total approved costs of special education, excluding costs reimbursed under section 53a, and 70.4165% of total approved costs of special education transportation. Allocations under this subsection shall be made as follows:

(a) The initial amount allocated to a district under this subsection toward fulfilling the specified percentages shall be calculated by multiplying the district’s special education pupil membership, excluding pupils described in subsection (12), times ~~the sum~~ of the foundation allowance under section 20 of the pupil’s district of residence, ~~plus the amount of the district’s per pupil~~ ~~allocation under section 20j(2),~~ not to exceed the basic foundation allowance under section 20 for the current fiscal year, 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 the basic foundation allowance under section 20 for the current fiscal year. ~~, and that district’s per pupil allocation under section 20j(2).~~

(b) After the allocations under subdivision (a), districts and intermediate districts for which the payments calculated 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 2009~~-~~2010 and~~ for 2010-2011 the amount necessary, estimated at ~~$1,329,000.00 for 2009~~-~~2010 and estimated at~~ $1,400,000.00 for 2010-2011, to make payments to districts and intermediate districts under this subsection. From the funds allocated under subsection (1), there is allocated for 2011-2012 an amount not to exceed $1,000,000.00 to make payments to districts and intermediate districts under this subsection. If the amount allocated to a district or intermediate district for a fiscal year under subsection (2)(b) is less than the sum of the amounts allocated to the district or intermediate district for 1996-97 under sections 52 and 58, there is allocated to the district or intermediate district for the fiscal year an amount equal to that difference, adjusted by applying the same proration factor that was used in the distribution of funds under section 52 in 1996-97 as adjusted to the district’s or intermediate district’s necessary costs of special education used in calculations for the fiscal year. This adjustment is to reflect reductions in special education program operations or services between 1996-97 and subsequent fiscal years. Adjustments for reductions in special education program operations or services shall be made in a manner determined by the department and shall include adjustments for program or service 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 may be allocated by the department each fiscal year for ~~2009‑2010 and for~~ 2010-2011 and for 2011-2012 to districts, intermediate districts, or other eligible entities 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 $1,750,000.00 for 2009-2010~~ ~~and~~ an amount not to exceed $2,200,000.00 for 2010-2011 and for 2011-2012 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,~~ sections 51a to 58, 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) Beginning with the 2004-2005 fiscal year, a district or intermediate district that employed special education support services staff to provide special education support services in 2003-2004 or in a subsequent fiscal year and that in a fiscal year after 2003-2004 receives the same type of support services from another district or intermediate district shall report the cost of those support services for special education reimbursement purposes under this ~~act.~~ article. This subdivision does not prohibit the transfer of special education classroom teachers and special education classroom aides if the pupils counted in membership associated with those special education classroom teachers and special education classroom aides are transferred and counted in membership in the other district or intermediate district in conjunction with the transfer of those teachers and aides.

(c) If the department determines before bookclosing for a fiscal year that the amounts allocated for that fiscal year under subsections (2), (3), (6), (8), and (12) and sections 53a, 54, and 56 will exceed expenditures for that fiscal year under subsections (2), (3), (6), (8), and (12) and sections 53a, 54, and 56, then for a district or intermediate district whose reimbursement for that fiscal year would otherwise be affected by subdivision (b), subdivision (b) does not apply to the calculation of the reimbursement for that district or intermediate district and reimbursement for that district or intermediate district shall be calculated in the same manner as it was for 2003-2004. If the amount of the excess allocations under subsections (2), (3), (6), (8), and (12) and sections 53a, 54, and 56 is not sufficient to fully fund the calculation of reimbursement to those districts and intermediate districts under this subdivision, then the calculations and resulting reimbursement under this subdivision shall be prorated on an equal percentage basis.

(d) Reimbursement for ancillary and other related services, as defined by R 340.1701c 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.

(e) Beginning with calculations for 2004-2005, if an intermediate district purchases a special education pupil transportation service from a constituent district that was previously purchased from a private entity; if the purchase from the constituent district is at a lower cost, adjusted for changes in fuel costs; and if the cost shift from the intermediate district to the constituent does not result in any net change in the revenue the constituent district receives from payments under sections 22b and 51c, then upon application by the intermediate district, the department shall direct the intermediate district to continue to report the cost associated with the specific identified special education pupil transportation service and shall adjust the costs reported by the constituent district to remove the cost associated with that specific service.

(8) From the allocation in subsection (1), there is allocated ~~each fiscal year for 2009~~-~~2010 and~~ for 2010-2011 only an amount not to exceed $15,313,900.00 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 the amount necessary, estimated at ~~$6,200,000.00 for 2009~~-~~2010 and estimated at $6,600,000.00~~ $5,000,000.00 for 2010-2011, and estimated at $6,800,000.00 for 2011-2012, to pay the foundation allowances for pupils described in this subsection. The allocation to a district under this subsection shall be calculated by multiplying the number of pupils described in this subsection who are counted in membership in the district times ~~the sum of~~ the foundation allowance under section 20 of the pupil’s district of residence, ~~plus the amount of the district’s per pupil allocation under section 20j(2),~~ not to exceed the basic foundation allowance under section 20 for the current fiscal year, 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 the basic foundation allowance under section 20 for the current fiscal year. ~~, and that district’s per pupil allocation under section 20j(2).~~ 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~~ Pupils with an emotional impairment counted in membership by an intermediate district and provided educational services by the department of community health.

(13) If it is determined that funds allocated under subsection (2) or (12) or under section 51c will not be expended, funds up to the amount necessary and available may be used to supplement the allocations under subsection (2) or (12) or under section 51c in order to fully fund those allocations. After payments under subsections (2) and (12) and 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) The allocations under subsections (2), (3), and (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.

(15) If a public school academy enrolls pursuant to this section a pupil who resides outside of the intermediate district in which the public school academy is located 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, Public Law 108-446, the provision of special education programs and services and the payment of the added costs of special education programs and services for the pupil are the responsibility of the district and intermediate district in which the pupil resides unless the enrolling district or intermediate district has a written agreement with the district or intermediate district in which the pupil resides or the public school academy for the purpose of providing the pupil with a free appropriate public education and the written agreement includes at least an agreement on the responsibility for the payment of the added costs of special education programs and services for the pupil.

Sec. 51c. As required by the court in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492, from the allocation under section 51a(1), there is allocated each fiscal year ~~for 2009~~-~~2010 and~~ for 2010-2011 and for 2011-2012 the amount necessary, estimated at ~~$702,500,000.00 for 2009~~-~~2010 and estimated at~~ ~~$732,100,000.00~~ $635,400,000.00 for 2010-2011 and estimated at $669,900,000.00 for 2011-2012, for payments to reimburse districts for 28.6138% of total approved costs of special education excluding costs reimbursed under section 53a, and 70.4165% of total approved costs of special education transportation. Funds allocated under this section that are not expended in the state fiscal year for which they were allocated, as determined by the department, may be used to supplement the allocations under sections 22a and 22b in order to fully fund those calculated allocations for the same fiscal year.

Sec. 51d. (1) From the federal funds appropriated in section 11, there is allocated for ~~2010-2011~~ 2011-2012 all available federal funding, estimated at $74,000,000.00, for special education programs that are funded by federal grants. All federal funds allocated under this section shall be distributed in accordance with federal law. Notwithstanding section 17b, payments of federal funds to districts, intermediate districts, and other eligible entities under this section shall be paid on a schedule determined by the department.

(2) From the federal funds allocated under subsection (1), the following amounts are allocated for ~~2010-2011:~~2011-2012:

(a) An amount estimated at $15,000,000.00 for handicapped infants and toddlers, funded from DED-OSERS, handicapped infants and toddlers funds.

(b) An amount estimated at $14,000,000.00 for preschool grants (Public Law 94-142), funded from DED-OSERS, handicapped preschool incentive funds.

(c) An amount estimated at $45,000,000.00 for special education programs funded by DED-OSERS, handicapped program, individuals with disabilities act funds.

(3) As used in this section, “DED-OSERS” means the United States department of education office of special education and rehabilitative services.

Sec. 53a. (1) For districts, reimbursement for pupils described in subsection (2) shall be 100% of the total approved costs of operating special education programs and services approved by the department and included in the intermediate district plan adopted pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766, minus the district’s foundation allowance calculated under section 20. ~~, and minus the amount calculated for the district under section 20j.~~ For intermediate districts, reimbursement for pupils described in subsection (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 the basic foundation allowance under section 20 for the current fiscal year. ~~, and under section 20j.~~

(2) Reimbursement under subsection (1) is for the following special education pupils:

(a) Pupils assigned to a district or intermediate district through the community placement program of the courts or a state agency, if the pupil was a resident of another intermediate district at the time the pupil came under the jurisdiction of the court or a state agency.

(b) Pupils who are residents of institutions operated by the department of community health.

(c) Pupils who are former residents of department of community health institutions for the developmentally disabled who are placed in community settings other than the pupil’s home.

(d) Pupils enrolled in a department-approved on-grounds educational program longer than 180 days, but not longer than 233 days, at a residential child care institution, if the child care institution offered in 1991-92 an on-grounds educational program longer than 180 days but not longer than 233 days.

(e) Pupils placed in a district by a parent for the purpose of seeking a suitable home, if the parent does not reside in the same intermediate district as the district in which the pupil is placed.

(3) Only those costs that are clearly and directly attributable to educational programs for pupils described in subsection (2), and that would not have been incurred if the pupils were not being educated in a district or intermediate district, are reimbursable under this section.

(4) The costs of transportation shall be funded under this section and shall not be reimbursed under section 58.

(5) Not more than $13,500,000.00 of the allocation for ~~2010-2011~~ 2011-2012 in section 51a(1) shall be allocated under this section.

Sec. 54. 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 of the allocation for ~~2010-2011~~ 2011-2012 in section 51a(1) shall be allocated under this section.

Sec. 56. (1) For the purposes of this section:

(b) “Millage levied” means the millage levied for special education pursuant to part 30 of the revised school code, MCL 380.1711 to 380.1743, including a levy for debt service obligations.

(c) “Taxable value” means the total taxable value of the districts constituent to an intermediate district, except that if a district has elected not to come under part 30 of the revised school code, MCL 380.1711 to 380.1743, membership and taxable value of the district shall not be included in the membership and taxable value of the intermediate district.

(2) From the allocation under section 51a(1), there is allocated ~~an amount not to exceed $39,281,100.00 for 2009~~-~~2010 and~~ an amount not to exceed $36,881,100.00 for ~~2010-2011~~ 2011-2012 to reimburse intermediate districts levying millages for special education pursuant to part 30 of the revised school code, MCL 380.1711 to 380.1743. The purpose, use, and expenditure of the reimbursement shall be limited as if the funds were generated by these millages and governed by the intermediate district plan adopted pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766. As a condition of receiving funds under this section, an intermediate district distributing any portion of special education millage funds to its constituent districts shall submit for departmental approval and implement a distribution plan.

(3) Reimbursement for those millages levied in ~~2008-2009~~ 2010-2011 shall be made in ~~2009-2010~~ 2011-2012 at an amount per ~~2008-2009~~ 2010-2011 membership pupil computed by subtracting from ~~$180,600.00~~ $174,700.00 the ~~2008-2009~~ 2010‑2011 taxable value behind each membership pupil and multiplying the resulting difference by the ~~2008-2009~~ 2010-2011 millage levied. ~~Reimbursement for those millages levied in 2009~~-~~2010 shall be made in 2010~~-~~2011 at an amount per 2009~~-~~2010~~ ~~membership pupil computed by subtracting from $181,700.00 the 2009~~-~~2010 taxable value behind each membership pupil and~~ ~~multiplying the resulting difference by the 2009~~-~~2010 millage levied.~~

~~Article 6~~

Sec. 61a. (1) From the appropriation in section 11, there is allocated an amount not to exceed $26,611,300.00 for ~~2010-2011~~ 2011-2012 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 career and technical 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 career and technical education program area. The allocation of added cost funds shall be based on the type of career and technical education 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 career and 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 career and technical education administration, shared time career and technical education administration, and career education planning district career and technical education 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.

Sec. 62. (1) For the purposes of this section:

(a) “Membership” means for a particular fiscal year the total membership for the immediately preceding fiscal year of the intermediate district and the districts constituent to the intermediate district or the total membership for the immediately preceding fiscal year of the area vocational-technical program.

(b) “Millage levied” means the millage levied for area vocational-technical education pursuant to sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, including a levy for debt service obligations incurred as the result of borrowing for capital outlay projects and in meeting capital projects fund requirements of area vocational-technical education.

(c) “Taxable value” means the total taxable value of the districts constituent to an intermediate district or area vocational-technical education program, except that if a district has elected not to come under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, the membership and taxable value of that district shall not be included in the membership and taxable value of the intermediate district. However, the membership and taxable value of a district that has elected not to come under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, shall be included in the membership and taxable value of the intermediate district if the district meets both of the following:

(i) The district operates the area vocational-technical education program pursuant to a contract with the intermediate district.

(ii) The district contributes an annual amount to the operation of the program that is commensurate with the revenue that would have been raised for operation of the program if millage were levied in the district for the program under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690.

(2) From the appropriation in section 11, there is allocated an amount not to exceed $9,000,000.00 each fiscal year for ~~2009-2010 and for 2010-2011~~ 2011-2012 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 ~~2008-2009~~ 2010-2011 shall be made in ~~2009-2010~~ 2011-2012 at an amount per ~~2008-2009~~ 2010-2011 membership pupil computed by subtracting from ~~$191,000.00~~ $190,400.00 the ~~2008-2009~~ 2010‑2011 taxable value behind each membership pupil and multiplying the resulting difference by the ~~2008-2009~~ 2010-2011 millage levied. ~~Reimbursement for the millages levied in 2009~~-~~2010 shall be made in 2010~~-~~2011 at an amount per 2009~~-~~2010 membership~~ ~~pupil computed by subtracting from $194,700.00 the 2009~~-~~2010 taxable value behind each membership pupil and multiplying~~ ~~the resulting difference by the 2009~~-~~2010 millage levied.~~

~~Article 7~~

Sec. 74. (1) From the amount appropriated in section 11, ~~there is allocated an amount not to exceed $3,028,500.00 for 2009-2010 and~~ there is allocated an amount not to exceed ~~$2,058,800.00~~ $2,558,800.00 for 2010-2011 and an amount not to exceed $3,154,600.00 for 2011-2012 for the purposes of this section.

(2) From the allocation in subsection (1), there is allocated for each fiscal year the amount necessary for payments to state supported colleges or universities and intermediate districts providing school bus driver safety instruction pursuant to section 51 of the pupil transportation act, 1990 PA 187, MCL 257.1851. 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 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~~ article for nonspecial education auxiliary services transportation.

(4) From the funds allocated in subsection (1), there is allocated ~~an amount not to exceed $1,403,500.00 for 2009~~-~~2010 and~~ an amount not to exceed ~~$433,800.00~~ $933,800.00 for 2010-2011 and an amount not to exceed $1,529,600.00 for 2011-2012 for reimbursement to districts and intermediate districts for costs associated with the inspection of school buses and pupil transportation vehicles by the department of state police as required under section 715a of the Michigan vehicle code, 1949 PA 300, MCL 257.715a, and section 39 of the pupil transportation act, 1990 PA 187, MCL 257.1839. The department of state police shall prepare a statement of costs attributable to each district for which bus inspections are provided and submit it to the department and to each affected district in a time and manner determined jointly by the department and the department of state police. The department shall reimburse each district and intermediate district for costs detailed on the statement within 30 days after receipt of the statement. Districts for which services are provided shall make payment in the amount specified on the statement to the department of state police within 45 days after receipt of the statement. The total reimbursement of costs under this subsection shall not exceed the amount allocated under this subsection. Notwithstanding section 17b, payments to eligible entities under this subsection shall be paid on a schedule prescribed by the department.

~~Article 8~~

Sec. 81. (1) Except as otherwise provided in this section, from the appropriation in section 11, there is allocated for ~~2010‑2011~~ 2011-2012 to the intermediate districts the sum necessary, but not to exceed ~~$65,376,800.00~~ $62,108,000.00, 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 ~~2010-2011~~ 2011-2012 an amount equal to ~~80%~~ 95% of the amount allocated under this subsection for ~~2008-2009.~~ 2010-2011. Funding provided under this section shall be used to comply with requirements of this ~~act~~ article and the revised school code that are applicable to intermediate districts, and for which funding is not provided elsewhere in this ~~act,~~ article, and to provide technical assistance to districts as authorized by the intermediate school board.

(2) Intermediate districts receiving funds under this section shall collaborate with the department to develop expanded professional development opportunities for teachers to update and expand their knowledge and skills needed to support the Michigan merit curriculum.

(3) 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.

(4) During a fiscal year, the department shall not increase an intermediate district’s allocation under subsection (1) because of an adjustment made by the department during the fiscal year in the intermediate district’s taxable value for a prior year. Instead, the department shall report the adjustment and the estimated amount of the increase to the house and senate fiscal agencies and the state budget director not later than June 1 of the fiscal year, and the legislature shall appropriate money for the adjustment in the next succeeding fiscal year.

(5) In order to receive funding under this section, an intermediate district shall do all of the following:

(a) 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.

(b) Demonstrate to the satisfaction of the department that the intermediate district employs at least 1 person who is trained in rules, regulations, and district reporting procedures for the individual-level student data that serves as the basis for the calculation of the district and high school graduation and dropout rates.

(c) Comply with sections 1278a and 1278b of the revised school code, MCL 380.1278a and 380.1278b.

(d) Furnish data and other information required by state and federal law to the center and the department in the form and manner specified by the center or the department, as applicable.

(e) Comply with section 1230g of the revised school code, MCL 380.1230g.

(f) Comply with section 761 of the revised school code, MCL 380.761.

~~(6) If the amount of the allocation to intermediate districts under subsection (1) is reduced in a fiscal year after 2010-2011~~ ~~from the amount of that allocation for 2010~~-~~2011, that reduced allocation shall not result in an intermediate district’s allocation~~ ~~being less than the funding actually received by or paid on behalf of the intermediate district for the 1994~~-~~95 fiscal year under~~ ~~former section 146a(1) and section 147(1), as those sections were in effect for the 1994~~-~~95 fiscal year.~~

~~Article 9~~

Sec. 93. From the general fund money appropriated in section 11, there is allocated for ~~2010-2011~~ 2011-2012 an amount not to exceed ~~$1,500,000.00~~ $1,304,300.00 to the library of Michigan for state aid to libraries payments to help support the provision of the Michigan electronic library in public schools and public libraries. The library of Michigan shall distribute the payments to libraries under this section ~~in an amount equal to 25.0% of the allocation each library received under the state aid~~ ~~to libraries appropriation enacted under 2009 PA 115.~~pursuant to the state aid to public libraries act, 1977 PA 89, MCL 397.551 to 397.576.

Sec. 94a. (1) There is created within the state budget office in the department of technology, management, and budget the center for educational performance and information. The center shall do all of the following:

(a) Coordinate the collection of all data required by state and federal law from districts, intermediate districts, and postsecondary institutions.

(b) Create, maintain, and enhance this state’s statewide longitudinal data system and ensure that it meets the requirements of subsection ~~(6).~~(4).

(c) Collect data in the most efficient manner possible in order to reduce the administrative burden on reporting entities, including, but not limited to, electronic transcript services.

(d) Create, maintain, and enhance this state’s web-based educational portal to provide information to school leaders, teachers, researchers, and the public in compliance with all federal and state privacy laws. Data shall include, but are not limited to, all of the following:

(i) Data sets that link teachers to student information, allowing districts to assess individual teacher impact on student performance and consider student growth factors in teacher and principal evaluation systems.

(ii) Data access or, if practical, data sets, provided for regional data warehouses that, in combination with local data, can improve teaching and learning in the classroom.

(iii) Research-ready data sets for researchers to perform research that advances this state’s educational performance.

(e) Provide data in a useful manner to allow state and local policymakers to make informed policy decisions.

(f) Provide public reports to the citizens of this state to allow them to assess allocation of resources and the return on their investment in the education system of this state.

(g) Other functions as assigned by the state budget director.

(2) Each state department, officer, or agency that collects information from districts, intermediate districts, or postsecondary institutions as required under state or federal law shall make arrangements with the center to ensure that the state department, officer, or agency is in compliance with subsection (1). This subsection does not apply to information collected by the department of treasury under the uniform budgeting and accounting act, 1968 PA 2, MCL 141.421 to 141.440a; the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the school bond qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to 388.1939; or section 1351a of the revised school code, MCL 380.1351a.

~~(3) The state budget director shall appoint a CEPI advisory committee to provide advice to the director. The CEPI advisory~~ ~~committee shall consist of the following members:~~

~~(a) One representative from the house fiscal agency.~~

~~(b) One representative from the senate fiscal agency.~~

~~(c) One representative from the state budget office.~~

~~(d) One representative from the state education agency.~~

~~(e) One representative each from the department of energy, labor, and economic growth and the department of treasury.~~

~~(f) Three representatives from intermediate school districts.~~

~~(g) One representative from each of the following educational organizations:~~

(i~~) Michigan association of school boards.~~

(ii~~) Michigan association of school administrators.~~

(~~iii) Michigan school business officials.~~

~~(h) One representative representing private sector firms responsible for auditing school records.~~

~~(i) Other representatives as the state budget director determines are necessary.~~

~~(4) The CEPI advisory committee appointed under subsection (3) shall provide advice to the director of the center regarding~~ ~~the management of the center’s data collection activities, including, but not limited to:~~

~~(a) Determining what data is necessary to collect and maintain in order to perform the center’s functions in the most efficient~~ ~~manner possible.~~

~~(b) Defining the roles of all stakeholders in the data collection system.~~

~~(c) Recommending timelines for the implementation and ongoing collection of data.~~

~~(d) Establishing and maintaining data definitions, data transmission protocols, and system specifications and procedures for~~ ~~the efficient and accurate transmission and collection of data.~~

~~(e) Establishing and maintaining a process for ensuring the reasonable accuracy of the data.~~

~~(f) Establishing and maintaining state and model local policies related to data collection, including, but not limited to, privacy~~ ~~policies related to individual student data. These privacy policies shall ensure that a student’s social security number is not~~ ~~released to the public for any purpose.~~

~~(g) Working with stakeholders to develop a state research agenda.~~

~~(h) Other matters as determined by the state budget director or the director of the center.~~

(3) ~~(5)~~ The center may enter into any interlocal agreements necessary to fulfill its functions.

(4) ~~(6)~~ The center shall ensure that the statewide longitudinal data system required under subsection (1)(b) meets all of the following:

(a) Includes data at the individual student level from preschool through postsecondary education and into the workforce.

(b) Supports interoperability by using standard data structures, data formats, and data definitions to ensure linkage and connectivity in a manner that facilitates the exchange of data among agencies and institutions within the state and between states.

(c) Enables the matching of individual teacher and student records so that an individual student may be matched with those teachers providing instruction to that student.

(d) Enables the matching of individual teachers with information about their certification and the institutions that prepared and recommended those teachers for state certification.

(e) Enables data to be easily generated for continuous improvement and decision-making, including timely reporting to parents, teachers, and school leaders on student achievement.

(f) Ensures the reasonable quality, validity, and reliability of data contained in the system.

(g) Provides this state with the ability to meet federal and state reporting requirements.

(h) For data elements related to preschool through grade 12 and postsecondary, meets all of the following:

(i) Contains a unique statewide student identifier that does not permit a student to be individually identified by users of the system, except as allowed by federal and state law.

(ii) Contains student-level enrollment, demographic, and program participation information.

(iii) Contains student-level information about the points at which students exit, transfer in, transfer out, drop out, or complete education programs.

(iv) Has the capacity to communicate with higher education data systems.

(i) For data elements related to preschool through grade 12 only, meets all of the following:

(i) Contains yearly test records of individual students for assessments approved by DED-OESE for accountability purposes under section 1111(b) of the elementary and secondary education act of 1965, 20 USC 6311, including information on individual students not tested, by grade and subject.

(ii) Contains student-level transcript information, including information on courses completed and grades earned.

(iii) Contains student-level college readiness test scores.

(j) For data elements related to postsecondary education only:

(i) Contains data that provide information regarding the extent to which individual students transition successfully from secondary school to postsecondary education, including, but not limited to, all of the following:

(A) Enrollment in remedial coursework.

(B) Completion of 1 year’s worth of college credit applicable to a degree within 2 years of enrollment.

(ii) Contains data that provide other information determined necessary to address alignment and adequate preparation for success in postsecondary education.

(5) ~~(7)~~ From the general fund appropriation in section 11, there is allocated an amount not to exceed ~~$3,621,100.00~~ $5,501,700.00 for ~~2010-2011~~ 2011-2012 to the department of technology, management, and budget to support the operations of the center. In addition, from the federal funds appropriated in section 11 there is allocated for ~~2010-2011~~ 2011-2012 the amount necessary, estimated at ~~$10,067,800.00 for 2010-2011,~~ $2,893,200.00, to support the operations of the center and to establish a longitudinal data system as provided under this section in compliance with the assurance provided to the United States department of education in order to receive state fiscal stabilization funds. The center shall cooperate with the state education agency to ensure that this state is in compliance with federal law and is maximizing opportunities for increased federal funding to improve education in this state.

(6) ~~(8)~~ From the federal funds allocated in subsection ~~(7),~~ (5), there is allocated for ~~2010-2011~~ 2011-2012 an amount not to exceed $850,000.00 funded from the competitive grants of DED-OESE, title II, educational technology funds for the purposes of this subsection. Not later than November 30 of each fiscal year, the department shall award a single grant to an eligible partnership that includes an intermediate district with at least 1 high-need local school district and the center.

~~(9) In addition to the amount allocated under subsection (7) there is also allocated from the general fund money appropriated~~ ~~in section 11 for 2010~~-~~2011 an additional amount not to exceed $1,800,000.00 for the purpose of establishing a longitudinal~~ ~~data system as provided under this section in compliance with the assurance provided to the federal department of education in~~ ~~order to receive state fiscal stabilization funds. In addition, there is allocated for 2010~~-~~2011 from the state school aid fund money~~ ~~appropriated under section 11 an amount not to exceed $8,440,000.00 to support the efforts of districts to match individual~~ ~~teacher and student records. The funds shall be distributed to districts in an amount and manner determined by the center.~~

(7) ~~(10)~~ From the federal funds allocated in subsection ~~(7),~~ (5), there is allocated for ~~2010-2011~~ 2011-2012 an amount not to exceed $242,000.00 to support the efforts of postsecondary institutions to comply with the requirements of this state’s statewide longitudinal data system. The funds shall be distributed to postsecondary institutions in an amount and manner determined by the center.

(8) ~~(11)~~ The center and the department shall work cooperatively to develop a cost allocation plan that pays for center expenses from the appropriate federal fund and state restricted fund revenues.

(9) ~~(12)~~ 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 and are appropriated for the purposes for which the funds were originally allocated.

(10) ~~(13)~~ The center may bill departments as necessary in order to fulfill reporting requirements of state and federal law. The center may also enter into agreements to supply custom data, analysis, and reporting to other principal executive departments, state agencies, local units of government, and other individuals and organizations. The center may receive and expend funds in addition to those authorized in subsection ~~(7)~~ (5) to cover the costs associated with salaries, benefits, supplies, materials, and equipment necessary to provide such data, analysis, and reporting services.

(11) ~~(14)~~ As used in this section:

(a) “DED-OESE” means the United States department of education office of elementary and secondary education.

(b) “High-need local school district” means a local educational agency as defined in the enhancing education through technology part of the no child left behind act of 2001, Public Law 107-110.

(c) “State education agency” means the department.

Sec. 98. (1) From the general fund money appropriated in section 11, there is allocated an amount not to exceed $1,687,500.00 for ~~2010-2011~~ 2011-2012 to provide a grant to the Michigan virtual university for the development, implementation, and operation of the Michigan virtual high school; to provide professional development opportunities for educators; and to fund other purposes described in this section. In addition, from the federal funds appropriated in section 11, there is allocated for ~~2010-2011~~ 2011-2012 an amount estimated at $2,700,000.00.

(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 online learning.

(d) Grant high school diplomas through a dual enrollment method with districts.

(e) 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.

(f) Maintain the accreditation status of the Michigan virtual high school from recognized national and international accrediting entities.

(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 that teach Michigan educators how to develop and deliver online instructional services.

(4) From the federal funds allocated in subsection (1), there is allocated for ~~2010-2011~~ 2011-2012 an amount estimated at $1,700,000.00 from DED-OESE, title II, improving teacher quality funds for a grant to the Michigan virtual university for the purpose of this subsection. With the approval of the department, the Michigan virtual university shall coordinate the following activities related to DED-OESE, title II, improving teacher quality funds in accordance with federal law:

(a) Develop, and assist districts in the development and use of, proven, innovative strategies to deliver intensive professional development programs that are both cost-effective and easily accessible, such as strategies that involve delivery through the use of technology, peer networks, and distance learning.

(b) Encourage and support the training of teachers and administrators to effectively integrate technology into curricula and instruction.

(c) Coordinate the activities of eligible partnerships that include higher education institutions for the purposes of providing professional development activities for teachers, paraprofessionals, and principals as defined in federal law.

(d) Offer teachers opportunities to learn new skills and strategies for developing and delivering instructional services.

(e) Provide online professional development opportunities for educators to update and expand knowledge and skills needed to support the Michigan merit curriculum core content standards and credit requirements.

(5) The Michigan virtual university shall offer at least 200 hours of online professional development for classroom teachers under this section each fiscal year beginning in 2006-2007 without charge to the teachers or to districts or intermediate districts.

(6) From the federal funds appropriated in subsection (1), there is allocated for ~~2010-2011~~ 2011-2012 an amount estimated at $1,000,000.00 from the DED-OESE, title II, educational technology grant funds to support e-learning and virtual school initiatives consistent with the goals contained in the United States national educational technology plan issued in January 2005. These funds shall be used to support activities designed to build the capacity of the Michigan virtual university and shall not be used to supplant other funding. Not later than November 30, 2010, from the funds allocated in this subsection, the department shall award a single grant of $1,000,000.00 to a consortium or partnership established by the Michigan virtual university that meets the requirements of this subsection. To be eligible for this funding, a consortium or partnership established by the Michigan virtual university shall include at least 1 intermediate district and at least 1 high-need local district. All of the following apply to this funding:

(a) An eligible consortium or partnership must demonstrate the following:

(i) Prior success in delivering online courses and instructional services to K-12 pupils throughout this state.

(ii) Expertise in designing, developing, and evaluating online K-12 course content.

(iii) Experience in maintaining a statewide help desk service for pupils, online teachers, and other school personnel.

(iv) Knowledge and experience in providing technical assistance and support to K-12 schools in the area of online education.

(v) Experience in training and supporting K-12 educators in this state to teach online courses.

(vi) Demonstrated technical expertise and capacity in managing complex technology systems.

(vii) Experience promoting twenty-first century learning skills through the use of online technologies.

(b) The Michigan virtual university, which operates the Michigan virtual high school, shall perform the following tasks related to this funding:

(i) Strengthen its capacity by pursuing activities, policies, and practices that increase the overall number of Michigan virtual high school course enrollments and course completions by at-risk students.

(ii) Examine the curricular and specific course content needs of middle and high school students in the areas of mathematics and science.

(iii) Design, develop, and acquire online courses and related supplemental resources aligned to state standards to create a comprehensive and rigorous statewide catalog of online courses and instructional services.

(iv) Continue to evaluate and conduct pilot programs for new and innovative online tools, resources, and courses.

(v) Evaluate existing online teaching and learning practices and develop continuous improvement strategies to enhance student achievement.

(vi) Develop, support, and maintain the technology infrastructure and related software required to deliver online courses and instructional services to students statewide.

(7) If a home-schooled or nonpublic school student is a resident of a district that subscribes to services provided by the Michigan virtual high school, the student may use the services provided by the Michigan virtual high school to the district without charge to the student beyond what is charged to a district pupil using the same services.

(8) Not later than December 1 ~~, 2010,~~ of each fiscal year, the Michigan virtual university shall provide a report to the house and senate appropriations subcommittees on state school aid, the state budget director, the house and senate fiscal agencies, and the department that includes at least all of the following information related to the Michigan virtual high school for the preceding state fiscal year:

(a) A list of the Michigan schools served by the Michigan virtual high school.

(b) A list of online course titles available to Michigan schools.

(c) The total number of online course enrollments and information on registrations and completions by course.

(d) The overall course completion rate percentage.

(e) A summary of DED-OESE, title IIA, teacher quality grant and DED-OESE, title IID, education technology grant expenditures.

(f) Identification of unmet educational needs that could be addressed by the Michigan virtual high school.

(9) As used in this section:

(a) “DED-OESE” means the United States department of education office of elementary and secondary education.

(b) “High-need local district” means a local educational agency as defined in the enhancing education through technology part of the no child left behind act of 2001, Public Law 107-110.

(c) “State education agency” means the department.

Sec. 99. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $2,515,000.00 for ~~2010-2011~~ 2011-2012 and from the general fund appropriation in section 11, there is allocated an amount not to exceed $110,000.00 for ~~2010-2011~~ 2011-2012 to support the activities and programs of mathematics and science centers and for other purposes as described in this section. In addition, from the federal funds appropriated in section 11, there is allocated for ~~2010-2011~~ 2011-2012 an amount estimated at $5,249,300.00 from DED-OESE, title II, mathematics and science partnership grants.

(2) Within a service area designated locally, approved by the department, and consistent with the comprehensive master plan for mathematics and science centers developed by the department and approved by the state board, an established mathematics and science center shall provide 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 state grant under this section to more than 1 mathematics and science center located in a designated region as prescribed in the 2007 master plan unless each of the grants serves a distinct target population or provides a service that does not duplicate another program in the designated region.

(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 33 established mathematics and science centers. Each established mathematics and science center that was funded in ~~2009-2010~~ the immediately preceding fiscal year shall receive state funding in an amount equal to 100% of the amount it was allocated under this subsection for ~~2009-2010.~~ the immediately preceding fiscal year. If a center declines state funding or a center closes, the remaining money available under this section shall be distributed to the remaining centers, as determined by the department.

(6) From the funds allocated in subsection (1), there is allocated for ~~2010-2011~~ 2011-2012 an amount not to exceed $750,000.00 in a form and manner determined by the department to those centers able to provide curriculum and professional development support to assist districts in implementing the Michigan merit curriculum components for mathematics and science. Funding under this subsection is in addition to funding allocated under subsection (5).

(7) In order to receive state or federal 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.

(8) Not later than September 30, 2013, the department shall reevaluate and update the comprehensive master plan described in subsection (1).

(9) The department shall give preference in awarding the federal grants allocated in subsection (1) to eligible existing mathematics and science centers.

(10) In order to receive state funds under this section, a grant recipient shall provide at least a 10% local match from local public or private resources for the funds received under this section.

(11) Not later than July 1 of each year, a mathematics and science center that receives funds under this section shall report to the department in a form and manner prescribed by the department on the following performance measures:

(a) Statistical change in pre- and post-assessment scores for students who enrolled in mathematics and science activities provided to districts by the mathematics and science center.

(b) Statistical change in pre- and post-assessment scores for teachers who enrolled in professional development activities provided by the mathematics and science center.

(12) ~~(11)~~ As used in this section:

(a) “DED” means the United States department of education.

(b) “DED-OESE” means the DED office of elementary and secondary education.

~~Article 10~~

Sec. 104. (1) In order to receive state aid under this ~~act,~~ article, a district shall comply with sections 1249, 1278a, 1278b, 1279, 1279g, and 1280b of the revised school code, MCL 380.1249, 380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b, and 1970 PA 38, MCL 388.1081 to 388.1086. Subject to subsection (2), from the state school aid fund money appropriated in section 11, there is allocated for ~~2010-2011~~ 2011-2012 an amount not to exceed ~~$40,194,400.00~~ $35,194,400.00 for payments on behalf of districts for costs associated with complying with those provisions of law. In addition, from the federal funds appropriated in section 11, there is allocated for ~~2010-2011~~ 2011-2012 an amount estimated at ~~$3,250,000.00~~ $8,250,000.00, funded from DED-OSERS, section 504 of part B of the individuals with disabilities education act, Public Law 94‑142, plus any carryover federal funds from previous year appropriations, for the purposes of complying with the federal no child left behind act of 2001, Public Law 107-110.

(2) The results of each test administered as part of the Michigan educational assessment program, including tests administered to high school students, shall include an item analysis that lists all items that are counted for individual pupil scores and the percentage of pupils choosing each possible response.

(3) All federal funds allocated under this section shall be distributed in accordance with federal law and with flexibility provisions outlined in Public Law 107-116, and in the education flexibility partnership act of 1999, Public Law 106-25.

(4) Notwithstanding section 17b, payments on behalf of districts, intermediate districts, and other eligible entities under this section shall be paid on a schedule determined by the department.

(5) As used in this section:

(a) “DED” means the United States department of education.

(b) “DED-OSERS” means the DED office of special education and rehabilitative services.

Sec. 107. (1) From the appropriation in section 11, there is allocated an amount not to exceed $22,000,000.00 for ~~2010-2011~~ 2011-2012 for adult education programs authorized under this section. Funds ~~appropriated~~ allocated under this section are restricted for adult education programs as authorized under this section only. A recipient of funds under this section shall not use those funds for any other purpose.

(2) To be eligible for funding under this section, a program shall employ certificated teachers and qualified administrative staff and shall offer continuing education opportunities for teachers to allow them to maintain certification.

(3) 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 educational 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 educational 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 Michigan career and technical institute.

(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, the individual meets 1 of the following:

(i) Is at least 20 years of age on September 1 of the school year.

(ii) Is at least 16 years of age on September 1 of the school year, has been permanently expelled from school under section 1311(2) or 1311a of the revised school code, MCL 380.1311 and 380.1311a, and has no appropriate alternative education program available through his or her district of residence.

(4) Except as otherwise provided in subsection (5), ~~from the amount allocated under subsection (1), at least $21,800,000.00~~ the money allocated under this section shall be distributed as follows:

(a) For districts and consortia that received payments for ~~2009-2010~~ 2010-2011 under this section, the amount allocated to each for ~~2010-2011~~ 2011-2012 shall be based on the number of participants served by the district or consortium for ~~2010-2011,~~ 2011-2012, using the amount allocated per full-time equated participant under subsection (7), up to a maximum total allocation under this subsection in an amount equal to ~~100%~~ 100.9% of the amount the district or consortium received for ~~2009-2010~~ 2010-2011 under this section before any reallocations made for ~~2009-2010~~ 2010-2011 under subsection (5).

(b) A district or consortium that received funding in ~~2009-2010~~ 2010-2011 under this section may operate independently of a consortium or join or form a consortium for ~~2010-2011.~~ 2011-2012. The allocation for ~~2010-2011~~ 2011-2012 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 that are attributable to the district or consortium that received funding in ~~2009-2010.~~ 2010-2011. A district or consortium described in this subdivision shall notify the department of its intention with regard to ~~2010-2011~~ 2011-2012 by October 1, ~~2010.~~ 2011.

(c) If a district had a declaration of financial emergency in place under the local government fiscal responsibility act, 1990 PA 72, MCL 141.1201 to 141.1291, and that declaration was revoked during 2005, the district may operate a program under this section independently of a consortium or may join or form a consortium to operate a program under this section. The allocation for ~~2010-2011~~ 2011-2012 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 that are attributable to the district or consortium that received funding in ~~2009-2010~~ 2010-2011 or, for a district for which a declaration of financial emergency was revoked during 2005, based on the amount the district received under this section using a 3-year average of the 3 most recent fiscal years the district received funding under this section. A district or consortium described in this subdivision shall notify the department of its intention with regard to ~~2010-2011~~ 2011-2012 by October 1, ~~2010.~~ 2011.

(5) A district that operated an adult education program in ~~2009-2010~~ 2010-2011 and does not intend to operate a program in ~~2010-2011~~ 2011-2012 shall notify the department by October 1, ~~2010~~ 2011 of its intention. The money intended to be allocated under this section to a district that does not operate a program in ~~2010-2011~~ 2011-2012 and the unspent money 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 (4) and any other unallocated money under this section shall instead be proportionately reallocated to the other districts described in subsection (4)(a) that are operating an adult education program in ~~2010-2011~~ 2011-2012 under this section.

~~(6) From the amount allocated under subsection (1), up to a maximum of $200,000.00 shall be allocated for not more~~ ~~than 1~~ ~~grant not to exceed $200,000.00 for expansion of an existing innovative community college program that focuses on~~ ~~educating adults. Grants may be used for program operating expenses such as staffing, rent, equipment, and other expenses. To~~ ~~be eligible for this grant~~ ~~funding, a program must meet the following criteria:~~

~~(a) Collaborates with local districts and businesses to determine area academic needs and to promote the learning~~ ~~opportunities.~~

~~(b) Is located off~~-~~campus in an urban residential setting with documented high poverty and low high school graduation~~ ~~rates.~~

~~(c) Provides general educational development (G.E.D.) test preparation courses and workshops.~~

~~(d) Provides developmental courses taught by college faculty that prepare students to be successful in college~~-~~level courses.~~

~~(e) Uses learning communities to allow for shared, rather than isolated, learning experiences.~~

~~(f) Provides on-site tutoring.~~

~~(g) Provides access to up~~-to-~~date technology, including personal computers.~~

~~(h) Partners with a financial institution to provide financial literacy education.~~

~~(i) Assists students in gaining access to financial aid.~~

~~(j) Provides on-site academic advising to students.~~

~~(k) Provides vouchers for reduced G.E.D. testing costs.~~

(l~~) Partners with local agencies to provide referrals for social services as needed.~~

~~(m) Enrolls participants as students of the community college.~~

~~(n) Partners with philanthropic and business entities to provide capital funding.~~

(6) ~~(7)~~ 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.

(7) ~~(8)~~ 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 a department-approved assessment, in a form and manner prescribed by the department, 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 upon completion of the program in compliance with the state-approved assessment policy.

(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 ~~(12)~~ (11) until the participant meets 1 of the following:

(i) The participant is assessed as having attained basic English proficiency as determined by a department-approved assessment.

(ii) The participant fails to show progress on 2 successive department-approved 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.

(8) ~~(9)~~ A general educational 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 a post-test upon completion of the program in compliance with the state-approved assessment policy.

(c) A funding recipient shall receive funding according to subsection ~~(12)~~ (11) 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 department-approved assessments used to determine readiness to take the G.E.D. test after having completed at least 450 hours of instruction.

(9) ~~(10)~~ 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) The program tests participants described in subdivision (a) before enrollment and upon completion of the program in compliance with the state-approved assessment policy.

(c) A funding recipient shall receive funding according to subsection ~~(12)~~ (11) 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.

(10) ~~(11)~~ A job or employment-related adult education program operated on a year-round or school year basis may be funded under this section, subject to all of the following:

(a) The program enrolls adults referred by their employer who are less than 20 years of age, have a high school diploma, are determined to be in need of remedial mathematics or communication arts skills and are not attending an institution of higher education.

(b) An individual may be enrolled in this program and the grant recipient shall receive funding according to subsection ~~(12)~~ (11) until 1 of the following occurs:

(i) The individual achieves the requisite skills as determined by department-approved 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.

(11) ~~(12)~~ 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, as defined by the department in the adult education guidebook; for obtaining a G.E.D. or passage of 1 or more individual G.E.D. tests; for attainment of a high school diploma or 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.

(12) ~~(13)~~ 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).

(13) ~~(14)~~ 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 ~~(8), (9), (10), or (11)~~ (7), (8), (9), or (10) 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.

(14) ~~(15)~~ An individual who is an inmate in a state correctional facility shall not be counted as a participant under this section.

(15) ~~(16)~~ 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.

(16) ~~(17)~~ A district or intermediate district receiving funds under this section may establish a sliding scale of tuition rates based upon a participant’s family income. A district or intermediate district may charge a participant tuition to receive adult education services under this section from that sliding scale of tuition rates on a uniform basis. The amount of tuition charged per participant shall not exceed the actual operating cost per participant minus any funds received under this section per participant. A district or intermediate district may not charge a participant tuition under this section if the participant’s income is at or below 200% of the federal poverty guidelines published by the United States department of health and human services.

(17) ~~(18)~~ In order to receive funds under this section, a district shall furnish to the department, in a form and manner determined by the department, all information needed to administer this program and meet federal reporting requirements; shall allow the department or the department’s designee to review all records related to the program for which it receives funds; and shall reimburse the state for all disallowances found in the review, as determined by the department.

(18) ~~(19)~~ All intermediate district participant audits of adult education programs shall be performed pursuant to the adult education participant auditing and accounting manuals published by the department.

(19) ~~(20)~~ As used in this section, “department” means the ~~department of energy, labor, and economic growth~~ workforce development agency.

Sec. 109. (1) Subject to subsection (2), in order to receive funds under this ~~act,~~ article, each district or intermediate district shall provide appropriate instructional services, as determined by the district or intermediate district, to an enrolled pupil who is certified by the pupil’s attending physician as having a medical condition that requires the pupil to be hospitalized or confined to his or her home during regular school hours and that is expected to require the hospitalization or confinement for a period longer than 5 school days. The district or intermediate district may provide the services itself or may contract with an intermediate district, a hospital, a treatment center, or another district to provide the services. In choosing a provider for the instructional services, the district or intermediate district shall consider which of those potential providers is best able to deliver the appropriate instructional services. The district or intermediate district shall pay reasonable costs as agreed upon between the district or intermediate district and the provider for services provided to a pupil under this section.

(2) A district or intermediate district is required to provide instructional services under subsection (1) to a pupil placed in a hospital, treatment center, or other treatment facility without the district’s or intermediate district’s prior knowledge only if the district or intermediate district is notified of the pupil’s placement by the hospital, treatment center, facility, or the pupil’s parent or legal guardian. Upon being notified, the district or intermediate district shall make arrangements to provide instructional services under subsection (1) within 3 school days after being notified.

(3) Not later than October 15 of each odd-numbered year, the department shall prepare and distribute electronically to each district and intermediate district ~~a written~~ and make available on its website an explanation of the operation of this section and the respective duties of all affected parties. The department shall provide a copy of the explanation electronically to any other person upon request.

~~Article 11~~

~~Article 12~~

~~Article 14~~

Sec. 147. The allocation for 2010-2011 for the public school employees’ retirement system pursuant to the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408, shall be made using the entry age normal cost actuarial method and risk assumptions adopted by the public school employees retirement board and the department of technology, management, and budget. ~~The~~ For public school employees who first worked for a public school reporting unit before July 1, 2010, the annual level percentage of payroll contribution rate is estimated at ~~19.41% for the 2010~~-~~2011 state~~ 15.96% for pension and at 8.50% for retiree health care for the 2011-2012 fiscal year. For public school employees who first worked for a public school reporting unit on or after July 1, 2010, the annual level percentage of payroll contribution rate is estimated at 14.73% for pension and 8.50% for retiree health care for the 2011-2012 fiscal year. For public school employees who first worked for a public school reporting unit before July 1, 2010, the annual level percentage of payroll contribution rate is estimated at 18.62% for pension and 8.75% for retiree health care for the 2012-2013 fiscal year. For public school employees who first worked for a public school reporting unit on or after July 1, 2010, the annual level percentage of payroll contribution rate is estimated at 17.39% for pension and 8.75% for retiree health care for the 2012-2013 fiscal year. The portion of the contribution rate assigned to districts and intermediate districts for each fiscal year is all of the total percentage points. This contribution rate reflects an amortization period of 27 26 years for ~~2010~~-~~2011. However, the contribution rate for 2010~~-~~2011 may be reduced by an amount~~ ~~approved by the public school employees’ retirement system board if reforms in the public school employees’ retirement~~ ~~system are enacted and in effect by December 31, 2010.~~ 2011-2012. 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.

Sec. 147a. From the appropriation in section 11, there is allocated for 2011-2012 only an amount not to exceed $155,000,000.00 for 1-time payments to participating districts. The money allocated in this section represents a portion of the year-end state school aid fund balance for 2010-2011. A district that receives money under this section shall use that money solely for the purpose of offsetting a portion of the retirement contributions owed by the district for the fiscal year ending September 30, 2012. The amount allocated to each participating district under this section shall be based on each participating district’s percentage of the total statewide payroll for all participating districts for the state fiscal year ending September 30, 2011. As used in this section, “participating district” means a district that is a reporting unit of the Michigan public school employees’ retirement system under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408, and that reports employees to the Michigan public school employees’ retirement system for September 2011.

Sec. 147b. (1) From the appropriation in section 11, there is allocated an amount not to exceed $133,000,000.00 for 2011-2012 only for the purposes of this section. The money allocated in this section represents a portion of the year-end school aid fund balance for 2010-2011. Money allocated under this section shall be deposited in the MPSERS retirement obligation reform reserve fund.

(2) The MPSERS retirement obligation reform reserve fund is created as a separate account within the state school aid fund. The state treasurer may receive money or other assets from any source for deposit into the MPSERS retirement obligation reform reserve fund. The state treasurer shall direct the investment of the MPSERS retirement obligation reform reserve fund. The state treasurer shall credit to the MPSERS retirement obligation reform reserve fund interest and earnings from the MPSERS retirement obligation reform reserve fund. Money in the MPSERS retirement obligation reform reserve fund at the close of the fiscal year shall remain in the MPSERS retirement obligation reform reserve fund and shall not lapse to the state school aid fund or to the general fund. The department of treasury shall be the administrator of the MPSERS retirement obligation reform reserve fund for auditing purposes.

(3) It is the intent of the legislature that the speaker of the house of representatives or the senate majority leader, or both, shall convene a workgroup to examine retirement obligations and potential reforms to the Michigan public school employees’ retirement system established under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408. The chair of the senate appropriations committee and chair of the house appropriations committee, or his or her designee, each shall be a member of the workgroup, and the workgroup shall report to the speaker of the house of representatives or the senate majority leader, as applicable, by February 1, 2012, on reforms identified, timelines for implementing reforms, and estimated costs and savings of the identified reforms.

~~Article 15~~

Sec. 152a. (1) As required by the court in the consolidated cases known as Adair v State of Michigan, Michigan supreme court docket nos. 137424 and 137453, from the state school aid fund money appropriated in section 11 there is allocated for ~~2010-2011~~ 2011-2012 an amount not to exceed ~~$25,624,500.00~~ $34,064,500.00 to be used solely for the purpose of paying necessary costs related to the state-mandated collection, maintenance, and reporting of data to this state.

(2) From the allocation in subsection (1), the department shall make payments to districts and intermediate districts in an equal amount per pupil based on the total number of pupils in membership in each district and intermediate district. The department shall not make any adjustment to these payments after the final installment payment under section 17b is made.

~~Article 16~~

~~Article 17~~

ARTICLE II

STATE AID TO COMMUNITY COLLEGES

Sec. 201. (1) Subject to the conditions set forth in this article, the amounts listed in subsection (2) are appropriated for community colleges for the fiscal year ending September 30, 2012, from the funds indicated in this section. The following is a summary of the appropriations in subsection (2):

(a) The gross appropriation is $283,880,500.00. After deducting total interdepartmental grants and intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is $283,880,500.00.

(b) The sources of the adjusted gross appropriation described in subdivision (a) are as follows:

(i) Total federal revenues, $0.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues, $195,880,500.00.

(v) State general fund/general purpose money, $88,000,000.00.

(2) Subject to subsection (3), the amount appropriated for community college operations is $283,880,500.00, allocated as follows:

(a) Alpena Community College, $4,984,300.00.

(b) Bay de Noc Community College, $5,040,200.00.

(c) Delta College, $13,336,200.00.

(d) Glen Oaks Community College, $2,320,900.00.

(e) Gogebic Community College, $4,140,500.00.

(f) Grand Rapids Community College, $16,649,700.00.

(g) Henry Ford Community College, $20,145,000.00.

(h) Jackson Community College, $11,219,700.00.

(i) Kalamazoo Valley Community College, $11,522,700.00.

(j) Kellogg Community College, $9,047,900.00.

(k) Kirtland Community College, $2,872,900.00.

(l) Lake Michigan College, $4,937,700.00.

(m) Lansing Community College, $28,651,900.00.

(n) Macomb Community College, $30,490,300.00.

(o) Mid Michigan Community College, $4,266,800.00.

(p) Monroe County Community College, $4,094,000.00.

(q) Montcalm Community College, $2,946,800.00.

(r) C.S. Mott Community College, $14,526,400.00.

(s) Muskegon Community College, $8,256,700.00.

(t) North Central Michigan College, $2,886,500.00.

(u) Northwestern Michigan College, $8,430,300.00.

(v) Oakland Community College, $19,455,900.00.

(w) St. Clair County Community College, $6,534,100.00.

(x) Schoolcraft College, $11,477,300.00.

(y) Southwestern Michigan College, $6,143,700.00.

(z) Washtenaw Community College, $11,827,300.00.

(aa) Wayne County Community College, $15,425,900.00.

(bb) West Shore Community College, $2,248,900.00.

(3) The amount appropriated in subsection (2) for community college operations is appropriated from the following:

(a) School aid fund, $195,880,500.00.

(b) State general fund/general purpose money, $88,000,000.00.

Sec. 201a. It is the intent of the legislature to provide appropriations for the fiscal year ending on September 30, 2013 for the items listed in section 201. The fiscal year 2012‑2013 appropriations are anticipated to be the same as those for fiscal year 2011‑2012, except that the amounts will be adjusted for changes in caseload and related costs, federal fund match rates, economic factors, and available revenue. These adjustments will be determined after the January 2012 consensus revenue estimating conference.

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

Sec. 203. Unless otherwise specified, a community college receiving appropriations in section 201 and the workforce development agency shall use the Internet to fulfill the reporting requirements of this article. This requirement may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on an Internet or Intranet site.

Sec. 204. Funds appropriated in section 201 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. Preference should be given to goods or services, or both, manufactured or provided by Michigan businesses, if they are competitively priced and of comparable quality. In addition, preference should be given to goods or services, or both, that are manufactured or provided by Michigan businesses owned and operated by veterans, if they are competitively priced and of comparable quality.

Sec. 205. The principal executive officer of each community college receiving appropriations in section 201 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 principal executive officer shall strongly encourage firms with which the community college contracts to subcontract with certified businesses in depressed and deprived communities for services or supplies, or both.

Sec. 206. The funds appropriated in section 201 are appropriated for community colleges with fiscal years ending June 30, 2012 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, 2011. Each community college shall accrue its July and August 2012 payments to its institutional fiscal year ending June 30, 2012. However, if a community college fails to submit all verified Michigan community colleges activities classification structure data for school year 2010-2011 to the workforce development agency by November 1, 2011, the monthly installments shall be withheld from that community college until those data are submitted.

Sec. 207. (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 funds appropriated under this article.

(2) A community college shall not pay an employer’s contribution to more than 1 retirement fund providing benefits for an employee.

Sec. 208. Money appropriated in section 201 shall not be used to pay for the construction or maintenance of a self-liquidating project. A community college shall comply with the current use and finance requirements of the joint capital outlay subcommittee (JCOS) for any construction, renovation, or other capital outlay projects pursuant to JCOS policy. The appropriation in section 201 for a community college that fails to comply with JCOS requirements shall be reduced by 1% for each violation.

Sec. 209. (1) From the funds appropriated in section 201, each community college shall develop, post, and maintain, on a user-friendly and publicly accessible Internet site, a comprehensive report categorizing all institutional general fund expenditures made by the community college within a fiscal year. The report shall include institutional general fund expenditure amounts categorized both by each academic unit, administrative unit, or external initiative within the community college and by major expenditure category, including faculty and staff salaries and fringe benefits, facility-related costs, supplies and equipment, contracts, and transfers to and from other community college funds. The report shall also include a list of all employee positions funded partially or wholly through institutional general fund revenue that includes the position title, name, and annual salary or wage amount for each position. The community college shall not provide financial information on its website under this section if doing so would violate a federal or state law, rule, regulation, or guideline that establishes privacy or security standards applicable to that financial information.

(2) Each community college shall report the following information to the senate and house appropriations subcommittees on community colleges, the senate and house fiscal agencies, and the state budget office by November 15, 2011, and post that information on the Internet website required under subsection (1):

(a) Budgeted fiscal year 2011-2012 general fund revenue from tuition and fees.

(b) Budgeted fiscal year 2011-2012 general fund revenue from state appropriations.

(c) Budgeted fiscal year 2011-2012 general fund revenue from property taxes.

(d) Budgeted fiscal year 2011-2012 total general fund revenue.

(e) Budgeted fiscal year 2011-2012 total general fund expenditures.

Sec. 210. (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) Recognizing the central role of community colleges in responding to local employment needs and challenges, community colleges shall develop and continue efforts to collaborate with local employers and students to identify local employment needs and strategies to meet them.

(3) Community colleges are encouraged to collaborate with each other on innovations to identify and meet local employment needs.

Sec. 210a. (1) A committee shall be created to develop a process to improve the transferability of core college courses between community colleges and public universities on a statewide basis. Building off of the Michigan association of college registrars and academic officers agreement and existing articulation agreements in place between individual institutions, the committee shall work to develop equivalency standards of core college courses and identify equivalent courses offered by the institutions.

(2) The committee shall be composed of the following:

(a) Ten representatives from community colleges selected by the Michigan community college association.

(b) Ten representatives from public universities selected by the presidents council, state universities of Michigan.

(c) One member of the house of representatives selected by the speaker of the house.

(d) One member of the house of representatives selected by the minority leader of the house of representatives.

(e) One member of the senate selected by the senate majority leader.

(f) One member of the senate selected by the senate minority leader.

(3) The committee shall submit an interim project status report to the senate and house appropriations subcommittees on community colleges and higher education, the senate and house fiscal agencies, and the state budget director by March 1, 2012.

Sec. 211. Community colleges shall do 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.

Sec. 212. It is the intent of the legislature to encourage community college districts to evaluate and pursue efficiency and cost-containment measures that maximize state funding. Community colleges shall identify practices that increase efficiencies, including, but not limited to, establishing joint ventures, consolidating services, utilizing program collaborations, maximizing educational benefits through optimal class sizes and frequency of course offerings, increasing web-based instruction, eliminating low-enrollment and high-cost instructional programs, using self-insurance, practicing energy conservation, and utilizing group purchasing. Efficiency efforts shall also include reviewing proposed capital outlay projects to increase coordination and utilization of new facilities, renovation projects, and technology improvements.

Sec. 213. It is the intent of the legislature that community colleges work with public universities in the state to implement statewide reverse transfer agreements to increase the number of students that are awarded credentials of value upon completion of the necessary credits. In doing so, the institutions should work collaboratively and cooperatively to remove administrative barriers that result in understating the academic attainment of Michigan’s citizens. It is the intent of the legislature that by August 1, 2012, statewide agreements be in place between community colleges and public universities that enable students who have earned a significant number of credits at a community college and transfer to a baccalaureate-granting institution before completing a degree to transfer the credits earned at the baccalaureate institution back to the community college in order to be awarded a credential of value.

Sec. 214. (1) A committee shall be created to develop a common set of scores using the ACT assessment to determine placement in developmental courses at community colleges for students who recently completed high school. The committee shall be composed of the following:

(a) Two members of the Michigan house of representatives. One member shall be designated by the speaker of the house, and 1 member shall be designated by the house minority leader.

(b) Two members of the Michigan senate. One member shall be designated by the senate majority leader, and 1 member shall be designated by the senate minority leader.

(c) Four representatives of Michigan public community colleges designated by the Michigan community colleges association.

(d) Four individuals representing K-12 education, with the speaker of the house, house minority leader, senate majority leader, and senate minority leader each designating 1 member.

(2) By March 1, 2012, the committee created under subsection (1) shall submit a report to the senate and house appropriations subcommittees on community colleges, the senate and house fiscal agencies, and the state budget office outlining the progress toward implementing a common set of ACT cutoff scores for placement into developmental education and credit-bearing courses.

Sec. 216. (1) It is the intent of the legislature that the senate and house appropriations subcommittees on community colleges, together with the Michigan community college association and other interested stakeholders, review any statutory mandates imposed on community colleges, including those identified by the legislative commission on statutory mandates established under former chapter 7B of the legislative council act, 1986 PA 268, and determine whether those mandates are necessary for the health and safety of students; are essential to the academic integrity of the community colleges; exceed any applicable federal requirements; are superfluous to the core academic programs of the community colleges; and materially impact local control and governance of the colleges.

(2) The senate and house subcommittees on community colleges shall review the estimated costs and benefits of each statutory mandate reviewed under subsection (1) and shall report their findings to the state budget director.

Sec. 217. Unless otherwise stated, all data items used in determining state aid in this article are as defined in the “2001 Manual for Uniform Financial Reporting, Michigan Public Community Colleges”, which shall be the basis for reporting data, and the “Activities Classification Structure Manual for Michigan Community Colleges”, as amended, which shall be used to document financial needs of the community colleges.

Sec. 218. A community college shall not include in the enrollment data reported for determining state aid under this article 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 article for the same individuals for whom reimbursement is provided by the state correctional system.

Sec. 219. A community college receiving funds in section 201 shall cooperate with the state’s efforts to establish a statewide P-20 education longitudinal data system to comply with the state fiscal stabilization fund provisions of the American recovery and reinvestment act of 2009, Public Law 111-5.

Sec. 220. (1) The auditor general or a certified public accountant appointed by the auditor general may conduct performance audits of community colleges as the auditor general considers necessary.

(2) 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 workforce development agency, the auditor general, and the state budget director 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.

Sec. 221. (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. 222. 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 members of the senate and house appropriations subcommittees on community colleges, the senate and house fiscal agencies, the auditor general, the workforce development agency, and the state budget director before November 15, 2011. 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 “2001 Manual for Uniform Financial Reporting, Michigan Public Community Colleges”. It is the intent of the legislature that a community college shall make the information the community college is required to provide under this section available to the public on its Internet website.

Sec. 223. Each community college shall report the following to the workforce development agency no later than November 1, 2011:

(a) The number of North American Indian students enrolled each term for the previous fiscal year, using guidelines and procedures developed by the workforce development agency and the Michigan commission on Indian affairs.

(b) The number of North American Indian tuition waivers granted each term, and the monetary value of the waivers for the previous fiscal year.

Sec. 224. Upon request, a community college shall inform interested Michigan high schools of the aggregate academic status of its students for the prior academic year, in a manner prescribed by the Michigan community college association and in cooperation with the Michigan association of secondary school principals.

Sec. 225. Each community college shall report to the house and senate fiscal agencies, the state budget director, and the workforce development agency by August 31, 2011, the tuition and mandatory fees paid by a full-time in-district student and a full-time out-of-district student as established by the college governing board for the 2010‑2011 academic year. This report should also include the annual cost of attendance based on a full-time course load of 30 credits. Each community college shall also report any revisions to the reported 2010-2011 academic year tuition and mandatory fees adopted by the college governing board to the house and senate fiscal agencies, the state budget director, and the workforce development agency within 15 days of being adopted.

Sec. 226. Each community college shall report to the workforce development agency 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, 2011.

Sec. 227. Funds appropriated in section 201 shall not be used to enter into a lease for, or to purchase, a vehicle assembled or manufactured outside of the United States if competitively priced and comparable quality vehicles made in the state of Michigan or elsewhere in the United States of America are available.

Sec. 228. A community college shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

Sec. 229. It is the intent of the legislature that each community college receiving an appropriation in section 201 include in its admission application process a specific question as to whether an applicant for admission is a veteran, an active member of the military, a member of the national guard or military reserves, or the spouse or dependent of a veteran, active member of the military, or member of the national guard or military reserves, in order to more quickly identify potential educational assistance available to that applicant. As used in this section, “veteran” means an honorably discharged veteran entitled to educational assistance under the provisions of section 5003 of the post-911 veterans educational assistance act of 2008, title V of Public Law 110-252, 38 USC 3301 to 3324.

Sec. 230. It is the intent of the legislature that the recommendations and performance measures developed by the performance indicators task force formed pursuant to section 242 of 2005 PA 154 be reviewed and more fully implemented for distribution of state funding to community colleges in future years. Specifically, it is the intent of the legislature that the performance indicators task force review and implement 1 or more measurable data items for the local strategic value indicator and review and implement 1 or more measurable data items for an administrative cost formula component.

ARTICLE III

STATE AID FOR UNIVERSITIES AND STUDENT FINANCIAL AID

Sec. 236. (1) Subject to the conditions set forth in this article, the amounts listed in subsections (2) to (5) are appropriated for higher education for the fiscal year ending September 30, 2012, from the funds indicated in this section. The following is a summary of the appropriations in subsections (2) to (5):

(a) The gross appropriation is $1,362,278,400.00. After deducting total interdepartmental grants and intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is $1,362,278,400.00.

(b) The sources of the adjusted gross appropriation described in subdivision (a) are as follows:

(i) Total federal revenues, $98,326,400.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues, $200,219,500.00.

(v) State general fund/general purpose money, $1,063,732,500.00.

(2) Amounts appropriated for public universities are as follows:

(a) The appropriation for Central Michigan University is $68,108,900.00, $61,431,100.00 for operations and $6,677,800.00 for tuition restraint incentive, appropriated from the following:

(i) State school aid fund, $11,284,600.00.

(ii) State general fund/general purpose money, $56,824,300.00.

(b) The appropriation for Eastern Michigan University is $64,619,100.00, $61,319,900.00 for operations and $3,299,200.00 for tuition restraint incentive, appropriated from the following:

(i) State school aid fund, $10,706,400.00.

(ii) State general fund/general purpose money, $53,912,700.00.

(c) The appropriation for Ferris State University is $41,324,300.00, $37,971,600.00 for operations and $3,352,700.00 for tuition restraint incentive, appropriated from the following:

(i) State school aid fund, $6,846,800.00.

(ii) State general fund/general purpose money, $34,477,500.00.

(d) The appropriation for Grand Valley State University is $52,677,400.00, $48,431,500.00 for operations and $4,245,900.00 for tuition restraint incentive, appropriated from the following:

(i) State school aid fund, $8,727,800.00.

(ii) State general fund/general purpose money, $43,949,600.00.

(e) The appropriation for Lake Superior State University is $10,789,500.00, $10,055,100.00 for operations and $734,400.00 for tuition restraint incentive, appropriated from the following:

(i) State school aid fund, $1,787,600.00.

(ii) State general fund/general purpose money, $9,001,900.00.

(f) The appropriation for Michigan State University is $293,746,600.00, $222,796,200.00 for operations, $18,324,600.00 for tuition restraint incentive, and $52,625,800.00 for agricultural experiment and cooperative extension activities, appropriated from the following:

(i) State school aid fund, $39,949,900.00.

(ii) State general fund/general purpose money, $253,796,700.00.

(g) The appropriation for Michigan Technological University is $40,733,600.00, $37,409,700.00 for operations and $3,323,900.00 for tuition restraint incentive, appropriated from the following:

(i) State school aid fund, $6,748,900.00.

(ii) State general fund/general purpose money, $33,984,700.00.

(h) The appropriation for Northern Michigan University is $38,367,400.00, $36,225,200.00 for operations and $2,142,200.00 for tuition restraint incentive, appropriated from the following:

(i) State school aid fund, $6,356,900.00.

(ii) State general fund/general purpose money, $32,010,500.00.

(i) The appropriation for Oakland University is $43,145,000.00, $39,313,500.00 for operations and $3,831,500.00 for tuition restraint incentive, appropriated from the following:

(i) State school aid fund, $7,148,400.00.

(ii) State general fund/general purpose money, $35,996,600.00.

(j) The appropriation for Saginaw Valley State University is $23,561,500.00, $21,969,300.00 for operations and $1,592,200.00 for tuition restraint incentive, appropriated from the following:

(i) State school aid fund, $3,903,800.00.

(ii) State general fund/general purpose money, $19,657,700.00.

(k) The appropriation for University of Michigan - Ann Arbor is $268,803,300.00, $254,931,800.00 for operations and $13,871,500.00 for tuition restraint incentive, appropriated from the following:

(i) State school aid fund, $44,536,300.00.

(ii) State general fund/general purpose money, $224,267,000.00.

(l) The appropriation for University of Michigan – Dearborn is $21,016,300.00, $19,627,400.00 for operations and $1,388,900.00 for tuition restraint incentive, appropriated from the following:

(i) State school aid fund, $3,482,100.00.

(ii) State general fund/general purpose money, $17,534,200.00.

(m) The appropriation for University of Michigan – Flint is $17,762,400.00, $16,679,400.00 for operations and $1,083,000.00 for tuition restraint incentive, appropriated from the following:

(i) State school aid fund, $2,942,900.00.

(ii) State general fund/general purpose money, $14,819,500.00.

(n) The appropriation for Wayne State University is $182,036,900.00, $169,209,400.00 for operations and $12,827,500.00 for tuition restraint incentive, appropriated from the following:

(i) State school aid fund, $30,160,600.00.

(ii) State general fund/general purpose money, $151,876,300.00.

(o) The appropriation for Western Michigan University is $93,168,300.00, $86,866,700.00 for operations and $6,301,600.00 for tuition restraint incentive, appropriated from the following:

(i) State school aid fund, $15,436,500.00.

(ii) State general fund/general purpose money, $77,731,800.00.

(3) The amount appropriated for state and regional programs is $200,000.00, appropriated from general fund/general purpose money and allocated as follows:

(a) Higher education database modernization and conversion, $105,000.00.

(b) Midwestern higher education compact, $95,000.00.

(4) The amount appropriated for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks program is $2,691,500.00, appropriated from general fund/general purpose money and allocated as follows:

(a) Select student support services, $1,956,100.00.

(b) Michigan college/university partnership program, $586,800.00.

(c) Morris Hood, Jr. educator development program, $148,600.00.

(5) Subject to subsection (6), the amount appropriated for grants and financial aid is $99,526,400.00, allocated as follows:

(a) State competitive scholarships, $19,861,700.00.

(b) Tuition grants, $31,664,700.00.

(c) Tuition incentive program, $43,800,000.00.

(d) Robert C. Byrd honors scholarship program, $1,500,000.00.

(e) Children of veterans and officer’s survivor tuition grant programs, $1,200,000.00.

(f) Project GEAR-UP, $1,500,000.00.

(6) The money appropriated in subsection (5) for grants and financial aid is appropriated from the following:

(a) Federal revenues under subpart 4 of part A of title IV of the higher education act of 1965, Public Law 89-329, 79 Stat. 1232, $1,500,000.00.

(b) Federal revenues under subpart 6 of part A of title IV of the higher education act of 1965, Public Law 89-329, 79 Stat. 1232, $1,500,000.00.

(c) Federal revenues under the United States department of education, office of elementary and secondary education, GEAR-UP program, $1,500,000.00.

(d) Federal revenues under the social security act, temporary assistance for needy families, $93,826,400.00.

(e) Contributions to children of veterans tuition grant program, $200,000.00.

(f) State general fund/general purpose money, $1,000,000.00.

Sec. 236a. It is the intent of the legislature to provide appropriations for the fiscal year ending on September 30, 2013 for the items listed in section 236. The fiscal year 2012‑2013 appropriations are anticipated to be the same as those for fiscal year 2011‑2012, except that the amounts will be adjusted for changes in caseload and related costs, federal fund match rates, economic factors, and available revenue. These adjustments will be determined after the January 2012 consensus revenue estimating conference.

Sec. 237. The appropriations authorized under this article are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 237a. As used in this article, “research university” means a public university classified as a “doctoral/research university”, a “research university (high research activity)”, or a “research university (very high research activity)” under the classification of institutions of higher education conducted by the Carnegie foundation.

Sec. 238. Unless otherwise specified, public universities receiving appropriations in section 236 shall use the Internet to fulfill the reporting requirements of this article. This requirement may include transmission of reports via electronic mail to the recipients identified for each reporting requirement, or it may include placement of reports on an Internet or Intranet site.

Sec. 239. Funds appropriated in section 236 shall not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods and services, or both, are available. Preference shall be given to goods or services, or both, manufactured or provided by Michigan businesses if they are competitively priced and of comparable value. In addition, preference shall be given to goods or services, or both, that are manufactured or provided by Michigan businesses owned and operated by veterans if they are competitively priced and of comparable quality.

Sec. 239a. It is the intent of the legislature that the funds appropriated in section 236 to state institutions of higher education shall not be used to enter into a lease or to purchase a vehicle assembled or manufactured outside of the United States, and that preference be given to vehicles assembled or manufactured in Michigan.

Sec. 240. The principal executive officer of each public university receiving appropriations in section 236 shall take all reasonable steps to ensure that businesses in deprived and depressed communities compete for and perform contracts to provide services, supplies, or both. Each principal executive officer shall strongly encourage firms with which the university contracts to subcontract with businesses in depressed and deprived communities for services, supplies, or both.

Sec. 241. (1) The funds appropriated in section 236 to public universities shall be paid out of the state treasury and distributed by the state treasurer to the respective institutions in 11 equal monthly installments on the sixteenth of each month, or the next succeeding business day, beginning with October 16, 2011. Except for Wayne State University, each institution shall accrue its July and August 2012 payments to its institutional fiscal year ending June 30, 2012.

(2) All public universities shall submit higher education institutional data inventory (HEIDI) data and associated financial and program information requested by and in a manner prescribed by the state budget director. For public universities with fiscal years ending June 30, 2011, these data shall be submitted to the state budget director by October 15, 2011. Public universities with a fiscal year ending September 30, 2011 shall submit preliminary HEIDI data by November 15, 2011 and final data by December 15, 2011. If a public university fails to submit HEIDI data and associated financial aid program information in accordance with this reporting schedule, the state treasurer shall withhold the monthly installments under subsection (1) to the public university until those data are submitted.

Sec. 242. Funds received by the state from the federal government or private sources for the use of a college or university are appropriated for the purposes for which they are provided. The acceptance and use of federal or private funds do not place an obligation upon the legislature to continue the purposes for which the funds are made available.

Sec. 243. A public university that receives funds under this article shall furnish all program and financial information that is required by and in a manner prescribed by the state budget director or the house or senate appropriations committee.

Sec. 244. A public university receiving funds in section 236 shall cooperate with all measures taken by the state to establish a statewide P-20 education longitudinal data system to comply with the state fiscal stabilization fund provisions of the American recovery and reinvestment act of 2009, Public Law 111-5.

Sec. 245. From the funds appropriated in section 236, each public university shall develop, post, and maintain, on a user-friendly and publicly accessible Internet site, a comprehensive report categorizing all institutional general fund expenditures made by the university within a fiscal year. The report shall include institutional general fund expenditure amounts categorized both by each academic unit, administrative unit, or external initiative within the university and by major expenditure category, including faculty and staff salaries and fringe benefits, facility-related costs, supplies and equipment, contracts, and transfers to and from other university funds. The report shall also include a list of all employee positions funded partially or wholly through institutional general fund revenue that includes the position title, name, and annual salary or wage amount for each position. The university shall not provide financial information on its website under this section if doing so would violate a federal or state law, rule, regulation, or guideline that establishes privacy or security standards applicable to that financial information.

Sec. 251. (1) Payments of the amounts included in section 236 for the state competitive scholarship program shall be distributed pursuant to 1964 PA 208, MCL 390.971 to 390.981.

(2) Pursuant to section 6 of 1964 PA 208, MCL 390.976, the department of treasury shall determine an actual maximum state competitive scholarship award per student, which shall be no less than $600.00, that ensures that the aggregate payments for the state competitive scholarship program do not exceed the appropriation contained in section 236 for the state competitive scholarship program. If the department determines that insufficient funds are available to establish a maximum award amount equal to at least $600.00, the department shall immediately report to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director regarding the estimated amount of additional funds necessary to establish a $600.00 maximum award amount.

(3) The department of treasury shall implement a proportional competitive scholarship maximum award level for recipients enrolled less than full-time in a given semester or term.

(4) If a student who receives an award under this section has his or her tuition and fees paid under the Michigan educational trust program, pursuant to the Michigan education trust act, 1986 PA 316, MCL 390.1421 to 390.1442, and still has financial need, the funds awarded under this section may be used for educational expenses other than tuition and fees.

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

(6) Veterans administration benefits shall not be considered in determining eligibility for the award of scholarships under 1964 PA 208, MCL 390.971 to 390.981.

Sec. 252. (1) The amounts appropriated in section 236 for the state tuition grant program shall be distributed pursuant to 1966 PA 313, MCL 390.991 to 390.997a.

(2) Tuition grant awards shall be made to all eligible Michigan residents enrolled in undergraduate degree programs who apply before July 1, 2011 and who are qualified.

(3) Pursuant to section 5 of 1966 PA 313, MCL 390.995, and subject to subsection (7), the department of treasury shall determine an actual maximum tuition grant award per student, which shall be no less than $1,512.00, that ensures that the aggregate payments for the tuition grant program do not exceed the appropriation contained in section 236 for the state tuition grant program. If the department determines that insufficient funds are available to establish a maximum award amount equal to at least $1,512.00, the department shall immediately report to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director regarding the estimated amount of additional funds necessary to establish a $1,512.00 maximum award amount. By December 15, 2011, and again by February 1, 2012, the department shall analyze the status of award commitments, shall make any necessary adjustments, and shall confirm that those award commitments will not exceed the appropriation contained in section 236 for the tuition grant program. The determination and actions shall be reported to the state budget director and the house and senate fiscal agencies no later than February 15, 2012. If award adjustments are necessary, the students shall be notified of the adjustment by the third Monday in February.

(4) Any unexpended and unencumbered funds remaining on September 30, 2012 from the amounts appropriated in section 236 for the tuition grant program shall not lapse on September 30, 2012, but shall continue to be available for expenditure for tuition grants provided in the 2012-2013 fiscal year under a work project account. The use of these unexpended fiscal year 2011-2012 funds shall terminate at the end of the 2012-2013 fiscal year.

(5) The department of treasury shall continue a proportional tuition grant maximum award level for recipients enrolled less than full-time in a given semester or term.

(6) If the department of treasury increases the maximum award per eligible student from that provided in the previous fiscal year, it shall not have the effect of reducing the number of eligible students receiving awards in relation to the total number of eligible applicants. Any increase in the maximum grant shall be proportional for all eligible students receiving awards for fiscal year 2011-2012.

(7) The department of treasury shall not award more than $3,000,000.00 in tuition grants to eligible students enrolled in the same independent nonprofit college or university in this state. Any decrease in the maximum grant shall be proportional for all eligible students enrolled in that college or university, as determined by the department.

Sec. 253. The auditor general may audit selected enrollments, degrees, and awards at selected independent colleges and universities receiving awards administered by the department of treasury. The audits shall be based upon definitions and requirements established by the department of treasury, the state budget director, and the senate and house fiscal agencies. The auditor general shall accept the Free Application for Federal Student Aid (FAFSA) form as the standard of residency documentation.

Sec. 254. The sums appropriated in section 236 for the state competitive scholarship, tuition incentive, tuition grant, and Robert C. Byrd honors scholarship programs shall be paid out of the state treasury and shall be distributed to the respective institutions under a quarterly payment system as follows: 50% shall be paid at the beginning of the state’s first fiscal quarter and 50% at the beginning of the state’s second fiscal quarter.

Sec. 255. The department of treasury shall determine the needs analysis criteria for students to qualify for the state competitive scholarship program and tuition grant program. To be consistent with federal requirements, student wages may be taken into consideration when determining the amount of the award.

Sec. 256. (1) The funds appropriated in section 236 for the tuition incentive program shall be distributed as provided in this section and pursuant to the administrative procedures for the tuition incentive program of the department of treasury.

(2) As used in this section:

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

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

(c) “Department” means the department of treasury.

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

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

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

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

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

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

(v) Request information on filing a FAFSA.

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

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

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

(c) To be eligible for phase I or phase II, a person must not be incarcerated and must be financially eligible as determined by the department. A person is financially eligible for the tuition incentive program if that person was Medicaid eligible for 24 months within the 36 months before application. Certification of eligibility may begin in the sixth grade.

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 257. To enable the legislature and the state budget director to evaluate the appropriation needs of higher education, each independent college and university shall make available to the legislature or state budget director, upon request, data regarding grants for the preceding, current, and ensuing fiscal years.

Sec. 258. By February 15 of each year, the department of treasury shall submit a report to the state budget director, the house and senate appropriations subcommittees on higher education, and the house and senate fiscal agencies for the preceding fiscal year on all student financial aid programs for which funds are appropriated in section 236. For each student financial aid program, the report shall include, but is not limited to, the total number of awards paid in the preceding fiscal year, the total dollar amount of those awards, and the number of students receiving awards and the total amount of those awards at each eligible postsecondary institution. To the extent information is available, the report shall also include information on the average exam performance, household income, and other demographic characteristics of students receiving awards under each program and historical information on the number of awards and total award amounts for each program.

Sec. 261. The University of Michigan biological station at Douglas Lake in Cheboygan County is regarded as a unique resource and is designated as a special research reserve. It is the intent of the legislature to protect and preserve the unique long-term research value and capabilities of the biological station area and Douglas Lake. The legislature further intends that no state programs or policies be developed that would have a deleterious impact on the research value of Douglas Lake.

Sec. 262. (1) It is the intent of the legislature that each public university shall develop policies for minimizing the cost of textbooks and course materials used at the university while maintaining quality of education and academic freedom. These policies should require all of the following:

(a) That faculty members submit lists of required textbooks and course materials for university review.

(b) That faculty members consider the least costly practices in assigning textbooks and course materials, such as adopting the least expensive edition of a textbook available when educational content is comparable to a more costly edition.

(c) That the university review any potential financial conflict of interest that may occur if a faculty member requires the purchase of any textbooks or course materials he or she has written.

(2) By February 1, 2012, each public university shall submit a report to the house and senate appropriations subcommittees on higher education and the house and senate fiscal agencies on the policies developed pursuant to this section.

Sec. 263. (1) Included in the appropriation in section 236 for agricultural experiment and cooperative extension activities is $5,628,100.00 for project GREEEN. Project GREEEN is intended to address critical regulatory, food safety, economic, and environmental problems faced by this state’s plant-based agriculture, forestry, and processing industries. “GREEEN” is an acronym for generating research and extension to meet environmental and economic needs.

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

(3) By September 30, 2012, Michigan State University shall submit a report to the house and senate appropriations subcommittees on agriculture and on higher education, the house and senate standing committees on agriculture, the house and senate fiscal agencies, and the state budget director for the preceding school fiscal year regarding expenditures and programmatic outcomes of the agricultural experiment station and cooperative extension service. The report shall include, but is not limited to:

(a) Total funds expended by the agricultural experiment station and cooperative extension service identified by state, local, private, federal, and university fund sources.

(b) The dollar amount of each project GREEEN project and a review of each project’s performance and accomplishments.

(c) The dollar amount of each bioeconomy research and development project and a review of each project’s performance and accomplishments.

(d) The dollar amount and description of all other individual programs and services provided by the agricultural experiment station and cooperative extension service and a review of each project’s performance and accomplishments.

(e) The number of businesses created or that had increased employment and the number of patents generated as a result of work conducted by the agricultural experiment station and cooperative extension service.

Sec. 263a. (1) Annually, in partnership with stakeholders of the agricultural experiment station and cooperative extension service, Michigan State University shall develop a set of research and extension priorities. As a part of this effort, Michigan State University and the department of agriculture and rural development, in partnership with the agriculture industry, shall convene a summit to set priorities for research and extension regarding production agriculture.

(2) Not later than September 30, 2012, Michigan State University shall submit a report to the house and senate appropriations subcommittees on agriculture and on higher education, the house and senate standing committees on agriculture, the house and senate fiscal agencies, and the state budget director for the preceding school fiscal year detailing, but not limited to:

(a) Total funds expended by the agricultural experiment station and by the cooperative extension service identified by state, local, private, federal, and university fund sources.

(b) A review of major programs within both the agricultural experiment station and the cooperative extension service with specific reference to accomplishments and impacts.

Sec. 264. Included in the appropriation in section 236 for Michigan State University is $80,000.00 for the Michigan future farmers of America association. This $80,000.00 appropriation shall not supplant any existing support that Michigan State University provides to the Michigan future farmers of America association.

Sec. 265. (1) The amounts appropriated in section 236 for public university tuition restraint incentives shall only be paid to a public university that certifies to the state budget director by August 31, 2011 that its board did not adopt an increase in tuition and fee rates for resident undergraduate students after February 1, 2011 for the 2010-2011 academic year and that its board will not adopt an increase in tuition and fee rates for resident undergraduate students for the 2011-2012 academic year that is greater than the calculated average of annual statewide changes in tuition and fee rates for academic years 2006-2007 through 2010-2011, as determined by the state budget director. As used in this subsection:

(a) “Fee” means any board-authorized fee that will be paid by more than 1/2 of all resident undergraduate students at least once during their enrollment at a public university. A university increasing a fee that applies to a specific subset of students or courses shall provide sufficient information to prove that the increase applied to that subset will not cause the increase in the average amount of board-authorized total tuition and fees paid by resident undergraduate students in the 2011-2012 academic year to exceed the limit established in this subsection.

(b) “Tuition and fee rate” means the average of rates for all undergraduate classes, based on the highest board-authorized rate for any semester during the academic year.

(2) The state budget director shall implement uniform reporting requirements to ensure that a public university receiving an appropriation under section 236 has satisfied the tuition restraint requirements of this section. The state budget director shall have the sole authority to determine if a public university has met the requirements of this section. Information reported by a public university to the state budget director under this subsection shall also be reported to the house and senate appropriations subcommittees on higher education and the house and senate fiscal agencies.

(3) In conjunction with the uniform reporting requirements established under subjection (2), each public university shall also report the following information to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director by August 31, 2011:

(a) Actual fiscal year 2010-2011 and budgeted fiscal year 2011-2012 total general fund tuition and fee revenue.

(b) Actual fiscal year 2010-2011 and budgeted fiscal year 2011-2012 total general fund revenue.

(c) Actual fiscal year 2010-2011 and budgeted fiscal year 2011-2012 general fund expenditures for student financial aid.

(d) Actual fiscal year 2010-2011 and budgeted fiscal year 2011-2012 total general fund expenditures.

(e) Actual fiscal year 2010-2011 and budgeted fiscal year 2011-2012 total fiscal year equated student enrollment.

Sec. 266. It is the intent of the legislature that, in subsequent budget years, public university operations funding appropriated by the legislature shall be allocated to each university using a formula developed and enacted by the legislature. Such a formula shall incent universities to provide, in a cost-effective and timely manner, postsecondary opportunities for students that are both accessible and affordable and that result in a highly skilled workforce.

Sec. 267. All public universities shall submit the amount of tuition and fees actually charged to a full-time resident undergraduate student for academic year 2011-2012 as part of their higher education institutional data inventory (HEIDI) data by August 31, 2011. A public university shall report any revisions for any semester of the reported academic year 2011-2012 tuition and fee charges to HEIDI within 15 days of being adopted.

Sec. 268. For the fiscal year ending September 30, 2012, it is the intent of the legislature that funds be allocated for unfunded North American Indian tuition waiver costs incurred by public universities under 1976 PA 174, MCL 390.1251 to 390.1253, from the general fund.

Sec. 269. From the amount appropriated in section 236 to Central Michigan University for operations, $29,700.00 shall be paid to Saginaw Chippewa Tribal College for the costs of waiving tuition for North American Indians under 1976 PA 174, MCL 390.1251 to 390.1253.

Sec. 270. From the amount appropriated in section 236 to Lake Superior State University for operations, $100,000.00 shall be paid to Bay Mills Community College for the costs of waiving tuition for North American Indians under 1976 PA 174, MCL 390.1251 to 390.1253.

Sec. 270a. Public universities shall coordinate their purchases of goods and services whenever possible. This may include, but is not limited to, group purchases for vehicles, utilities, supplies, electronic equipment, maintenance equipment, books, and contractual services. To the extent possible, the public universities shall use both the “Michigan delivering extended agreements locally” (MiDEAL) purchasing services of the state department of technology, management, and budget that makes state contracts available to local units of government, colleges, and universities and the purchasing services available through the state’s membership in the Midwestern Higher Education Compact (MHEC). Not later than January 1 of each year, the presidents council, state universities of Michigan shall submit to the members of the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director a report on group or pooled purchases and the savings achieved by the public universities in the previous fiscal year.

Sec. 271. By February 15, 2012, each public university receiving funds in section 236 shall submit a report to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director regarding academic program accreditation. The report shall include a list of all individually accredited academic programs at the university, the associated accrediting bodies, and the time periods for which each accreditation is valid, as well as an accounting of all fees, dues, and other direct expenditures made by the university for each program accreditation process conducted in the prior year. Expenditure data may be reported on either a calendar year or fiscal year basis.

Sec. 272. By February 15, 2012, each public university receiving funds under section 236 shall submit a report to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director regarding the rejection of transfer credits by the university in the prior year. The report shall include information on the number of credits earned by incoming students at other postsecondary institutions, with the equivalent of a letter grade of C or higher, that were rejected by the university for transfer, reported by both academic program area and prior institution, along with explanatory information regarding the rationale for the rejection of the credits. Data may be reported on either an academic or calendar year basis.

Sec. 273. It is the intent of the legislature that each public university shall submit a report to the house and senate appropriations committees, the house and senate fiscal agencies, and the state budget director by October 15, 2011, on the university’s efforts to accommodate the sincerely held religious beliefs of students enrolled in accredited counseling degree programs at the university.

Sec. 274. It is the intent of the legislature that each public university that has received a donation of human embryos that is subject to section 27 of article I of the state constitution of 1963, or that is conducting ongoing research using human embryonic stem cells derived from donated human embryos pursuant to section 27 of article I of the state constitution of 1963, shall submit a report to the director of the department of community health by December 1, 2011 that includes all of the following:

(a) The number of human embryos and the number of human embryo stem cell lines received by the university during fiscal year 2010-2011.

(b) The number of human embryos utilized for research purposes during fiscal year 2010-2011.

(c) The number of human embryo stem cell lines created from the embryos received during fiscal year 2010-2011.

(d) The number of donated human embryos being held in storage by the university as of September 30, 2011.

(e) The number of research projects using human embryonic stem cells derived from donated embryos being conducted by the university.

Sec. 274a. (1) It is the intent of the legislature that a public university receiving funds in section 236 not provide health insurance or other fringe benefits for any adult coresident of an employee of the university who is not married to or a dependent of that employee or for any dependent of such an adult coresident.

(2) It is the intent of the legislature that each public university receiving funds in section 236 submit a report by December 1, 2011 to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director containing the number of individuals described in subsection (1) who received health insurance or other fringe benefits provided by the university in fiscal year 2010-2011 and the cost to the university of providing those benefits.

Sec. 275. (1) It is the intent of the legislature that each public university receiving an appropriation in section 236 do all of the following:

(a) Meet the provisions of section 5003 of the post-911 veterans educational assistance act of 2008, title V of Public Law 110-252, 38 USC 3301 to 3324, including voluntary participation in the yellow ribbon GI education enhancement program established in that act in 38 USC 3317. By October 1 of each year, each public university shall report to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the presidents council, state universities of Michigan on whether or not it has chosen to participate in the yellow ribbon GI education enhancement program. If at any time during the fiscal year a university participating in the yellow ribbon program chooses to leave the yellow ribbon program, it shall notify the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the presidents council, state universities of Michigan.

(b) Establish an on-campus veterans’ liaison to provide information and assistance to all student veterans.

(c) Provide flexible enrollment application deadlines for all veterans.

(d) Include in its admission application process a specific question as to whether an applicant for admission is a veteran, an active member of the military, a member of the national guard or military reserves, or the spouse or dependent of a veteran, active member of the military, or member of the national guard or military reserves, in order to more quickly identify potential educational assistance available to that applicant.

(2) As used in this section, “veteran” means an honorably discharged veteran entitled to educational assistance under the provisions of section 5003 of the post-911 veterans educational assistance act of 2008, title V of Public Law 110-252, 38 USC 3301 to 3324.

Sec. 275a. Funds appropriated in section 236 shall not be used to pay for the construc- tion or maintenance of a self-liquidating project. A public university shall comply with the current use and finance requirements of the joint capital outlay subcommittee (JCOS) for any construction, renovation, or other capital outlay projects pursuant to JCOS policy. The appropriation in section 236 for a public university that fails to comply with JCOS reporting requirements shall be reduced by 1% for each violation.

Sec. 276. (1) Included in the appropriation for each public university in section 236 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks future faculty program that is intended to increase the pool of academically or economically disadvantaged candidates pursuing faculty teaching careers in postsecondary education. Preference may not be given to applicants on the basis of race, color, ethnicity, gender, or national origin. Institutions should encourage applications from applicants who would otherwise not adequately be represented in the graduate student and faculty populations. Each public university shall apply the percentage change applicable to every public university in the calculation of appropriations in section 236 to the amount of funds allocated to the future faculty program.

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

Sec. 277. (1) Included in the appropriation for each public university in section 236 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college day program that is intended to introduce academically or economically disadvantaged schoolchildren to the potential of a college education. Preference may not be given to participants on the basis of race, color, ethnicity, gender, or national origin. Public universities should encourage participation from those who would otherwise not adequately be represented in the student population.

(2) Individual program plans of each public university shall include a budget of equal contributions from this program, the participating public university, the participating school district, and the participating independent degree-granting college. College day funds shall not be expended to cover indirect costs. Not more than 20% of the university match shall be attributable to indirect costs. Each public university shall apply the percentage change applicable to every public university in the calculation of appropriations in section 236 to the amount of funds allocated to the college day program.

(3) The program described in this section shall be administered by each public university in a manner prescribed by the workforce development agency.

Sec. 278. (1) Included in section 236 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks select student support services program for developing academically or economically disadvantaged student retention programs for 4-year public and independent educational institutions in this state. Preference may not be given to participants on the basis of race, color, ethnicity, gender, or national origin. Institutions should encourage participation from those who would otherwise not adequately be represented in the student population.

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

(3) The program described in this section shall be administered by the workforce development agency.

Sec. 279. (1) Included in section 236 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college/university partnership program between 4-year public and independent colleges and universities and public community colleges, which is intended to increase the number of academically or economically disadvantaged students who transfer from community colleges into baccalaureate programs. Preference may not be given to participants on the basis of race, color, ethnicity, gender, or national origin. Institutions should encourage participation from those who would otherwise not adequately be represented in the transfer student population.

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

(3) The program described in this section shall be administered by the workforce development agency.

Sec. 280. (1) Included in the appropriation for each public university in section 236 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks visiting professors program which is intended to increase the number of instructors in the classroom to provide role models for academically or economically disadvantaged students. Preference may not be given to participants on the basis of race, color, ethnicity, gender, or national origin. Public universities should encourage participation from those who would otherwise not adequately be represented in the student population.

(2) The program described in this section shall be administered by the workforce development agency.

Sec. 281. (1) Included in the appropriation in section 236 is funding under the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks initiative for the Morris Hood, Jr. educator development program which is intended to increase the number of academically or economically disadvantaged students who enroll in and complete K-12 teacher education programs at the baccalaureate level. Preference may not be given to participants on the basis of race, color, ethnicity, gender, or national origin. Institutions should encourage participation from those who would otherwise not adequately be represented in the teacher education student population.

(2) The program described in this section shall be administered by each state-approved teacher education institution in a manner prescribed by the workforce development agency.

(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 described in this section.

Sec. 282. Each institution receiving funds under section 278, 279, or 281 shall notify the workforce development agency by April 15, 2012 as to whether it will expend by the end of its fiscal year the funds received under section 278, 279, or 281. Notwithstanding the award limitations in sections 278 and 279, the amount of funding reported as not being expended will be reallocated to the institutions that intend to expend all funding received under section 278, 279, or 281.

Sec. 283. (1) From the amount appropriated in section 236, the public universities shall systematically inform Michigan high schools regarding the academic status of students from each high school in a manner prescribed by the presidents council, state universities of Michigan in cooperation with the Michigan association of secondary school principals.

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

Sec. 284. From the amount appropriated in section 236, the public universities shall inform Michigan community colleges regarding the academic status of community college transfer students in a manner prescribed by the presidents council, state universities of Michigan in cooperation with the Michigan community college association.

Sec. 285. Public universities shall work with the state community colleges to encourage the transfer of students from the community colleges to the public universities and to facilitate the transfer of credits from the community colleges to the public universities.

Sec. 286. It is the intent of the legislature that public universities work with community colleges in the state to implement statewide reverse transfer agreements to increase the number of students that are awarded credentials of value upon completion of the necessary credits. In doing so, the institutions should work collaboratively and cooperatively to remove administrative barriers that result in understating the academic attainment of Michigan’s citizens. It is the intent of the legislature that by August 1, 2012, statewide agreements are in place between community colleges and public universities that enable students who have earned a significant number of credits at a community college and transfer to a baccalaureate granting institution before completing a degree to transfer the credits earned at the baccalaureate institution back to the community college in order to be awarded a credential of value.

Sec. 289. (1) The auditor general shall review higher education institutional data inventory (HEIDI) enrollment data submitted by all public universities and may perform audits of selected public universities if determined necessary. The review and audits shall be based upon the definitions, requirements, and uniform reporting categories established by the state budget director in consultation with the HEIDI advisory committee. The auditor general shall submit a report of findings to the house and senate appropriations committees and the state budget director no later than July 1, 2012.

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

(a) Student credit hours generated through instructional activity by faculty or staff in classrooms located outside Michigan, with the exception of instructional activity related to study-abroad programs or field programs.

(b) Student credit hours generated through distance learning instruction for students not eligible for the public university’s in-state main campus resident tuition rate. However, in instances where a student is enrolled in distance education and non-distance education credit hours in a given term and the student’s non-distance education enrollment is at a campus or site located within Michigan, student credit hours per the student’s eligibility for in-state or out-of-state tuition rates may be reported.

(c) Student credit hours generated through credit by examination.

(d) Student credit hours generated through inmate prison programs regardless of teaching location.

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

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

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

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

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

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

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

(4) “Distance learning instruction” as used in subsection (2) means instruction that occurs solely in other than a traditional classroom setting where the student and instructor are in the same physical location and for which a student receives course credits and is charged tuition and fees. Examples of distance learning instruction are instruction delivered solely through the Internet, cable television, teleconference, or mail.

Sec. 290. (1) Pursuant to section 289(2)(e), public universities may establish the following degree programs:

(a) Bachelor’s degree programs:

Central Michigan University, Athletic Training, B.S.A.T.

Grand Valley State University, Comprehensive Science and Arts for Teaching (CSAT), B.A./B.S.

Northern Michigan University, Fisheries and Wildlife Management, B.S.

Northern Michigan University, German Studies, Baccalaureate

Oakland University, Bachelor of Liberal Studies, B.A.

University of Michigan-Dearborn, Bio-Engineering, B.S.E.

University of Michigan-Dearborn, Integrated Science, B.S.

University of Michigan-Flint, Economics, B.S.

University of Michigan-Flint, Energy and Sustainable Systems, B.S.

University of Michigan-Flint, English with a Specialization in Linguistics, B.A.

Wayne State University, Astronomy, B.A.

Wayne State University, Biomedical Engineering, B.S.

(b) Master’s degree programs:

Eastern Michigan University, Teaching - Secondary Mathematics, M.A.

Michigan State University, Education for the Health Professions, M.A.

Michigan State University, Marketing Research, M.S.

Oakland University, Clinical Nurse Leadership, M.S.N

Oakland University, Master of Arts Communication, M.A.C

Oakland University, Mechatronics, M.S.

University of Michigan-Ann Arbor, Oral and Maxillofacial Pathology Program, M.S.

University of Michigan-Flint, Master of Public Health, M.P.H.

Wayne State University, Electric-Drive Vehicle Engineering, M.S.

Western Michigan University, Engineering (Chemical), M.S.

(c) Doctoral degree programs:

Central Michigan University, Doctor of Medicine, M.D.

Michigan Technological University, Environmental and Energy Policy, Ph.D.

Michigan Technological University, Geophysics, Ph.D.

Oakland University, Doctor of Medicine, M.D.

University of Michigan-Ann Arbor, Doctor of Nursing Practice, D.N.P.

University of Michigan-Ann Arbor, Doctoral Degree Granting Program in Cancer Biology, Doctoral

University of Michigan-Dearborn, Education Specialist, Ed.S.

University of Michigan-Flint, Doctor of Anesthesia Practice, Dr.A.P.

University of Michigan-Flint, Doctor of Occupational Therapy, Dr.O.T.

Western Michigan University, Engineering and Applied Sciences, Ph.D.

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

(3) When submitting the listing of new degree programs for purposes of sec- tion 289(2)(e), the presidents council of state universities shall also provide a listing of degree programs that institutions of higher education will no longer offer in subsequent academic years.

Sec. 291. The auditor general may conduct performance audits of public universities receiving funds in section 236 during the fiscal year ending September 30, 2012 as the auditor general considers necessary.

Sec. 292. A public university receiving funds under section 236 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 pursuant to the public information reporting requirements under the crime awareness and campus security act of 1990, title II of the student right-to-know and campus security act, Public Law 101-542, 104 Stat. 2381, available in electronic Internet format on their websites.

Sec. 293. A public university receiving funds under this article and also subject to the family educational rights and privacy act (FERPA), 20 USC 1232g, 34 CFR part 99, shall, when requested, provide information from the records of a student to any person or persons to whom the student has authorized disclosure on a written consent form pursuant to 34 CFR 99.30.

Sec. 294. For the state fiscal year ending September 30, 2012, in addition to the appropriations under section 236, there is appropriated from general fund/general purpose revenue, on a 1-time basis only, $1,900,000.00 for the following purposes:

(a) To Eastern Michigan University, for the autism collaborative center, $500,000.00.

(b) To Michigan State University, for the facility for rare isotope beams, $1,200,000.00.

(c) To Western Michigan University, for economic development and commercialization, $200,00.00.

ARTICLE IV

GENERAL PROVISIONS

Sec. 296. (1) If the maximum amount appropriated under this act 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 be deposited into the school aid stabilization fund created in section 11a.

(2) If the total maximum amount appropriated under all articles of this act from the state school aid fund and the school aid stabilization fund exceeds the amount available for expenditure from the state school aid fund for that fiscal year, payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51c, 53a, 56, and 152a shall be made in full. In addition, for districts beginning operations after 1994-95 that qualify for payments under section 22b, payments under section 22b shall be made so that the qualifying districts receive the lesser of an amount equal to the 1994-95 foundation allowance of the district in which the district beginning operations after 1994-95 is located or $5,500.00. The amount of the payment to be made under section 22b for these qualifying districts shall be as calculated under section 22a, with the balance of the payment under section 22b being subject to the proration otherwise provided under this subsection and subsection (3). If proration is necessary, state payments under each of the other sections of article I from all state funding sources, and state appropriations to community colleges and public universities under articles II and III from the state school aid fund, shall be prorated in the manner prescribed in subsection (3) as necessary to reflect the amount available for expenditure from the state school aid fund for the affected fiscal year. However, if the department of treasury determines that proration will be required under this subsection, or if the department of treasury determines that further proration is required under this subsection after an initial proration has already been made for a fiscal year, 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.

(3) If proration is necessary under subsection (2), the department shall calculate the proration in district and intermediate district payments under article I that is required under subsection (2), and the department of treasury shall calculate the proration in community college and public university payments under articles II and III that is required under subsection (2), as follows:

(a) The department and the department of treasury shall calculate the percentage of total state school aid fund money that is appropriated and allocated under this act for the affected fiscal year for each of the following:

(i) Districts.

(ii) Intermediate districts.

(iii) Entities receiving funding from the state school aid fund under article I other than districts or intermediate districts.

(iv) Community colleges and public universities that receive funding from the state school aid fund.

(b) The department shall recover a percentage of the proration amount required under subsection (2) that is equal to the percentage calculated under subdivi- sion (a)(i) for districts by reducing payments to districts. This reduction shall be made by calculating an equal dollar amount per pupil as necessary to recover this percentage of the proration amount and reducing each district’s total state school aid from state sources, other than payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51c, 53a, and 152a, by that amount.

(c) The department shall recover a percentage of the proration amount required under subsection (2) that is equal to the percentage calculated under subdivi- sion (a)(ii) for intermediate districts by reducing payments to intermediate districts. This reduction shall be made by reducing the payments to each intermediate district, other than payments under sections 11f, 11g, 26a, 26b, 51a(2), 51a(12), 53a, 56, and 152a, on an equal percentage basis.

(d) The department shall recover a percentage of the proration amount required under subsection (2) that is equal to the percentage calculated under subdivi- sion (a)(iii) for entities receiving funding from the state school aid fund under article I other than districts and intermediate districts by reducing payments to these entities. This reduction shall be made by reducing the payments to each of these entities, other than payments under sections 11j, 26a, and 26b, on an equal percentage basis.

(e) The department of treasury shall recover a percentage of the proration amount required under subsection (2) that is equal to the percentage calculated under subdivision (a)(iv) for community colleges and public universities that receive funding from the state school aid fund by reducing that portion of the payments under articles II and III to these community colleges and public universities that is from the state school aid fund on an equal percentage basis.

Enacting section 1. (1) In accordance with section 30 of article IX of the state constitution of 1963, total state spending on school aid under article I as amended by this amendatory act and in 2010 PA 217 from state sources for fiscal year 2010-2011 is estimated at $10,775,902,900.00 and state appropriations for school aid to be paid to local units of government for fiscal year 2010-2011 are estimated at $10,673,832,600.00; and total state spending on school aid under article I as amended by this amendatory act from state sources for fiscal year 2011-2012 is estimated at $11,005,741,100.00 and state appropriations for school aid to be paid to local units of government for fiscal year 2011-2012 are estimated at $10,716,987,100.00.

(2) In accordance with section 30 of article IX of the state constitution of 1963, total state spending from state sources for community colleges for fiscal year 2011-2012 under article II as added by this amendatory act is estimated at $283,880,500.00 and the amount of that state spending from state sources to be paid to local units of government for fiscal year 2011-2012 is estimated at $283,880,500.00.

(3) In accordance with section 30 of article IX of the state constitution of 1963, total state spending from state sources for higher education for fiscal year 2011-2012 under article III as added by this amendatory act is estimated at $1,263,952,000.00 and the amount of that state spending from state sources to be paid to local units of government for fiscal year 2011-2012 is estimated at $0.

Enacting section 2. Sections 11d, 11p, 20j, 20k, 29, 32c, 41, 64, 65, 92, 99i, 99p, 158b, and 166c, of the state school aid act of 1979, 1979 PA 94, MCL 388.1611d, 388.1611p, 388.1620j, 388.1620k, 388.1629, 388.1632c, 388.1641, 388.1664, 388.1665, 388.1692, 388.1699i, 388.1699p, 388.1758b, and 388.1766c, are repealed effective October 1, 2011.

Enacting section 3. (1) Except as otherwise provided in subsection (2), this amendatory act takes effect October 1, 2011.

(2) Sections 11, 11m, 22a, 22b, 51a, 51c, and 74 of the state school aid act of 1979, 1979 PA 94, MCL 388.1611, 388.1611m, 388.1622a, 388.1622b, 388.1651a, 388.1651c, and 388.1674, as amended by this amendatory act, take effect upon enactment of this amendatory act.

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

A bill to amend 1979 PA 94, entitled “An act to make appropriations to aid in the support of the public schools and the intermediate school districts of the state; to make appropriations for certain other purposes relating to education; to provide for the disbursement of the appropriations; to supplement the school aid fund by the levy and collection of certain taxes; to authorize the issuance of certain bonds and provide for the security of those bonds; to prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to create certain funds and provide for their expenditure; to prescribe penalties; and to repeal acts and parts of acts,” by amending the title and sections 2, 6, 11, 11a, 11g, 11j, 11k, 11m, 15, 18, 20, 20d, 22a, 22b, 22d, 22e, 24, 24a, 24c, 26a, 26b, 31a, 31d, 31f, 32b, 32d, 32j, 39, 39a, 40, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 93, 94a, 98, 99, 104, 107, 109, 147, and 152a (MCL 388.1602, 388.1606, 388.1611, 388.1611a, 388.1611g, 388.1611j, 388.1611k, 388.1611m, 388.1615, 388.1618, 388.1620, 388.1620d, 388.1622a, 388.1622b, 388.1622d, 388.1622e, 388.1624, 388.1624a, 388.1624c, 388.1626a, 388.1626b, 388.1631a, 388.1631d, 388.1631f, 388.1632b, 388.1632d, 388.1632j, 388.1639, 388.1639a, 388.1640, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656, 388.1661a, 388.1662, 388.1674, 388.1681, 388.1693, 388.1694a, 388.1698, 388.1699, 388.1704, 388.1707, 388.1709, 388.1747, and 388.1752a), the title as amended by 2003 PA 158, sections 6, 11a, 11g, 11k, 15, 18, 20, 20d, 22b, 22d, 24, 24a, 26b, 31a, 31d, 31f, 32b, 32d, 32j, 39, 51c, 51d, 53a, 54, 61a, 62, 74, 98, 99, 107, and 147 as amended by 2010 PA 110, sections 11, 11m, 22a, 51a, and 56 as amended and section 152a as added by 2010 PA 217, sections 11j, 22e, 24c, 26a, 39a, 81, 94a, and 104 as amended and section 93 as added by 2010 PA 204, section 40 as amended by 2000 PA 297, and section 109 as amended by 1994 PA 283, by amending the heading of article I, and by adding sections 12, 22f, 147a, 147b and articles II, III, and IV; and to repeal acts and parts of acts.

Bill Rogers

Chuck Moss

Conferees for the House

Roger Kahn

John Moolenaar

Conferees for the Senate

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

Senator Meekhof moved that the rule be suspended.

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

The question being on the adoption of the conference report,

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

Roll Call No. 257 Yeas—20

Booher Hildenbrand Marleau Proos

Brandenburg Hune Meekhof Richardville

Casperson Jansen Moolenaar Robertson

Colbeck Kahn Pappageorge Schuitmaker

Emmons Kowall Pavlov Walker

Nays—17

Anderson Hansen Johnson Smith

Bieda Hood Jones Warren

Caswell Hopgood Nofs Whitmer

Gleason Hunter Rocca Young

Gregory

Excused—0

Not Voting—1

Green

In The Chair: President

Senator Meekhof moved to reconsider the vote by which the conference report was adopted.

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

The question being on the adoption of the conference report,

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

Roll Call No. 258 Yeas—21

Booher Hildenbrand Marleau Proos

Brandenburg Hune Meekhof Richardville

Casperson Jansen Moolenaar Robertson

Colbeck Kahn Pappageorge Schuitmaker

Emmons Kowall Pavlov Walker

Green

Nays—17

Anderson Hansen Johnson Smith

Bieda Hood Jones Warren

Caswell Hopgood Nofs Whitmer

Gleason Hunter Rocca Young

Gregory

Excused—0

Not Voting—0

In The Chair: President

Senator Meekhof moved that the bill be given immediate effect.

The motion did not prevail, 2/3 of the members serving not voting therefor.

Senator Hunter requested the yeas and nays.

The yeas and nays were ordered, 1/5 of the members present voting therefor.

The motion prevailed, 2/3 of the members serving voting therefor, as follows:

Roll Call No. 259 Yeas—26

Booher Hansen Marleau Proos

Brandenburg Hildenbrand Meekhof Richardville

Casperson Hune Moolenaar Robertson

Caswell Jansen Nofs Rocca

Colbeck Jones Pappageorge Schuitmaker

Emmons Kahn Pavlov Walker

Green Kowall

Nays—12

Anderson Gregory Hunter Warren

Bieda Hood Johnson Whitmer

Gleason Hopgood Smith Young

Excused—0

Not Voting—0

In The Chair: President

Protests

Senators Anderson and Bieda, under their constitutional right of protest (Art. 4, Sec. 18), protested against the adoption of the first conference report on House Bill No. 4325 and moved that the statements they made during the discussion of the conference report be printed as their reasons for voting “no.”

The motion prevailed.

Senator Anderson’s statement is as follows:

I rise today to voice my concern and opposition over both of these omnibus budgets before us today. Yesterday, Governor Snyder was celebrating his tax plan that is actually raising taxes on working families and seniors in order to pay for a $1.8 billion tax break for businesses. Today, the Governor and his fellow party members are gearing up for a bevy of backslaps and victory laps as they champion completing the state budget before the Governor’s self-imposed May 31 deadline. We can be proud of having the budget done, but we should have something that we are proud of.

While this whole process has been rushed, I would like all of you to pause for a moment and think about what we’re actually doing today. The French author Molière said: “Unreasonable haste is the direct road to error.” We have railroaded this budget through to adhere to the Governor’s arbitrary deadline to the detriment of the majority of Michigan residents.

After minimal deliberation and even less negotiation, the majority is ready to pass this budget that cuts our schools, our colleges and universities, our local police and fire services, and countless health and human service programs that Michigan families depend on. It appears that my colleagues across the aisle have come to terms with voting on the same bad budgets over and over again. With today’s final vote, I hope they are equally prepared to come to terms with the backlash that awaits all of us for it.

After today, there is no turning back. You can push your button today and try to put these budgets behind you, but the fallout from these drastic cuts is going to follow you wherever you go. You are going to have to answer to angry seniors, outraged parents, and crestfallen children to tell them why you rushed this budget through for this artificial date and why you have cut them and raised their taxes to pay for billions in tax breaks for businesses. While my heart is heavy over this awful budget plan, I and those who will vote “no” today will be able to hold our heads high because we did the best we could to stop it.

I am pleading with all of you to listen to your conscience, stand up for your constituents, and join me in voting “no” on this budget. This morning, when we were taking up the omnibus budget bills in a joint committee between the House and the Senate, one House member from the Appropriations Committee mentioned that this is a budget on education which means we will be dealing with education in the long term; that it is cradle-to-grave education. Folks, what we are doing to this education budget is more like digging a grave for education in Michigan.

Senator Bieda’s statement is as follows:

Mr. President, I rise to express my disappointment with the School Aid budget that is being voted on once again by this body today. The budgets passed by this chamber should serve as a reflection of our values and priorities. If that is true, our priorities need to be reexamined.

Our children deserve a quality education, one that prepares them for a rapidly-changing world and increasingly-competitive job market. We should be investing more in our schools, putting money directly into the classroom to enhance the experience of our students.

Today, however, this body is considering a budget that divests in our schools and puts our students at risk of falling further behind. Our schools are the heart of our communities and greatly improve our quality of life.

The budget before us today will force schools to increase class sizes, cut band and art programs, sports and after-school clubs, and eliminate advance placement classes. This is not a statement we should be making. Cutting schools will make our state less attractive to business and investment. If our intention is to truly create a brighter future for Michigan, what better place to start than with our children.

This will be the third time in a few short weeks that this body has been asked to drastically cut funding for our schools. I will be voting “no” for the third time in order to protect our schools and our students. I hope that some of my colleagues will realize the harm that a “yes” vote will cause, and join me for their first time and stand up for Michigan’s children by voting “no.”

Senators Kahn, Hildenbrand and Pappageorge asked and were granted unanimous consent to make statements and moved that the statements be printed in the Journal.

The motion prevailed.

Senator Kahn’s statement is as follows:

Mr. President, to you and through you to members, it has been 50 years since a budget was accomplished for our people in May. This is even more remarkable when one understands that this was done with the background demand of reworking our tax code while at the same time working on these budgets.

These budgets are also historic because they move Michigan onto the path of structural soundness. There are no one‑time fixes contained herein. There are no gimmicks. There are no angles or hustles. These budgets contain the hard choices necessary to restore Michigan’s budgeting to structural soundness. Between these budgets, there is over a billion dollars of reductions in gross spending, and these budgets also look at our legacy costs with well over half a billion dollars of set-asides to recognize funding risks, fulfill our budget stabilization fund obligation, and also to fund post-retirement benefit obligations.

These difficult fiscal necessities were accompanied by another historic accomplishment. For the first time, we looked at the ongoing effects of the state’s spending practices. These budgets also provide a path to create a balanced budget next year due to revisions of The Management and Budget Act, and that act will be signed today. We now have the tools to evaluate budgets in a multiyear fashion.

None of this could have been accomplished without the help of our colleagues in the House. I would like to thank, in particular, Chairman Moss for his clear direction, his energy, and his effort. I also want to thank and thank in particular the Senate Appropriations Subcommittees, their chairs, their vice chairs, and their members. Without their hard work, including working here in Lansing during scheduled district work periods, we could not have done this. I want to tell our people, through you, that this work required countless hours of meetings and hearings and writing and rewriting and amending and negotiations and deliberation on the part of the legislators here in their efforts to support our people. The members of these committees have and deserve my and yours and our profound gratitude and respect.

None of this could have been done without the tireless efforts of our staff. Thank yous are deserved, in particular to Ellen Jeffries and to the Senate Fiscal staff, to Tom Davis from the Majority Leader’s staff, to my staff, in particular, Nancy Vreibel and Holly Fountain, and for all the calls that were received in my office. I would like to thank Becky Eckerson and Jon Cool and Stacy Leick.

Budgets are developed to serve our people, and these budgets are historic in that regard too because they maintain the social safety net in DCH and DHS. The reductions in K-12 funding are under 2 percent. These budgets include additional funding to cities and townships and villages and counties. Public safety is recognized and supported, and government effectiveness and efficiency are enhanced. In short, Mr. President, these are good bills.

Lastly, these budgets transcend Michigan. They send a message to our country as a whole, and that message is that government can be structurally sound and caring at the same time. It says to the United States, follow us, we will show you the way.

Mr. President, through you, I ask for the Senate’s support.

Senator Hildenbrand’s statement is as follows:

As State Senators and, most of us in this chamber, parents, we take very seriously the potential impact that proposed budget reductions would have on the ability of our kids to get a good education. Our young people are the future of our state, and we must ensure that when they graduate, they have the tools and knowledge necessary to succeed in the 21st century. The School Aid budget for next year will exceed $12.7 billion, which is almost 28 percent of the total state budget. This fact alone proves that education funding is a top priority for Republicans and Democrats alike. Having said that, we must also balance the needs of our schools with all the other needs of state government.

Keep in mind, our economy is still struggling. Although there are good signs for a brighter future, we still have high unemployment. We have lost population and students all across the state. We have less investment in Michigan, and therefore, we have less revenue to spend. So, yes, funding for education will be slightly reduced from what we are currently spending, but still, this reduction is significantly less than almost every other area of state government.

The public expects us to live within our means. This debate is about delivering a great education product for our students and taxpayers at a lower cost. I certainly understand and value and appreciate the hard work and dedication our school employees give to our students. No one wants to deny these employees a decent living and adequate benefits, but there are health care and retirement costs that are not sustainable and will literally bankrupt our state and our educational system if we continue down the same old path.

With 80 percent of the total cost of education made up of salary and benefits, we must make changes in these areas to keep our state afloat and to live within our means. We will continue to make education a top priority in this chamber, both from a financial standpoint but, more importantly, to make sure we have a system in place where our kids achieve and succeed in a system that puts our kids first above everything else—even disagreements over money.

Senator Pappageorge’s statement is as follows:

You know, there are things the media says all the time: It doesn’t matter whether it is true or not; just keep saying it over and over and eventually people will think it’s true. I am talking about the false dichotomy that I hear in this chamber all the time about individuals against business.

There are two ways that we get money in government. One is to honestly extract from an individual sales taxes and income taxes. And if you really don’t want to do that and you are worried for whatever reason that, oh, my goodness, I don’t want to be associated with anything as honest as that, why don’t we get business to collect the tax for us. Then we are home free, and we can always say those darn businesses did it.

Now come on, folks, businesses are not taxpayers; they are tax collectors. Let me say that again, businesses are tax collectors. What happened in this budget is we said let’s be more honest. Let people know how bad things are, and ask them to sacrifice because we are all going to have to. Instead, we say, oh, my goodness, business got a tax break. Come on, we are not going to get together on what needs to be done in the future if we allow those false dichotomies that show up in political ads to continue.

House Bill No. 4526, entitled

A bill to make, supplement, adjust, and consolidate appropriations for various state departments and agencies, the judicial branch, and the legislative branch for the fiscal year ending September 30, 2012; to provide for certain conditions on appropriations; to provide for the expenditure of the appropriations; and to provide anticipated appropriations for the fiscal year ending September 30, 2013.

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

The Conference Report was read as follows:

First Conference Report

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

House Bill No. 4526, entitled

Recommends:

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

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

The People of the State of Michigan enact:

ARTICLE I

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

PART 1

LINE-ITEM APPROPRIATIONS

FOR FISCAL YEAR 2011-2012

Sec. 101. Subject to the conditions set forth in this article, the amounts listed in this part are appropriated for the department of agriculture and rural development for the fiscal year ending September 30, 2012, from the funds indicated in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF AGRICULTURE

APPROPRIATION SUMMARY

Full-time equated unclassified positions.............................................................................2.0

Full-time equated classified positions.............................................................................441.0

GROSS APPROPRIATION.......................................................................................................... $ 72,219,300

Interdepartmental grant revenues:

IDG from LARA (LCC), liquor quality testing fees.................................................................... 197,600

IDG from MDNRE, biosolids...................................................................................................... 100,000

Total interdepartmental grants and intradepartmental transfers................................................... 297,600

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 71,921,700

Federal revenues:

USDA, multiple grants................................................................................................................. $ 10,873,300

EPA, multiple grants..................................................................................................................... 1,635,700

HHS-FDA..................................................................................................................................... 1,203,900

United States department of labor................................................................................................ 471,800

Total federal revenues................................................................................................................... 14,184,700

Special revenue funds:

Total local revenues...................................................................................................................... 0

Private - slow-the-spread foundation............................................................................................ 83,300

Private - commodity group revenue............................................................................................. 88,000

Total private revenues................................................................................................................... 171,300

Agricultural preservation fund...................................................................................................... 2,031,100

Agriculture equine industry development fund............................................................................ 3,773,300

Agriculture pollution prevention fund.......................................................................................... 100

Animal welfare fund..................................................................................................................... 144,500

Commodity inspection fees.......................................................................................................... 832,400

Consumer and industry food safety education fund..................................................................... 290,200

Dairy and food safety fund.......................................................................................................... 3,006,600

Freshwater protection fund........................................................................................................... 5,094,100

Gasoline inspection and testing fund........................................................................................... 2,747,800

Grain dealer fee fund.................................................................................................................... 222,500

Horticulture fund.......................................................................................................................... 72,800

Industry support funds.................................................................................................................. 535,300

Licensing and inspection fees...................................................................................................... 4,188,800

Migrant housing inspection fees................................................................................................... 114,200

Migratory labor housing fund...................................................................................................... 29,000

Nonretail liquor fees..................................................................................................................... 716,800

Refined petroleum fund................................................................................................................ 3,870,900

Testing fees................................................................................................................................... 447,500

Weights and measures regulation fees.......................................................................................... 745,100

Total other state restricted revenues............................................................................................. 28,863,000

State general fund/general purpose.............................................................................................. $ 28,702,700

Sec. 102. EXECUTIVE

Full-time equated unclassified positions.............................................................................2.0

Full-time equated classified positions...............................................................................26.0

Commissions and boards.............................................................................................................. $ 23,800

Unclassified positions—2.0 FTE positions.................................................................................. 213,300

Executive direction—8.0 FTE positions....................................................................................... 1,050,600

Management services—15.0 FTE positions................................................................................. 981,100

Statistical reporting service—1.0 FTE positions.......................................................................... 158,300

Emergency management—2.0 FTE positions............................................................................... 243,600

Accounting service center............................................................................................................ 878,300

GROSS APPROPRIATION.......................................................................................................... $ 3,549,000

Appropriated from:

Special revenue funds:

Private - commodity group revenue............................................................................................. 88,000

Industry support funds.................................................................................................................. 40,500

Nonretail liquor fees..................................................................................................................... 8,800

Refined petroleum fund................................................................................................................ 57,800

State general fund/general purpose.............................................................................................. $ 3,353,900

Sec. 103. DEPARTMENTWIDE

Rent and building occupancy charges.......................................................................................... $ 991,900

GROSS APPROPRIATION.......................................................................................................... $ 991,900

Appropriated from:

Federal revenues:

USDA, multiple grants................................................................................................................. 224,600

EPA, multiple grants..................................................................................................................... $ 174,100

HHS-FDA..................................................................................................................................... 43,300

Special revenue funds:

Agricultural preservation fund...................................................................................................... 22,700

Freshwater protection fund........................................................................................................... 33,500

Licensing and inspection fees...................................................................................................... 156,800

Nonretail liquor fees..................................................................................................................... 28,800

Refined petroleum fund................................................................................................................ 257,200

State general fund/general purpose.............................................................................................. $ 50,900

Sec. 104. INFORMATION AND TECHNOLOGY

Information technology services and projects.............................................................................. $ 1,303,400

GROSS APPROPRIATION.......................................................................................................... $ 1,303,400

Appropriated from:

Interdepartmental grant revenues:

IDG from LARA (LCC), liquor quality testing fees.................................................................... 2,800

Special revenue funds:

Agricultural preservation fund...................................................................................................... 200

Agriculture equine industry development fund............................................................................ 93,600

Freshwater protection fund........................................................................................................... 100

Gasoline inspection testing fund.................................................................................................. 27,400

Licensing and inspection fees...................................................................................................... 28,300

Nonretail liquor fees..................................................................................................................... 500

State general fund/general purpose.............................................................................................. $ 1,150,500

Sec. 105. FOOD AND DAIRY

Full-time equated classified positions.............................................................................104.0

Food safety and quality assurance—81.0 FTE positions............................................................. $ 9,931,600

Milk safety and quality assurance—23.0 FTE positions.............................................................. 3,037,900

GROSS APPROPRIATION.......................................................................................................... $ 12,969,500

Appropriated from:

Federal revenues:

USDA, multiple grants................................................................................................................. 234,900

HHS-FDA..................................................................................................................................... 451,600

Special revenue funds:

Consumer and industry food safety education fund..................................................................... 290,200

Dairy and food safety fund.......................................................................................................... 3,006,600

State general fund/general purpose.............................................................................................. $ 8,986,200

Sec. 106. ANIMAL INDUSTRY

Full-time equated classified positions...............................................................................64.0

Animal disease prevention and response—64.0 FTE positions................................................... $ 8,889,400

GROSS APPROPRIATION.......................................................................................................... $ 8,889,400

Appropriated from:

Federal revenues:

USDA, multiple grants................................................................................................................. 1,233,500

HHS-FDA..................................................................................................................................... 40,600

Special revenue funds:

Animal welfare fund..................................................................................................................... 144,500

Licensing and inspection fees...................................................................................................... 113,100

State general fund/general purpose.............................................................................................. $ 7,357,700

Sec. 107. PESTICIDE AND PLANT PEST MANAGEMENT

Full-time equated classified positions...............................................................................99.0

Pesticide and plant pest management—88.0 FTE positions........................................................ $ 10,612,700

Emerald ash borer control program—7.0 FTE positions............................................................. 1,822,600

Producer security/grain dealers—4.0 FTE positions.................................................................... 543,400

GROSS APPROPRIATION.......................................................................................................... $ 12,978,700

Appropriated from:

Federal revenues:

USDA, multiple grants................................................................................................................. $ 2,942,100

EPA, multiple grants..................................................................................................................... 738,800

HHS-FDA..................................................................................................................................... 109,200

Special revenue funds:

Private - slow-the-spread foundation............................................................................................ 83,300

Commodity inspection fees.......................................................................................................... 832,400

Grain dealers fee fund.................................................................................................................. 222,500

Horticulture fund.......................................................................................................................... 72,800

Industry support funds.................................................................................................................. 336,300

Licensing and inspection fees...................................................................................................... 3,808,700

State general fund/general purpose.............................................................................................. $ 3,832,600

Sec. 108. ENVIRONMENTAL STEWARDSHIP

Full-time equated classified positions...............................................................................43.0

Environmental stewardship—18.0 FTE positions........................................................................ $ 6,133,800

Michigan agriculture environmental assurance program—3.0 FTE positions............................. 552,600

Farmland and open space preservation—9.0 FTE positions........................................................ 958,200

Local conservation districts.......................................................................................................... 100

Migrant labor housing—6.0 FTE positions.................................................................................. 1,162,300

Right-to-farm—3.0 FTE positions................................................................................................ 519,000

Intercounty drain—4.0 FTE positions.......................................................................................... 425,000

GROSS APPROPRIATION.......................................................................................................... $ 9,751,000

Appropriated from:

Interdepartmental grant revenues:

IDG from MDNRE, biosolids...................................................................................................... 100,000

Federal revenues:

USDA, multiple grants................................................................................................................. 1,000,000

EPA, multiple grants..................................................................................................................... 361,200

United States department of labor................................................................................................ 471,800

Special revenue funds:

Agricultural preservation fund...................................................................................................... 958,200

Agriculture pollution prevention fund.......................................................................................... 100

Freshwater protection fund........................................................................................................... 5,060,500

Migrant housing inspection fees................................................................................................... 114,200

Migratory labor housing fund...................................................................................................... 29,000

State general fund/general purpose.............................................................................................. $ 1,656,000

Sec. 109. LABORATORY PROGRAM

Full-time equated classified positions...............................................................................94.0

Laboratory services—42.0 FTE positions.................................................................................... $ 5,564,600

USDA monitoring—13.0 FTE positions...................................................................................... 2,452,000

Consumer protection program—39.0 FTE positions.................................................................... 5,571,300

GROSS APPROPRIATION.......................................................................................................... $ 13,587,900

Appropriated from:

Interdepartmental grant revenues:

IDG from LARA (LCC), liquor quality testing fees.................................................................... 194,800

Federal revenues:

USDA, multiple grants................................................................................................................. 2,474,700

EPA, multiple grants..................................................................................................................... 361,600

HHS-FDA..................................................................................................................................... 559,200

Special revenue funds:

Agriculture equine industry development fund............................................................................ 557,800

Gasoline inspection and testing fund........................................................................................... 2,720,400

Licensing and inspection fees...................................................................................................... 81,900

Refined petroleum fund................................................................................................................ 3,555,900

Testing fees................................................................................................................................... $ 447,500

Weights and measures regulation fees.......................................................................................... 745,100

State general fund/general purpose.............................................................................................. $ 1,889,000

Sec. 110. AGRICULTURE DEVELOPMENT

Full-time equated classified positions.................................................................................8.0

Agriculture development—5.0 FTE positions.............................................................................. $ 2,040,300

Grape and wine program—3.0 FTE positions.............................................................................. 736,300

GROSS APPROPRIATION.......................................................................................................... $ 2,776,600

Appropriated from:

Federal revenues:

USDA, multiple grants................................................................................................................. 1,513,500

Special revenue funds:

Industry support funds.................................................................................................................. 158,500

Nonretail liquor fees..................................................................................................................... 678,700

State general fund/general purpose.............................................................................................. $ 425,900

Sec. 111. FAIRS AND EXPOSITIONS

Full-time equated classified positions.................................................................................3.0

Fairs and racing—3.0 FTE positions............................................................................................ $ 331,300

Purses and supplements - fairs/licensed tracks............................................................................ 611,400

Licensed tracks - light horse racing............................................................................................. 34,100

Standardbred breeders’ awards..................................................................................................... 250,000

Standardbred purses and supplements - licensed tracks............................................................... 461,600

Standardbred sire stakes............................................................................................................... 209,000

Standardbred training and stabling............................................................................................... 9,300

Thoroughbred owners’ awards..................................................................................................... 31,900

Thoroughbred supplements - licensed tracks............................................................................... 309,600

Thoroughbred breeder’s awards................................................................................................... 309,600

Thoroughbred sire stakes.............................................................................................................. 214,100

Distribution of outstanding winning tickets................................................................................. 350,000

GROSS APPROPRIATION.......................................................................................................... $ 3,121,900

Appropriated from:

Special revenue funds:

Agriculture equine industry development fund............................................................................ 3,121,900

State general fund/general purpose.............................................................................................. $ 0

Sec. 112. CAPITAL OUTLAY

Farmland and open space development acquisition..................................................................... $ 2,300,000

GROSS APPROPRIATION.......................................................................................................... $ 2,300,000

Appropriated from:

Federal revenues:

USDA, multiple grants................................................................................................................. 1,250,000

Special revenue funds:

Agriculture preservation fund....................................................................................................... 1,050,000

State general fund/general purpose.............................................................................................. $ 0

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2011-2012

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 2011-2012 is $57,565,700.00 and state spending from state resources to be paid to local units of government for fiscal year 2011-2012 is $1,500,000.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

Environmental protection............................................................................................................. $ 1,500,000

TOTAL.......................................................................................................................................... $ 1,500,000

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

Sec. 203. As used in this article:

(a) “Department” means the department of agriculture and rural development.

(b) “Director” means the director of the department.

(c) “EPA” means the United States environmental protection agency.

(d) “FTE” means full-time equated.

(e) “HHS-FDA” means the United States department of health and human services - food and drug administration.

(f) “IDG” means interdepartmental grant.

(g) “LARA” means the Michigan department of licensing and regulatory affairs.

(h) “MDEQ” means the Michigan department of environmental quality.

(i) “USDA” means the United States department of agriculture.

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

Sec. 206. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $5,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this article 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 $6,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this article 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 article 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 article under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 207. (1) The department shall maintain a searchable website accessible by the public at no cost that includes, but is not limited to, all of the following:

(a) Fiscal year-to-date expenditures by category.

(b) Fiscal year-to-date expenditures by appropriation unit.

(c) Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.

(d) The number of active department employees by job classification.

(e) Job specifications and wage rates.

(2) The department may develop and operate its own website to provide this information or may reference the state’s central transparency website as the source for this information.

Sec. 208. Unless otherwise specified, the departments shall use the Internet to fulfill the reporting requirements of this article. This requirement may include transmission of reports via electronic mail to the recipients identified for each reporting requirement, or it may include placement of reports on an Internet or Intranet site.

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. Preference shall be given to goods or services, or both, manufactured or provided by Michigan businesses, if they are competitively priced and of comparable quality. In addition, preference shall be given to goods or services, or both, that are manufactured or provided by Michigan businesses owned and operated by veterans, if they are competitively priced and of comparable quality.

Sec. 211. Amounts appropriated in part 1 for information technology may be designated as work projects and carried forward to support technology projects under the direction of the department of technology, management, and budget. Funds designated in this manner are not available for expenditure until approved as work projects under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a.

Sec. 212. The department and agencies receiving appropriations in part 1 shall receive and retain copies of all reports funded from appropriations in part 1. Federal and state guidelines for short-term and long-term retention of records shall be followed. The department may electronically retain copies of reports unless otherwise required by federal and state guidelines.

Sec. 214. From the funds appropriated in part 1 for information technology, departments and agencies shall pay user fees to the department of technology, management, and budget for technology-related services and projects. The user fees shall be subject to provisions of an interagency agreement between the department and agencies and the department of technology, management, and budget.

Sec. 215. The department shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

Sec. 228. Not later than November 15, the department shall prepare and transmit a report that provides for estimates of the total general fund/general purpose appropriation lapses at the close of the fiscal year. This report shall summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The report shall be transmitted to the office of the state budget, the chairpersons of the senate and house of representatives standing committees on appropriations, and the senate and house fiscal agencies.

Sec. 229. Within 14 days after the release of the executive budget recommendation, the department shall provide the state budget director, the senate and house appropriations chairs, the senate and house appropriations subcommittees on agriculture and rural development, respectively, and the senate and house fiscal agencies with an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the fiscal years ending September 30, 2011 and September 30, 2012.

EXECUTIVE

Sec. 301. (1) Pursuant to the appropriations in part 1, the department may receive and expend revenue and use that revenue to cover necessary expenses related to publications, audit and licensing functions, livestock sales, certification of nursery stock, and laboratory analyses as specified in the following:

(a) Management services publications.

(b) Management services audit and licensing functions.

(c) Pesticide and plant pest management propagation and certification of virus-free foundation stock.

(d) Pesticide and plant pest management grading services.

(e) Laboratory support testing for testing horses in draft horse pulling contests at county fairs when local jurisdictions request state assistance.

(f) Laboratory support analyses to determine foreign substances in horses engaged in racing or pulling contests at tracks.

(g) Laboratory support analyses of food, livestock, and agricultural products for disease, foreign products for disease, toxic materials, foreign substances, and quality standards.

(h) Laboratory support test samples for other agencies and organizations.

(i) Fruit and vegetable inspection at shipping and termination points and processing plants.

(2) The department shall notify the senate and house appropriations subcommittees on agriculture and the senate and house fiscal agencies 30 days prior to proposing changes in fees authorized under this section or under section 5 of 1915 PA 91, MCL 285.35.

(3) Annually, before February 1, the department shall provide a report to the senate and house appropriations subcommittees on agriculture and the senate and house fiscal agencies detailing all the fees charged by the department under the authorization provided in this section, including, but not limited to, rates, number of individuals paying each fee, and the revenue generated by each fee in the previous fiscal year.

Sec. 302. Of the funds appropriated in part 1 that are other than line-item grants, the department shall not provide grants to local government agencies, institutions of higher education, or nonprofit organizations unless the department provides notice of the grant to the senate and house appropriations subcommittees on agriculture at least 10 days before the grant is issued. The grants shall be used to support research or other related activities for the purpose of enhancing the agricultural industries in this state.

FOOD AND DAIRY

Sec. 402. Not later than April 1, 2012, the department shall provide a report to the senate and house appropriations subcommittees on agriculture and the senate and house fiscal agencies describing significant food-borne outbreaks and emergencies, including any enforcement actions taken related to food safety during the 2010-2011 fiscal year.

ANIMAL INDUSTRY

Sec. 450. From the funds appropriated in section 106 for the bovine tuberculosis program, the department shall reimburse the department of natural resources for those costs associated with monitoring and testing wildlife for bovine tuberculosis that are necessary to support the department goals and are jointly agreed to by the department and the department of natural resources to be in excess of efforts necessary to effectively plan and execute the eradication of bovine tuberculosis from Michigan’s wild free-ranging deer herd.

Sec. 451. From the funds appropriated in section 106 for bovine tuberculosis, the department shall pay for all whole herd testing costs and individual animal testing costs in the modified accredited zone to maintain split-state status requirements. These costs include indemnity and compensation for injury causing death or downer to animals.

Sec. 453. (1) Of the funds appropriated in part 1, the department may provide for indemnity as provided for pursuant to the animal industry act, 1988 PA 466, MCL 287.701 to 287.746, not to exceed $100,000.00 per order from any line item for the fiscal year ending September 30, 2012. Before the department provides for an indemnification under this section, the department shall report the reason for the indemnification, the amount of the indemnification, and to whom the indemnification is to be paid. The report shall be given to each member of the senate and house appropriations subcommittees on agriculture and to the senate and house fiscal agencies and to the state budget director.

(2) The department of agriculture and rural development shall make an indemnification payment for the fair market value of livestock killed by a wolf, coyote, or cougar, if the kill is verified by the department of natural resources. The fair market value of the livestock shall be determined pursuant to the indemnification procedures prescribed in the animal industry act, 1988 PA 466, MCL 287.701 to 287.745. In addition to the funds appropriated in part 1, the department of agriculture and rural development is authorized to expend the funds received from the department of natural resources to reimburse the department of agriculture and rural development for all indemnification payments made pursuant to this subsection.

Sec. 454. The department shall use its resources to collaborate with the United States department of agriculture to obtain TB-free status for the area of the Lower Peninsula that is zoned as modified accredited advanced. The department shall also aggressively work toward eradicating bovine TB in the modified accredited zone. The department shall also convene a workgroup to work toward eradicating bovine TB in the modified accredited zone.

Sec. 456. Of the funds appropriated in part 1, no funds shall be used to enforce the mandatory electronic animal identification program for any domestic animals other than cattle until specific procedures and guidelines for electronic animal identification are outlined in statute.

Sec. 457. On or before October 15, 2011, and on a quarterly basis thereafter, the department shall report to the senate and house agriculture committees, the senate and house appropriations subcommittees on agriculture, and the senate and house fiscal agencies on the department’s progress toward meeting the USDA requirements as outlined in the March 2007 bovine TB program review. The report shall include, but is not limited to, information and data on: wildlife risk mitigation plan implementation in the modified accredited zone; implementation of a movement certificate process; progress toward annual surveillance test requirements set out in the June 2007 MOU; efforts to work with slaughter facilities in Michigan, as well as those that slaughter a significant number of animals from Michigan; educational programs and information for Michigan’s livestock community; any other item the legislature should be aware of that will promote or hinder efforts to achieve bovine TB-free status for Michigan.

Sec. 458. From the funds appropriated in section 106 for animal industry, the department shall provide inspection and testing of aquaculture facilities and aquaculture researchers as provided under section 7 of the Michigan aquaculture development act, 1996 PA 199, MCL 286.877. It is the intent of the legislature that the department shall work with aquaculture facilities and aquaculture researchers to identify, contain, and eradicate viral hemorrhagic septicemia in this state.

PESTICIDE AND PLANT PEST MANAGEMENT

Sec. 551. (1) It is the intent of the legislature that the department work with the fruit and vegetable industry to ensure the development of a sustainable system of third-party inspections of fruits and vegetables.

(2) From the funds appropriated in part 1 for pesticide and plant pest management, not less than $200,000.00 shall be used for the purpose to ensure that Michigan commodities receive departmental inspections required by other governments to ship commodities out of Michigan. The department shall devise a plan to provide these required government inspections in a timely manner.

ENVIRONMENTAL STEWARDSHIP

Sec. 601. The part 1 appropriation line item environmental stewardship shall be used to support department agriculture pollution prevention programs, including groundwater and freshwater protection programs under part 87 of the Michigan natural resources and environmental protection act, 1994 PA 451, MCL 324.8701 to 324.8717, and technical assistance in implementing conservation grants available under the federal farm bill of 2008.

Sec. 606. The department shall actively search for all possible funding sources to be used to match federal funds in the USDA environmental quality incentives program.

Sec. 607. (1) It is the intent of the legislature that the department continue its activities in support of intercounty drainage districts as provided in chapter 5 of the drain code of 1956, 1956 PA 40, MCL 280.101 to 280.106.

(2) The department shall work with representatives of intercounty drainage districts to develop a mutually agreeable method of funding department costs associated with the intercounty drainage program.

AGRICULTURE DEVELOPMENT

Sec. 706. Not later than April 1, 2012, the department shall provide a report to the senate and house appropriations subcommittees on agriculture and the senate and house fiscal agencies describing the department’s agriculture development and export market development activities. The report shall identify grants awarded during the prior fiscal year, including a description of federal or private funds made available as a result of department activities.

Sec. 709. (1) Not later than April 1, 2012, the department shall provide a report to the senate and house appropriations subcommittees on agriculture and the senate and house fiscal agencies describing the activities of the grape and wine industry council established under section 303 of the Michigan liquor control act of 1998, 1998 PA 58, MCL 436.1303.

(2) The report shall include all of the following:

(a) Council activities and accomplishments for the previous fiscal year.

(b) Council expenditures for the previous fiscal year by category of administration, industry support, research and education grants, and promotion and consumer education.

(c) Grants awarded during the prior fiscal year and the results of research grant projects completed during the prior fiscal year.

FAIRS AND EXPOSITIONS

Sec. 801. All appropriations from the agricultural equine industry development fund shall be spent on equine-related purposes. No funds from the agriculture equine industry development fund shall be expended for nonequine-related purposes without prior approval of the legislature.

Sec. 802. All appropriations from the agriculture equine industry development fund, except for the racing commission and laboratory analysis program appropriations, shall be reduced proportionately if revenues to the agriculture equine industry development fund decline during the fiscal year ending September 30, 2011 to a level lower than the amounts appropriated in section 108.

Sec. 803. In the event there is no live thoroughbred race meet in 2011 or 2012, all purse money and program money appropriated for the thoroughbred industry in fiscal year 2010-2011 and fiscal year 2011-2012 shall be held in escrow for a period not to exceed 18 months, or until a thoroughbred race meet license is applied for and granted by the Michigan gaming control board. In the event there is no thoroughbred meet in 2011 or 2012, the purse pool distribution order to be issued by the Michigan gaming control board in 2012 that delineates distribution between the thoroughbred meet that has been held at pinnacle race course and the joint thoroughbred/quarterhorse meet held in Mt. Pleasant shall be the same distribution formula as issued in 2011, with the thoroughbred portion being held in escrow.

Sec. 804. The Michigan gaming control board shall use actual expenditure data in determining the actual regulatory costs of conducting racing dates and shall provide that data to the senate and house of representatives appropriations subcommittees on agriculture and general government and the senate and house fiscal agencies. The Michigan gaming control board shall not be reimbursed for more than the actual regulatory cost of conducting race dates. If a certified horsemen’s organization funds more than the actual regulatory cost, the balance shall remain in the agriculture equine industry development fund to be used to fund subsequent race dates conducted by race meeting licensees with which the certified horsemen’s organization has contracts. If a certified horsemen’s organization funds less than the actual regulatory costs of the additional horse racing dates, the Michigan gaming control board shall reduce the number of future race dates conducted by race meeting licensees with which the certified horsemen’s organization has contracts. Prior to the reduction in the number of authorized race dates due to budget deficits, the executive director of the Michigan gaming control board shall provide notice to the certified horsemen’s organizations with an opportunity to respond with alternatives. In determining actual costs, the Michigan gaming control board shall take into account that each specific breed may require different regulatory mechanisms.

CAPITAL OUTLAY

Sec. 1002. (1) The director shall allocate lump-sum appropriations made in this article consistent with statutory provisions and the purposes for which funds were appropriated. Lump-sum allocations shall address priority program or facility needs and may include, but are not limited to, design, construction, remodeling and addition, special maintenance, major special maintenance, energy conservation, and demolition.

(2) The state budget director may authorize that funds appropriated for lump-sum appropriations shall be available for no more than 3 fiscal years following the fiscal year in which the original appropriation was made. Any remaining balance from allocations made in this section shall lapse to the fund from which it was appropriated pursuant to the lapsing of funds as provided in the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 1003. The appropriations in part 1 for capital outlay shall be carried forward at the end of the fiscal year consistent with the provisions of section 248 of the management and budget act, 1984 PA 431, MCL 18.1248.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

FOR FISCAL YEAR 2012-2013

GENERAL SECTIONS

Sec. 1201. It is the intent of the legislature to provide appropriations for the fiscal year ending on September 30, 2013 for the line items listed in part 1. The fiscal year 2012-2013 appropriations are anticipated to be the same as those for fiscal year 2011-2012, except that the line items will be adjusted for changes in caseload and related costs, federal fund match rates, economic factors, and available revenue. These adjustments will be determined after the January 2012 consensus revenue estimating conference.

ARTICLE IV

DEPARTMENT OF COMMUNITY HEALTH

PART 1

LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2011-2012

Sec. 101. Subject to the conditions set forth in this article, the amounts listed in this part are appropriated for the department of community health for the fiscal year ending September 30, 2012, from the funds indicated in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF COMMUNITY HEALTH

APPROPRIATION SUMMARY

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions..........................................................................3,634.2

Average population..........................................................................................................893.0

GROSS APPROPRIATION.......................................................................................................... $ 14,241,316,400

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 6,569,400

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 14,234,747,000

Federal revenues:

Total federal revenues................................................................................................................... 8,986,611,000

Special revenue funds:

Total local revenues...................................................................................................................... 250,605,900

Total private revenues................................................................................................................... 96,494,700

Merit award trust fund.................................................................................................................. 86,744,500

Total other state restricted revenues............................................................................................. 2,043,107,400

State general fund/general purpose.............................................................................................. $ 2,771,183,500

Sec. 102. DEPARTMENTWIDE ADMINISTRATION

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions.............................................................................175.2

Director and other unclassified—6.0 FTE positions.................................................................... $ 583,900

Departmental administration and management—165.2 FTE positions........................................ 21,787,400

Worker’s compensation program.................................................................................................. 8,754,700

Rent and building occupancy....................................................................................................... 9,252,200

Developmental disabilities council and projects—10.0 FTE positions........................................ 2,855,700

GROSS APPROPRIATION.......................................................................................................... $ 43,233,900

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 13,632,700

Special revenue funds:

Total private revenues................................................................................................................... 35,100

Total other state restricted revenues............................................................................................. 749,500

State general fund/general purpose.............................................................................................. $ 28,816,600

Sec. 103. MENTAL HEALTH/SUBSTANCE ABUSE SERVICES ADMINISTRATION

AND SPECIAL PROJECTS

Full-time equated classified positions.............................................................................111.5

Mental health/substance abuse program administration—110.5 FTE positions........................... $ 17,586,800

Gambling addiction—1.0 FTE position....................................................................................... 3,000,000

Protection and advocacy services support.................................................................................... 194,400

Community residential and support services................................................................................ 1,777,200

Federal and other special projects................................................................................................ 2,497,200

Family support subsidy................................................................................................................ 19,470,500

Housing and support services....................................................................................................... 9,306,800

GROSS APPROPRIATION.......................................................................................................... $ 53,832,900

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 37,101,600

Special revenue funds:

Total private revenues................................................................................................................... 390,000

Total other state restricted revenues............................................................................................. 3,000,000

State general fund/general purpose.............................................................................................. $ 13,341,300

Sec. 104. COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES

PROGRAMS

Full-time equated classified positions.................................................................................9.5

Medicaid mental health services.................................................................................................. $ 2,149,977,900

Community mental health non-Medicaid services....................................................................... 273,908,100

Medicaid adult benefits waiver..................................................................................................... 32,056,100

Mental health services for special populations............................................................................ 5,842,800

Medicaid substance abuse services.............................................................................................. $ 46,709,700

CMHSP, purchase of state services contracts............................................................................... 134,201,900

Civil service charges.................................................................................................................... 1,499,300

Federal mental health block grant—2.5 FTE positions................................................................ 15,397,500

State disability assistance program substance abuse services...................................................... 2,018,800

Community substance abuse prevention, education, and treatment programs............................. 81,737,500

Children’s waiver home care program......................................................................................... 18,944,800

Nursing home PAS/ARR-OBRA—7.0 FTE positions.................................................................. 12,179,300

Children with serious emotional disturbance waiver................................................................... 8,188,000

GROSS APPROPRIATION.......................................................................................................... $ 2,782,661,700

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant from the department of human services................................................. 2,769,000

Federal revenues:

Total federal revenues................................................................................................................... 1,584,568,500

Special revenue funds:

Total local revenues...................................................................................................................... 25,228,900

Total other state restricted revenues............................................................................................. 22,314,900

State general fund/general purpose.............................................................................................. $ 1,147,780,400

Sec. 105. STATE PSYCHIATRIC HOSPITALS AND FORENSIC MENTAL HEALTH

SERVICES

Total average population..................................................................................................893.0

Full-time equated classified positions..........................................................................2,194.2

Caro regional mental health center - psychiatric hospital - adult—468.3 FTE positions............ $ 56,772,200

Average population..........................................................................................................185.0

Kalamazoo psychiatric hospital - adult—483.1 FTE positions.................................................... 54,782,400

Average population..........................................................................................................189.0

Walter P. Reuther psychiatric hospital - adult—433.3 FTE positions.......................................... 52,297,800

Average population..........................................................................................................234.0

Hawthorn center - psychiatric hospital - children and adolescents—230.9 FTE positions......... 27,075,900

Average population............................................................................................................75.0

Center for forensic psychiatry—578.6 FTE positions.................................................................. 66,767,900

Average population..........................................................................................................210.0

Revenue recapture........................................................................................................................ 750,000

IDEA, federal special education................................................................................................... 120,000

Special maintenance..................................................................................................................... 332,500

Purchase of medical services for residents of hospitals and centers............................................ 445,600

Gifts and bequests for patient living and treatment environment................................................ 1,000,000

GROSS APPROPRIATION.......................................................................................................... $ 260,344,300

Appropriated from:

Interdepartmental grant revenues:

Federal revenues:

Total federal revenues................................................................................................................... 29,921,200

Special revenue funds:

CMHSP, purchase of state services contracts............................................................................... 134,201,900

Other local revenues..................................................................................................................... 17,494,500

Total private revenues................................................................................................................... 1,000,000

Total other state restricted revenues............................................................................................. 15,948,400

State general fund/general purpose.............................................................................................. $ 61,778,300

Sec. 106. PUBLIC HEALTH ADMINISTRATION

Full-time equated classified positions...............................................................................91.7

Public health administration—7.3 FTE positions......................................................................... $ 1,557,200

Healthy Michigan fund programs................................................................................................. 5,000,000

Minority health grants and contracts—3.0 FTE positions........................................................... 612,700

Promotion of healthy behaviors................................................................................................... 975,900

Vital records and health statistics—81.4 FTE positions.............................................................. $ 9,442,800

GROSS APPROPRIATION.......................................................................................................... $ 17,588,600

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant from the department of human services................................................. 1,171,500

Federal revenues:

Total federal revenues................................................................................................................... 4,887,900

Special revenue funds:

Total private revenues................................................................................................................... 300,000

Total other state restricted revenues............................................................................................. 9,974,700

State general fund/general purpose.............................................................................................. $ 1,254,500

Sec. 107. HEALTH POLICY

Full-time equated classified positions...............................................................................66.8

Emergency medical services program state staff—23.0 FTE positions....................................... $ 4,850,300

Emergency medical services grants and services......................................................................... 660,000

Health policy administration—24.4 FTE positions...................................................................... 4,150,800

Nurse education and research program—3.0 FTE positions........................................................ 744,200

Certificate of need program administration—14.0 FTE positions............................................... 2,071,100

Rural health services—1.0 FTE position..................................................................................... 1,410,300

Michigan essential health provider............................................................................................... 872,700

Primary care services—1.4 FTE positions................................................................................... 2,886,900

GROSS APPROPRIATION.......................................................................................................... $ 17,646,300

Appropriated from:

Interdepartmental grant revenues:

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

authority.................................................................................................................................... 116,300

Interdepartmental grant from the department of licensing and regulatory affairs....................... 2,040,700

Federal revenues:

Total federal revenues................................................................................................................... 5,432,600

Special revenue funds:

Total local revenues...................................................................................................................... 100,000

Total private revenues................................................................................................................... 255,000

Total other state restricted revenues............................................................................................. 6,232,600

State general fund/general purpose.............................................................................................. $ 3,469,100

Sec. 108. INFECTIOUS DISEASE CONTROL

Full-time equated classified positions...............................................................................50.7

AIDS prevention, testing, and care programs—12.7 FTE positions............................................ $ 59,449,300

Immunization local agreements.................................................................................................... 11,975,200

Immunization program management and field support—15.0 FTE positions.............................. 1,786,300

Pediatric AIDS prevention and control—1.0 FTE position......................................................... 1,231,400

Sexually transmitted disease control local agreements................................................................ 3,360,700

Sexually transmitted disease control management and field support—22.0 FTE positions........ 3,743,300

GROSS APPROPRIATION.......................................................................................................... $ 81,546,200

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 43,541,200

Special revenue funds:

Total private revenues................................................................................................................... 27,707,700

Total other state restricted revenues............................................................................................. 7,470,600

State general fund/general purpose.............................................................................................. $ 2,826,700

Sec. 109. LABORATORY SERVICES

Full-time equated classified positions.............................................................................111.0

Laboratory services—111.0 FTE positions.................................................................................. $ 17,183,900

GROSS APPROPRIATION.......................................................................................................... $ 17,183,900

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant from the department of environmental quality...................................... $ 471,900

Federal revenues:

Total federal revenues................................................................................................................... 2,092,300

Special revenue funds:

Total other state restricted revenues............................................................................................. 8,267,600

State general fund/general purpose.............................................................................................. $ 6,352,100

Sec. 110. EPIDEMIOLOGY

Full-time equated classified positions.............................................................................126.7

AIDS surveillance and prevention program................................................................................. $ 2,254,100

Asthma prevention and control—2.6 FTE positions.................................................................... 856,900

Bioterrorism preparedness—66.6 FTE positions.......................................................................... 49,286,900

Epidemiology administration—40.0 FTE positions..................................................................... 8,202,000

Lead abatement program—7.0 FTE positions.............................................................................. 2,647,700

Newborn screening follow-up and treatment services—10.5 FTE positions............................... 5,337,800

Tuberculosis control and prevention............................................................................................. 867,000

GROSS APPROPRIATION.......................................................................................................... $ 69,452,400

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 61,271,300

Special revenue funds:

Total private revenues................................................................................................................... 25,000

Total other state restricted revenues............................................................................................. 6,367,900

State general fund/general purpose.............................................................................................. $ 1,788,200

Sec. 111. LOCAL HEALTH ADMINISTRATION AND GRANTS

Full-time equated classified positions.................................................................................2.0

Essential local public health services........................................................................................... $ 37,386,100

Implementation of 1993 PA 133, MCL 333.17015...................................................................... 20,000

Local health services—2.0 FTE positions.................................................................................... 500,000

Medicaid outreach cost reimbursement to local health departments............................................ 9,000,000

GROSS APPROPRIATION.......................................................................................................... $ 46,906,100

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 9,500,000

Special revenue funds:

Total local revenues...................................................................................................................... 5,150,000

State general fund/general purpose.............................................................................................. $ 32,256,100

Sec. 112. CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH

PROMOTION

Full-time equated classified positions...............................................................................75.5

Cancer prevention and control program—12.0 FTE positions..................................................... $ 14,298,200

Chronic disease control and health promotion administration—33.4 FTE positions................... 5,950,100

Diabetes and kidney program—12.2 FTE positions.................................................................... 1,777,600

Public health traffic safety coordination—1.0 FTE position........................................................ 87,500

Smoking prevention program—14.0 FTE positions..................................................................... 2,075,000

Violence prevention—2.9 FTE positions...................................................................................... 2,123,200

GROSS APPROPRIATION.......................................................................................................... $ 26,311,600

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 23,884,200

Special revenue funds:

Total private revenues................................................................................................................... 61,600

Total other state restricted revenues............................................................................................. 649,700

State general fund/general purpose.............................................................................................. $ 1,716,100

Sec. 113. FAMILY, MATERNAL, AND CHILDREN’S HEALTH SERVICES

Full-time equated classified positions...............................................................................55.1

Childhood lead program—6.0 FTE positions............................................................................... $ 1,598,400

Dental programs—3.0 FTE positions........................................................................................... 992,000

Dental program for persons with developmental disabilities....................................................... 151,000

Family, maternal, and children’s health services administration—43.6 FTE positions............... 6,047,700

Family planning local agreements................................................................................................ 9,085,700

Local MCH services..................................................................................................................... 7,018,100

Pregnancy prevention program..................................................................................................... 602,100

Prenatal care outreach and service delivery support.................................................................... 3,794,200

Special projects—2.5 FTE positions............................................................................................ 8,397,800

Sudden infant death syndrome program....................................................................................... 321,300

GROSS APPROPRIATION.......................................................................................................... $ 38,008,300

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 32,846,800

Special revenue funds:

Total local revenues...................................................................................................................... 75,000

State general fund/general purpose.............................................................................................. $ 5,086,500

Sec. 114. WOMEN, INFANTS, AND CHILDREN FOOD AND NUTRITION PROGRAM

Full-time equated classified positions...............................................................................45.0

Women, infants, and children program administration and special projects—45.0 FTE positions... $ 15,900,800

Women, infants, and children program local agreements and food costs.................................... 253,825,500

GROSS APPROPRIATION.......................................................................................................... $ 269,726,300

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 211,112,500

Special revenue funds:

Total private revenues................................................................................................................... 58,613,800

State general fund/general purpose.............................................................................................. $ 0

Sec. 115. CHILDREN’S SPECIAL HEALTH CARE SERVICES

Full-time equated classified positions...............................................................................47.8

Children’s special health care services administration—45.0 FTE positions.............................. $ 5,245,700

Bequests for care and services—2.8 FTE positions..................................................................... 1,511,400

Outreach and advocacy................................................................................................................. 3,773,500

Nonemergency medical transportation......................................................................................... 2,679,300

Medical care and treatment.......................................................................................................... 294,056,500

GROSS APPROPRIATION.......................................................................................................... $ 307,266,400

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 175,308,200

Special revenue funds:

Total private revenues................................................................................................................... 996,800

Total other state restricted revenues............................................................................................. 3,843,600

State general fund/general purpose.............................................................................................. $ 127,117,800

Sec. 116. CRIME VICTIM SERVICES COMMISSION

Full-time equated classified positions...............................................................................13.0

Grants administration services—13.0 FTE positions................................................................... $ 1,811,300

Justice assistance grants............................................................................................................... 19,106,100

Crime victim rights services grants.............................................................................................. 16,570,000

GROSS APPROPRIATION.......................................................................................................... $ 37,487,400

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 23,467,200

Special revenue funds:

Total other state restricted revenues............................................................................................. $ 14,020,200

State general fund/general purpose.............................................................................................. $ 0

Sec. 117. OFFICE OF SERVICES TO THE AGING

Full-time equated classified positions...............................................................................43.5

Office of services to aging administration—43.5 FTE positions................................................. $ 6,408,800

Community services..................................................................................................................... 35,314,400

Nutrition services......................................................................................................................... 35,430,200

Foster grandparent volunteer program.......................................................................................... 2,233,600

Retired and senior volunteer program.......................................................................................... 627,300

Senior companion volunteer program.......................................................................................... 1,604,400

Employment assistance................................................................................................................. 3,792,500

Respite care program.................................................................................................................... 5,868,700

GROSS APPROPRIATION.......................................................................................................... $ 91,279,900

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 57,159,200

Special revenue funds:

Total private revenues................................................................................................................... 677,500

Merit award trust fund.................................................................................................................. 4,468,700

Total other state restricted revenues............................................................................................. 1,400,000

State general fund/general purpose.............................................................................................. $ 27,574,500

Sec. 118. MEDICAL SERVICES ADMINISTRATION

Full-time equated classified positions.............................................................................415.0

Medical services administration—415.0 FTE positions............................................................... $ 65,057,000

Facility inspection contract.......................................................................................................... 132,800

MIChild administration................................................................................................................ 4,327,800

GROSS APPROPRIATION.......................................................................................................... $ 69,517,600

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 47,476,900

Special revenue funds:

Total local revenues...................................................................................................................... 105,900

Total private revenues................................................................................................................... 100,000

Total other state restricted revenues............................................................................................. 110,100

State general fund/general purpose.............................................................................................. $ 21,724,700

Sec. 119. MEDICAL SERVICES

Hospital services and therapy....................................................................................................... $ 1,273,299,300

Hospital disproportionate share payments.................................................................................... 45,000,000

Physician services......................................................................................................................... 303,223,900

Medicare premium payments....................................................................................................... 409,169,400

Pharmaceutical services................................................................................................................ 338,717,500

Home health services................................................................................................................... 6,791,100

Hospice services........................................................................................................................... 139,637,700

Transportation............................................................................................................................... 16,009,800

Auxiliary medical services........................................................................................................... 6,252,100

Dental services............................................................................................................................. 162,930,800

Ambulance services...................................................................................................................... 10,900,000

Long-term care services............................................................................................................... 1,686,454,600

Medicaid home- and community-based services waiver.............................................................. 229,921,000

Adult home help services............................................................................................................. 289,032,800

Personal care services................................................................................................................... 14,421,500

Program of all-inclusive care for the elderly............................................................................... 30,707,800

Health plan services..................................................................................................................... 4,093,812,400

MIChild program.......................................................................................................................... $ 51,753,100

Plan first family planning waiver................................................................................................. 13,089,200

Medicaid adult benefits waiver..................................................................................................... 105,877,700

Special indigent care payments.................................................................................................... 88,518,500

Federal Medicare pharmaceutical program.................................................................................. 185,599,300

Maternal and child health............................................................................................................. 20,279,500

Subtotal basic medical services program..................................................................................... 9,521,399,000

School-based services................................................................................................................... 91,296,500

Special Medicaid reimbursement................................................................................................. 339,382,000

Subtotal special medical services payments................................................................................. 430,678,500

GROSS APPROPRIATION.......................................................................................................... $ 9,952,077,500

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 6,579,215,500

Special revenue funds:

Total local revenues...................................................................................................................... 68,249,700

Total private revenues................................................................................................................... 6,332,200

Merit award trust fund.................................................................................................................. 82,275,800

Total other state restricted revenues............................................................................................. 1,940,891,700

State general fund/general purpose.............................................................................................. $ 1,275,112,600

Sec. 120. INFORMATION TECHNOLOGY

Information technology services and projects.............................................................................. $ 33,521,400

Michigan Medicaid information system....................................................................................... 25,723,700

GROSS APPROPRIATION.......................................................................................................... $ 59,245,100

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 44,191,200

Special revenue funds:

Total other state restricted revenues............................................................................................. 1,865,900

State general fund/general purpose.............................................................................................. $ 13,188,000

PART 2

PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2011-2012

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 2011-2012 is $4,901,035,400.00 and state spending from state resources to be paid to local units of government for fiscal year 2011-2012 is $1,417,739,700.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF COMMUNITY HEALTH

MENTAL HEALTH/SUBSTANCE ABUSE SERVICES ADMINISTRATION

AND SPECIAL PROJECTS

Community residential and support services................................................................................ $ 258,500

Housing and support services....................................................................................................... 599,800

COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES PROGRAMS

State disability assistance program substance abuse services...................................................... $ 2,018,000

Community substance abuse prevention, education, and treatment programs............................. 14,576,700

Medicaid mental health services.................................................................................................. 702,753,600

Community mental health non-Medicaid services....................................................................... 273,908,100

Mental health services for special populations............................................................................ 5,842,800

Medicaid adult benefits waiver..................................................................................................... 10,854,200

Medicaid substance abuse services.............................................................................................. 15,815,900

Children’s waiver home care program......................................................................................... 5,906,800

Nursing home PASARR............................................................................................................... 2,717,200

HEALTH POLICY, REGULATION, AND PROFESSIONS

Primary care services................................................................................................................... $ 88,900

INFECTIOUS DISEASE CONTROL

AIDS prevention, testing, and care programs.............................................................................. $ 1,000,000

Sexually transmitted disease control local agreements................................................................ 175,200

LABORATORY SERVICES

Laboratory services...................................................................................................................... $ 13,700

LOCAL HEALTH ADMINISTRATION AND GRANTS

Implementation of 1993 PA 133, MCL 333.17015...................................................................... $ 8,000

Essential local public health services........................................................................................... 32,256,100

CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH PROMOTION

Cancer prevention and control program....................................................................................... $ 450,000

Chronic disease control and health promotion administration .................................................... 75,000

FAMILY, MATERNAL, AND CHILDREN’S HEALTH SERVICES

Childhood lead program............................................................................................................... $ 51,100

Prenatal care outreach and service delivery support.................................................................... 1,500,000

CHILDREN’S SPECIAL HEALTH CARE SERVICES

Medical care and treatment.......................................................................................................... $ 1,409,900

Outreach and advocacy................................................................................................................. 1,237,500

MEDICAL SERVICES

Dental services............................................................................................................................. $ 2,536,000

Long-term care services............................................................................................................... 285,952,300

Transportation............................................................................................................................... 2,971,900

Medicaid adult benefits waiver..................................................................................................... 6,246,800

Hospital services and therapy....................................................................................................... 4,965,500

Physician services......................................................................................................................... 3,774,800

OFFICE OF SERVICES TO THE AGING

Community services..................................................................................................................... $ 12,233,500

Nutrition services......................................................................................................................... 8,787,000

Foster grandparent volunteer program.......................................................................................... 679,800

Retired and senior volunteer program.......................................................................................... 175,000

Senior companion volunteer program.......................................................................................... 215,000

Respite care program.................................................................................................................... 5,384,800

CRIME VICTIM SERVICES COMMISSION

Crime victim rights services grants.............................................................................................. $ 10,300,000

TOTAL OF PAYMENTS TO LOCAL UNITS OF GOVERNMENT.............................................. $ 1,417,739,700

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

Sec. 203. As used in this article:

(a) “AIDS” means acquired immunodeficiency syndrome.

(b) “CMHSP” means a community mental health services program as that term is defined in section 100a of the mental health code, 1974 PA 258, MCL 330.1100a.

(d) “Department” means the department of community health.

(e) “Director” means the director of the department.

(f) “DSH” means disproportionate share hospital.

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

(h) “Federal health care reform legislation” means the patient protection and affordable care act, Public Law 111-148, and the health care and education reconciliation act of 2010, Public Law 111-152.

(i) “Federal poverty level” means the poverty guidelines published annually in the federal register by the United States department of health and human services under its authority to revise the poverty line under 42 USC 9902.

(j) “GME” means graduate medical education.

(k) “Health plan” means, at a minimum, an organization that meets the criteria for delivering the comprehensive package of services under the department’s comprehensive health plan.

(l) “HEDIS” means healthcare effectiveness data and information set.

(m) “HIV” means human immunodeficiency virus.

(n) “HMO” means health maintenance organization.

(o) “IDEA” means the individuals with disabilities education act, 20 USC 1400 to 1482.

(p) “MCH” means maternal and child health.

(q) “MIChild” means the program described in section 1670.

(r) “PASARR” means the preadmission screening and annual resident review required under the omnibus budget reconciliation act of 1987, section 1919(e)(7) of the social security act, and 42 USC 1396r.

(s) “PIHP” means a specialty prepaid inpatient health plan for Medicaid mental health services, services to individuals with developmental disabilities, and substance abuse services. Specialty prepaid inpatient health plans are described in section 232b of the mental health code, 1974 PA 258, MCL 330.1232b.

(t) “Title XVIII” and “Medicare” mean title XVIII of the social security act, 42 USC 1395 to 1395kkk.

(u) “Title XIX” and “Medicaid” mean title XIX of the social security act, 42 USC 1396 to 1396w-5.

(v) “Title XX” means title XX of the social security act, 42 USC 1397 to 1397m-5.

Sec. 206. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $200,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this article 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 $40,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this article 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 $20,000,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this article 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 $20,000,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this article under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

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. Preference shall be given to goods or services, or both, manufactured or provided by Michigan businesses if they are competitively priced and of comparable quality. In addition, preference shall be given to goods or services, or both, that are manufactured or provided by Michigan businesses owned and operated by veterans if they are competitively priced and of comparable quality.

Sec. 210. The director shall take all reasonable steps to ensure that businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies, or both. The 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. If the revenue collected by the department from fees and collections exceeds the amount appropriated in part 1, the revenue may be carried forward with the approval of the state budget director 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. 212. (1) On or before February 1 of the current fiscal year, the department shall report to the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director on the detailed name and amounts of federal, restricted, private, and local sources of revenue that support the appropriations in each of the line items in part 1.

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

Sec. 213. The state departments, agencies, and commissions receiving tobacco tax funds and healthy Michigan funds from part 1 shall report by April 1 of the current fiscal year to the senate and house appropriations committees, the senate and house fiscal agencies, and the state budget director on the following:

(a) Detailed spending plan by appropriation line item including description of programs and a summary of organizations receiving these funds.

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

(d) Outcome measures used to evaluate programs, including measures of the effectiveness of these programs in improving the health of Michigan residents.

(e) Any other information considered necessary by the house of representatives or senate appropriations committees or the state budget director.

Sec. 215. (1) The department shall report to the house and senate appropriations subcommittees on the budget for the department, the joint committee on administrative rules, and the senate and house fiscal agencies by no later than April 1 of the current fiscal year on each specific policy change made by the department to implement a public act affecting that department that took effect during the preceding calendar year.

(2) Funds appropriated in part 1 shall not be used by the department to adopt a rule that will apply to a small business and that will have a disproportionate economic impact on small businesses because of the size of those businesses if the department fails to reduce the disproportionate economic impact of the rule on small businesses as provided under section 40 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.240.

(3) As used in this section:

(a) “Rule” means that term as defined under section 7 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.207.

(b) “Small business” means that term as defined under section 7a of the administrative procedures act of 1969, 1969 PA 306, MCL 24.207a.

Sec. 216. (1) In addition to funds appropriated in part 1 for all programs and services, there is appropriated for write-offs of accounts receivable, deferrals, and for prior year obligations in excess of applicable prior year appropriations, an amount equal to total write-offs and prior year obligations, but not to exceed amounts available in prior year revenues.

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

Sec. 218. The department shall include the following in its annual list of proposed basic health services as required in part 23 of the public health code, 1978 PA 368, MCL 333.2301 to 333.2321:

(a) Immunizations.

(b) Communicable disease control.

(d) Tuberculosis control.

(e) Prevention of gonorrhea eye infection in newborns.

(f) Screening newborns for the conditions listed in section 5431 of the public health code, 1978 PA 368, MCL 333.5431, or recommended by the newborn screening quality assurance advisory committee created under section 5430 of the public health code, 1978 PA 368, MCL 333.5430.

(g) Community health annex of the Michigan emergency management plan.

(h) Prenatal care.

Sec. 219. (1) The department may contract with the Michigan public health institute for the design and implementation of projects and for other public health-related activities prescribed in section 2611 of the public health code, 1978 PA 368, MCL 333.2611. The department may develop a master agreement with the institute to carry out these purposes for up to a 3-year period. The department shall report to the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director on or before January 1 of the current fiscal year all of the following:

(a) A detailed description of each funded project.

(b) The amount allocated for each project, the appropriation line item from which the allocation is funded, and the source of financing for each project.

(d) A detailed spending plan for each project, including a list of all subgrantees and the amount allocated to each subgrantee.

(2) On or before September 30 of the current fiscal year, the department shall provide to the same parties listed in subsection (1) a copy of all reports, studies, and publications produced by the Michigan public health institute, its subcontractors, or the department with the funds appropriated in part 1 and allocated to the Michigan public health institute.

Sec. 223. The department may establish and collect fees for publications, videos and related materials, conferences, and workshops. Collected fees shall be used to offset expenditures to pay for printing and mailing costs of the publications, videos and related materials, and costs of the workshops and conferences. The department shall not collect fees under this section that exceed the cost of the expenditures.

Sec. 259. From the funds appropriated in part 1 for information technology, departments and agencies shall pay user fees to the department of technology, management, and budget for technology-related services and projects. The user fees shall be subject to provisions of an interagency agreement between the department and agencies and the department of technology, management, and budget.

Sec. 264. (1) Upon submission of a Medicaid waiver, a Medicaid state plan amendment, or a similar proposal to the centers for Medicare and Medicaid services, the department shall notify the house and senate appropriations subcommittees on community health and the house and senate fiscal agencies of the submission.

(2) The department shall provide written or verbal biannual reports to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies summarizing the status of any new or ongoing discussions with the centers for Medicare and Medicaid services or the federal department of health and human services regarding potential or future Medicaid waiver applications.

Sec. 265. The department and agencies receiving appropriations in part 1 shall receive and retain copies of all reports funded from appropriations in part 1. Federal and state guidelines for short-term and long-term retention of records shall be followed. The department may electronically retain copies of reports unless otherwise required by federal and state guidelines.

Sec. 266. (1) Due to the current budgetary problems in this state, out-of-state travel for the fiscal year ending September 30, 2012 shall be limited to situations in which 1 or more of the following conditions apply:

(a) The travel is required by legal mandate or court order or for law enforcement purposes.

(b) The travel is necessary to protect the health or safety of Michigan citizens or visitors or to assist other states in similar circumstances.

(c) The travel is necessary to produce budgetary savings or to increase state revenues, including protecting existing federal funds or securing additional federal funds.

(d) The travel is necessary to comply with federal requirements.

(e) The travel is necessary to secure specialized training for staff that is not available within this state.

(f) The travel is financed entirely by federal or nonstate funds.

(2) If out-of-state travel is necessary but does not meet 1 or more of the conditions in subsection (1), the state budget director may grant an exception to allow the travel. Any exceptions granted by the state budget director shall be reported on a monthly basis to the senate and house of representatives standing committees on appropriations.

Sec. 267. The department shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

Sec. 270. Within 180 days after receipt of the notification from the attorney general’s office of a legal action in which expenses had been recovered pursuant to section 106(4) of the social welfare act, 1939 PA 280, MCL 400.106, or any other statute under which the department has the right to recover expenses, the department shall submit a written report to the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget office which includes, at a minimum, all of the following:

(a) The total amount recovered from the legal action.

(b) The program or service for which the money was originally expended.

(c) Details on the disposition of the funds recovered such as the appropriation or revenue account in which the money was deposited.

(d) A description of the facts involved in the legal action.

Sec. 276. Funds appropriated in part 1 shall not be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. This prohibition does not apply to legal services for bonding activities and for those activities that the attorney general authorizes.

Sec. 282. (1) The department, through its organizational units responsible for departmental administration, operation, and finance, shall establish uniform definitions, standards, and instructions for the classification, allocation, assignment, calculation, recording, and reporting of administrative costs by the following entities:

(a) Coordinating agencies on substance abuse and the Salvation Army harbor light program that receive payment or reimbursement from funds appropriated under section 104.

(b) Area agencies on aging and local providers that receive payment or reimbursement from funds appropriated under section 117.

(2) By May 15 of the current fiscal year, the department shall provide a written draft of its proposed definitions, standards, and instructions to the house of representatives and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director.

Sec. 287. Not later than November 15, 2011, the department shall prepare and transmit a report that provides for estimates of the total general fund/general purpose appropriation lapses at the close of the previous fiscal year. This report shall summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The report shall be transmitted to the office of the state budget, the chairpersons of the senate and house of representatives standing appropriations committees, and the senate and house fiscal agencies.

Sec. 292. (1) The department shall maintain a searchable website accessible by the public at no cost that includes, but is not limited to, all of the following:

(a) Fiscal year-to-date expenditures by category.

(b) Fiscal year-to-date expenditures by appropriation unit.

(c) Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.

(d) The number of active department employees by job classification.

(e) Job specifications and wage rates.

(2) The department may develop and operate its own website to provide this information or may reference the state’s central transparency website as the source for this information.

Sec. 294. Amounts appropriated in part 1 for information technology may be designated as work projects and carried forward to support technology projects under the direction of the department of technology, management, and budget. Funds designated in this manner are not available for expenditure until approved as work projects under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a.

Sec. 295. The department shall explore program and other service areas, including eligibility determination, where privatization may lead to increased efficiencies and budgetary savings.

Sec. 296. Within 14 days after the release of the executive budget recommendation, the department shall provide the state budget director, the senate and house appropriations chairs, the senate and house appropriations subcommittees on community health, respectively, and the senate and house fiscal agencies with an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the fiscal years ending September 30, 2011 and September 30, 2012.

COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES PROGRAMS

Sec. 401. Funds appropriated in part 1 are intended to support a system of comprehensive community mental health services under the full authority and responsibility of local CMHSPs or PIHPs. The department shall ensure that each CMHSP or PIHP provides all of the following:

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

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

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

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

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

(f) A system of continuous quality improvement.

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

(h) A system that serves at-risk and delinquent youth as required under the provisions of the mental health code, 1974 PA 258, MCL 330.1001 to 330.2106.

Sec. 402. (1) From funds appropriated in part 1, final authorizations to CMHSPs or PIHPs shall be made upon the execution of contracts between the department and CMHSPs or PIHPs. The contracts shall contain an approved plan and budget as well as policies and procedures governing the obligations and responsibilities of both parties to the contracts. Each contract with a CMHSP or PIHP that the department is authorized to enter into under this subsection shall include a provision that the contract is not valid unless the total dollar obligation for all of the contracts between the department and the CMHSPs or PIHPs entered into under this subsection for the current fiscal year does not exceed the amount of money appropriated in part 1 for the contracts authorized under this subsection.

(2) The department shall immediately report to the senate and house appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director if either of the following occurs:

(a) Any new contracts with CMHSPs or PIHPs that would affect rates or expenditures are enacted.

(b) Any amendments to contracts with CMHSPs or PIHPs that would affect rates or expenditures are enacted.

(3) The report required by subsection (2) shall include information about the changes and their effects on rates and expenditures.

Sec. 403. (1) From the funds appropriated in part 1 for mental health services for special populations, the department shall ensure that CMHSPs or PIHPs meet with multicultural service providers to develop a workable framework for contracting, service delivery, and reimbursement.

(2) Funds appropriated in part 1 for mental health services for special populations shall not be utilized for services provided to illegal immigrants, fugitive felons, and individuals who are not residents of this state. The department shall maintain contracts with recipients of multicultural services grants that mandate grantees establish that recipients of services are legally residing in the United States. An exception to the contractual provision shall be allowed to address individuals presenting with emergent mental health conditions.

(3) The department shall require an annual report from the independent organizations that receive mental health services for special populations funding. The annual report, due January 1 of the current fiscal year, shall include specific information on services and programs provided, the client base to which the services and programs were provided, information on any wrap around services provided, and the expenditures for those services. The department shall provide the annual reports to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies.

Sec. 404. (1) Not later than May 31 of the current fiscal year, the department shall provide a report on the community mental health services programs to the members of the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director that includes the information required by this section.

(2) The report shall contain information for each CMHSP or PIHP and a statewide summary, each of which shall include at least the following information:

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

(b) Per capita expenditures by client population group.

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

(d) Data describing service outcomes that includes, but is not limited to, an evaluation of consumer satisfaction, consumer choice, and quality of life concerns including, but not limited to, housing and employment.

(e) Information about access to community mental health services programs that includes, but is not limited to, the following:

(i) The number of people receiving requested services.

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

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

(g) An analysis of information provided by CMHSPs in response to the needs assessment requirements of the mental health code, 1974 PA 258, MCL 330.1001 to 330.2106, including information about the number of individuals in the service delivery system who have requested and are clinically appropriate for different services.

(h) Lapses and carryforwards during the immediately preceding fiscal year for CMHSPs or PIHPs.

(i) Information about contracts for mental health services entered into by CMHSPs or PIHPs with providers, including, but not limited to, all of the following:

(i) The amount of the contract, organized by type of service provided.

(ii) Payment rates, organized by the type of service provided.

(iii) Administrative costs for services provided to CMHSPs or PIHPs.

(j) Information on the community mental health Medicaid managed care program, including, but not limited to, both of the following:

(i) Expenditures by each CMHSP or PIHP organized by Medicaid eligibility group, including per eligible individual expenditure averages.

(ii) Performance indicator information required to be submitted to the department in the contracts with CMHSPs or PIHPs.

(k) An estimate of the number of direct care workers in local residential settings and paraprofessional and other nonprofessional direct care workers in settings where skill building, community living supports and training, and personal care services are provided by CMHSPs or PIHPs as of September 30 of the prior fiscal year employed directly or through contracts with provider organizations.

(3) The department shall include data reporting requirements listed in subsection (2) in the annual contract with each individual CMHSP or PIHP.

(4) The department shall take all reasonable actions to ensure that the data required are complete and consistent among all CMHSPs or PIHPs.

Sec. 406. (1) The funds appropriated in part 1 for the state disability assistance substance abuse services program shall be used to support per diem room and board payments in substance abuse residential facilities. Eligibility of clients for the state disability assistance substance abuse services program shall include needy persons 18 years of age or older, or emancipated minors, who reside in a substance abuse treatment center.

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

Sec. 407. (1) The amount appropriated in part 1 for substance abuse prevention, education, and treatment grants shall be expended for contracting with coordinating agencies. Coordinating agencies shall work with CMHSPs or PIHPs to coordinate care and services provided to individuals with severe and persistent mental illness and substance abuse diagnoses.

(2) The department shall approve coordinating agency fee schedules for providing substance abuse services and charge participants in accordance with their ability to pay.

(3) It is the intent of the legislature that the coordinating agencies continue current efforts to collaborate on the delivery of services to those clients with mental illness and substance abuse diagnoses.

(4) Coordinating agencies that are located completely within the boundary of a PIHP shall conduct a study of the administrative costs and efficiencies associated with consolidation with that PIHP. If that coordinating agency realizes an administrative cost savings of 5% or greater of their current costs, then that coordinating agency shall initiate discussions regarding a potential merger in accordance with section 6226 of the public health code, 1978 PA 368, MCL 333.6226. The department shall report to the legislature by April 1 of the current fiscal year on any such discussions.

Sec. 408. (1) By April 1 of the current fiscal year, the department shall report the following data from the prior fiscal year on substance abuse prevention, education, and treatment programs to the senate and house appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget office:

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

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

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

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

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

Sec. 410. The department shall assure that substance abuse treatment is provided to applicants and recipients of public assistance through the department of human services who are required to obtain substance abuse treatment as a condition of eligibility for public assistance.

Sec. 411. (1) The department shall ensure that each contract with a CMHSP or PIHP requires the CMHSP or PIHP to implement programs to encourage diversion of individuals with serious mental illness, serious emotional disturbance, or developmental disability from possible jail incarceration when appropriate.

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

Sec. 412. The department shall contract directly with the Salvation Army harbor light program to provide non-Medicaid substance abuse services.

Sec. 418. On or before the tenth of each month, the department shall report to the senate and house appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director on the amount of funding paid to PIHPs to support the Medicaid managed mental health care program in the preceding month. The information shall include the total paid to each PIHP, per capita rate paid for each eligibility group for each PIHP, and number of cases in each eligibility group for each PIHP, and year-to-date summary of eligibles and expenditures for the Medicaid managed mental health care program.

Sec. 424. Each PIHP that contracts with the department to provide services to the Medicaid population shall adhere to the following timely claims processing and payment procedure for claims submitted by health professionals and facilities:

(a) A “clean claim” as described in section 111i of the social welfare act, 1939 PA 280, MCL 400.111i, shall be paid within 45 days after receipt of the claim by the PIHP. A clean claim that is not paid within this time frame shall bear simple interest at a rate of 12% per annum.

(b) A PIHP shall state in writing to the health professional or facility any defect in the claim within 30 days after receipt of the claim.

(c) A health professional and a health facility have 30 days after receipt of a notice that a claim or a portion of a claim is defective within which to correct the defect. The PIHP shall pay the claim within 30 days after the defect is corrected.

Sec. 428. Each PIHP shall provide, from internal resources, local funds to be used as a bona fide part of the state match required under the Medicaid program in order to increase capitation rates for PIHPs. These funds shall not include either state funds received by a CMHSP for services provided to non-Medicaid recipients or the state matching portion of the Medicaid capitation payments made to a PIHP.

Sec. 435. A county required under the provisions of the mental health code, 1974 PA 258, MCL 330.1001 to 330.2106, to provide matching funds to a CMHSP for mental health services rendered to residents in its jurisdiction shall pay the matching funds in equal installments on not less than a quarterly basis throughout the fiscal year, with the first payment being made by October 1 of the current fiscal year.

Sec. 458. By April 15 of the current fiscal year, the department shall provide each of the following to the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director:

(a) An updated plan for implementing each of the recommendations of the Michigan mental health commission made in the commission’s report dated October 15, 2004.

(b) A report that evaluates the cost-benefit of establishing secure residential facilities of fewer than 17 beds for adults with serious mental illness, modeled after such programming in Oregon or other states. This report shall examine the potential impact that utilization of secure residential facilities would have upon the state’s need for adult mental health facilities.

(c) In conjunction with the state court administrator’s office, a report that evaluates the cost-benefit of establishing a specialized mental health court program that diverts adults with serious mental illness alleged to have committed an offense deemed nonserious into treatment prior to the filing of any charges.

Sec. 462. (1) With the exception of administrative costs, in order to implement the fiscal year 2011-2012 funding reduction to the community mental health non-Medicaid services line, the department shall further implement the funding formula that was partially implemented during fiscal year 2009-2010 in which the funding reduction does not exceed 4% for each CMHSP.

(2) The department may convene a workgroup including CMHSPs regarding the allocation of the current fiscal year administrative reduction of up to $3,400,000.00.

Sec. 468. To foster a more efficient administration of and to integrate care in publicly funded mental health and substance abuse services, the department shall maintain criteria for the incorporation of a city, county, or regional substance abuse coordinating agency into a local community mental health authority that will encourage those city, county, or regional coordinating agencies to incorporate as local community mental health authorities. If necessary, the department may make accommodations or adjustments in formula distribution to address administrative costs related to the maintenance of the criteria under this section and to the incorporation of the additional coordinating agencies into local community mental health authorities provided that all of the following are satisfied:

(a) The department provides funding for the administrative costs incurred by coordinating agencies incorporating into community mental health authorities. The department shall not provide more than $75,000.00 to any coordinating agency for administrative costs.

(b) The accommodations or adjustments favor coordinating agencies who voluntarily elect to integrate with local community mental health authorities.

Sec. 470. (1) For those substance abuse coordinating agencies that have voluntarily incorporated into community mental health authorities and accepted funding from the department for administrative costs incurred pursuant to section 468, the department shall establish written expectations for those CMHSPs, PIHPs, and substance abuse coordinating agencies and counties with respect to the integration of mental health and substance abuse services. At a minimum, the written expectations shall provide for the integration of those services as follows:

(a) Coordination and consolidation of administrative functions and redirection of efficiencies into service enhancements.

(b) Consolidation of points of 24-hour access for mental health and substance abuse services in every community.

(c) Alignment of coordinating agencies and PIHPs boundaries to maximize opportunities for collaboration and integration of administrative functions and clinical activities.

(2) By May 1 of the current fiscal year, the department shall report to the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget office on the impact and effectiveness of this section and the status of the integration of mental health and substance abuse services.

Sec. 474. The department shall ensure that each contract with a CMHSP or PIHP requires the CMHSP or PIHP to provide each recipient and his or her family with information regarding the different types of guardianship and the alternatives to guardianship. A CMHSP or PIHP shall not, in any manner, attempt to reduce or restrict the ability of a recipient or his or her family from seeking to obtain any form of legal guardianship without just cause.

Sec. 490. (1) The department shall continue a workgroup to develop a plan to maximize uniformity and consistency in the standards required of providers contracting directly with PIHPs, CMHSPs, and substance abuse coordinating agencies. These standards shall apply to community living supports, personal care services, substance abuse services, skill-building services, and other similar supports and services providers who contract with PIHPs, CMHSPs, and substance abuse coordinating agencies or their contractors.

(2) The workgroup shall include representatives of the department, PIHPs, CMHSPs, substance abuse coordinating agencies, and affected providers. The standards shall include, but are not limited to, contract language, training requirements for direct support staff, performance indicators, financial and program audits, and billing procedures.

(3) The department shall provide a status report on the workgroup’s efforts to the senate and house appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director by June 1 of the current fiscal year.

Sec. 491. The department shall explore changes in program policy in the habilitation supports waiver for persons with developmental disabilities that would permit the movement of a slot that has become available to a county that has demonstrated a greater need for the services.

Sec. 492. If a CMHSP has entered into an agreement with a county or county sheriff to provide mental health services to the inmates of the county jail, the department shall not prohibit the use of state general fund/general purpose dollars by CMHSPs to provide mental health services to inmates of a county jail.

Sec. 494. (1) In order to avoid duplication of efforts, the department shall utilize applicable national accreditation review criteria to determine compliance with corresponding state requirements for CMHSPs, PIHPs, or subcontracting provider agencies that have been reviewed and accredited by a national accrediting entity for behavioral health care services.

(2) Upon a coordinated submission by the CMHSPs, PIHPs, or subcontracting provider agencies, a listing of program requirements that are part of the state program review criteria but are not reviewed by an applicable national accrediting entity, the department shall review the listing and provide a recommendation to the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget office as to whether or not state program review should continue. The CMHSPs, PIHPs, or subcontracting agencies may request the department to convene a workgroup to fulfill this section.

(3) The department shall continue to comply with state and federal law and shall not initiate an action that negatively impacts beneficiary safety.

(4) As used in this section, “national accrediting entity” means the joint commission on accreditation of healthcare organizations, the commission on accreditation of rehabilitation facilities, the council of accreditation, or other appropriate entity, as approved by the department.

(5) By July 1 of the current fiscal year, the department shall provide a progress report to the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget office on implementation of this section.

Sec. 495. It is the intent of the legislature that the department begin working with the centers for Medicare and Medicaid services to develop a program that creates a medical home for the individuals receiving Medicaid mental health benefits.

Sec. 496. CMHSPs and PIHPs are permitted to offset state funding reductions by limiting the administrative component of their contracts with providers and case management to a maximum of 9%.

Sec. 497. The population data used in determining the distribution of substance abuse block grant funds shall be from the most recent federal census.

STATE PSYCHIATRIC HOSPITALS AND FORENSIC MENTAL HEALTH SERVICES

Sec. 601. The department shall continue a revenue recapture project to generate additional revenues from third parties related to cases that have been closed or are inactive. A portion of revenues collected through project efforts may be used for departmental costs and contractual fees associated with these retroactive collections and to improve ongoing departmental reimbursement management functions.

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

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

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

(3) Four months after the certification of closure required in section 19(6) of the state employees’ retirement act, 1943 PA 240, MCL 38.19, the department shall provide a closure plan to the house and senate appropriations subcommittees on community health and the state budget director.

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

Sec. 606. The department may collect revenue for patient reimbursement from first- and third-party payers, including Medicaid and local county CMHSP payers, to cover the cost of placement in state hospitals and centers. The department is authorized to adjust financing sources for patient reimbursement based on actual revenues earned. If the revenue collected exceeds current year expenditures, the revenue may be carried forward with approval of the state budget director. The revenue carried forward shall be used as a first source of funds in the subsequent year.

Sec. 608. Effective October 1, 2011, the department, in consultation with the department of technology, management, and budget, may maintain a bid process to identify 1 or more private contractors to provide food service and custodial services for the administrative areas at any state hospital identified by the department as capable of generating savings through the outsourcing of such services.

PUBLIC HEALTH ADMINISTRATION

Sec. 650. The department shall report to the senate and house appropriations subcommittees on community health by April 1 of the current fiscal year on its criteria and methodology used to derive the information provided to residents in the annual Michigan fish advisory.

Sec. 653. The department shall maintain plans to address potential state public health emergencies.

HEALTH POLICY

Sec. 704. The department shall continue to contract with grantees supported through the appropriation in part 1 for the 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. 709. The funds appropriated in part 1 for the Michigan essential health care provider program may also provide loan repayment for dentists that fit the criteria established by part 27 of the public health code, 1978 PA 368, MCL 333.2701 to 333.2727.

Sec. 712. From the funds appropriated in part 1 for primary care services, $250,000.00 shall be allocated to free health clinics operating in the state. The department shall distribute the funds equally to each free health clinic. For the purpose of this appropriation, “free health clinics” means nonprofit organizations that use volunteer health professionals to provide care to uninsured individuals.

Sec. 713. The department shall continue support of multicultural agencies that provide primary care services from the funds appropriated in part 1.

INFECTIOUS DISEASE CONTROL

Sec. 804. The department, in conjunction with efforts to implement the Michigan prisoner reentry initiative, shall cooperate with the department of corrections to share data and information as they relate to prisoners being released who are HIV positive or positive for the hepatitis C antibody.

LOCAL HEALTH ADMINISTRATION AND GRANTS

Sec. 901. The amount appropriated in part 1 for implementation of the 1993 additions of or amendments to sections 9161, 16221, 16226, 17014, 17015, and 17515 of the public health code, 1978 PA 368, MCL 333.9161, 333.16221, 333.16226, 333.17014, 333.17015, and 333.17515, shall be used to reimburse local health departments for costs incurred related to implementation of section 17015(18) of the public health code, 1978 PA 368, MCL 333.17015.

Sec. 902. If a county that has participated in a district health department or an associated arrangement with other local health departments takes action to cease to participate in such an arrangement after October 1 of the current fiscal year, the department shall have the authority to assess a penalty from the local health department’s operational accounts in an amount equal to no more than 6.25% of the local health department’s essential local public health services funding. This penalty shall only be assessed to the local county that requests the dissolution of the health department.

Sec. 904. (1) Funds appropriated in part 1 for essential local public health services shall be prospectively allocated to local health departments to support immunizations, infectious disease control, sexually transmitted disease control and prevention, hearing screening, vision services, food protection, public water supply, private groundwater supply, and on-site sewage management. Food protection shall be provided in consultation with the department of agriculture and rural development. Public water supply, private groundwater supply, and on-site sewage management shall be provided in consultation with the department of environmental quality.

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

(3) Distributions in subsection (1) shall be made only to counties that maintain local spending in the current fiscal year of at least the amount expended in fiscal year 1992-1993 for the services described in subsection (1).

CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH PROMOTION

Sec. 1004. It is the intent of the legislature that the department continue to collaborate with the county of St. Clair and the city of Detroit southwest community to investigate and evaluate cancer rates.

FAMILY, MATERNAL, AND CHILDREN’S HEALTH SERVICES

Sec. 1103. Beginning January 3, 2012, the department shall annually issue to the legislature, and to the public on the Internet, a report providing estimated public funds administered by the department for family planning, sexually transmitted infection prevention and treatment, and pregnancies and births, as well as demographics collected by the department as self-reported by individuals utilizing those services.

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

(a) Funding allocations.

(b) Actual number of women, children, and adolescents served and amounts expended for each group for the immediately preceding fiscal year.

(2) The department shall ensure that the distribution of funds through the programs described in subsection (1) takes into account the needs of rural communities.

(3) For the purposes of this section, “rural” means a county, city, village, or township with a population of 30,000 or less, including those entities if located within a metropolitan statistical area.

Sec. 1106. Each family planning program receiving federal title X family planning funds under 42 USC 300 to 300a-8 shall be in compliance with all performance and quality assurance indicators that the office of family planning within the United States department of health and human services specifies in the family planning annual report. An agency not in compliance with the indicators shall not receive supplemental or reallocated funds.

Sec. 1108. The funds appropriated in part 1 for pregnancy prevention programs shall not be used to provide abortion counseling, referrals, or services.

Sec. 1109. (1) From the amounts appropriated in part 1 for dental programs, funds shall be allocated to the Michigan dental association for the administration of a volunteer dental program that provides dental services to the uninsured.

(2) Not later than December 1 of the current fiscal year, the department shall report to the senate and house appropriations subcommittees on community health and the senate and house standing committees on health policy the number of individual patients treated, number of procedures performed, and approximate total market value of those procedures from the immediately preceding fiscal year.

Sec. 1117. Contingent upon the availability of federal or state restricted funds, the department may pursue efforts to reduce the incidence of stillbirth. Efforts shall include the establishment of a program to increase public awareness of stillbirth, promote education to monitor fetal movements counting kicks, promote a uniform definition of stillbirth, standardize data collection of stillbirths, and collaborate with appropriate federal agencies and statewide organizations. The department shall seek federal or other grant funds to assist in implementing this program.

Sec. 1119. From the funds appropriated in part 1 for family planning local agreements or pregnancy prevention programs, no state funds shall be used to encourage or support abortion services.

Sec. 1133. The department shall release infant mortality rate data to all local public health departments 72 hours or more before releasing infant mortality rate data to the public.

Sec. 1135. (1) If funds become available, provision of the school health education curriculum, such as the Michigan model for health or another comprehensive school health education curriculum, shall be in accordance with the health education goals established by the Michigan model steering committee. The steering committee shall be composed of a representative from each of the following offices and departments:

(a) The department of education.

(b) The department of community health.

(d) The mental health and substance abuse administration in the department of community health.

(e) The department of human services.

(f) The department of state police.

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

WOMEN, INFANTS, AND CHILDREN FOOD AND NUTRITION PROGRAM

Sec. 1153. The department shall ensure that individuals residing in rural communities have sufficient access to the services offered through the WIC program.

CHILDREN’S SPECIAL HEALTH CARE SERVICES

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

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

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

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

(d) Provide human growth hormone to eligible patients.

Sec. 1204. By October 1, 2011, the department shall report to the senate and house appropriations committees on community health and the senate and house fiscal agencies on its plan for enrolling Medicaid eligible children’s special health care services recipients in the Medicaid health plans. The report shall include information on which Medicaid health plans are participating, the methods used to assure continuity of care and continuity of ongoing relationships with providers, and projected savings from the implementation of the proposal.

CRIME VICTIM SERVICES COMMISSION

Sec. 1302. From the funds appropriated in part 1 for justice assistance grants, up to $200,000.00 shall be allocated for expansion of forensic nurse examiner programs to facilitate training for improved evidence collection for the prosecution of sexual assault. The funds shall be used for program coordination and training.

OFFICE OF SERVICES TO THE AGING

Sec. 1401. The appropriation in part 1 to the office of services to the aging for community services and nutrition services shall be restricted to eligible individuals at least 60 years of age who fail to qualify for home care services under title XVIII, XIX, or XX.

Sec. 1403. (1) The office of services to the aging shall require each region to report to the office of services to the aging and to the legislature home-delivered meals waiting lists based upon standard criteria. Determining criteria shall include all of the following:

(a) The recipient’s degree of frailty.

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

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

(2) Data required in subsection (1) shall be recorded only for individuals who have applied for participation in the home-delivered meals program and who are initially determined as likely to be eligible for home-delivered meals.

Sec. 1417. The department shall provide to the senate and house appropriations subcommittees on community health, senate and house fiscal agencies, and state budget director a report by March 30 of the current fiscal year that contains all of the following:

(a) The total allocation of state resources made to each area agency on aging by individual program and administration.

(b) Detail expenditure by each area agency on aging by individual program and administration including both state-funded resources and locally-funded resources.

Sec. 1420. If funds become available, the department shall create a pilot project to establish an aging care management services program with services provided solely by nurses. This pilot project shall be established in a county with a population greater than 150,000 but less than 250,000.

MEDICAL SERVICES

Sec. 1601. The cost of remedial services incurred by residents of licensed adult foster care homes and licensed homes for the aged shall be used in determining financial eligibility for the medically needy. Remedial services include basic self-care and rehabilitation training for a resident.

Sec. 1603. (1) The department may establish a program for individuals to purchase medical coverage at a rate determined by the department.

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

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

(4) The department shall modify program policies to permit individuals eligible for the transitional medical assistance plus program, as structured in fiscal year 2009-2010, to access medical assistance coverage through a 100% cost share.

Sec. 1605. The protected income level for Medicaid coverage determined pursuant to section 106(1)(b)(iii) of the social welfare act, 1939 PA 280, MCL 400.106, shall be 100% of the related public assistance standard.

Sec. 1606. For the purpose of guardian and conservator charges, the department of community health may deduct up to $60.00 per month as an allowable expense against a recipient’s income when determining medical services eligibility and patient pay amounts.

Sec. 1607. (1) An applicant for Medicaid, whose qualifying condition is pregnancy, shall immediately be presumed to be eligible for Medicaid coverage unless the preponderance of evidence in her application indicates otherwise. The applicant who is qualified as described in this subsection shall be allowed to select or remain with the Medicaid participating obstetrician of her choice.

(2) An applicant qualified as described in subsection (1) shall be given a letter of authorization to receive Medicaid covered services related to her pregnancy. All qualifying applicants shall be entitled to receive all medically necessary obstetrical and prenatal care without preauthorization from a health plan. All claims submitted for payment for obstetrical and prenatal care shall be paid at the Medicaid fee-for-service rate in the event a contract does not exist between the Medicaid participating obstetrical or prenatal care provider and the managed care plan. The applicant shall receive a listing of Medicaid physicians and managed care plans in the immediate vicinity of the applicant’s residence.

(3) In the event that an applicant, presumed to be eligible pursuant to subsection (1), is subsequently found to be ineligible, a Medicaid physician or managed care plan that has been providing pregnancy services to an applicant under this section is entitled to reimbursement for those services until such time as they are notified by the department that the applicant was found to be ineligible for Medicaid.

(4) If the preponderance of evidence in an application indicates that the applicant is not eligible for Medicaid, the department shall refer that applicant to the nearest public health clinic or similar entity as a potential source for receiving pregnancy-related services.

(5) The department shall develop an enrollment process for pregnant women covered under this section that facilitates the selection of a managed care plan at the time of application.

(6) The department shall mandate enrollment of women, whose qualifying condition is pregnancy, into Medicaid managed care plans.

(7) The department shall encourage physicians to provide women, whose qualifying condition for Medicaid is pregnancy, with a referral to a Medicaid participating dentist at the first pregnancy-related appointment.

Sec. 1611. (1) For care provided to medical services recipients with other third-party sources of payment, medical services reimbursement shall not exceed, in combination with such other resources, including Medicare, those amounts established for medical services-only patients. The medical services payment rate shall be accepted as payment in full. Other than an approved medical services co-payment, no portion of a provider’s charge shall be billed to the recipient or any person acting on behalf of the recipient. Nothing in this section shall be considered to affect the level of payment from a third-party source other than the medical services program. The department shall require a nonenrolled provider to accept medical services payments as payment in full.

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

Sec. 1620. (1) For fee-for-service recipients who do not reside in nursing homes, the pharmaceutical dispensing fee shall be $2.75 or the pharmacy’s usual or customary cash charge, whichever is less. For nursing home residents, the pharmaceutical dispensing fee shall be $3.00 or the pharmacy’s usual or customary cash charge, whichever is less.

(2) The department shall require a prescription co-payment for Medicaid recipients of $1.00 for a generic drug and $3.00 for a brand-name drug, except as prohibited by federal or state law or regulation.

Sec. 1627. (1) The department shall use procedures and rebate amounts specified under section 1927 of title XIX, 42 USC 1396r-8, to secure quarterly rebates from pharmaceutical manufacturers for outpatient drugs dispensed to participants in the MIChild program, maternal outpatient medical services program, and children’s special health care services.

(2) For products distributed by pharmaceutical manufacturers not providing quarterly rebates as listed in subsection (1), the department may require preauthorization.

Sec. 1629. The department shall utilize maximum allowable cost pricing for generic drugs that is based on wholesaler pricing to providers that is available from at least 2 wholesalers who deliver in the state of Michigan.

Sec. 1630. Medicaid coverage for adult dental and podiatric services shall continue at not less than the level in effect on October 1, 2002, except that reasonable utilization limitations may be adopted in order to prevent excess utilization.

Sec. 1631. (1) The department shall require co-payments on dental, podiatric, and vision services provided to Medicaid recipients, except as prohibited by federal or state law or regulation.

(2) Except as otherwise prohibited by federal or state law or regulations, the department shall require Medicaid recipients to pay the following co-payments:

(a) Two dollars for a physician office visit.

(b) Three dollars for a hospital emergency room visit.

(d) One dollar for an outpatient hospital visit.

Sec. 1641. An institutional provider that is required to submit a cost report under the medical services program shall submit cost reports completed in full within 5 months after the end of its fiscal year.

Sec. 1642. The department shall allow ambulatory surgery centers in this state to fully participate in the Medicaid program.

Sec. 1657. (1) Reimbursement for medical services to screen and stabilize a Medicaid recipient, including stabilization of a psychiatric crisis, in a hospital emergency room shall not be made contingent on obtaining prior authorization from the recipient’s HMO. If the recipient is discharged from the emergency room, the hospital shall notify the recipient’s HMO within 24 hours of the diagnosis and treatment received.

(2) If the treating hospital determines that the recipient will require further medical service or hospitalization beyond the point of stabilization, that hospital shall receive authorization from the recipient’s HMO prior to admitting the recipient.

(3) Subsections (1) and (2) do not require an alteration to an existing agreement between an HMO and its contracting hospitals and do not require an HMO to reimburse for services that are not considered to be medically necessary.

Sec. 1659. The following sections of this article are the only ones that shall apply to the following Medicaid managed care programs, including the comprehensive plan, MIChoice long-term care plan, and the mental health, substance abuse, and developmentally disabled services program: 404, 411, 418, 428, 474, 494, 1607, 1657, 1662, 1689, 1699, 1740, 1764, 1787, 1815, 1820, 1835, 1850, and 1853.

Sec. 1662. (1) The department shall assure that an external quality review of each contracting HMO is performed that results in an analysis and evaluation of aggregated information on quality, timeliness, and access to health care services that the HMO or its contractors furnish to Medicaid beneficiaries.

(2) The department shall require Medicaid HMOs to provide EPSDT utilization data through the encounter data system, and HEDIS well child health measures in accordance with the national committee for quality assurance prescribed methodology.

(3) The department shall provide a copy of the analysis of the Medicaid HMO annual audited HEDIS reports and the annual external quality review report to the senate and house of representatives appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director, within 30 days of the department’s receipt of the final reports from the contractors.

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

(2) The department may provide up to 1 year of continuous eligibility to children eligible for the MIChild program unless the family fails to pay the monthly premium, a child reaches age 19, or the status of the children’s family changes and its members no longer meet the eligibility criteria as specified in the federally approved MIChild state plan.

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

(4) To be eligible for the MIChild program, a child must be residing in a family with an adjusted gross income of less than or equal to 200% of the federal poverty level. The department’s verification policy shall be used to determine eligibility.

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

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

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

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

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

(8) The department shall assure that an external quality review of each MIChild contractor, as described in subsection (5), is performed, which analyzes and evaluates the aggregated information on quality, timeliness, and access to health care services that the contractor furnished to MIChild beneficiaries.

(9) The department shall develop an automatic enrollment algorithm that is based on quality and performance factors.

Sec. 1673. The department may establish premiums for MIChild eligible individuals in families with income above 150% of the federal poverty level. The monthly premiums shall not be less than $10.00 or exceed $15.00 for a family.

Sec. 1682. (1) The department shall implement enforcement actions as specified in the nursing facility enforcement provisions of section 1919 of title XIX, 42 USC 1396r.

(2) In addition to the appropriations in part 1, the department is authorized to receive and spend penalty money received as the result of noncompliance with medical services certification regulations. Penalty money, characterized as private funds, received by the department shall increase authorizations and allotments in the long-term care accounts.

(3) The department is authorized to provide civil monetary penalty funds to the disability network/Michigan to be distributed to the 15 centers for independent living for the purpose of assisting individuals with disabilities who reside in nursing homes to return to their own homes.

(4) The department is authorized to use civil monetary penalty funds to conduct a survey evaluating consumer satisfaction and the quality of care at nursing homes. Factors can include, but are not limited to, the level of satisfaction of nursing home residents, their families, and employees. The department may use an independent contractor to conduct the survey.

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

Sec. 1684. The department shall submit a report by September 30 of the current fiscal year to the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director that will identify by waiver agent, Medicaid home- and community-based services waiver costs by administration, case management, and direct services.

Sec. 1685. All nursing home rates, class I and class III, shall have their respective fiscal year rate set 30 days prior to the beginning of their rate year. Rates may take into account the most recent cost report prepared and certified by the preparer, provider corporate owner or representative as being true and accurate, and filed timely, within 5 months of the fiscal year end in accordance with Medicaid policy. If the audited version of the last report is available, it shall be used. Any rate factors based on the filed cost report may be retroactively adjusted upon completion of the audit of that cost report.

Sec. 1689. (1) Priority in enrolling additional individuals in the Medicaid home- and community-based services waiver program shall be given to those who are currently residing in nursing homes or who are eligible to be admitted to a nursing home if they are not provided home- and community-based services. The department shall use screening and assessment procedures to assure that no additional Medicaid eligible individuals are admitted to nursing homes who would be more appropriately served by the Medicaid home- and community-based services waiver program. It is the intent of the legislature that when an individual is transferred from a nursing home to the home- and community-based services waiver program, the funding to cover that individual’s home- and community-based services waiver program costs shall be transferred from the long-term care services line item to the Medicaid home- and community-based services waiver line item. These funds are not available for expenditure until they have been transferred to another line item in this article under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) Within 60 days of the end of each fiscal year, the department shall provide a report to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies that details existing and future allocations for the home- and community-based services waiver program by regions as well as the associated expenditures. The report shall include information regarding the net cost savings from moving individuals from a nursing home to the home- and community-based services waiver program, the number of individuals transitioned from nursing homes to the home- and community-based services waiver program, the number of individuals on waiting lists by region for the program, and the amount of funds transferred during the fiscal year. The report shall also include the number of Medicaid individuals served and the number of days of care for the home- and community-based services waiver program and in nursing homes.

(3) The department shall develop a system to collect and analyze information regarding individuals on the home- and community-based services waiver program waiting list to identify the community supports they receive, including, but not limited to, adult home help, food assistance, and housing assistance services and to determine the extent to which these community supports help individuals remain in their home and avoid entry into a nursing home. The department shall provide a progress report on implementation to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies by June 1 of the current fiscal year.

(4) The department shall maintain any policies, guidelines, procedures, standards, and regulations in order to limit the self-determination option with respect to the home- and community-based services waiver program to those services furnished by approved home-based service providers meeting provider qualifications established in the waiver and approved by the centers for Medicare and Medicaid services.

Sec. 1692. (1) The department is authorized to pursue reimbursement for eligible services provided in Michigan schools from the federal Medicaid program. The department and the state budget director are authorized to negotiate and enter into agreements, together with the department of education, with local and intermediate school districts regarding the sharing of federal Medicaid services funds received for these services. The department is authorized to receive and disburse funds to participating school districts pursuant to such agreements and state and federal law.

(2) From the funds appropriated in part 1 for medical services school-based services payments, the department is authorized to do all of the following:

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

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

Sec. 1693. The special Medicaid reimbursement appropriation in part 1 may be increased if the department submits a medical services state plan amendment pertaining to this line item at a level higher than the appropriation. The department is authorized to appropriately adjust financing sources in accordance with the increased appropriation.

Sec. 1694. The department shall distribute $1,122,300.00 to an academic health care system that includes a children’s hospital that has a high indigent care volume.

Sec. 1699. (1) The department may make separate payments in the amount of $45,000,000.00 directly to qualifying hospitals serving a disproportionate share of indigent patients and to hospitals providing GME training programs. If direct payment for GME and DSH is made to qualifying hospitals for services to Medicaid clients, hospitals shall not include GME costs or DSH payments in their contracts with HMOs.

(2) The department shall allocate $45,000,000.00 in DSH funding using the distribution methodology used in fiscal year 2003-2004.

(3) By September 30 of the current fiscal year, the department shall report to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies on the new distribution of funding to each eligible hospital from the GME and DSH pools.

(4) The department shall form a workgroup on DSH funding consisting of representatives from hospitals and hospital systems receiving DSH funding and the Michigan health and hospital association. The workgroup shall work to derive a new DSH formula or formulas designed to provide equitable payments to qualifying hospitals. The department shall report to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies on the results of the workgroup’s efforts by March 1 of the current fiscal year.

Sec. 1712. (1) Subject to the availability of funds, the department shall implement a rural health initiative. Available funds shall first be allocated as an outpatient adjustor payment to be paid directly to hospitals in rural counties in proportion to each hospital’s Medicaid and indigent patient population. Additional funds, if available, shall be allocated for defibrillator grants, emergency medical technician training and support, or other similar programs.

(2) Except as otherwise specified in this section, “rural” means a county, city, village, or township with a population of not more than 30,000, including those entities if located within a metropolitan statistical area.

Sec. 1718. The department shall provide each Medicaid adult home help beneficiary or applicant with the right to a fair hearing when the department or its agent reduces, suspends, terminates, or denies adult home help services. If the department takes action to reduce, suspend, terminate, or deny adult home help services, it shall provide the beneficiary or applicant with a written notice that states what action the department proposes to take, the reasons for the intended action, the specific regulations that support the action, and an explanation of the beneficiary’s or applicant’s right to an evidentiary hearing and the circumstances under which those services will be continued if a hearing is requested.

Sec. 1724. The department shall allow licensed pharmacies to purchase injectable drugs for the treatment of respiratory syncytial virus for shipment to physicians’ offices to be administered to specific patients. If the affected patients are Medicaid eligible, the department shall reimburse pharmacies for the dispensing of the injectable drugs and reimburse physicians for the administration of the injectable drugs.

Sec. 1740. From the funds appropriated in part 1 for health plan services, the department shall assure that all GME funds continue to be promptly distributed to qualifying hospitals using the methodology developed in consultation with the graduate medical education advisory group during fiscal year 2006-2007.

Sec. 1741. The department shall continue to provide nursing homes the opportunity to receive interim payments upon their request. The department may disapprove requests or discontinue interim payments that result in financial risk to this state. The department shall make reasonable efforts to ensure that the interim payments are as similar in amount to expected cost-settled payments.

Sec. 1756. The department shall develop a plan to expand and improve the beneficiary monitoring program. The department shall submit this plan to the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director by April 1 of the current fiscal year.

Sec. 1757. The department shall direct the department of human services to obtain proof from all Medicaid recipients that they are legal United States citizens or otherwise legally residing in this country and that they are residents of this state before approving Medicaid eligibility.

Sec. 1764. The department shall annually certify rates paid to Medicaid health plans as being actuarially sound in accordance with federal requirements and shall provide a copy of the rate certification and approval immediately to the house and senate appropriations subcommittees on community health and the house and senate fiscal agencies.

Sec. 1770. In conjunction with the consultation requirements of the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, and except as otherwise provided in this section, the department shall attempt to make the effective date for a proposed Medicaid policy bulletin or adjustment to the Medicaid provider manual on October 1, January 1, April 1, or July 1 after the end of the consultation period. The department may provide an effective date for a proposed Medicaid policy bulletin or adjustment to the Medicaid provider manual other than provided for in this section if necessary to be in compliance with federal or state law, regulations, or rules or with an executive order of the governor.

Sec. 1775. If the state’s application for a waiver to implement managed care for dual Medicare/Medicaid eligible is approved by the federal government, by April 1, 2012 the department shall provide a report to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies. This report shall include information on the amount of Medicare funding that would be provided to the state, the number of individuals who would be enrolled in the program, which health plans would be among those providing the services, and the estimated savings from the new program.

Sec. 1777. From the funds appropriated in part 1 for long-term care services, the department shall permit, in accordance with applicable federal and state law, nursing homes to use dining assistants to feed eligible residents if legislation to permit the use of dining assistants is enacted into law. The department shall not be responsible for costs associated with training dining assistants.

Sec. 1787. The department shall require the managed care enrollment broker to maintain telephone numbers of Medicaid beneficiaries and provide each Medicaid health plan with the telephone number of that health plan’s enrollees on a monthly basis.

Sec. 1793. The department shall consider the development of a pilot project that focuses on the prevention of preventable hospitalizations from nursing homes.

Sec. 1804. The department, in cooperation with the department of human services, shall work with the federal public assistance reporting information system to identify Medicaid recipients who are veterans and who may be eligible for federal veterans health care benefits or other benefits.

Sec. 1815. From the funds appropriated in part 1 for health plan services, the department shall not implement a capitation withhold as part of the overall capitation rate schedule that exceeds the 0.19% withhold administered during fiscal year 2008-2009.

Sec. 1820. (1) In order to avoid duplication of efforts, the department shall utilize applicable national accreditation review criteria to determine compliance with corresponding state requirements for Medicaid health plans that have been reviewed and accredited by a national accrediting entity for health care services.

(2) Upon submission by Medicaid health plans of a listing of program requirements that are part of the state program review criteria but are not reviewed by an applicable national accreditating entity, the department shall review the listing and provide a recommendation to the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget office as to whether or not state program review should continue. The Medicaid health plans may request the department to convene a workgroup to fulfill this section.

(3) The department shall continue to comply with state and federal law and shall not initiate an action that negatively impacts beneficiary safety.

(4) As used in this section, “national accrediting entity” means the national committee for quality assurance, the utilization review accreditation committee, or other appropriate entity, as approved by the department.

Sec. 1822. The department, the department’s contracted Medicaid pharmacy benefit manager, and all Medicaid health plans shall implement coverage for a mental health prescription drug within 30 days of that drug’s approval by the department’s pharmacy and therapeutics committee.

Sec. 1832. (1) The department shall continue efforts to standardize billing formats, referral forms, electronic credentialing, primary source verification, electronic billing and attachments, claims status, eligibility verification, and reporting of accepted and rejected encounter records received in the department data warehouse.

(2) The department shall convene a workgroup on making e-billing mandatory for the Medicaid program. The workgroup shall include representatives from medical provider organizations, Medicaid HMOs, and the department. The department shall report to the legislature on the findings of the workgroup by April 1 of the current fiscal year.

(3) The department shall provide a report by April 1 of the current fiscal year to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies detailing the percentage of claims for Medicaid reimbursement provided to the department that were initially rejected in the first quarter of fiscal year 2011-2012.

Sec. 1835. The department shall develop and implement processes to report rejected and accepted encounters to Medicaid health plans. The department shall further enhance encounter data reporting processes and program rules that make each health plan’s encounter data as complete as possible, provide a fair measure of acuity for each health plan’s enrolled population for risk adjustment purposes, and minimize health plan administrative expenses.

Sec. 1836. In addition to the guidelines established in Medical Services Administration Bulletin MSA 09-28, medically necessary optical devices and other treatment services for adult Medicaid patients shall be covered when conventional treatments do not provide functional vision correction. Such ocular conditions include, but are not limited to, congenital or acquired ocular disease or eye trauma.

Sec. 1837. The department shall explore utilization of telemedicine and telepsychiatry as strategies to increase access to services for Medicaid recipients in medically underserved areas.

Sec. 1842. (1) Subject to the availability of funds, the department shall adjust the hospital outpatient Medicaid reimbursement rate for qualifying hospitals as provided in this section. The Medicaid reimbursement rate for qualifying hospitals shall be adjusted to provide each qualifying hospital with its actual cost of delivering outpatient services to Medicaid recipients.

(2) As used in this section, “qualifying hospital” means a hospital that has not more than 50 staffed beds and is either located outside a metropolitan statistical area or in a metropolitan statistical area but within a city, village, or township with a population of not more than 12,000 according to the official 2000 federal decennial census and within a county with a population of not more than 165,000 according to the official 2000 federal decennial census.

Sec. 1846. (1) The department shall establish a workgroup on graduate medical education funding. The workgroup shall include representatives of teaching hospitals, the Michigan health and hospital association, and other interested parties.

(2) The workgroup shall do all of the following:

(a) Identify physician specialties where there is a current or potential shortage of practitioners and identify the geographic areas of this state where those shortages exist or potentially could develop.

(b) Research efforts by other states to address practitioner shortages by adjusting their graduate medical education payments.

(3) The department shall report the results of the workgroup’s efforts to the senate and house appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director by April 1 of the current fiscal year.

(4) It is the intent of the legislature that the report required under subsection (3) be used as a possible basis for the establishment of new graduate medical education funding formulas in fiscal year 2012-2013.

Sec. 1847. The department shall meet with the Michigan association of ambulance services to discuss the possible structure of an ambulance quality assurance assessment program.

Sec. 1849. (1) The department shall use at least 50% of the funds allocated for voluntary in-home visiting services for evidence-based models or models that conform to a promising approach that are in the process of being evaluated through a process that meets the requirements described in subsection (2) with the goal of being evidence-based by January 1, 2013.

(2) As used in this section:

(a) “Evidence-based” means a model or practice that meets all of the following requirements:

(i) The model or practice is governed by a program manual or protocol that specifies the purpose, rigorous evaluation requirements, and duration and frequency of service that constitutes the model.

(ii) Scientific research using methods that meet scientific standards, evaluated using either randomized controlled research designs, or quasi-experimental research designs with equivalent comparison groups. The effects of such programs must have been demonstrated with 2 or more separate client samples that the program improves client outcomes central to the purpose of the program; and the model or practice monitors program implementation for fidelity to the specified model.

(b) “In-home visiting services” means a service delivery strategy that is carried out in the homes of families or children from conception to school age that provides culturally sensitive face-to-face visits by nurses, or other professional or paraprofessionals trained to promote positive parenting practices, enhance the socio-emotional and cognitive development of children, improve health of the family, and empower the family to be self-sufficient.

(3) By February 1 of the current fiscal year, the department shall submit to the house and senate appropriations subcommittees on community health an annual report on evidence-based voluntary in-home visiting services, including a full accounting of administrative expenditures from the prior fiscal year, and a summary detailing the demographic characteristics of Medicaid families served.

(4) No later than September 30, 2011, the department shall submit a report to the senate and house appropriations subcommittees on community health on its plan to establish an integrated benefit for Medicaid evidence-based home visitation services to be provided by Medicaid health plans for eligible beneficiaries. The report shall include information on the potential methods used to assure continuity of care and continuity of ongoing relationships with providers and their potential effectiveness. It is the intent of the legislature that the integrated benefit must be provided by evidence-based service delivery models or practices in a manner that achieves fidelity to the evidence-based model.

Sec. 1850. The department may allow Medicaid health plans to assist with the redetermination process through outreach activities to ensure continuation of Medicaid eligibility and enrollment in managed care. This may include mailings, telephone contact, or face-to-face contact with beneficiaries enrolled in the individual Medicaid health plan. Health plans may offer assistance in completing paperwork for beneficiaries enrolled in their plan.

Sec. 1853. The department shall form a workgroup composed of representatives from the Medicaid HMOs and the Michigan association of health plans to develop revisions to the process of automatically assigning new Medicaid recipients to HMOs if they do not choose an HMO upon enrollment. The department shall report on the results of the workgroup’s findings to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies by March 1 of the current fiscal year.

Sec. 1854. The department may work with a provider of kidney dialysis services and renal care as authorized under section 2703 of the patient protection and affordable care act, Public Law 111-148, to develop a chronic condition health home program for Medicaid enrollees identified with chronic kidney disease and who are beginning dialysis. If initiated, the department shall develop metrics that evaluate program effectiveness and submit a report to the senate and house appropriations subcommittees on community health. Metrics shall include cost savings and clinical outcomes.

Sec. 1855. The department may consider the feasibility of a revenue-neutral, financially risk-averse Medicaid patient optimization solution for the support of emergency department redirection for non-emergent patients.

Sec. 1857. It is the intent of the legislature that the department not reduce Medicaid reimbursement for wheelchairs.

ONE-TIME BASIS ONLY

Sec. 1901. For the state fiscal year ending September 30, 2012, there is appropriated from general fund/general purpose revenue, on a 1-time basis only, $22,100,000.00 and federal revenue for the following purposes:

Mental health services for special populations............................................................................ $ 3,000,000

Healthy Michigan fund programs................................................................................................. 3,000,000

Primary care services – island health clinics............................................................................... 300,000

Hospital services and therapy – graduate medical education....................................................... 17,129,400

Hospital services and therapy – rural and sole community hospitals.......................................... 29,533,400

GROSS APPROPRIATION.............................................................................................................. $ 52,962,800

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 30,862,800

State general fund/general purpose.............................................................................................. $ 22,100,000

Sec. 1902. From the funds appropriated in section 1901 for healthy Michigan fund programs, $900,000.00 shall be allocated for cancer prevention and control.

Sec. 1903. (1) From the funds appropriated in section 1901 for hospital services and therapy – rural and sole community hospitals, $10,000,000.00 general fund/general purpose revenue and any associated federal match shall be awarded to hospitals that meet criteria established by the department for services to low-income rural residents.

(2) No hospital or hospital system shall receive more than 5.0% of the total funding referenced in subsection (1).

(3) The department shall report to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies on the distribution of funds referenced in subsection (1) by April 1 of the current fiscal year.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS FOR FISCAL YEAR 2012-2013

GENERAL SECTIONS

Sec. 2001. It is the intent of the legislature to provide appropriations for the fiscal year ending on September 30, 2013 for the line items listed in part 1. The fiscal year 2012-2013 appropriations are anticipated to be the same as those for fiscal year 2011-2012, except that the line items will be adjusted for changes in caseload and related costs, federal fund match rates, economic factors, and available revenue. These adjustments will be determined after the January 2012 consensus revenue estimating conference.

ARTICLE V

DEPARTMENT OF CORRECTIONS

PART 1

LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2011-2012

Sec. 101. Subject to the conditions set forth in this article, the amounts listed in this part are appropriated for the department of corrections for the fiscal year ending September 30, 2012, from the funds indicated in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF CORRECTIONS

APPROPRIATION SUMMARY

Average population........................................................................................................45,917

Full-time equated unclassified positions...........................................................................16.0

Full-time equated classified positions........................................................................15,552.8

GROSS APPROPRIATION.......................................................................................................... $ 1,936,573,800

Appropriated from:

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 943,800

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 1,935,630,000

Federal revenues:

Total federal revenues................................................................................................................... $ 7,995,100

Special revenue funds:

Total local revenues...................................................................................................................... 447,300

Total private revenues................................................................................................................... 0

Total other state restricted revenues............................................................................................. 52,351,400

State general fund/general purpose.............................................................................................. $ 1,874,836,200

Sec. 102. EXECUTIVE

Full-time equated unclassified positions...........................................................................16.0

Full-time equated classified positions...............................................................................46.0

Unclassified positions—16.0 FTE positions................................................................................ $ 1,192,600

Executive direction—46.0 FTE positions..................................................................................... 5,411,100

Neal, et al. settlement agreement................................................................................................. 15,000,000

GROSS APPROPRIATION.......................................................................................................... $ 21,603,700

Appropriated from:

State general fund/general purpose.............................................................................................. $ 21,603,700

Sec. 103. PLANNING AND COMMUNITY SUPPORT

Full-time equated classified positions...............................................................................12.0

MPRI residential stability............................................................................................................. $ 7,251,300

MPRI employment readiness........................................................................................................ 7,265,100

MPRI social support..................................................................................................................... 4,861,000

MPRI health and behavioral health.............................................................................................. 3,357,700

MPRI operations support.............................................................................................................. 3,848,400

MPRI reintegration, training, and employment............................................................................ 600,000

MPRI other projects..................................................................................................................... 26,726,200

MPRI federal grants..................................................................................................................... 1,035,000

Substance abuse testing and treatment services—12.0 FTE positions......................................... 24,070,900

Residential services...................................................................................................................... 18,075,500

Community corrections comprehensive plans and services......................................................... 13,958,000

Regional jail program................................................................................................................... 100

Felony drunk driver jail reduction and community treatment program....................................... 1,440,100

County jail reimbursement program............................................................................................. 17,072,100

GROSS APPROPRIATION.......................................................................................................... $ 129,561,400

Appropriated from:

Federal revenues:

DOJ, office of justice programs, RSAT........................................................................................ 143,900

DOJ, prisoner reintegration.......................................................................................................... 1,035,000

Special revenue funds:

Jail reimbursement program fund................................................................................................. 5,900,000

State general fund/general purpose.............................................................................................. $ 122,482,500

Sec. 104. OPERATIONS SUPPORT ADMINISTRATION

Full-time equated classified positions.............................................................................152.9

Operations support administration—45.0 FTE positions............................................................. $ 4,110,700

New custody staff training........................................................................................................... 4,094,100

Compensatory buyout and union leave bank................................................................................ 100

Worker’s compensation................................................................................................................. 16,278,900

Bureau of fiscal management—90.9 FTE positions..................................................................... 8,448,300

Office of legal services—6.0 FTE positions................................................................................ 2,345,100

Internal affairs—11.0 FTE positions............................................................................................ 1,219,300

Rent.............................................................................................................................................. 2,095,200

Equipment and special maintenance............................................................................................ 2,425,500

Administrative hearings officers................................................................................................... 2,682,900

Judicial data warehouse user fees................................................................................................ 50,000

Interdepartmental grant to judiciary............................................................................................. 1,000,000

Interdepartmental grant to corrections ombudsman..................................................................... 250,000

Sheriffs’ coordinating and training office.................................................................................... $ 500,000

Prosecutorial and detainer expenses............................................................................................. 4,051,000

GROSS APPROPRIATION.......................................................................................................... $ 49,551,100

Appropriated from:

Interdepartmental grant revenues:

IDG-MDSP, Michigan justice training fund................................................................................. 313,200

Special revenue funds:

Local corrections officer training fund......................................................................................... 500,000

Correctional industries revolving fund......................................................................................... 534,600

State general fund/general purpose.............................................................................................. $ 48,203,300

Sec. 105. FIELD OPERATIONS ADMINISTRATION

Full-time equated classified positions..........................................................................2,161.9

Field operations—2,007.9 FTE positions..................................................................................... $ 184,553,200

Parole board operations—45.0 FTE positions.............................................................................. 4,517,400

Parole/probation services.............................................................................................................. 2,243,500

Community re-entry centers—48.0 FTE positions....................................................................... 14,269,300

Electronic monitoring center—61.0 FTE positions...................................................................... 16,570,200

GROSS APPROPRIATION.......................................................................................................... $ 222,153,600

Appropriated from:

Special revenue funds:

Local - community tether program reimbursement...................................................................... 447,300

Re-entry center offender reimbursements..................................................................................... 141,600

Parole and probation oversight fees............................................................................................. 6,300,000

Parole and probation oversight fees set-aside.............................................................................. 2,649,500

Tether program participant contributions..................................................................................... 2,033,800

State general fund/general purpose.............................................................................................. $ 210,581,400

Sec. 106. CORRECTIONAL FACILITIES-ADMINISTRATION

Average population..........................................................................................................1,750

Full-time equated classified positions..........................................................................1,249.1

Correctional facilities administration—29.0 FTE positions......................................................... $ 8,186,400

Prison food service—394.0 FTE positions................................................................................... 56,718,200

Transportation—211.6 FTE positions.......................................................................................... 19,043,600

Central records—53.5 FTE positions........................................................................................... 3,906,100

Inmate legal services.................................................................................................................... 715,900

Loans to parolees.......................................................................................................................... 179,400

Housing inmates in federal institutions........................................................................................ 793,900

Prison store operations—75.0 FTE positions............................................................................... 1,467,100

Prison industries operations—189.0 FTE positions..................................................................... 21,325,400

Federal school lunch program...................................................................................................... 712,800

Leased beds and alternatives to leased beds................................................................................ 10,000,100

Public works programs................................................................................................................. 10,000,000

Cost-effective housing initiative................................................................................................... 47,906,300

Average population..........................................................................................................1,750

Inmate housing fund..................................................................................................................... (79,232,700)

Education program—252.0 FTE positions................................................................................... 31,279,600

GROSS APPROPRIATION.......................................................................................................... $ 133,002,100

Appropriated from:

Interdepartmental grant revenues:

IDG-MDCH, forensic center food service................................................................................... 630,600

Federal revenues:

DAG-FNS, national school lunch................................................................................................. 712,800

DED-OESE, title 1....................................................................................................................... 533,500

DED-OVAE, adult education........................................................................................................ 911,200

DED-OSERS................................................................................................................................ 110,200

DED, vocational education equipment......................................................................................... 283,100

DED, youthful offender/Specter grant.......................................................................................... $ 1,318,400

DOJ-BOP, federal prisoner reimbursement.................................................................................. 211,100

DOJ-OJP, serious and violent offender reintegration initiative.................................................... 10,400

DOJ, prison rape elimination act grant........................................................................................ 1,037,900

SSA-SSI, incentive payment........................................................................................................ 144,300

Special revenue funds:

Correctional industries revolving fund......................................................................................... 21,325,400

Public works user fees.................................................................................................................. 10,000,000

Resident stores.............................................................................................................................. 1,467,100

State general fund/general purpose.............................................................................................. $ 94,306,100

Sec. 107. HEALTH CARE

Full-time equated classified positions..........................................................................1,690.0

Health care administration—14.0 FTE positions......................................................................... $ 3,236,200

Prisoner health care services........................................................................................................ 93,095,500

Vaccination program..................................................................................................................... 691,200

Interdepartmental grant to human services, eligibility specialists............................................... 100,000

Mental health services and support—546.0 FTE positions.......................................................... 55,069,200

Northern region clinical complexes—366.6 FTE positions......................................................... 43,198,100

Southern region clinical complexes—763.4 FTE positions......................................................... 116,384,000

GROSS APPROPRIATION.......................................................................................................... $ 311,774,200

Appropriated from:

Special revenue funds:

Prisoner health care copayments.................................................................................................. 354,900

State general fund/general purpose.............................................................................................. $ 311,419,300

Sec. 108. NORTHERN REGION CORRECTIONAL FACILITIES

Average population........................................................................................................18,983

Full-time equated classified positions..........................................................................4,282.9

Alger maximum correctional facility - Munising—265.0 FTE positions.................................... $ 27,249,700

Average population.............................................................................................................889

Baraga maximum correctional facility - Baraga—325.1 FTE positions...................................... 31,829,200

Average population.............................................................................................................884

Earnest C. Brooks correctional facility - Muskegon—447.0 FTE positions................................ 45,545,500

Average population..........................................................................................................2,440

Chippewa correctional facility - Kincheloe—467.4 FTE positions............................................. 47,846,400

Average population..........................................................................................................2,282

Kinross correctional facility - Kincheloe—339.0 FTE positions................................................. 35,237,600

Average population..........................................................................................................1,799

Marquette branch prison - Marquette—339.6 FTE positions....................................................... 37,544,000

Average population..........................................................................................................1,201

Newberry correctional facility - Newberry—263.9 FTE positions.............................................. 26,091,500

Average population.............................................................................................................978

Oaks correctional facility - Eastlake—306.0 FTE positions........................................................ 34,317,200

Average population..........................................................................................................1,156

Ojibway correctional facility - Marenisco—205.9 FTE positions............................................... 19,053,300

Average population..........................................................................................................1,090

Central Michigan correctional facility - St. Louis—416.9 FTE positions................................... 40,278,900

Average population..........................................................................................................2,400

Pugsley correctional facility - Kingsley—216.0 FTE positions................................................... 20,464,400

Average population..........................................................................................................1,158

Saginaw correctional facility - Freeland—312.8 FTE positions.................................................. 31,952,400

Average population..........................................................................................................1,480

St. Louis correctional facility - St. Louis—320.3 FTE positions................................................ 32,541,300

Average population..........................................................................................................1,226

Northern region administration and support—58.0 FTE positions.............................................. 4,304,300

GROSS APPROPRIATION.......................................................................................................... $ 434,255,700

Appropriated from:

Special revenue funds:

State general fund/general purpose.............................................................................................. $ 434,255,700

Sec. 109. SOUTHERN REGION CORRECTIONAL FACILITIES

Average population........................................................................................................25,184

Full-time equated classified positions..........................................................................5,958.0

Bellamy Creek correctional facility - Ionia—394.4 FTE positions............................................. $ 39,857,300

Average population..........................................................................................................1,850

Carson City correctional facility - Carson City—455.1 FTE positions....................................... 47,496,100

Average population..........................................................................................................2,440

Cooper street correctional facility - Jackson—260.9 FTE positions............................................ 28,092,100

Average population..........................................................................................................1,799

G. Robert Cotton correctional facility - Jackson—402.5 FTE positions..................................... 39,548,100

Average population..........................................................................................................1,841

Charles E. Egeler correctional facility - Jackson—355.3 FTE positions..................................... 39,929,200

Average population..........................................................................................................1,376

Richard A. Handlon correctional facility - Ionia—233.4 FTE positions..................................... 24,033,900

Average population..........................................................................................................1,373

Gus Harrison correctional facility - Adrian—444.7 FTE positions............................................. 45,738,200

Average population..........................................................................................................2,342

Huron Valley correctional complex - Ypsilanti—559.7 FTE positions....................................... 58,478,700

Average population..........................................................................................................1,872

Ionia maximum correctional facility - Ionia—304.7 FTE positions............................................ 30,890,400

Average population.............................................................................................................654

Lakeland correctional facility - Coldwater—262.8 FTE positions.............................................. 24,877,200

Average population..........................................................................................................1,336

Macomb correctional facility - New Haven—304.3 FTE positions............................................. 30,406,800

Average population..........................................................................................................1,228

Maxey/Woodland Center correctional facility - Whitmore Lake—272.2 FTE positions............. 26,084,800

Average population.............................................................................................................328

Michigan reformatory - Ionia—320.1 FTE positions................................................................... 34,309,700

Average population..........................................................................................................1,338

Mound correctional facility - Detroit—283.4 FTE positions....................................................... 26,010,600

Average population..........................................................................................................1,062

Parnall correctional facility - Jackson—266.2 FTE positions...................................................... 27,548,800

Average population..........................................................................................................1,678

Ryan correctional facility - Detroit—281.8 FTE positions.......................................................... 29,198,600

Average population..........................................................................................................1,048

Thumb correctional facility - Lapeer—292.5 FTE positions....................................................... 30,251,400

Average population..........................................................................................................1,219

Special alternative incarceration program (Camp Cassidy Lake)—120.0 FTE positions............ 10,149,700

Average population.............................................................................................................400

Southern region administration and support—144.0 FTE positions............................................ 19,946,000

GROSS APPROPRIATION.......................................................................................................... $ 612,847,600

Appropriated from:

Federal revenues:

DOJ, state criminal alien assistance program.............................................................................. 1,543,300

Special revenue funds:

Public works user fees.................................................................................................................. 358,700

State general fund/general purpose.............................................................................................. $ 610,945,600

Sec. 110. INFORMATION TECHNOLOGY

Information technology services and projects.............................................................................. $ 21,824,400

GROSS APPROPRIATION.......................................................................................................... $ 21,824,400

Appropriated from:

Special revenue funds:

Correctional industries revolving fund......................................................................................... 159,600

Parole and probation oversight fees set-aside.............................................................................. $ 626,200

State general fund/general purpose.............................................................................................. $ 21,038,600

PART 2

PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2011-2012

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 2011-2012 is $1,927,187,600.00 and state spending from state resources to be paid to local units of government for fiscal year 2011-2012 is $89,893,500.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF CORRECTIONS

Field operations - assumption of county probation staff.............................................................. $ 53,642,400

Public service work projects........................................................................................................ 707,800

Community corrections comprehensive plans and services......................................................... 13,958,000

Community corrections residential services................................................................................. 18,075,500

Community corrections public education and training................................................................ 50,000

Felony drunk driver jail reduction and community treatment program....................................... 1,440,100

Community re-entry centers......................................................................................................... 2,019,600

Regional jail program................................................................................................................... 100

TOTAL.......................................................................................................................................... $ 89,893,500

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

Sec. 203. As used in this article:

(a) “Administrative segregation” means confinement for maintenance of order or discipline to a cell or room apart from accommodations provided for inmates who are participating in programs of the facility.

(b) “Cost per prisoner” means the sum total of the funds appropriated under part 1 for the following, divided by the projected prisoner population in fiscal year 2010-2011:

(i) Northern and southern region correctional facilities.

(ii) Northern and southern region administration and support.

(iii) Northern and southern region clinical complexes.

(iv) Prisoner health care services.

(v) Health care administration.

(vi) Vaccination program.

(vii) Prison food service and federal school lunch program.

(viii) Transportation.

(ix) Inmate legal services.

(x) Correctional facilities administration.

(xi) Central records.

(xii) DOJ psychiatric plan.

(xiii) Worker’s compensation.

(xiv) New custody staff training.

(xv) Prison store operations.

(xvi) Education services and federal education grants.

(xvii) Education program.

(d) “DAG-FNS” means the DAG food and nutrition service.

(e) “DED” means the United States department of education.

(f) “DED-OESE” means the DED office of elementary and secondary education.

(g) “DED-OSERS” means the DED office of special education and rehabilitative services.

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

(i) “Department” or “MDOC” means the Michigan department of corrections.

(j) “DOJ” means the United States department of justice.

(k) “DOJ-BOP” means the DOJ bureau of prisons.

(l) “DOJ-OJP” means the DOJ office of justice programs.

(m) “Evidence-based practices” or “EBP” means a decision-making process that integrates the best available research, clinician expertise, and client characteristics.

(n) “FTE” means full-time equated.

(o) “GED” means general educational development certificate.

(p) “Goal” means the intended or projected result of a comprehensive corrections plan or community corrections program to reduce repeat offending, criminogenic and high-risk behaviors, prison commitment rates, to reduce the length of stay in a jail, or to improve the utilization of a jail.

(q) “GPS” means global positioning system.

(r) “HIV” means human immunodeficiency virus.

(s) “IDG” means interdepartmental grant.

(t) “IDT” means intradepartmental transfer.

(u) “Jail” means a facility operated by a local unit of government for the physical detention and correction of persons charged with or convicted of criminal offenses.

(v) “MDCH” means the Michigan department of community health.

(w) “Medicaid benefit” means a benefit paid or payable under a program for medical assistance under the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b.

(x) “MDSP” means the Michigan department of state police.

(y) “MPRI” means the Michigan prisoner reentry initiative.

(z) “Objective risk and needs assessment” means an evaluation of an offender’s criminal history; the offender’s noncriminal history; and any other factors relevant to the risk the offender would present to the public safety, including, but not limited to, having demonstrated a pattern of violent behavior, and a criminal record that indicates a pattern of violent offenses.

(aa) “Offender eligibility criteria” means particular criminal violations, state felony sentencing guidelines descriptors, and offender characteristics developed by advisory boards and approved by local units of government that identify the offenders suitable for community corrections programs funded through the office of community corrections.

(bb) “Offender success” means that an offender has done all of the following:

(i) Regularly reported to his or her assigned field agent.

(ii) Is participating in or has successfully completed all required substance abuse, mental health, sex offender, or other treatment as approved by the field agent.

(iii) Not sent or returned to prison for the conviction of a new crime or the revocation of probation or parole.

(iv) Not been sentenced to a jail term for a new criminal offense.

(v) Obtained employment, has enrolled or participated in a program of education or job training, or has investigated all bona fide employment opportunities.

(vi) Obtained housing.

(cc) “Offender target population” means felons or misdemeanants who would likely be sentenced to imprisonment in a state correctional facility or jail, who would not likely increase the risk to the public safety based on an objective risk and needs assessment that indicates that the offender can be safely treated and supervised in the community.

(dd) “Offender who would likely be sentenced to imprisonment” means either of the following:

(i) A felon or misdemeanant who receives a sentencing disposition that appears to be in place of incarceration in a state correctional facility or jail, according to historical local sentencing patterns.

(ii) A currently incarcerated felon or misdemeanant who is granted early release from incarceration to a community corrections program or who is granted early release from incarceration as a result of a community corrections program.

(ee) “Programmatic success” means that the department program or initiative has ensured that the offender has accomplished all of the following:

(i) Obtained employment, has enrolled or participated in a program of education or job training, or has investigated all bona fide employment opportunities.

(ii) Obtained housing.

(iii) Obtained a state identification card.

(ff) “Recidivism” means any of the following:

(i) The arrest and conviction of a supervised individual for a new offense while under community supervision.

(ii) The adjudication of a supervised individual for a violation of the conditions of supervision while under community supervision.

(iii) A sanction resulting from a violation of terms of supervision that results in a return to prison without being adjudicated.

(gg) “RSAT” means residential substance abuse treatment.

(hh) “Serious emotional disturbance” means that term as defined in section 100d(2) of the mental health code, 1974 PA 328, MCL 330.1100d.

(ii) “Serious mental illness” means that term as defined in section 100d(3) of the mental health code, 1974 PA 328, MCL 330.1100d.

(jj) “SSA” means the United States social security administration.

(kk) “SSA-SSI” means SSA supplemental security income.

Sec. 204a. (1) The department shall collaborate with the civil service commission and the department of civil service to review the compensation rates for health care professionals who provide direct health care services to prisoners within the corrections system, including, but not limited to, doctors, all nursing professionals, pharmacists, pharmacy technicians, and psychologists. The review shall include health care professionals employed by the state as well as those employed through state contractors. These rates shall be compared to available data on compensation rates for comparable medical professionals in the private sectors who provide services to the general public to estimate any disparity in compensation.

(2) Following the review, the department shall make recommendations on changes needed to the state compensation plan for health care professional positions and to department contracts with health care providers so that compensation levels are sufficient to ensure that needed health care professional positions with vacancies are filled, that the department experiences adequate retention levels for these positions, and that necessary health care services are delivered in a timely manner to the prisoner population. A report outlining these recommendations shall be submitted to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget office by May 1, 2011.

Sec. 206. The department shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

Sec. 207. State employees shall be given the opportunity to bid on contracts that privatize services that are or were provided by state employees. If the contract is awarded to any state employee, he or she ceases being an employee of the state.

Sec. 208. Unless otherwise specified, the department shall use the Internet to fulfill the reporting requirements of this article. This requirement may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on an Internet or Intranet site.

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. Preference shall be given to goods or services, or both, manufactured or provided by Michigan businesses, if they are competitively priced and of comparable quality. In addition, preference should be given to goods or services, or both, that are manufactured or provided by Michigan businesses owned and operated by veterans, if they are competitively priced and of comparable quality.

Sec. 211. (1) The department may charge fees and collect revenues in excess of appropriations in part 1 not to exceed the cost of offender services and programming, employee meals, parolee loans, academic/vocational services, custody escorts, compassionate visits, union steward activities, and public works programs and services provided to local units of government. The revenues and fees collected are appropriated for all expenses associated with these services and activities.

(2) If a parolee or probationer has been ordered to pay restitution, the department shall ensure that payment is a condition of his or her community supervision. Restitution payments shall be made as provided in section 22 of chapter XV of the code of criminal procedure, 1927 PA 175, MCL 775.22. The department shall collect not more than 50% of all money collected from parolees and probationers for payments other than victim payments, as that term is defined in section 22 of chapter XV of the code of criminal procedure, 1927 PA 175, MCL 775.22.

(3) By April 1, the department shall provide the members of the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director with a report detailing the collection of fees under this section. At minimum, this report shall include a categorical accounting of all fees collected under this section.

Sec. 212. On a quarterly basis, each executive branch department and agency receiving appropriations in part 1 shall report on the number of full-time equated positions in pay status by civil service classification to the senate and house appropriations subcommittees on corrections and the senate and house fiscal agencies. This report shall include a detailed accounting of the long-term vacancies that exist within each department. As used in this subsection, “long-term vacancy” means any full-time equated position that has not been filled at any time during the past 24 calendar months.

Sec. 213. By February 15, the department shall provide the members of the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director with a report detailing non-general fund/general purpose sources of revenue, including, but not limited to, federal revenues, state restricted revenues, local and private revenues, offender reimbursements and other payments, revolving funds, and 1-time sources of revenue, whether or not those revenues were appropriated. The report shall include statements detailing for each account the total amount of revenue received during fiscal year 2009-2010, the amount by which the revenue exceeded any applicable appropriated fund source, the amount spent during fiscal year 2009-2010, the account balance at the close of fiscal year 2009-2010, and the projected revenues and expenditures for fiscal year 2010-2011.

Sec. 214. From the funds appropriated in part 1 for information technology, the department shall pay user fees to the department of technology, management, and budget for technology-related services and projects. These user fees shall be subject to provisions of an interagency agreement between the department and the department of technology, management, and budget. It is the intent of the legislature that the department consider using third-party software and information technologies before contracting for such services through the department of technology, management, and budget.

Sec. 215. Amounts appropriated in part 1 for information technology may be designated as work projects and carried forward to support technology projects under the direction of the department of technology, management, and budget. Funds designated in this manner are not available for expenditure until approved as work projects under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a.

Sec. 216. (1) Due to the current budgetary problems of this state, out-of-state travel for the fiscal year ending September 30, 2012 shall be limited to situations in which 1 or more of the following conditions apply:

(a) The travel is required by legal mandate or court order or for law enforcement purposes.

(b) The travel is necessary to protect the health or safety of Michigan citizens or visitors or to assist other states for similar reasons.

(c) The travel is necessary to produce budgetary savings or to increase state revenues, or both, including protecting existing federal funds or securing additional federal funds.

(d) The travel is necessary to comply with federal requirements.

(e) The travel is necessary to secure specialized training for staff that is not available within this state.

(f) The travel is financed entirely by federal or nonstate funds.

Sec. 218. The department and agencies receiving appropriations in part 1 shall receive and retain copies of all reports funded from appropriations in part 1. Federal and state guidelines for short-term and long-term retention of records shall be followed. The department may electronically retain copies of reports unless otherwise required by federal and state guidelines.

Sec. 219. Any contract for prisoner telephone services entered into after the effective date of this article shall include a condition that fee schedules for prisoner telephone calls, including rates and any surcharges other than those necessary to meet special equipment costs, be the same as fee schedules for calls placed from outside of correctional facilities.

Sec. 220. Not later than November 15, the department shall prepare and transmit a report that provides for estimates of the total general fund/general purpose appropriation lapses at the close of the fiscal year. This report shall summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The report shall be transmitted to the office of the state budget, the chairpersons of the senate and house of representatives standing committees on appropriations, and the senate and house fiscal agencies.

Sec. 221. (1) The department shall maintain a searchable website accessible by the public at no cost that includes, but is not limited to, all of the following:

(a) Fiscal year-to-date expenditures by category.

(b) Fiscal year-to-date expenditures by appropriation unit.

(c) Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.

(d) The number of active department employees by job classification.

(e) Job specifications and wage rates.

(2) The department may develop and operate its own website to provide this information or may reference the state’s central transparency website as the source for this information.

Sec. 223. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $10,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this article 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 article 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 $2,000,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this article 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 $2,000,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this article under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 224. By March 1, the department shall provide a litigation report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director. The report shall identify all lawsuits adjudicated through the trial court phase in which the department or an employee acting on behalf of the department was a defendant and in which trial court proceedings resulted in a decision of $250,000.00 or more against the department.

Sec. 225. (1) The department shall make every effort to place employees displaced by any reductions in force within other positions in the department.

(2) It is the intent of the legislature that all employees displaced by any reductions in force who are not placed within other positions in the department be given priority in state programs for job retraining or education, such as the no worker left behind program.

Sec. 229. Within 14 days after the release of the executive budget recommendation, the department shall provide the state budget director, the senate and house appropriations chairs, the senate and house appropriations subcommittees on corrections, respectively, and the senate and house fiscal agencies with an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the fiscal years ending September 30, 2011 and September 30, 2012.

Sec. 235. It is the intent of the legislature that the department reduce expenditures using the following strategies:

(a) Following the recommendations outlined in audit report 471-0130-08 of June 2009 issued by the Michigan office of the auditor general, which found $7,534,039.00 in known savings that would have been achieved through cost-neutral operation of the bureau of correctional industries, as follows:

(i) Finding 1 indicates that the bureau of correctional industries has consistently failed to maintain profitable or cost-neutral operations.

(ii) Finding 2 indicates that the bureau of correctional industries had not developed or implemented a comprehensive business plan.

(iii) Finding 3 indicates that the bureau of correctional industries did not efficiently schedule and utilize its trucks and drivers for delivery of products and services.

(iv) Finding 4 indicates that the bureau of correctional industries had not established comprehensive policies and procedures for setting prices and discounts for products and services.

(b) Continuing the supply chain transformation (SCT) with the new fiscal year beginning October 1, 2011. The SCT shall address all goods and services delivered into the department, with special focus in the following areas: food service, offender transport, warehousing, prisoner stores, laundries, textiles, transportation, reverse logistics, education, sex offender programming, assaultive offender programming, Michigan state industries manufacturing and related material, and capital and service purchase contracts under development or due to expire. The department shall continually detail its supply chain strategy and implementation plan including tasks, timing, resources, costs, and benefits to be achieved. The department shall provide quarterly cost and benefit savings report information. The department shall contract with a world-class supply chain external resource with the following capabilities: demonstrated success working in a department of corrections environment in the targeted supply chain areas of focus; demonstrated expertise in defining, developing, and implementing cross-functional infrastructures; continuous quality improvement teams; stakeholder and communications outreach programs; six sigma/lean tools and templates; hands-on supply chain; continuous quality improvement and six sigma tool training; and positive working relations and measurable, documented client satisfaction results.

(c) Following the recommendations outlined in audit report 471-0620-07L of October 2008 issued by the Michigan office of the auditor general, which found $14,800,000.00 in estimated savings that could be achieved through reforms of the department’s staffing and purchasing policies, as follows:

(i) Finding 1 indicates that the department needs to improve its administration of custody officer staffing.

(ii) Finding 2 indicates that the department needs to pursue additional cost-saving measures through future contract negotiations and review of its organizational structure.

(iii) Finding 3 indicates that the department did not have a formal process in place to negotiate prices for goods and services purchased from Michigan state industries.

(d) Following the recommendations outlined in audit report 471-0623-07L of December 2008 issued by the Michigan office of the auditor general, which found significant but indeterminate savings could be achieved through reforms of prisoner transportation policies, specifically, finding 4 indicates that the department should continue to seek the cooperation of the state court administrative office and its medical service providers to fully use existing technology to conduct videoconferencing for court and medical appointments.

Sec. 236. It is the intent of the legislature that from the revenue resulting from the sale of the former Scott correctional facility sufficient funds shall be appropriated to the department to reimburse Michigan state industries for costs related to the construction of the Industries Building, which was operated by Michigan state industries on the site of the Scott correctional facility.

Sec. 237. The department shall observe all requirements set forth in statute and administrative rules related to procurement requests and shall ensure that proper communication is maintained with the department of technology, management, and budget regarding the use of delegated purchasing authority granted by the department of technology, management, and budget. The department shall not pursue the procurement of any good or service on its own that falls outside its delegated authority from the department of technology, management, and budget. If any requests for proposal or requests for qualifications are delayed due to the department’s improper use of purchasing authority under statute and administrative rules, the department shall report on the improper use to the house and senate appropriations subcommittees on corrections within 15 days after determining that the improper use occurred. The report shall review the purpose of the relevant procurement effort, explain why the improper use of delegated authority occurred, and outline steps being taken to ensure that improper use of delegated authority does not occur again in the future.

Sec. 238. It is the intent of the legislature that the department make additional efforts to sell, rent, or otherwise repurpose closed correctional facilities.

Sec. 239. It is the intent of the legislature that the department establish and maintain a management-to-staff ratio of 1 supervisor for each 5 employees at the department’s central office in Lansing and at both the northern and southern region administration offices.

Sec. 240. On or before March 1, 2012, the department shall solicit and evaluate proposals for services related to the audit of vendor and contract payments and the recovery of improper payments. The period covered by the proposed audit shall be not less than 3 prior fiscal years. On or before September 1, 2012, the department shall provide to the house and senate committees on appropriations and the house and senate fiscal agencies a complete report on the results of the proposal solicitation and findings and amounts recovered from subsequent recovery audits.

EXECUTIVE

Sec. 301. (1) For 3 years after a felony offender is released from the department’s jurisdiction, the department shall maintain the offender’s file on the offender tracking information system and make it publicly accessible in the same manner as the file of the current offender. However, the department shall immediately remove the offender’s file from the offender tracking information system upon determination that the offender was wrongfully convicted and the offender’s file is not otherwise required to be maintained on the offender tracking information system.

(2) Information removed from the offender tracking information system due to the expiration of 3 years following release of an offender from the department’s jurisdiction shall be retained by the department and maintained in a password-protected archive. Effective October 1, 2009, information in the archive shall be made available upon payment of a fee as determined by the department. Revenue collected under this section is appropriated for the costs of the offender tracking information system, and any revenue collected in excess of the costs of maintaining the offender tracking information system is appropriated for information technology costs. The department shall report on March 1 to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on the fees charged and revenue collected under this section.

Sec. 302. The department shall provide a report to the members of the senate and house appropriations subcommittees on corrections and community health, the senate and house fiscal agencies, MDCH, and the state budget director by May 1, reviewing actions taken to implement the recommendations of the mental health study required under section 302 of 2007 PA 124 with which it agrees and an explanation of any disagreements with recommendations. It is the intent of the legislature to review the department’s implementation plan and, in coordination with the department, to identify funds with which to implement the plan, as appropriate.

Sec. 304. The director of the department shall maintain a staff savings initiative program to invite employees to submit suggestions for saving costs for the department. The department shall report semiannually to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on the suggestions submitted under this section, the implementation plan for those suggestions with which the department agrees, and an explanation of any disagreements with suggestions.

Sec. 305. By March 1, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on the number of prisoners who committed suicide during the previous calendar year. To the extent permitted by law, the report shall include all of the following information:

(a) The prisoner’s age, offense, sentence, and admission date.

(b) Each prisoner’s facility and unit.

(d) The date of the suicide.

(e) Whether the suicide occurred in a housing unit, a segregation unit, a mental health unit, or elsewhere on the grounds of the facility.

(f) Whether the prisoner had been denied parole and the date of any denial.

(g) Whether the prisoner had received a mental health evaluation or assessment.

(h) Details on the department’s responses to each suicide, including immediate on-site responses and subsequent internal investigations.

(i) A description of any monitoring and psychiatric interventions that had been undertaken prior to the prisoner’s suicide, including any changes in placement or mental health care.

(j) Whether the prisoner had previously attempted suicide.

PLANNING AND COMMUNITY SUPPORT

Sec. 401. The department shall submit 3-year and 5-year prison population projection updates concurrent with submission of the executive budget to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director. The report shall include explanations of the methodology and assumptions used in developing the projection updates.

Sec. 402. It is the intent of the legislature that the funds appropriated in part 1 for prisoner reintegration programs be expended for the purpose of reducing victimization by reducing repeat offending through the following prisoner reintegration programming:

(a) The provision of employment or employment services and job training.

(b) The provision of housing assistance.

(d) Referral to substance abuse services.

(e) Referral to public health services.

(f) Referral to education.

(g) Referral to any other services necessary for successful reintegration.

Sec. 403. By March 1, the department shall provide a report on MPRI expenditures and allocations to the members of the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director. At a minimum, the report shall include information on both of the following:

(a) Details on prior-year expenditures, including amounts spent on each project funded, itemized by service provided and service provider.

(b) Allocations and planned expenditures for each project funded and for each project to be funded, itemized by service to be provided and service provider. The department shall provide an amended report at least 60 days before making revisions to allocations or planned expenditures.

Sec. 403a. (1) In collaboration with a technical committee composed of representatives from the department, designees of the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the justice center of the council of state governments, the department shall develop a performance-based dashboard tracking and reporting system that establishes key indicators of the success and failure of offenders. Indicators shall reflect the status of and trends in key program elements, behavior improvements on the part of offenders, and whether targeted goals are being met.

(2) By April 1, the department shall report dashboard data to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director.

Sec. 404. (1) The department shall screen and assess each prisoner for alcohol and other drug involvement to determine the need for further treatment. The assessment process shall be designed to identify the severity of alcohol and other drug addiction and determine the treatment plan, if appropriate.

(2) The department shall provide substance abuse treatment to prisoners with priority given to those prisoners who are most in need of treatment and who can best benefit from program intervention based on the screening and assessment provided under subsection (1).

Sec. 405. (1) In expending residential substance abuse treatment services funds appropriated under this article, the department shall ensure to the maximum extent possible that residential substance abuse treatment services are available statewide.

(2) By March 1, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on the allocation, distribution, and expenditure of all funds appropriated by the substance abuse testing and treatment line item during fiscal year 2010-2011 and projected for fiscal year 2011-2012. The report shall include, but not be limited to, an explanation of an anticipated year-end balance, the number of participants in substance abuse programs, and the number of offenders on waiting lists for residential substance abuse programs. Information required under this subsection shall, where possible, be separated by MDOC administrative region and by offender type, including, but not limited to, a distinction between prisoners, parolees, and probationers.

(3) By March 1, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on substance abuse testing and treatment program objectives, outcome measures, and results, including program impact on offender success and programmatic success as those terms are defined in section 203.

Sec. 405a. The department shall work cooperatively with MDCH and substance abuse coordinating agencies in referring offenders as appropriate to intensive substance abuse services, including residential services.

Sec. 406. As a condition for expending any money appropriated in part 1 for reinvestment in prisoner re-entry programs, the department shall establish a pilot program with an allocation of at least $2,000,000.00 from the funding appropriated to prisoner reintegration programs to contract with faith-based nonprofit agencies with established programs that assist prisoners exiting the prison system to reintegrate into the community. The department shall report to the house and senate appropriations subcommittees on corrections, the house and senate fiscal agencies, and the state budget director by December 1 on the contracts awarded under the pilot program, including the faith-based, nonprofit agencies selected and the contract amounts awarded to each agency. The department shall analyze and compare the success and failure rates of prisoners served under the pilot program and those served through other department reintegration programs and shall report this information to the legislature during budget hearings on the fiscal year 2012-2013 budget.

Sec. 407. (1) By June 30, the department shall place the 2011 statistical report on an Internet site. The statistical report shall include, but not be limited to, the information as provided in the 2004 statistical report.

(2) It is the intent of the legislature that starting with calendar year 2010, the statistical report be placed on an Internet site within 6 months after the end of each calendar year.

Sec. 408. The department shall measure the recidivism rates of offenders using at least a 3-year period following their release from prison. Any time spent in a county jail or otherwise incarcerated shall be included in the recidivism rates.

Sec. 409. The office of community alternatives shall provide and coordinate the delivery and implementation of services in communities to facilitate successful offender reintegration into the community. Programs and services to be offered shall include, but are not limited to, technical assistance for comprehensive corrections plan development, new program start-up funding, program funding for those programs delivering services for eligible offenders in geographic areas identified by the office of community corrections as having a shortage of available services, technical assistance, referral services for education, employment services, and substance abuse and family counseling.

Sec. 410. (1) The funds included in part 1 for community corrections comprehensive plans and services are to encourage the development through technical assistance grants, implementation, and operation of community corrections programs that enhance offender success and that also may serve as an alternative to incarceration in a state facility or jail. The comprehensive corrections plans shall include an explanation of how the public safety will be maintained, the goals for the local jurisdiction, offender target populations intended to be affected, offender eligibility criteria for purposes outlined in the plan, and how the plans will meet the following objectives, consistent with section 8(4) of the community corrections act, 1988 PA 511, MCL 791.408:

(a) Reduce admissions to prison of offenders who would likely be sentenced to imprisonment, including probation violators.

(b) Improve the appropriate utilization of jail facilities, the first priority of which is to open jail beds intended to house otherwise prison-bound felons, and the second priority being to appropriately utilize jail beds so that jail crowding does not occur.

(d) Reduce the readmission to prison of parole violators.

(e) Reduce the admission or readmission to prison of offenders, including probation violators and parole violators, for substance abuse violations.

(f) Contribute to offender success, as that term is defined in section 203.

(2) The award of community corrections comprehensive plans and residential services funds shall be based on criteria that include, but are not limited to, the prison commitment rate by category of offenders, trends in prison commitment rates and jail utilization, historical trends in community corrections program capacity and program utilization, and the projected impact and outcome of annual policies and procedures of programs on offender success, prison commitment rates, and jail utilization.

(3) Funds awarded for residential services in part 1 shall provide for a per diem reimbursement of not more than $47.50 for nonaccredited facilities, or of not more than $48.50 for facilities that have been accredited by the American corrections association or a similar organization as approved by the department.

Sec. 411. The comprehensive corrections plans shall also include, where appropriate, descriptive information on the full range of sanctions and services that are available and utilized within the local jurisdiction and an explanation of how jail beds, residential services, the special alternative incarceration program, probation detention centers, the electronic monitoring program for probationers, and treatment and rehabilitative services will be utilized to support the objectives and priorities of the comprehensive corrections plans and the purposes and priorities of section 8(4) of the community corrections act, 1988 PA 511, MCL 791.408, that contribute to the success of offenders. The plans shall also include, where appropriate, provisions that detail how the local communities plan to respond to sentencing guidelines found in chapter XVII of the code of criminal procedure, 1927 PA 175, MCL 777.1 to 777.69, and use the county jail reimbursement program under section 414. The state community corrections board shall encourage local community corrections advisory boards to include in their comprehensive corrections plans strategies to collaborate with local alcohol and drug treatment agencies of the MDCH for the provision of alcohol and drug screening, assessment, case management planning, and delivery of treatment to alcohol- and drug-involved offenders.

Sec. 412. (1) As part of the March biannual report specified in section 12(2) of the community corrections act, 1988 PA 511, MCL 791.412, that requires an analysis of the impact of that act on prison admissions and jail utilization, the department shall submit to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director the following information for each county and counties consolidated for comprehensive corrections plans:

(a) Approved technical assistance grants and comprehensive corrections plans including each program and level of funding, the utilization level of each program, and profile information of enrolled offenders.

(b) If federal funds are made available, the number of participants funded, the number served, the number successfully completing the program, and a summary of the program activity.

(d) Data on residential services, including participant data, participant sentencing guideline scores, program expenditures, average length of stay, and bed utilization data.

(e) Offender disposition data by sentencing guideline range, by disposition type, by prior record variable score, by number and percent statewide and by county, current year, and comparisons to the previous 3 years.

(f) Data on the use of funding made available under the felony drunk driver jail reduction and community treatment program.

(2) The report required under subsection (1) shall include the total funding allocated, program expenditures, required program data, and year-to-date totals.

Sec. 413. (1) The department shall identify and coordinate information regarding the availability of and the demand for community corrections programs, jail-based community corrections programs, jail-based probation violation sanctions, and all state-required jail data.

(2) The department is responsible for the collection, analysis, and reporting of all state-required jail data.

(3) As a prerequisite to participation in the programs and services offered through the department, counties shall provide necessary jail data to the department.

Sec. 414. (1) The department shall administer a county jail reimbursement program from the funds appropriated in part 1 for the purpose of reimbursing counties for housing in jails certain felons who otherwise would have been sentenced to prison.

(2) The county jail reimbursement program shall reimburse counties for convicted felons in the custody of the sheriff if the conviction was for a crime committed on or after January 1, 1999 and 1 of the following applies:

(a) The felon’s sentencing guidelines recommended range upper limit is more than 18 months, the felon’s sentencing guidelines recommended range lower limit is 12 months or less, the felon’s prior record variable score is 35 or more points, and the felon’s sentence is not for commission of a crime in crime class G or crime class H or a nonperson crime in crime class F under chapter XVII of the code of criminal procedure, 1927 PA 175, MCL 777.1 to 777.69.

(b) The felon’s minimum sentencing guidelines range minimum is more than 12 months under the sentencing guidelines described in subdivision (a).

(c) The felon was sentenced to jail for a felony committed while he or she was on parole and under the jurisdiction of the parole board and for which the sentencing guidelines recommended range for the minimum sentence has an upper limit of more than 18 months.

(3) State reimbursement under this subsection shall be $60.00 per diem per diverted offender for offenders with a presumptive prison guideline score, $50.00 per diem per diverted offender for offenders with a straddle cell guideline for a group 1 crime, and $35.00 per diem per diverted offender for offenders with a straddle cell guideline for a group 2 crime. Reimbursements shall be paid for sentences up to a 1-year total.

(4) As used in this subsection:

(a) “Group 1 crime” means a crime in 1 or more of the following offense categories: arson, assault, assaultive other, burglary, criminal sexual conduct, homicide or resulting in death, other sex offenses, robbery, and weapon possession as determined by the department of corrections based on specific crimes for which counties received reimbursement under the county jail reimbursement program in fiscal year 2007 and fiscal year 2008, and listed in the county jail reimbursement program document titled “FY 2007 and FY 2008 Group One Crimes Reimbursed”, dated March 31, 2009.

(b) “Group 2 crime” means a crime that is not a group 1 crime, including larceny, fraud, forgery, embezzlement, motor vehicle, malicious destruction of property, controlled substance offense, felony drunk driving, and other nonassaultive offenses.

(c) “In the custody of the sheriff” means that the convicted felon has been sentenced to the county jail and is either housed in the county jail or has been released from jail and is being monitored through the use of the sheriff’s electronic monitoring system.

(5) County jail reimbursement program expenditures shall not exceed the amount appropriated in part 1 for the county jail reimbursement program. Payments to counties under the county jail reimbursement program shall be made in the order in which properly documented requests for reimbursements are received. A request shall be considered to be properly documented if it meets MDOC requirements for documentation. By October 15, 2011, the department shall distribute the documentation requirements to all counties.

(6) Of the funds appropriated in part 1 for the county jail reimbursement program, $500,000.00 shall be utilized to reimburse county jails for housing individuals who violate terms of probation under the swift-and-sure sanctions pilot program.

Sec. 415. (1) The department shall create a database for use by the department and MPRI service providers. The database shall be available to both the department and the service provider in real time. The department, in consultation with the service providers, shall issue a policy defining each field in the database so that there will be common usage of all terms and fields.

(2) The department, in consultation with the service providers, shall publish financial guidelines for administration of this program.

Sec. 416. (1) Funds included in part 1 for the felony drunk driver jail reduction and community treatment program are appropriated for and may be expended for any of the following purposes:

(a) To increase availability of treatment options to reduce drunk driving and drunk driving-related deaths by addressing the alcohol addiction of felony drunk drivers who otherwise likely would be sentenced to jail or a combination of jail and other sanctions.

(b) To divert from jail sentences or to reduce the length of jail sentences for felony drunk drivers who otherwise would have been sentenced to jail and whose recommended minimum sentence ranges under sentencing guidelines established under chapter XVII of the code of criminal procedure, 1927 PA 175, MCL 777.1 to 777.69, have upper limits of 18 months or less or the lower limit of the sentencing range is 1 year or less and the upper limit of the range is more than 18 months and the prior record variable is less than 35 points, through funding programs that may be used in lieu of incarceration and that increase the likelihood of rehabilitation.

(c) To provide a policy and funding framework to make additional jail space available for housing convicted felons whose recommended minimum sentence ranges under sentencing guidelines established under chapter XVII of the code of criminal procedure, 1927 PA 175, MCL 777.1 to 777.69, have lower limits of 12 months or less and who likely otherwise would be sentenced to prison, with the aim of enabling counties to meet or exceed amounts received through the county jail reimbursement program during fiscal year 2002-2003 and reducing the numbers of felons sentenced to prison.

(2) Expenditure of funds included in part 1 for the felony drunk driver jail reduction and community treatment program shall be by grant awards consistent with standards developed by a committee of the state community corrections advisory board. The chairperson of the committee shall be the board member representing county sheriffs. Remaining members of the committee shall be appointed by the chairperson of the board.

(3) In developing annual standards, the committee shall consult with interested agencies and associations. Standards developed by the committee shall include application criteria, performance objectives and measures, funding allocations, and allowable uses of the funds, consistent with the purposes specified in this section.

(4) Allowable uses of the funds shall include reimbursing counties for transportation, treatment costs, and housing felony drunk drivers during a period of assessment for treatment and case planning. Reimbursements for housing during the assessment process shall be at the rate of $43.50 per day per offender, up to a maximum of 5 days per offender.

(5) The standards developed by the committee shall assign each county a maximum funding allocation based on the amount the county received under the county jail reimbursement program in fiscal year 2001-2002 for housing felony drunk drivers whose recommended minimum sentence ranges under the sentencing guidelines described in subsection (1)(c) had upper limits of 18 months or less.

(6) Awards of funding under this section shall be provided consistent with the local comprehensive corrections plans developed under the community corrections act, 1988 PA 511, MCL 791.401 to 791.414. Funds awarded under this section may be used in conjunction with funds awarded under grant programs established under that act. Due to the need for felony drunk drivers to be transitioned from county jails to community treatment services, it is the intent of the legislature that local units of government utilize funds received under this section to support county sheriff departments.

(7) As used in this section, “felony drunk driver” means a felon convicted of operating a motor vehicle under the influence of intoxicating liquor or a controlled substance, or both, third or subsequent offense, under section 625(9)(c) of the Michigan vehicle code, 1949 PA 300, MCL 257.625, or its predecessor statute, punishable as a felony.

Sec. 417. (1) By March 1, the department shall report to the members of the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on each of the following programs from the previous fiscal year:

(a) The county jail reimbursement program.

(b) The felony drunk driver jail reduction and community treatment program.

(2) For each program listed under subsection (1), the report shall include information on each of the following:

(a) Program objectives and outcome measures, including, but not limited to, the number of offenders who successfully completed the program, and the number of offenders who successfully remained in the community during the 3 years following termination from the program.

(b) Expenditures by location.

(d) The impact on prison admissions.

(e) Other information relevant to an evaluation of the program.

Sec. 418. (1) The department shall collaborate with the state court administrative office on facilitating changes to Michigan court rules that would require the court to collect at the time of sentencing the state operator’s license, state identification card, or other documentation used to establish the identity of the individual to be admitted to the department. The department shall maintain those documents in the prisoner’s personal file.

(2) The department shall collaborate with the Michigan department of state to ensure that an achievable list of documents necessary to obtain a state operator’s license or state identification card upon parole or release is developed and presented to the prisoner so that application for identification can begin prior to a prisoner’s discharge or parole hearing. The process for prisoners to acquire this documentation shall be part of the department’s operating procedure.

(3) The department shall cooperate with MDCH to create and maintain a process by which prisoners can obtain their Michigan birth certificates if necessary. The department shall describe a process for obtaining birth certificates from other states, and in situations where the prisoner’s effort fails, the department shall assist in obtaining the birth certificate.

(4) By March 1, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, the legislative corrections ombudsman, and the state budget director on the plan for implementing all necessary processes and policy changes in order to ensure compliance with the requirements of this section.

Sec. 419. (1) The department shall provide weekly electronic mail reports to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on prisoner, parolee, and probationer populations by facility, and prison capacities.

(2) The department shall provide monthly electronic mail reports to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director. The reports shall include information on end-of-month prisoner populations in county jails, the net operating capacity according to the most recent certification report, identified by date, and end-of-month data, year-to-date data, and comparisons to the prior year for the following:

(a) Community residential program populations, separated by centers and electronic monitoring.

(b) Parole populations.

(d) Prison and camp populations, with separate identification of the number in special alternative incarceration and the number of lifers.

(e) Parole board activity, including the numbers and percentages of parole grants and parole denials.

(f) Prisoner exits, identifying transfers to community placement, paroles from prisons and camps, paroles from community placement, total movements to parole, prison intake, prisoner deaths, prisoners discharging on the maximum sentence, and other prisoner exits.

(g) Prison intake and returns, including probation violators, new court commitments, violators with new sentences, escaper new sentences, total prison intake, returns from court with additional sentences, community placement returns, technical parole violator returns, and total returns to prison and camp.

Sec. 420. By March 1, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house judiciary committees, the senate and house fiscal agencies, and the state budget director on performance data and efforts to improve efficiencies relative to departmental staffing, health care services, food service, prisoner transportation, mental health care services, and pharmaceutical costs.

Sec. 422. It is the intent of the legislature that MPRI programs from prisoner entry into the corrections system to reentry into the community and as measured by offender success and programmatic success as those terms are defined in section 203 shall be maintained as standard operating procedure in the department. In particular, services should be focused on moderate- to high-risk individuals. Special in-prison programming shall be directed to those prisoners who were paroled and have returned to prison and who will subsequently be eligible for parole again in the future. In addition, MPRI services provided to prisoners shall include basic computer skills training.

Sec. 424. (1) From the funds appropriated in part 1 for residential services, the department shall develop and implement, in collaboration with the judiciary and as approved by the state court administrative office, a demonstration project based on evidence-based practices related to judicial and case management interventions that have been proven to increase public safety for high-risk, high-need probationers as determined by a validated risk and need assessment instrument. As used in this section, “probationer” means a circuit court probationer serving a probation sentence for a crime.

(2) The demonstration project shall be implemented in 4 areas of the state identified jointly by the department and the state court administrative office. Preference shall be given to locations that are representative of areas with high rates of violent crimes as described in the council of state governments’ justice center report on analyses of crime, community corrections, and sentencing policies in this state.

(3) The primary goal of the demonstration project is to reduce crime and revictimization by high-risk, high-need probationers. The secondary goal of the demonstration project is to reduce expenditures for long-term incarceration.

(4) The demonstration project may provide up to 6 months of residential services, and treatment methods, and interventions that are evidence-based, including, but not limited to, the following:

(a) Risk/needs assessment.

(b) Motivational techniques.

(c) Type, intensity, and duration of treatment based on each probationer’s risk and needs and delivered consistent with evidence-based practices.

(5) The department shall implement the evidence-based practice of collaborative case management and utilize the services of the department and of local community corrections consistent with the local comprehensive corrections plan developed under the community corrections act, 1988 PA 511, MCL 791.401 to 791.414.

(6) The department shall assign a probation officer to the demonstration project to supervise a specialized caseload for high-risk, high-need probationers. All probation officers supervising a specialized caseload under this section shall receive substantial education and training on issues of substance abuse, mental health, and drug and alcohol testing.

(7) The probation officer shall work in cooperation with the local judiciary and the community corrections advisory board in a collaborative effort toward the goals of promoting probationer success and reducing crime and revictimization.

(8) The probation officer assigned to the demonstration project shall comply with supervision requirements established for the demonstration project by the field operations administration deputy director.

(9) The department shall identify and coordinate information for each local jurisdiction selected for the demonstration project regarding the rate of incarceration of high-risk, high-need probationers to ensure that appropriate probationers are targeted for the demonstration project.

(10) From the funds appropriated in part 1 for public education and training, the department shall collaborate with the local judiciary, community corrections advisory board, and service providers to develop and provide appropriate training for all local stakeholders involved in the demonstration project described in this section.

(11) From the funds provided to the local jurisdiction for the demonstration project, the department shall collaborate with the local judiciary and the community corrections advisory board to develop and implement an evaluation of the demonstration project that will show the impact of the project on the arrests, convictions, technical violations, and commitments to prison of the demonstration project participants. This evaluation shall be performed in accordance with department of corrections policy and procedure on evaluation design in cooperation with the office of research and planning.

(12) By May 1, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on the status of the demonstration project prescribed under this section, including information on all of the following:

(a) Demonstration project locations and participating courts.

(b) The number of probationers participating in the pilot categorized by location and offense.

(d) Preliminary results, if any.

Sec. 426. The money appropriated in part 1 for prisoner reintegration, training, and employment programs shall be distributed to 1 or more Michigan-chartered 501(c)(3) nonprofit corporations to expand existing business models, create new business enterprises, or purchase capital equipment for expansion of current business operations. Qualifying nonprofits must hire new employees through the funding provided in this section, must include at least 45% returning citizens, must have documented entrepreneurial social enterprise expertise in creating employment opportunities for parolees, and must presently have established public utility asset recovery recycling programs. The programs shall be administered by 1 or more Michigan-chartered corporations that are exempt from taxation under section 501(c)(3) of the internal revenue code, 26 USC 501(c)(3).

Sec. 429. It is the intent of the legislature that the department work with other state departments and agencies to implement the policy options provided to the state by the council of state governments in January 2009 and March 2011.

Sec. 430. The department shall ensure that each prisoner has the opportunity to meet with his or her transition team prior to release from prison. If applicable, community providers shall enter the prison to meet with the prisoner prior to release.

Sec. 431. The department shall ensure that prior to release from prison, each offender has possession of all of the following:

(a) All documents necessary to obtain a state operator’s license or state identification card.

(b) A set of clothing that would be appropriate and suitable for wearing to an interview for employment.

Sec. 433. The department shall report quarterly on January 1, 2012, April 1, 2012, July 1, 2012, and September 30, 2012 to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on the status of any contracts entered into under the June 2009 request for proposals for the re-entry initiative project for offenders with special needs. The report shall include information on all of the following:

(a) The number of prisoners and participating parolees in each of the target population subgroups, including medically fragile, mentally ill, developmentally disabled, and youthful offenders.

(b) Descriptions of the key services being provided to each subgroup under the contract or contracts.

(c) Estimates of the average per-offender costs of services for each target population subgroup under each contract, compared to the average cost of prison incarceration for those populations.

Sec. 434. (1) It is the intent of the legislature that the department, in coordination with the department of licensing and regulatory affairs, Michigan state housing development authority, nonprofit and faith-based organizations, and local government officials, implement employment-related projects targeted toward at-risk young adults who are disconnected from school and employment, and probationers and parolees in high-crime neighborhoods where the adult incarceration rate is at least 45%.

(2) The department shall identify high-crime neighborhoods where the adult incarceration rate is at least 45% and in consultation with the department of human services, the superintendent of public instruction, and nonprofit and faith-based organizations shall develop programs for recommendation to the legislature that offer academic, counseling, and social support to children of incarcerated parents.

OPERATIONS AND SUPPORT ADMINISTRATION

Sec. 501. From the funds appropriated in part 1 for prosecutorial and detainer expenses, the department shall reimburse counties for housing and custody of parole violators and offenders being returned by the department from community placement who are available for return to institutional status and for prisoners who volunteer for placement in a county jail.

Sec. 502. Funds included in part 1 for the sheriffs’ coordinating and training office are appropriated for and may be expended to defray costs of continuing education, certification, recertification, decertification, and training of local corrections officers, the personnel and administrative costs of the sheriffs’ coordinating and training office, the local corrections officers advisory board, and the sheriffs’ coordinating and training council under the local corrections officers training act, 2003 PA 125, MCL 791.531 to 791.546.

Sec. 503. Funds appropriated in part 1 for administrative hearings officers are appropriated as an interdepartmental grant to the department of licensing and regulatory affairs for the purpose of funding administrative hearings officers for adjudication of grievances pertaining to the department of corrections. The department shall not expend appropriations from part 1 to satisfy charges from the department of licensing and regulatory affairs for administrative hearings officers in excess of the amount expressly appropriated by this article for the administrative hearings officers unless funding is transferred into this line under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 504. Of the funds appropriated in part 1, $50,000.00 is appropriated to provide an interdepartmental grant to the judiciary for use of the judicial data warehouse by department employees.

Sec. 505. The department shall train all custody staff in effective and safe ways of handling prisoners with mental illness and referring prisoners to mental health treatment programs. Mental health awareness training shall be incorporated into the training of new custody staff.

Sec. 506. Of the funds appropriated in part 1, $250,000.00 is appropriated to provide an interdepartmental grant to the legislative corrections ombudsman for oversight activities.

Sec. 507. Of the funds appropriated in part 1, $1,000,000.00 is appropriated as an interdepartmental grant to the judiciary for the establishment of a pilot program for the use of swift-and-sure jail sanctions as a response to certain probation violations.

FIELD OPERATIONS ADMINISTRATION

Sec. 601. (1) From the funds appropriated in part 1, the department shall conduct a statewide caseload audit of field agents. The audit shall address public protection issues and assess the ability of the field agents to complete their professional duties. The complete audit shall be submitted to the senate and house appropriations subcommittees on corrections and the senate and house fiscal agencies, and the state budget office by March 1.

(2) It is the intent of the legislature that the department maintain a number of field agents sufficient to meet supervision and workload standards.

Sec. 602. (1) Of the amount appropriated in part 1 for field operations, a sufficient amount shall be allocated for the community service work program and shall be used for salaries and wages and fringe benefit costs of community service coordinators employed by the department to supervise offenders participating in work crew assignments. Funds shall also be used to cover motor transport division rates on state vehicles used to transport offenders to community service work project sites.

(2) The community service work program shall provide offenders with community service work of tangible benefit to a community while fulfilling court-ordered community service work sanctions and other postconviction obligations.

(3) As used in this section, “community service work” means work performed by an offender in an unpaid position with a nonprofit or tax-supported or government agency for a specified number of hours of work or service within a given time period.

Sec. 603. (1) All prisoners, probationers, and parolees involved with the electronic tether program shall reimburse the department for costs associated with their participation in the program. The department may require community service work reimbursement as a means of payment for those able-bodied individuals unable to pay for the costs of the equipment.

(2) Program participant contributions and local community tether program reimbursement for the electronic tether program appropriated in part 1 are related to program expenditures and may be used to offset expenditures for this purpose.

(3) Included in the appropriation in part 1 is adequate funding to implement the community tether program to be administered by the department. The community tether program is intended to provide sentencing judges and county sheriffs in coordination with local community corrections advisory boards access to the state’s electronic tether program to reduce prison admissions and improve local jail utilization. The department shall determine the appropriate distribution of the tether units throughout the state based upon locally developed comprehensive corrections plans under the community corrections act, 1988 PA 511, MCL 791.401 to 791.414.

(4) For a fee determined by the department, the department shall provide counties with the tether equipment, replacement parts, administrative oversight of the equipment’s operation, notification of violators, and periodic reports regarding county program participants. Counties are responsible for tether equipment installation and service. For an additional fee as determined by the department, the department shall provide staff to install and service the equipment. Counties are responsible for the coordination and apprehension of program violators.

(5) Any county with tether charges outstanding over 60 days shall be considered in violation of the community tether program agreement and lose access to the program.

Sec. 604. Community-placement prisoners and parolees shall reimburse the department for the total costs of the program. As an alternative method of payment, the department may develop a community service work schedule for those individuals unable to meet reimbursement requirements established by the department.

Sec. 606. It is the intent of the legislature that the department shall ensure that parolees and probationers may timely contact their parole or probation agents and maintain procedures that preclude any necessity for an offender to have access to an agent’s home telephone number or other personal information pertaining to the agent.

Sec. 608. By March 1, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on the use of electronic monitoring. At a minimum, the report shall include all of the following:

(a) Details on the failure rate of parolees for whom GPS tether is utilized, including the number and rate of parolee technical violations, including specifying failures due to committing a new crime that is uncharged but leads to parole termination, and the number and rate of parolee violators with new sentences.

(b) Information on the factors considered in determining whether an offender is placed on active GPS tether, passive GPS tether, radio frequency tether, or some combination of these or other types of electronic monitoring.

(c) Monthly data on the number of offenders on active GPS tether, passive GPS tether, radio frequency tether, and any other type of tether.

Sec. 609. By March 1, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on the use of kiosk reporting stations. At a minimum, the report shall include all of the following:

(a) Factors considered in determining whether an offender is assigned to report at a kiosk.

(b) Information on the location, costs, safety features, and other features of kiosks used for offender reporting.

(d) An evaluation of the kiosk reporting demonstration project, including any need for improvement and an assessment of the potential for expanded use of kiosk reporting stations.

Sec. 611. The department shall prepare by March 1, 2011 individual reports for the community re-entry program, the electronic tether program, and the special alternative to incarceration program. The reports shall be submitted to the house and senate appropriations subcommittees on corrections, the house and senate fiscal agencies, and the state budget director. Each program’s report shall include information on all of the following:

(a) Monthly new participants by type of offender. Community re-entry program participants shall be categorized by reason for placement. For technical rule violators, the report shall sort offenders by length of time since release from prison, by the most recent violation, and by the number of violations occurring since release from prison.

(b) Monthly participant unsuccessful terminations, including cause.

(d) End month population by facility/program.

(e) Average length of placement.

(f) Return to prison statistics.

(g) Description of each program location or locations, capacity, and staffing.

(h) Sentencing guideline scores and actual sentence statistics for participants, if applicable.

(i) Comparison with prior year statistics.

(j) Analysis of the impact on prison admissions and jail utilization and the cost effectiveness of the program.

Sec. 612. (1) The department shall review and revise as necessary policy proposals that provide alternatives to prison for offenders being sentenced to prison as a result of technical probation violations and technical parole violations. To the extent the department has insufficient policies or resources to affect the continued increase in prison commitments among these offender populations, the department shall explore other policy options to allow for program alternatives, including department or OCC-funded programs, local level programs, and programs available through private agencies that may be used as prison alternatives for these offenders.

(2) To the extent policies or programs described in subsection (1) are used, developed, or contracted for, the department may request that funds appropriated in part 1 be transferred under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393, for their operation.

(3) The department shall continue to utilize parole violator processing guidelines that require parole agents to utilize all available appropriate community-based, nonincarcerative postrelease sanctions and services when appropriate. The department shall periodically evaluate such guidelines for modification, in response to emerging information from the demonstration projects for substance abuse treatment provided under this article and applicable provisions of prior budget acts for the department.

(4) The department shall provide quarterly reports to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on the number of all parolees returned to prison and probationers sentenced to prison for either a technical violation or new sentence during the preceding calendar quarter. The reports shall include the following information each for probationers, parolees after their first parole, and parolees who have been paroled more than once:

(a) The numbers of parole and probation violators returned to or sent to prison for a new crime with a comparison of original versus new offenses by major offense type: assaultive, nonassaultive, drug, and sex.

(b) The numbers of parole and probation violators returned to or sent to prison for a technical violation and the type of violation, including, but not limited to, zero gun tolerance and substance abuse violations. For parole technical rule violators, the report shall list violations by type, by length of time since release from prison, by the most recent violation, and by the number of violations occurring since release from prison.

(c) The educational history of those offenders, including how many had a GED or high school diploma prior to incarceration in prison, how many received a GED while in prison, and how many received a vocational certificate while in prison.

(d) The number of offenders who participated in the MPRI versus the number of those who did not.

(e) The unduplicated number of offenders who participated in substance abuse treatment programs, mental health treatment programs, or both, while in prison, itemized by diagnosis.

Sec. 613. Subject to the appropriations in part 1, the department is encouraged to expand the use of continuous remote alcohol monitors for parolees and probationers who test positive for alcohol abuse or have alcohol-abuse-related violations of their community supervision.

Sec. 615. After the parole board has reviewed the cases of all inmates sentenced to life with the possibility of parole who have good institutional records and pose low-risk to the community, the parole board shall provide the legislature with a detailed explanation of why an inmate who scores “high probability of release” is not being paroled. A report containing this explanation shall be submitted to the house and senate appropriations subcommittees on corrections, the house and senate fiscal agencies, and the state budget director by January 1.

HEALTH CARE

Sec. 801. The department shall not expend funds appropriated under part 1 for any surgery, procedure, or treatment to provide or maintain a prisoner’s sex change unless it is determined medically necessary by the chief medical officer of the department.

Sec. 802. As a condition of expenditure of the funds appropriated in part 1, the department shall provide the senate and house of representatives appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director with all of the following:

(a) Quarterly reports on physical and mental health care detailing the average number of days between a prisoner’s diagnosis and commencement of treatment for that diagnosis, quarterly and fiscal year-to-date expenditures itemized by vendor, allocations, status of payments from contractors to vendors, and projected year-end expenditures from accounts for prisoner health care, mental health care, pharmaceutical services, and durable medical equipment.

(b) Regular updates on progress on requests for proposals and requests for information pertaining to prisoner health care and mental health care, until the applicable contract is approved.

Sec. 803. For mental health contracts entered into by the department, including those with the Michigan department of community health, recognized performance standards and measures of quality shall be utilized to conduct periodic performance reviews. At least once every 3 years, the department shall renegotiate all mental health contracts entered into under this section with the goals of improving care and reducing costs.

Sec. 804. (1) The department shall report quarterly to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on prisoner health care utilization. The report shall include the number of inpatient hospital days, outpatient visits, and emergency room visits in the previous quarter and since October 1, 2009, by facility.

(2) By March 1, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on prisoners receiving off-site inpatient medical care that would have received care in a state correctional facility if beds were available. The report shall include the number of prisoners receiving off-site inpatient medical care and average length of stay in an off-site facility during the period they would have received care in a state correctional facility if beds were available, by month and correctional facilities administration region.

Sec. 805. The bureau of health care services shall develop information on hepatitis C and HIV prevention and the risks associated with exposure to hepatitis C and HIV. The health care providers shall disseminate this information verbally and in writing to each prisoner at the health screening and full health appraisal conducted at admissions, at the annual health care screening 30 days before or after a prisoner’s birthday, and prior to release to the community by parole, transfer to community residential placement, or discharge on the maximum sentence.

Sec. 806. (1) From the funds appropriated in part 1, the department shall require a hepatitis C antibody test and an HIV test for each prisoner prior to release to the community by parole, transfer to community residential placement, or discharge on the maximum sentence. The department shall require an HIV test and a hepatitis C risk factor screening for each prisoner at the health screening at admissions. If hepatitis C risk factors are identified, the department shall offer the prisoner a hepatitis C antibody test. An explanation of results of the tests shall be provided confidentially to the prisoner, and if appropriate based on the test results, the prisoner shall also be provided a recommendation to seek follow-up medical attention.

(2) By March 1, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director on the number of offenders tested and the number of offenders testing positive for HIV, the hepatitis C antibody, or both, at prison admission and parole, transfer to community residential placement, or discharge on the maximum sentence. The department shall keep records of those offenders testing positive for HIV, the hepatitis C antibody, or both, at prison admission, parole, transfer to community residential placement, and discharge. These records shall clearly state the date each test was performed.

(3) As a condition of expenditure of the funds appropriated in part 1, the department shall keep records of the following:

(a) The number of offenders testing positive for the hepatitis C antibody who do not receive treatment due to refusal of treatment.

(b) Cost and duration of treatment by offender as allowable by privacy law.

Sec. 807. The department shall ensure that all medications for a prisoner be transported with that prisoner when the prisoner is transferred from 1 correctional facility to another. Prisoners being released shall be provided with at least a 30-day supply of medication and a prescription for refills to allow for continuity of care in the community.

Sec. 808. There are sufficient funds and FTEs appropriated in part 1 to provide a full complement of nurses for clinical complexes working regular pay hours, and it is the intent of the legislature that sufficient nurses be hired or retained to limit the use of overtime other-than-holiday pay.

Sec. 809. The department, in conjunction with efforts to implement the MPRI, shall cooperate with the MDCH to share data and information as they relate to prisoners being released who are HIV positive or positive for the hepatitis C antibody. By March 1, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on all of the following:

(a) Programs and the location of programs implemented as a result of the work under this section.

(b) The number of prisoners released to the community by parole, discharge on the maximum sentence, or transfer to community residential placement who are HIV positive, positive for the hepatitis C antibody, or both.

(c) The number of parolees and offenders discharged on the maximum sentence who are HIV or hepatitis C positive by paroling office as reported to the state department of community health for referral to the local public health department.

Sec. 810. As a condition of expending appropriations in part 1, the department shall ensure each prisoner serving a sentence in a state correctional facility, and each probationer placed at the special alternative incarceration program under the special alternative incarceration act, 1988 PA 287, MCL 798.11 to 798.18, provides a sample for DNA identification profiling. The department shall implement the requirements of this section in accordance with the provisions of any relevant legislation enacted by the legislature.

Sec. 812. (1) The department shall provide the department of human services with a monthly list of prisoners newly committed to the department of corrections. The department and the department of human services shall enter into an interagency agreement under which the department of human services provides the department of corrections with monthly lists of newly committed prisoners who are eligible for Medicaid benefits in order to maintain the process by which Medicaid benefits are suspended rather than terminated. The department shall assist prisoners who may be eligible for Medicaid benefits after release from prison with the Medicaid enrollment process prior to release from prison.

(2) The department shall provide the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director with quarterly updates on the utilization of Medicaid benefits for prisoners.

Sec. 813. The department shall monitor and document drug utilization by department for prisoner health care services. As part of this effort, the department shall examine drug utilization patterns and cost-cutting strategies used by corrections systems in other states. By March 1, 2011, the department shall provide a report to the legislature detailing the department’s drug utilizations and drug utilization statistics for corrections systems in other states.

Sec. 816. By April 1, the department shall provide the members of the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, the state budget director, and the legislative corrections ombudsman with a report on pharmaceutical expenditures and prescribing practices. In particular, the report shall provide the following information:

(a) A detailed accounting of expenditures on antipsychotic medications.

(b) Any changes that have been made to the prescription drug formularies.

(c) A progress report on the department’s efforts to address various findings outlined in audit report 471-0325-09L issued in March 2011 by the Michigan office of the auditor general.

CORRECTIONAL FACILITIES ADMINISTRATION

Sec. 902. From the funds appropriated in part 1, the department shall allocate sufficient funds to develop a demonstration children’s visitation program. The demonstration program shall teach parenting skills and arrange for day visitation at these facilities for parents and their children, except for the families of prisoners convicted of a crime involving criminal sexual conduct in which the victim was less than 18 years of age or involving child abuse.

Sec. 903. Except as otherwise provided in this section, the department shall prohibit prisoners’ access to or use of the Internet or any similar system. Under adequate supervision and with security precautions that ensure appropriate computer use by prisoners, the department may allow a prisoner access to or use of the Internet for the purposes of educational programming, employment training, job searches, or other Internet-based programs and services consistent with programming objectives, efficient operations, and the safety and security of the institution.

Sec. 904. Any department employee who, in the course of his or her job, is determined by a physician to have had a potential exposure to the hepatitis B virus, shall receive a hepatitis B vaccination upon request.

Sec. 905. (1) Savings in the inmate housing fund shall be achieved through competitive bidding of facility operations or other measures to reduce the custody, treatment, clinical, and administrative costs associated with the housing of prisoners. Savings shall be distributed as necessary into separate accounts created to separately identify savings through specific cost savings measures.

(2) Quarterly reports on all expenditures from the inmate housing fund shall be submitted by the department to the state budget director, the senate and house appropriations subcommittees on corrections, and the senate and house fiscal agencies.

Sec. 906. It is the intent of the legislature that the department maintain or expand upon existing public works programming by contracting with local units of government or private organizations. Any local unit of government or private organization that contracts with the department for public works services shall be responsible for financing the entire cost of such an agreement.

Sec. 907. The department shall report by March 1 to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on academic/vocational programs. The report shall provide information relevant to an assessment of the department’s academic and vocational programs, including, but not limited to, the following:

(a) The number of instructors and the number of instructor vacancies, by program and facility.

(b) The number of prisoners enrolled in each program, the number of prisoners completing each program, the number of prisoners who fail each program, the number of prisoners who do not complete each program and the reason for not completing the program, the number of prisoners transferred to another facility while enrolled in a program and the reason for transfer, the number of prisoners enrolled who are repeating the program by reason, and the number of prisoners on waiting lists for each program, all itemized by facility.

(c) The steps the department has undertaken to improve programs, track records, accommodate transfers and prisoners with health care needs, and reduce waiting lists.

(d) The number of prisoners paroled without a high school diploma and the number of prisoners paroled without a GED.

(e) An explanation of the value and purpose of each program, e.g., to improve employability, reduce recidivism, reduce prisoner idleness, or some combination of these and other factors.

(f) An identification of program outcomes for each academic and vocational program.

(g) An explanation of the department’s plans for academic and vocational programs, including plans to contract with intermediate school districts for GED and high school diploma programs.

(h) The number of prisoners not paroled at their earliest release date due to lack of a GED, and the reason those prisoners have not obtained a GED.

Sec. 910. The department shall allow the Michigan Braille transcribing fund program to operate at its current location. The donation of the building by the Michigan Braille transcribing fund at the G. Robert Cotton correctional facility in Jackson is acknowledged and appreciated. The department shall continue to encourage the Michigan Braille transcribing fund to produce high-quality materials for use by the visually impaired.

Sec. 911. By March 1, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, the legislative corrections ombudsman, and the state budget director the number of critical incidents occurring each month by type and the number and severity of assaults occurring each month at each facility during calendar year 2011.

Sec. 912. The department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director by March 1 on the ratio of correctional officers to prisoners for each correctional institution, the ratio of shift command staff to line custody staff, and the ratio of noncustody institutional staff to prisoners for each correctional institution.

Sec. 913. (1) It is the intent of the legislature that any prisoner required to complete an assaultive offender program, sexual offender program, or other program as a condition of parole shall be transferred to a facility where that program is available in order to accomplish timely completion of that program prior to the expiration of his or her minimum sentence and eligibility for parole. Nothing in this section should be deemed to make parole denial appealable in court.

(2) The department shall submit a quarterly report to the members of the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, the state budget director, and the legislative corrections ombudsman detailing enrollment in sex offender programming and assaultive offender programming. At a minimum, the report shall include the following:

(a) A full accounting of the number of individuals who are required to complete either sex offender programming or assaultive offender programming, but have not yet done so.

(b) The number of individuals who have reached their earliest release date, but who have not completed required sex offender and/or assaultive offender programming.

(c) A plan of action for addressing any waiting lists or backlogs for sex offender programming or assaultive offender programming that may exist.

Sec. 916. The department shall report by February 1 to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on the number of computers available for use by prisoners within each prison facility. The report shall summarize the purpose and frequency of use of these computers within each facility.

Sec. 920. The department shall make every effort to operate a garden or horticultural operation at each correctional facility, where practical, in order to provide food for correctional facilities and not-for-profit organizations.

Sec. 921. (1) By March 1, the department shall report to the chairs of the senate and house appropriations committees, the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on the following:

(a) The actual savings realized between January 1, 2009 and April 1, 2011 as a result of closing correctional facilities and correctional camps between January 1, 2009 and January 1, 2012, itemized by correctional facility or correctional camp.

(b) The projected fiscal year 2011-2012 savings by closing correctional facilities and correctional camps between January 1, 2009 and January 1, 2012, itemized by correctional facility or correctional camp.

(2) The report in subsection (1) shall include information on all of the following:

(a) The savings realized or projected to be realized, itemized by program or type of expenditure.

(b) Any cost of field supervision, field operations programs, or prisoner reintegration programs related to the closure of correctional facilities and correctional camps between January 1, 2009 and January 1, 2012.

Sec. 922. It is the intent of the legislature that all prisoners work 40 hours per week in the correctional facility, as part of a public works crew or in private enterprise, or participate in vocational or training programs. Prisoners may be enrolled in GED or education programs in combination with employment. Prisoners not employed shall be enrolled in GED or other educational programs for not less than 20 hours per week. This section does not apply to prisoners classified in level V or administrative segregation.

Sec. 923. (1) The department shall cooperate with the department of education to evaluate the feasibility of local school districts providing education programming to targeted prisoners under the age of 20 who have not received a high school diploma. By June 1, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on any plans or evaluations developed under this section.

(2) The department shall make efforts to encourage retired school teachers to provide education services in correctional facilities through volunteerism.

Sec. 924. The department shall evaluate all prisoners at intake for substance abuse disorders, developmental disorders, serious mental illness, and other mental health disorders. Prisoners with serious mental illness shall not be confined in administrative segregation due to serious mental illness. Under the supervision of a mental health professional, a prisoner with serious mental illness may be secluded in a therapeutic environment for the safety of the prisoner or others. A prisoner in therapeutic seclusion shall be evaluated every 12 hours by a mental health professional in order to remain in therapeutic seclusion.

Sec. 925. By March 1, 2012, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on the annual number of prisoners in administrative segregation between October 1, 2003 and September 30, 2011, and the annual number of prisoners in administrative segregation between October 1, 2003 and September 30, 2011 who at any time during the current or prior prison term were diagnosed with serious mental illness or have a developmental disorder and the number of days each of the prisoners with serious mental illness or a developmental disorder have been confined to administrative segregation.

Sec. 927. The department of corrections and the department of human services shall enter into an intergovernmental agreement to place offenders less than 19 years of age who are committed to the department of corrections in underutilized units of the Maxey/Woodland center correctional facility. The facilities shall be used to house offenders less than 19 years of age who are currently committed to the department of corrections.

Sec. 928. Funding appropriated in part 1 for consent decree line items is appropriated into separate control accounts created for each line item. Funding in each control account shall be distributed as necessary into separate accounts created for the purpose of separately identifying costs and expenditures associated with each consent decree. The department shall report by February 1, 2012 to the house and senate appropriations subcommittees on corrections, the house and senate fiscal agencies, and the state budget director on distributions to each separate control account and the expenditures charged against each control account during the previous fiscal year.

Sec. 929. From the funds appropriated in part 1, the department shall do all of the following:

(a) Ensure that any inmate care and control staff in contact with prisoners less than 19 years of age are adequately trained with regard to the developmental and mental health needs of prisoners less than 19 years of age. By April 1, 2012, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on the training curriculum used and the number and types of staff receiving training under such curriculum since October 2009.

(b) Provide appropriate placement for prisoners less than 19 years of age who have serious mental illness, serious emotional disturbance, or a developmental disorder and need to be housed separately from the general population. Prisoners less than 19 years of age who have serious mental illness, serious emotional disturbance, or a developmental disorder shall not be placed in administrative segregation due to serious mental illness or serious emotional disturbance. Under the supervision of a mental health professional, a prisoner less than 19 years of age with serious mental illness or serious emotional disturbance may be secluded in a therapeutic environment for the safety of the prisoner or others. A prisoner in therapeutic seclusion shall be evaluated every 12 hours by a mental health professional in order to remain in therapeutic seclusion.

(c) Implement a specialized re-entry program that recognizes the needs of prisoners less than 19 years old for supervised re-entry.

Sec. 930. The department shall not have a shooting range located on property east of 3760 Foco Road, Standish, Michigan.

Sec. 932. From the funds appropriated in part 1 for mental health services and support, $100,000.00 is appropriated to permit the department to contract with a board-certified child and adolescent psychiatrist to provide psychiatric services to individuals who are less than 19 years of age and are incarcerated in a department facility.

Sec. 934. From the funds appropriated in part 1 for prison industries operations, the department shall provide a report on the pilot program for the manufacturing of textiles and clothing established in at least 1 state correctional facility under section 934 of 2010 PA 188.

Sec. 935. When the department determines that the closure of a correctional facility is warranted and is determining which facility should be subject to closure, it is the intent of the legislature that the department fully consider the potential economic impact of each prison closure being considered on the community in which the facility resides. The department shall make it a high priority to close a facility for which the local economic impact is minimized.

Sec. 936. The department shall contract with third-party providers to complete an assessment of energy utilization at each state correctional facility. In particular, the department shall endeavor to identify and implement energy-saving initiatives in the various correctional facilities. By April 1, the department shall provide the members of the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, the state budget director, and the legislative corrections ombudsman with a report on these efforts.

Sec. 937. The funds appropriated in part 1 for the cost-effective housing initiative shall be utilized to ensure more cost-effective housing of prisoners. The department shall use this funding to house prisoners in the most cost-effective manner possible. This shall include exploring the use of public-private partnerships, the use of privately owned facilities in Michigan, and the use of state facilities by third-party contractors. The use of cost-effective housing from this initiative shall be used to achieve general prison operations savings budgeted in the inmate housing fund line item. The department shall work cooperatively with the chairpersons of the senate and house appropriations subcommittees on corrections in identifying appropriate reductions to prison facility line items to achieve the budgeted savings in the inmate housing fund line item.

Sec. 938. A contractor that provides food service for a correctional facility should be encouraged to provide those services using fresh food that is grown or produced locally.

Sec. 939. By January 1, the department shall release a request for proposal seeking competitive bids for the privatization of the special alternative incarceration facility.

Sec. 940. For the purpose of procuring drug testing services at correctional facilities, the department shall enter into a contract with a Michigan-based company that provides laboratory oral fluid drug testing.

Sec. 941. The department shall ensure that any contract with a public or private party to operate the special alternative incarceration facility at camp Cassidy Lake includes a provision to require that public works program services continue to be provided to the St. Louis Center in Chelsea at rates consistent with the rate structure in place as of May 1, 2011.

Sec. 942. The department shall ensure that any contract with a public or private party to operate a facility to house state prisoners includes a provision to allow access by both the office of the legislative auditor general and the office of the legislative corrections ombudsman to the facility and to appropriate records and documents related to the operation of the facility. These access rights for both offices shall be the same for the contracted facility as for a general state-operated correctional facility.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

FOR FISCAL YEAR 2012-2013

GENERAL SECTIONS

ARTICLE VI

DEPARTMENT OF EDUCATION

PART 1

LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2011-2012

Sec. 101. There is appropriated for the department of education and certain state purposes related to education as set forth in this article for the fiscal year ending September 30, 2012, from the following funds:

DEPARTMENT OF EDUCATION

APPROPRIATION SUMMARY

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions.............................................................................554.0

GROSS APPROPRIATION.......................................................................................................... $ 117,313,000

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 0

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 117,313,000

Federal revenues:

Federal revenues........................................................................................................................... 68,186,100

Federal indirect funds................................................................................................................... 4,181,000

IMLS, library services and technology act.................................................................................. 5,562,100

Total federal revenues................................................................................................................... 77,929,200

Special revenue funds:

Local cost sharing (schools for deaf/blind).................................................................................. 6,835,000

Local school district service fees................................................................................................. 324,200

Total local revenues...................................................................................................................... 7,159,200

Gifts, bequests, and donations...................................................................................................... 760,800

Private foundations....................................................................................................................... 2,283,600

Total private revenues................................................................................................................... 3,044,400

Total local and private revenues................................................................................................... 10,203,600

Certification fees.......................................................................................................................... 6,065,200

Commodity distribution fees........................................................................................................ 71,700

Student insurance revenues.......................................................................................................... 218,600

Teacher college review fees.......................................................................................................... 55,300

Teacher testing fees...................................................................................................................... 344,500

Tenant rent.................................................................................................................................... 261,000

Training and orientation workshop fees....................................................................................... 150,000

Total other state restricted revenues............................................................................................. 7,166,300

State general fund/general purpose.............................................................................................. $ 22,013,900

Sec. 102. STATE BOARD OF EDUCATION/OFFICE OF THE SUPERINTENDENT

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions...............................................................................14.0

State board of education, per diem payments.............................................................................. $ 24,400

Unclassified positions—6.0 FTE positions.................................................................................. 645,600

State board/superintendent operations—14.0 FTE positions........................................................ 2,032,000

GROSS APPROPRIATION.......................................................................................................... $ 2,702,000

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 114,400

Special revenue funds:

Private foundations....................................................................................................................... 28,100

Certification fees.......................................................................................................................... $ 627,000

State general fund/general purpose.............................................................................................. $ 1,932,500

Sec. 103. CENTRAL SUPPORT

Full-time equated classified positions...............................................................................19.6

Central support—19.6 FTE positions........................................................................................... $ 3,120,600

Worker’s compensation................................................................................................................. 54,000

Building occupancy charges - property management services..................................................... 2,728,200

Tenant rent.................................................................................................................................... 261,000

Training and orientation workshops............................................................................................. 150,000

Terminal leave payments.............................................................................................................. 554,700

GROSS APPROPRIATION.......................................................................................................... $ 6,868,500

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 1,441,700

Federal indirect funds................................................................................................................... 2,294,700

Special revenue funds:

Certification fees.......................................................................................................................... 413,800

Teacher testing fees...................................................................................................................... 13,500

Tenant rent.................................................................................................................................... 261,000

Training and orientation workshop fees....................................................................................... 150,000

State general fund/general purpose.............................................................................................. $ 2,293,800

Sec. 104. INFORMATION TECHNOLOGY SERVICES

Information technology operations............................................................................................... $ 3,332,900

GROSS APPROPRIATION.......................................................................................................... $ 3,332,900

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 494,600

Federal indirect funds................................................................................................................... 1,455,300

Special revenue funds:

Local cost sharing (schools for deaf/blind).................................................................................. 76,500

Certification fees.......................................................................................................................... 313,000

State general fund/general purpose.............................................................................................. $ 993,500

Sec. 105. SPECIAL EDUCATION SERVICES

Full-time equated classified positions...............................................................................47.0

Special education operations—47.0 FTE positions...................................................................... $ 7,909,900

GROSS APPROPRIATION.......................................................................................................... $ 7,909,900

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 7,463,200

Special revenue funds:

Private foundations....................................................................................................................... 110,100

Certification fees.......................................................................................................................... 39,500

State general fund/general purpose.............................................................................................. $ 297,100

Sec. 106. MICHIGAN SCHOOLS FOR THE DEAF AND BLIND

Full-time equated classified positions.............................................................................103.0

Michigan schools for the deaf and blind operations—102.0 FTE positions................................ $ 13,632,000

Camp Tuhsmeheta—1.0 FTE position......................................................................................... 295,100

Private gifts - blind....................................................................................................................... 200,000

Private gifts - deaf........................................................................................................................ 250,000

GROSS APPROPRIATION.......................................................................................................... $ 14,377,100

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 6,326,700

Special revenue funds:

Local cost sharing (schools for deaf/blind).................................................................................. 6,758,500

Local school district service fees................................................................................................. $ 312,500

Gifts, bequests, and donations...................................................................................................... 760,800

Student insurance revenue............................................................................................................ 218,600

State general fund/general purpose.............................................................................................. $ 0

Sec. 107. PROFESSIONAL PREPARATION SERVICES

Full-time equated classified positions...............................................................................34.0

Professional preparation operations—34.0 FTE positions........................................................... $ 5,724,100

Department of attorney general.................................................................................................... 50,000

GROSS APPROPRIATION.......................................................................................................... $ 5,774,100

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 1,386,700

Special revenue funds:

Certification fees.......................................................................................................................... 3,564,900

Teacher college review fees.......................................................................................................... 55,300

Teacher testing fees...................................................................................................................... 331,000

State general fund/general purpose.............................................................................................. $ 436,200

Sec. 108. EARLY CHILDHOOD EDUCATION AND FAMILY SERVICES

Full-time equated classified positions...............................................................................26.0

Early childhood education and family services operations—26.0 FTE positions........................ $ 4,295,700

GROSS APPROPRIATION.......................................................................................................... $ 4,295,700

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 3,388,300

Special revenue funds:

Certification fees.......................................................................................................................... 59,100

State general fund/general purpose.............................................................................................. $ 848,300

Sec. 109. STATE AID AND SCHOOL FINANCE SERVICES

Full-time equated classified positions.................................................................................7.5

State aid and school finance operations—7.5 FTE positions....................................................... $ 985,400

GROSS APPROPRIATION.......................................................................................................... $ 985,400

Appropriated from:

State general fund/general purpose.............................................................................................. $ 985,400

Sec. 110. AUDIT SERVICES

Full-time equated classified positions.................................................................................3.5

Audit operations—3.5 FTE positions........................................................................................... $ 541,800

GROSS APPROPRIATION.......................................................................................................... $ 541,800

Appropriated from:

Federal revenues:

Federal indirect funds................................................................................................................... 431,000

Special revenue funds:

Certification fees.......................................................................................................................... 55,200

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

Sec. 111. ADMINISTRATIVE LAW SERVICES

Full-time equated classified positions.................................................................................2.0

Administrative law operations—2.0 FTE positions...................................................................... $ 1,044,800

GROSS APPROPRIATION.......................................................................................................... $ 1,044,800

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 541,700

Special revenue funds:

Certification fees.......................................................................................................................... 452,000

State general fund/general purpose.............................................................................................. $ 51,100

Sec. 112. EDUCATION ASSESSMENT AND ACCOUNTABILITY

Full-time equated classified positions...............................................................................64.1

Educational assessment operations—64.1 FTE positions............................................................ $ 11,272,500

GROSS APPROPRIATION.......................................................................................................... $ 11,272,500

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 9,704,500

State general fund/general purpose.............................................................................................. $ 1,568,000

Sec. 113. GRANTS ADMINISTRATION AND SCHOOL SUPPORT SERVICES

Full-time equated classified positions...............................................................................73.6

Grants administration and school support services operations—67.6 FTE positions.................. $ 10,937,400

College access challenge grant program—6.0 FTE positions...................................................... 4,293,200

Federal and private grants............................................................................................................ 3,000,000

GROSS APPROPRIATION.......................................................................................................... $ 18,230,600

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 16,654,000

Special revenue funds:

Local school district service fees................................................................................................. 11,700

Private foundations....................................................................................................................... 1,000,000

Commodity distribution fees........................................................................................................ 71,700

State general fund/general purpose.............................................................................................. $ 493,200

Sec. 114. FIELD SERVICES

Full-time equated classified positions...............................................................................44.0

Field services operations—44.0 FTE positions............................................................................ $ 9,302,700

GROSS APPROPRIATION.......................................................................................................... $ 9,302,700

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 8,537,900

Special revenue funds:

Private foundations....................................................................................................................... 572,100

Certification fees.......................................................................................................................... 51,600

State general fund/general purpose.............................................................................................. $ 141,100

Sec. 115. EDUCATIONAL IMPROVEMENT AND INNOVATION SERVICES

Full-time equated classified positions...............................................................................55.7

Educational improvement and innovation operations—55.7 FTE positions................................ $ 10,674,000

GROSS APPROPRIATION.......................................................................................................... $ 10,674,000

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 8,688,200

Special revenue funds:

Private foundations....................................................................................................................... 573,300

Certification fees.......................................................................................................................... 489,100

State general fund/general purpose.............................................................................................. $ 923,400

Sec. 116. CAREER AND TECHNICAL EDUCATION

Full-time equated classified positions...............................................................................27.0

Career and technical education operations—27.0 FTE positions................................................. $ 4,234,700

GROSS APPROPRIATION.......................................................................................................... $ 4,234,700

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 3,444,200

State general fund/general purpose.............................................................................................. $ 790,500

Sec. 117. LIBRARY OF MICHIGAN

Full-time equated classified positions...............................................................................33.0

Library of Michigan operations—32.0 FTE positions................................................................. $ 3,808,500

Library services and technology program—1.0 FTE positions.................................................... 5,562,100

State aid to libraries..................................................................................................................... 5,445,700

Michigan elibrary......................................................................................................................... $ 950,000

GROSS APPROPRIATION.......................................................................................................... $ 15,766,300

Appropriated from:

Federal revenues:

IMLS, library services and technology act.................................................................................. 5,562,100

State general fund/general purpose.............................................................................................. $ 10,204,200

PART 2

PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2011-2012

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 the fiscal year ending September 30, 2012 is $29,180,200.00 and state spending from state resources to be paid to local units of government for the fiscal year ending September 30, 2012 is $5,445,700.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF EDUCATION

State aid to libraries..................................................................................................................... $ 5,445,700

Total department of education...................................................................................................... $ 5,445,700

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

Sec. 203. As used in this article:

(a) “Department” means the Michigan department of education.

(b) “District” means a local school district as defined in section 6 of the revised school code, 1976 PA 451, MCL 380.6, or a public school academy as defined in section 5 of the revised school code, 1976 PA 451, MCL 380.5.

(d) “IMLS” means institute of museum and library services.

Sec. 205. Unless otherwise specified, the departments shall use the Internet to fulfill the reporting requirements of this article. This requirement may include transmission of reports via electronic mail to the recipients identified for each reporting requirement, or it may include placement of reports on an Internet or Intranet site.

Sec. 206. The department shall provide through the Internet the state board of education agenda and all supporting documents, and shall notify the state budget director and the senate and house fiscal agencies that the agenda and supporting documents are available on the Internet, at the time the agenda and supporting documents are provided to state board of education members.

Sec. 207. (1) The department shall maintain a searchable website accessible by the public at no cost that includes, but is not limited to, all of the following:

(a) Fiscal year-to-date expenditures by category.

(b) Fiscal year-to-date expenditures by appropriation unit.

(c) Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.

(d) The number of active department employees by job classification.

(e) Job specifications and wage rates.

(2) The department may develop and operate its own website to provide this information or may reference the state’s central transparency website as the source for this information.

Sec. 208. The department shall require all public school districts to maintain complete records within the personnel file of a teacher or school employee of any disciplinary actions taken by the local school board against the teacher or employee for sexual misconduct. The records shall not be destroyed or removed from the teacher’s or employee’s personnel file except as required by a court order.

Sec. 209. From the funds appropriated in part 1 for information technology, departments and agencies shall pay user fees to the department of technology, management, and budget for technology-related services and projects. Such user fees shall be subject to provisions of an interagency agreement between the departments and agencies and the department of technology, management, and budget.

Sec. 210. Amounts appropriated in part 1 for information technology may be designated as work projects and carried forward to support technology projects under the direction of the department of technology, management, and budget. Funds designated in this manner are not available for expenditure until approved as work projects under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a.

Sec. 211. Before publishing a list of schools or districts determined to have failed to make adequate yearly progress as required by the no child left behind act of 2001, Public Law 107-110, the department shall allow a school or district to appeal that determination. The department shall consider and act upon the appeal within 30 days after it is submitted and shall not publish the list until after all appeals have been considered and decided.

Sec. 212. Funds appropriated in part 1 shall not be used for the purchase of foreign goods or services, or both, if competitively priced and comparable quality American goods or services, or both, are available. Preference shall be given to goods or services, or both, manufactured or provided by Michigan businesses if they are competitively priced and of comparable quality. In addition, preference should be given to goods or services, or both, manufactured or provided by Michigan businesses owned and operated by veterans if they are competitively priced and of comparable quality.

Sec. 214. (1) Due to the current budgetary problems in this state, out-of-state travel for the fiscal year ending September 30, 2012 shall be limited to situations in which 1 or more of the following conditions apply:

(a) The travel is required by legal mandate or court order or for law enforcement purposes.

(b) The travel is necessary to protect the health or safety of Michigan citizens or visitors or to assist other states in similar circumstances.

(c) The travel is necessary to produce budgetary savings or to increase state revenues, including protecting existing federal funds or securing additional federal funds.

(d) The travel is necessary to comply with federal requirements.

(e) The travel is necessary to secure specialized training for staff that is not available within this state.

(f) The travel is financed entirely by federal or nonstate funds.

(2) Not later than January 1 of each year, each department shall prepare a travel report listing all travel by classified and unclassified employees outside this state in the immediately preceding fiscal year that was funded in whole or in part with funds appropriated in the department’s budget. The report shall be submitted to the house and senate standing committees on appropriations, the house and senate fiscal agencies, and the state budget director. The report shall include the following information:

(a) The name of each person receiving reimbursement for travel outside this state or whose travel costs were paid by this state.

(b) The destination of each travel occurrence.

(d) A brief statement of the reason for each travel occurrence.

(e) The transportation and related costs of each travel occurrence, including the proportion funded with state general fund/general purpose revenues, the proportion funded with state restricted revenues, the proportion funded with federal revenues, and the proportion funded with other revenues.

(f) A total of all out-of-state travel funded for the immediately preceding fiscal year.

Sec. 215. The department shall not approve the travel of more than 1 departmental employee to a specific professional development conference or training seminar that is located outside of this state unless the professional development conference or training seminar is funded by a federal or private funding source and requires more than 1 person from a department to attend, or the conference or training seminar includes multiple issues in which 1 employee from the department does not have expertise.

Sec. 216. The department shall not take disciplinary action against an employee who communicates truthfully and factually with a member of the legislature or his or her staff.

Sec. 217. The state superintendent of public instruction 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. The 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. 219. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $5,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this article 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 $700,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this article 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 $250,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this article 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 $3,000,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this article under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 220. The department shall provide data requested by a member of the legislature, his or her staff, or the house and senate fiscal agencies in a timely manner.

Sec. 221. Funds appropriated in part 1 shall not be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. This prohibition does not apply to legal services for bonding activities and for those activities that the attorney general authorizes.

Sec. 225. It is the intent of the legislature that not later than 60 days after the state receives audited membership counts from intermediate school districts, the state superintendent of public instruction shall investigate and report to the legislature on the scope of and proposed solutions to pupil membership fraud and the incidence of students counted in membership in a district and not remaining in that district for the balance of the school year.

Sec. 226. Not later than November 15, 2012, the department shall prepare and transmit a report that provides for estimates of the total general fund/general purpose appropriation lapses at the close of the fiscal year. This report shall summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The report shall be transmitted to the office of the state budget, the chairpersons of the senate and house appropriations committees, and the senate and house fiscal agencies.

Sec. 227. Within 14 days after the release of the executive budget recommendation, the department shall provide the state budget director, the senate and house appropriations chairs, the senate and house appropriations subcommittees responsible for the department budget, respectively, and the senate and house fiscal agencies with an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the fiscal years ending September 30, 2011 and September 30, 2012.

Sec. 229. The department and the superintendent of public instruction shall use funds appropriated in part 1 to ensure that all of the activities and duties required to be carried out by the department and the superintendent of public instruction under section 1280c of the revised school code, 1976 PA 451, MCL 380.1280c, are completed not later than the deadlines prescribed in that section.

STATE BOARD/OFFICE OF THE SUPERINTENDENT

Sec. 301. (1) The appropriations in part 1 may be used for per diem payments to the state board for meetings at which a quorum is present or for performing official business authorized by the state board. The per diem payments shall be at a rate as follows:

(a) State board of education - president - $110.00 per day.

(b) State board of education - member other than president - $100.00 per day.

(2) A state board of education member shall not be paid a per diem for more than 30 days per year.

Sec. 302. From the amount appropriated in part 1 to the state board of education, not more than $35,000.00 shall be expended for in-state travel and out-of-state travel directly related to the duties of the state board of education.

MICHIGAN SCHOOLS FOR THE DEAF AND BLIND

Sec. 402. For each student enrolled at the Michigan schools for the deaf and blind, the department shall assess the intermediate school district of residence 100% of the cost of operating the student’s instructional program. The amount shall exclude room and board related costs and the cost of weekend transportation between the school and the student’s home.

Sec. 404. (1) The department may assess rent or lease excess property located on the campus of the Michigan schools for the deaf and blind in Flint to private or publicly funded organizations.

(2) From the amount appropriated in part 1 for tenant rent, the department may receive and expend funds from lease agreements at the Michigan schools for the deaf and blind Flint campus that have been negotiated with the approval of the department of technology, management, and budget. These funds shall be used for the operation, maintenance, and renovation expenses associated with the leased space.

(3) From the unexpended balances of appropriations for the Michigan schools for the deaf and blind operations, up to $250,000.00 of any unexpended and unencumbered funds remaining on September 30, 2012 may be carried forward as a work project and expended for special maintenance and repairs of facilities at the campus of the Michigan schools for the deaf and blind in Flint. The work shall be carried out by state employees, or by contract as necessary, at an estimated cost of $250,000.00. The estimated completion date of the work is September 30, 2013.

(4) From the tenant rent appropriation for Michigan schools for the deaf and blind operations, up to $100,000.00 of any unexpended and unencumbered funds remaining on September 30, 2012 may be carried forward as a work project or as restricted revenue and expended for special maintenance and repairs of facilities at Fay hall. The work project may be performed by state employees, or by contract when necessary, at an estimated cost of $100,000.00. The estimated completion date of the work project is September 30, 2013.

Sec. 405. The department may assist the department of community health, other departments, and local school districts to secure reimbursement for eligible services provided in Michigan schools from the federal Medicaid program. The department may submit reports of direct expenses related to this effort to the department of community health for reimbursement.

Sec. 406. (1) The Michigan schools for the deaf and blind may promote its residential program as a possible appropriate option for children who are deaf or hard of hearing or who are blind or visually impaired. The Michigan schools for the deaf and blind shall distribute information detailing its services to all intermediate school districts in the state.

(2) Upon knowledge of or recognition by an intermediate school district that a child in the district is deaf or hard of hearing or blind or visually impaired, the intermediate school district shall provide to the parents of the child the literature distributed by the Michigan schools for the deaf and blind to intermediate school districts under subsection (1).

(3) Parents will continue to have a choice regarding the educational placement of their deaf or hard-of-hearing children.

Sec. 407. Revenue received by the Michigan schools for the deaf and blind from gifts, bequests, and donations that is unexpended at the end of the state fiscal year may be carried over to the succeeding fiscal year and shall not revert to the general fund.

PROFESSIONAL PREPARATION SERVICES

Sec. 501. From the funds appropriated in part 1 for professional preparation services, the department shall maintain the professional personnel register and certificate revocation/felony conviction files.

Sec. 502. The department shall authorize teacher preparation institutions to provide an alternative program by which up to 1/2 of the required student internship or student teaching credits may be earned through substitute teaching. The department shall require that teacher preparation institutions collaborate with school districts to ensure that the quality of instruction provided to student teachers is comparable to that required in a traditional student teaching program.

Sec. 506. Revenue received from teacher testing fees that is unexpended at the end of the state fiscal year may be carried over to the succeeding fiscal year and shall not revert to the general fund.

OFFICE OF EDUCATIONAL IMPROVEMENT AND INNOVATION

Sec. 601. From the amount appropriated in part 1 for the office of educational improvement and innovation, there is allocated $350,000.00 and 3.5 FTE positions to operate a charter school office to administer charter school legislation and associated regulations, and to coordinate the activities of the department relating to charter schools.

INFORMATION TECHNOLOGY

Sec. 701. The department shall work in collaboration with the center for educational performance and information to support the comprehensive educational information system and all data collection and reporting efforts of the department.

LIBRARY OF MICHIGAN

Sec. 801. In addition to the funds appropriated in part 1, the funds collected by the department for document reproduction and services; conferences, workshops, and training classes; and the use of specialized equipment, facilities, and software are appropriated for all expenses necessary to provide the required services. These funds are available for expenditure when they are received and may be carried forward into the next succeeding fiscal year.

Sec. 803. It is the intent of the legislature that the library of Michigan and the component programs currently within the library of Michigan shall be kept together in a state department.

Sec. 804. From the funds appropriated in part 1 and other funding available, the department and library of Michigan shall maintain custody of the non-Michigan genealogy and all Michigan-specific collections. These collections shall continue to be made available to the public.

GRANTS ADMINISTRATION AND SCHOOL SUPPORT SERVICES

Sec. 901. Within 10 days of the receipt of a grant appropriated in the federal and private grants line item in part 1, the department shall notify the house and senate chairpersons of the appropriations subcommittees responsible for the department budget, the house and senate fiscal agencies, and the state budget director of the receipt of the grant, including the funding source, purpose, and amount of the grant.

Sec. 902. The college access challenge grant program is a work project as provided in section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a, and as follows and as such appropriations for the program shall not lapse at the end of the fiscal year but shall continue to be available for expenditure until the project has been completed:

(a) The purpose of the project is to provide assistance and training to Michigan families, counselors, teachers, and community leaders in applying for and securing funds for college to low-income students.

(b) The project will be accomplished by state employees and/or by contracts with private vendors.

(d) The tentative completion date is September 30, 2012.

Sec. 903. By not later than March 1, 2012, the department shall work with districts that operate as a school of excellence cyber school as defined in section 551 of the revised school code, 1976 PA 451, MCL 380.551, and districts that operate an alternative education program with a seat-time waiver under section 101 of the state school aid act of 1979, 1979 PA 94, MCL 388.1701, to provide a report to the house and senate chairpersons of the appropriations subcommittees responsible for the department budget, the house and senate fiscal agencies, and the state budget director on all of the following:

(a) Each district operating a program and the districts that enroll students in their program.

(b) The total number of students and membership pupils enrolled in each program.

(c) The district in which each pupil is enrolled if other than the district with the seat-time wavier or the cyber school.

(d) The district in which the pupil was enrolled prior to enrolling in the cyber school or the district with a seat-time waiver program.

(e) The number of participating students who had previously dropped out of school.

(f) The number of participating students who had previously been expelled from school.

(g) The cost per pupil paid to each online education provider.

(h) The cost per pupil charged to school districts that enroll their students in the program.

(i) The name of each online education provider contracted by a district with a seat-time waiver or a cyber school and the state in which the online education provider is located.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS FOR FISCAL YEAR 2012-2013

GENERAL SECTIONS

ARTICLE VII

DEPARTMENT OF ENVIRONMENTAL QUALITY

PART 1

LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2011-2012

Sec. 101. Subject to the conditions set forth in this article, the amounts listed in this part are appropriated for the department of environmental quality for the fiscal year ending September 30, 2012, 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..........................................................................1,334.5

GROSS APPROPRIATION.......................................................................................................... $ 414,520,000

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 9,043,200

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 405,476,800

Federal revenues:

Total federal revenues................................................................................................................... 159,701,500

Special revenue funds:

Total private revenues................................................................................................................... 711,800

Total other state restricted revenues............................................................................................. 223,571,900

State general fund/general purpose.............................................................................................. $ 21,491,600

FUND SOURCE SUMMARY

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions..........................................................................1,334.5

GROSS APPROPRIATION.......................................................................................................... $ 414,520,000

Interdepartmental grant revenues:

IDG, MDOT - Michigan transportation fund............................................................................... 1,165,900

IDG, MDSP.................................................................................................................................. 1,095,900

IDT, interdivisional charges......................................................................................................... 2,053,400

IDT, laboratory services............................................................................................................... 4,728,000

Total interdepartmental grants and intradepartmental transfers................................................... 9,043,200

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 405,476,800

Federal revenues:

Federal funds................................................................................................................................ 159,701,500

Special revenue funds:

Private funds................................................................................................................................. $ 711,800

Aboveground storage tank fees.................................................................................................... 489,700

Air emissions fees........................................................................................................................ 10,163,900

Campground fund......................................................................................................................... 292,700

Clean Michigan initiative - response activities............................................................................ 5,500,000

Clean Michigan initiative fund - clean water fund...................................................................... 4,030,700

Cleanup and redevelopment fund................................................................................................. 16,555,600

Community pollution prevention fund......................................................................................... 250,000

Electronic waste recycling fund................................................................................................... 269,800

Environmental education fund...................................................................................................... 260,900

Environmental pollution prevention fund..................................................................................... 2,425,900

Environmental protection bond fund............................................................................................ 1,452,500

Environmental protection fund..................................................................................................... 5,832,200

Environmental response fund....................................................................................................... 8,236,000

Fees and collections..................................................................................................................... 348,000

Financial instruments.................................................................................................................... 5,000,000

Great Lakes protection fund......................................................................................................... 1,051,500

Groundwater discharge permit fees.............................................................................................. 1,624,400

Hazardous materials transportation permit fund.......................................................................... 912,400

Infrastructure construction fund................................................................................................... 434,300

Land and water permit fees.......................................................................................................... 5,695,800

Landfill maintenance trust fund................................................................................................... 28,200

Medical waste emergency response fund..................................................................................... 330,000

Metallic mining surveillance fee revenue..................................................................................... 38,000

Mineral well regulatory fee revenue............................................................................................ 213,100

NPDES fees.................................................................................................................................. 4,298,400

Oil and gas regulatory fund.......................................................................................................... 10,632,700

Orphan well fund.......................................................................................................................... 2,207,000

Public swimming pool fund......................................................................................................... 690,200

Public utility assessments............................................................................................................. 264,800

Public water supply fees............................................................................................................... 4,682,500

Refined petroleum fund................................................................................................................ 37,642,400

Retired engineers technical assistance program........................................................................... 1,860,200

Revitalization revolving loan fund............................................................................................... 94,100

Revolving loan revenue bonds...................................................................................................... 11,400,000

Sand extraction fee revenue......................................................................................................... 81,000

Scrap tire regulatory fund............................................................................................................. 5,328,800

Septage waste contingency fund.................................................................................................. 17,000

Septage waste program fund........................................................................................................ 609,000

Settlement funds........................................................................................................................... 2,490,900

Sewage sludge land application fees............................................................................................ 993,700

Small business pollution prevention revolving loan fund............................................................ 146,700

Soil erosion and sedimentation control training fund.................................................................. 134,100

Solid waste management fund - staff account.............................................................................. 4,822,600

State site cleanup fund................................................................................................................. 4,400,000

Stormwater permit fees................................................................................................................ 3,345,300

Strategic water quality initiatives fund......................................................................................... 40,000,000

Underground storage tank fees..................................................................................................... 2,575,500

Waste reduction fee revenue......................................................................................................... 4,851,100

Wastewater operator training fees................................................................................................ 550,700

Water analysis fees....................................................................................................................... 3,947,900

Water pollution control revolving fund........................................................................................ 3,530,500

Water quality protection fund....................................................................................................... 100,000

Water use reporting fees............................................................................................................... 439,200

Total other state restricted revenues............................................................................................. $ 223,571,900

State general fund/general purpose.............................................................................................. $ 21,491,600

Sec. 102. EXECUTIVE OPERATIONS

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions...............................................................................14.0

Unclassified salaries—6.0 FTE positions..................................................................................... $ 500,000

Executive direction—14.0 FTE positions..................................................................................... 1,656,400

GROSS APPROPRIATION.......................................................................................................... $ 2,156,400

Appropriated from:

Federal revenues:

Federal funds................................................................................................................................ 72,100

Special revenue funds:

Environmental response fund....................................................................................................... 140,500

Oil and gas regulatory fund.......................................................................................................... 231,900

Refined petroleum fund................................................................................................................ 414,500

Settlement funds........................................................................................................................... 58,100

State general fund/general purpose.............................................................................................. $ 1,239,300

Sec. 103. OFFICE OF THE GREAT LAKES

Full-time equated classified positions...............................................................................18.0

Office of the Great Lakes—18.0 FTE positions........................................................................... $ 2,697,700

GROSS APPROPRIATION.......................................................................................................... $ 2,697,700

Appropriated from:

Federal revenues:

Federal funds................................................................................................................................ 1,591,500

Special revenue funds:

Great Lakes protection fund......................................................................................................... 680,800

Settlement funds........................................................................................................................... 106,600

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

Sec. 104. GREAT LAKES RESTORATION INITIATIVE

Great Lakes restoration initiative................................................................................................. $ 25,000,000

GROSS APPROPRIATION.......................................................................................................... $ 25,000,000

Appropriated from:

Federal revenues:

Federal funds................................................................................................................................ 25,000,000

State general fund/general purpose.............................................................................................. $ 0

Sec. 105. DEPARTMENT SUPPORT SERVICES

Full-time equated classified positions...............................................................................37.0

Central support services—37.0 FTE positions............................................................................. $ 3,905,400

Accounting service center............................................................................................................ 1,224,700

Administrative hearings................................................................................................................ 489,700

Automated data processing........................................................................................................... 2,053,400

Building occupancy charges......................................................................................................... 5,985,000

Environmental support projects.................................................................................................... 5,000,000

Rent - privately owned property................................................................................................... 1,960,800

GROSS APPROPRIATION.......................................................................................................... $ 20,619,000

Appropriated from:

Interdepartmental grant revenues:

IDG, MDSP.................................................................................................................................. 86,700

IDT, interdivisional charges......................................................................................................... 2,053,400

IDT, laboratory services............................................................................................................... 502,700

Federal revenues:

Federal funds................................................................................................................................ 5,200

Special revenue funds:

Aboveground storage tank fees.................................................................................................... 55,900

Air emissions fees........................................................................................................................ 1,597,600

Campground fund......................................................................................................................... $ 15,100

Cleanup and redevelopment fund................................................................................................. 1,332,600

Environmental pollution prevention fund..................................................................................... 105,100

Environmental protection fund..................................................................................................... 5,500

Environmental response fund....................................................................................................... 614,000

Fees and collections..................................................................................................................... 38,300

Financial instruments.................................................................................................................... 5,000,000

Great Lakes protection fund......................................................................................................... 82,500

Groundwater discharge permit fees.............................................................................................. 188,200

Hazardous material transportation permit fund............................................................................ 34,900

Land and water permit fees.......................................................................................................... 309,300

Medical waste emergency response fund..................................................................................... 40,400

Metallic mining surveillance fee revenue..................................................................................... 1,300

Mineral well regulatory fee revenue............................................................................................ 15,200

NPDES fees.................................................................................................................................. 412,100

Oil and gas regulatory fund.......................................................................................................... 1,016,800

Orphan well fund.......................................................................................................................... 40,400

Public swimming pool fund......................................................................................................... 64,100

Public utility assessments............................................................................................................. 49,400

Public water supply fees............................................................................................................... 254,100

Refined petroleum fund................................................................................................................ 1,879,200

Sand extraction fee revenue......................................................................................................... 1,000

Scrap tire regulatory fund............................................................................................................. 200,300

Septage waste program fund........................................................................................................ 34,000

Settlement funds........................................................................................................................... 192,500

Sewage sludge land application fees............................................................................................ 107,400

Small business pollution prevention revolving loan fund............................................................ 19,000

Soil erosion and sedimentation control training fund.................................................................. 5,300

Solid waste management fund - staff account.............................................................................. 581,400

Stormwater permit fees................................................................................................................ 184,400

Underground storage tank fees..................................................................................................... 219,100

Waste reduction fee revenue......................................................................................................... 365,200

Wastewater operator training fees................................................................................................ 6,000

Water analysis fees....................................................................................................................... 355,600

Water use reporting fees............................................................................................................... 8,900

State general fund/general purpose.............................................................................................. $ 2,538,900

Sec. 106. OFFICE OF ENVIRONMENTAL ASSISTANCE

Full-time equated classified positions...............................................................................44.0

Office of environmental assistance—44.0 FTE positions............................................................ $ 6,915,500

GROSS APPROPRIATION.......................................................................................................... $ 6,915,500

Appropriated from:

Federal revenues:

Federal funds................................................................................................................................ 880,100

Special revenue funds:

Private funds................................................................................................................................. 537,600

Air emissions fees........................................................................................................................ 124,500

Environmental education fund...................................................................................................... 260,900

Retired engineers technical assistance program........................................................................... 1,860,200

Settlement funds........................................................................................................................... 248,400

Small business pollution prevention revolving loan fund............................................................ 118,900

Waste reduction fee revenue......................................................................................................... 2,884,900

State general fund/general purpose.............................................................................................. $ 0

Sec. 107. WATER RESOURCE DIVISION

Full-time equated classified positions.............................................................................321.0

Land and water interface permit programs—85.0 FTE positions................................................ $ 14,806,800

Program direction and project assistance—30.0 FTE positions................................................... $ 2,775,000

Water withdrawal assessment program—4.0 FTE positions........................................................ 756,600

Expedited water/wastewater permits—3.0 FTE positions............................................................ 434,300

Fish contaminant monitoring........................................................................................................ 316,100

Groundwater discharge—22.0 FTE positions............................................................................... 2,868,800

NPDES nonstormwater program—89.0 FTE positions................................................................ 11,690,400

Surface water—88.0 FTE positions.............................................................................................. 15,163,600

GROSS APPROPRIATION.......................................................................................................... $ 48,811,600

Appropriated from:

Interdepartmental grant revenues:

IDG, MDOT - Michigan transportation fund............................................................................... 1,108,100

Federal revenues:

Federal funds................................................................................................................................ 14,298,800

Special revenue funds:

Clean Michigan initiative fund - clean water fund...................................................................... 4,030,700

Environmental protection fund..................................................................................................... 2,546,100

Environmental response fund....................................................................................................... 183,700

Groundwater discharge permit fees.............................................................................................. 1,356,900

Infrastructure construction fund................................................................................................... 434,300

Land and water permit fees.......................................................................................................... 5,251,400

NPDES fees.................................................................................................................................. 3,685,600

Refined petroleum fund................................................................................................................ 429,400

Soil erosion and sedimentation control training fund.................................................................. 126,300

Stormwater permit fees................................................................................................................ 2,972,600

Water pollution control revolving fund........................................................................................ 734,300

Water use reporting fees............................................................................................................... 426,100

State general fund/general purpose.............................................................................................. $ 11,227,300

Sec. 108. LAW ENFORCEMENT DIVISION

Full-time equated classified positions...............................................................................14.0

Environmental investigations—14.0 FTE positions..................................................................... $ 2,396,900

GROSS APPROPRIATION.......................................................................................................... $ 2,396,900

Appropriated from:

Federal revenues:

Federal funds................................................................................................................................ 703,100

Special revenue funds:

Aboveground storage tank fees.................................................................................................... 5,100

Air emissions fees........................................................................................................................ 150,600

Campground fund......................................................................................................................... 2,800

Cleanup and redevelopment fund................................................................................................. 126,700

Environmental pollution prevention fund..................................................................................... 10,400

Environmental protection fund..................................................................................................... 45,400

Environmental response fund....................................................................................................... 65,300

Fees and collections..................................................................................................................... 3,800

Great Lakes protection fund......................................................................................................... 8,300

Groundwater discharge permit fees.............................................................................................. 17,300

Hazardous material transportation permit fund............................................................................ 3,500

Land and water permit fees.......................................................................................................... 36,800

Medical waste emergency response fund..................................................................................... 4,100

Metallic mining surveillance fee revenue..................................................................................... 500

Mineral well regulatory fee revenue............................................................................................ 1,600

NPDES fees.................................................................................................................................. 41,600

Oil and gas regulatory fund.......................................................................................................... 114,200

Orphan well fund.......................................................................................................................... 4,100

Public swimming pool fund......................................................................................................... 5,100

Public water supply fees............................................................................................................... 25,400

Refined petroleum fund................................................................................................................ $ 291,600

Sand extraction fee revenue......................................................................................................... 500

Scrap tire regulatory fund ........................................................................................................... 97,000

Septage waste program fund........................................................................................................ 3,400

Settlement funds........................................................................................................................... 22,200

Sewage sludge land application fees............................................................................................ 9,800

Small business pollution prevention revolving loan fund............................................................ 1,900

Stormwater permit fees................................................................................................................ 18,400

Soil erosion and sedimentation control training fund.................................................................. 600

Underground storage tank fees..................................................................................................... 21,900

Waste reduction fee revenue......................................................................................................... 45,700

Wastewater operator training fees................................................................................................ 600

Water analysis fees....................................................................................................................... 28,400

Water use reporting fees............................................................................................................... 900

State general fund/general purpose.............................................................................................. $ 478,300

Sec. 109. AIR QUALITY DIVISION

Full-time equated classified positions.............................................................................208.0

Air quality programs—208.0 FTE positions................................................................................ $ 24,228,800

GROSS APPROPRIATION.......................................................................................................... $ 24,228,800

Appropriated from:

Federal revenues:

Federal funds................................................................................................................................ 7,488,200

Special revenue funds:

Air emissions fees........................................................................................................................ 7,739,500

Environmental response fund....................................................................................................... 119,800

Fees and collections..................................................................................................................... 254,900

Oil and gas regulatory fund.......................................................................................................... 121,600

Refined petroleum fund................................................................................................................ 3,163,200

Waste reduction fee revenue......................................................................................................... 1,200,000

State general fund/general purpose.............................................................................................. $ 4,141,600

Sec. 110. ENVIRONMENTAL RESOURCE MANAGEMENT DIVISION

Full-time equated classified positions.............................................................................324.5

Drinking water and environmental health—109.5 FTE positions................................................ $ 15,098,900

Hazardous waste management program—51.0 FTE positions..................................................... 6,593,200

Low-level radioactive waste authority—2.0 FTE positions......................................................... 199,300

Medical waste program—2.0 FTE positions................................................................................ 271,000

Municipal assistance—34.0 FTE positions.................................................................................. 6,020,800

Radiological protection program—12.0 FTE positions................................................................ 1,295,300

Scrap tire regulatory program—11.0 FTE positions.................................................................... 1,198,600

Oil, gas, and mineral services—60.0 FTE positions.................................................................... 11,176,500

Sewage sludge land application program—6.0 FTE positions..................................................... 841,600

Solid waste management program—37.0 FTE positions............................................................. 4,462,800

GROSS APPROPRIATION.......................................................................................................... $ 47,158,000

Appropriated from:

Interdepartmental grant revenues:

IDG-MDSP................................................................................................................................... 979,600

Federal revenues:

Federal funds................................................................................................................................ 15,793,400

Special revenue funds:

Campground fund......................................................................................................................... 264,600

Electronic waste recycling fund................................................................................................... 269,800

Environmental pollution prevention fund..................................................................................... 2,205,800

Fees and collections..................................................................................................................... 32,100

Hazardous material transportation permit fund............................................................................ 861,300

Medical waste emergency response fund..................................................................................... 271,000

Metallic mining surveillance fee revenue..................................................................................... $ 35,700

Mineral well regulatory fee revenue............................................................................................ 190,800

Oil and gas regulatory fund.......................................................................................................... 8,715,400

Orphan well fund.......................................................................................................................... 2,148,000

Public swimming pool fund......................................................................................................... 602,400

Public utility assessments............................................................................................................. 199,300

Public water supply fees............................................................................................................... 2,556,900

Refined petroleum fund................................................................................................................ 601,100

Sand extraction fee revenue......................................................................................................... 79,200

Scrap tire regulatory fund............................................................................................................. 1,198,600

Septage waste contingency fund.................................................................................................. 17,000

Septage waste program fund........................................................................................................ 281,600

Sewage sludge land application fees............................................................................................ 841,600

Solid waste management fund - staff account.............................................................................. 4,030,500

Stormwater permit fees................................................................................................................ 103,100

Strategic water quality initiatives fund......................................................................................... 400,000

Waste reduction fee revenue......................................................................................................... 162,500

Wastewater operator training fees................................................................................................ 541,900

Water pollution control revolving fund........................................................................................ 2,621,500

State general fund/general purpose.............................................................................................. $ 1,153,300

Sec. 111. REMEDIATION DIVISION

Full-time equated classified positions.............................................................................354.0

Contaminated site investigations, cleanup and revitalization—207.0 FTE positions................... $ 26,130,600

Federal cleanup project management—60.0 FTE positions......................................................... 9,254,400

Laboratory services—48.0 FTE positions.................................................................................... 7,702,600

Aboveground storage tank program—8.0 FTE positions............................................................. 856,400

Underground storage tank program—31.0 FTE positions............................................................ 3,865,100

Environmental bond site reclamation program............................................................................. 1,452,500

Brownfield grants and loans......................................................................................................... 5,500,000

Emergency cleanup actions.......................................................................................................... 4,000,000

Environmental cleanup support.................................................................................................... 1,840,000

Environmental cleanup and redevelopment program................................................................... 30,000,000

State sites cleanup program.......................................................................................................... 4,400,000

Refined petroleum product cleanup program............................................................................... 20,000,000

Superfund cleanup........................................................................................................................ 3,000,000

GROSS APPROPRIATION.......................................................................................................... $ 118,001,600

Appropriated from:

Interdepartmental grant revenues:

IDT, laboratory services............................................................................................................... 4,068,600

Federal revenues:

Federal funds................................................................................................................................ 10,035,000

Special revenue funds:

Private funds................................................................................................................................. 174,200

Aboveground storage tank fees.................................................................................................... 410,400

Clean Michigan initiative - response activities............................................................................ 5,500,000

Cleanup and redevelopment fund................................................................................................. 14,626,300

Environmental protection bond fund............................................................................................ 1,452,500

Environmental protection fund..................................................................................................... 3,234,100

Environmental response fund....................................................................................................... 6,846,500

Landfill maintenance trust fund................................................................................................... 28,200

Public water supply fees............................................................................................................... 276,800

Refined petroleum fund................................................................................................................ 29,592,000

Revitalization revolving loan fund............................................................................................... 94,100

Settlement funds........................................................................................................................... 1,782,400

State site cleanup fund................................................................................................................. 4,400,000

Strategic water quality initiatives fund......................................................................................... $ 30,000,000

Underground storage tank fees..................................................................................................... 2,123,300

Water analysis fees....................................................................................................................... 3,357,200

State general fund/general purpose.............................................................................................. $ 0

Sec. 112. GRANTS

Coastal management grants.......................................................................................................... $ 1,750,000

Drinking water program grants.................................................................................................... 1,330,000

Federal - Great Lakes remedial action plan grants...................................................................... 700,000

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

Grants to counties - air pollution................................................................................................. 83,700

Great Lakes research and protection grants................................................................................. 250,000

Noncommunity water grants........................................................................................................ 1,400,000

Pollution prevention local grants.................................................................................................. 250,000

Radon grants................................................................................................................................. 90,000

Scrap tire grants........................................................................................................................... 3,500,000

Septage waste compliance grants................................................................................................. 275,000

Strategic water quality initiative loans......................................................................................... 9,600,000

Water quality protection grants.................................................................................................... 100,000

Water pollution control and drinking water revolving funds....................................................... 82,943,000

GROSS APPROPRIATION.......................................................................................................... $ 108,771,700

Appropriated from:

Federal revenues:

Federal funds................................................................................................................................ 81,913,000

Special revenue funds:

Community pollution prevention fund......................................................................................... 250,000

Great Lakes protection fund......................................................................................................... 250,000

Public water supply fees............................................................................................................... 1,400,000

Refined petroleum fund................................................................................................................ 83,700

Revolving loan revenue bonds...................................................................................................... 11,400,000

Scrap tire regulatory fund............................................................................................................. 3,500,000

Septage waste program fund........................................................................................................ 275,000

Strategic water quality initiatives fund......................................................................................... 9,600,000

Water quality protection fund....................................................................................................... 100,000

State general fund/general purpose.............................................................................................. $ 0

Sec. 113. INFORMATION TECHNOLOGY

Information technology services and projects.............................................................................. $ 7,762,800

GROSS APPROPRIATION.......................................................................................................... $ 7,762,800

Appropriated from:

Interdepartmental grant revenues:

IDT, laboratory services............................................................................................................... 156,700

IDG, MDSP.................................................................................................................................. 29,600

IDG, MDOT - Michigan transportation fund............................................................................... 57,800

Federal revenues:

Federal funds................................................................................................................................ 1,921,100

Special revenue funds:

Aboveground storage tank fees.................................................................................................... 18,300

Air emissions fees........................................................................................................................ 551,700

Campground fund......................................................................................................................... 10,200

Cleanup and redevelopment fund................................................................................................. 470,000

Environmental pollution prevention fund..................................................................................... 104,600

Environmental protection fund..................................................................................................... 1,100

Environmental response fund....................................................................................................... 266,200

Fees and collections..................................................................................................................... 18,900

Great Lakes protection fund......................................................................................................... 29,900

Groundwater discharge permit fees.............................................................................................. 62,000

Hazardous material transportation permit fund............................................................................ $ 12,700

Land and water permit fees.......................................................................................................... 98,300

Medical waste emergency response fund..................................................................................... 14,500

Metallic mining surveillance fee revenue..................................................................................... 500

Mineral well regulatory fee revenue............................................................................................ 5,500

NPDES fees.................................................................................................................................. 159,100

Oil and gas regulatory fund.......................................................................................................... 432,800

Orphan well fund.......................................................................................................................... 14,500

Public swimming pool fund......................................................................................................... 18,600

Public utility assessments............................................................................................................. 16,100

Public water supply fees............................................................................................................... 169,300

Refined petroleum fund................................................................................................................ 1,187,700

Sand extraction fee revenue......................................................................................................... 300

Scrap tire regulatory fund............................................................................................................. 332,900

Septage waste program fund........................................................................................................ 15,000

Settlement funds........................................................................................................................... 80,700

Sewage sludge land application fees............................................................................................ 34,900

Small business pollution prevention revolving loan fund............................................................ 6,900

Soil erosion and sedimentation control training fund.................................................................. 1,900

Solid waste management fund - staff account.............................................................................. 210,700

Stormwater permit fees................................................................................................................ 66,800

Underground storage tank fees..................................................................................................... 211,200

Waste reduction fee revenue......................................................................................................... 192,800

Wastewater operator training fees................................................................................................ 2,200

Water analysis fees....................................................................................................................... 206,700

Water pollution control revolving fund........................................................................................ 174,700

Water use reporting fees............................................................................................................... 3,300

State general fund/general purpose.............................................................................................. $ 394,100

PART 2

PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2011-2012

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 2011-2012 is $245,063,500.00 and state spending from state resources to be paid to local units of government for fiscal year 2011-2012 is $2,175,000.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

GRANTS

Noncommunity water grants........................................................................................................ $ 1,400,000

Scrap tire grants........................................................................................................................... 500,000

Septage waste compliance program............................................................................................. 275,000

TOTAL.......................................................................................................................................... $ 2,175,000

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

Sec. 203. As used in this article:

(a) “Department” means the department of environmental quality.

(b) “Director” means the director of the department.

(d) “IDG” means interdepartmental grant.

(e) “IDT” means intradepartmental transfer.

(f) “MDOT” means the state transportation department.

(g) “MDSP” means the department of state police.

(h) “NPDES” means national pollution discharge elimination system.

Sec. 204. The civil service commission shall bill the department 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. Unless otherwise specified, the department shall use the Internet to fulfill the reporting requirements of this article. This requirement may include transmission of reports via electronic mail to the recipients identified for each reporting requirement, or it may include placement of reports on an Internet or Intranet site.

Sec. 206. Amounts appropriated in part 1 for information technology may be designated as work projects and carried forward to support technology projects under the direction of the department of technology, management, and budget. Funds designated in this manner are not available for expenditure until approved as work projects under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a.

Sec. 207. The department and agencies receiving appropriations in part 1 shall receive and retain copies of all reports funded from appropriations in part 1. Federal and state guidelines for short-term and long-term retention of records shall be followed. The department may electronically retain copies of reports unless otherwise required by federal and state guidelines.

Sec. 208. From the funds appropriated in part 1 for information technology, departments and agencies shall pay user fees to the department of technology, management, and budget for technology-related services and projects. The user fees shall be subject to provisions of an interagency agreement between the department and agencies and the department of technology, management, and budget.

Sec. 210. 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. Preference shall be given to goods or services, or both, manufactured or provided by Michigan businesses if they are competitively priced and of comparable quality. In addition, preference shall be given to goods or services, or both, that are manufactured or provided by Michigan businesses owned and operated by veterans, if they are competitively priced and of comparable quality.

Sec. 211. The director shall take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies, or both. The 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. 212. The department shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

Sec. 213. (1) Funds appropriated in part 1 shall not be used by the department to promulgate a rule that will apply to a small business and that will have a disproportionate economic impact on small businesses because of the size of those businesses if the department fails to reduce the disproportionate economic impact of the rule on small businesses as provided under section 40 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.240.

(2) As used in this section:

(a) “Rule” means that term as defined under section 7 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.207.

(b) “Small business” means that term as defined under section 7a of the administrative procedures act of 1969, 1969 PA 306, MCL 24.207a.

Sec. 214. Funds appropriated in part 1 shall not be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. This prohibition does not apply to legal services for bonding activities and for those activities that the attorney general authorizes.

Sec. 215. (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 article 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 $500,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this article under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 216. (1) The department shall report all of the following information relative to allocations made from appropriations 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, the refined petroleum product 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 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.

(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 brownfield projects that were successfully 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. 217. (1) The department may expend amounts remaining from the current and prior fiscal year appropriations to meet funding needs of legislatively approved sites for the environmental cleanup and redevelopment program, the leaking underground storage tank cleanup program, and the refined petroleum product cleanup program.

(2) Unexpended and unencumbered amounts remaining from appropriations from the environmental protection bond fund contained in 1993 PA 353, 2003 PA 173, and 2006 PA 343 are appropriated for expenditure for any site listed in this article and any site listed in the public acts referenced in this section.

(3) Unexpended and unencumbered amounts remaining from appropriations from the cleanup and redevelopment fund contained in 2000 PA 275 and 2002 PA 520 are appropriated for expenditure for any site listed in this article and any site listed in the public acts referenced in this section.

(4) Unexpended and unencumbered amounts remaining from appropriations from the clean Michigan initiative fund - response activities contained in 2000 PA 506, 2001 PA 120, 2004 PA 309, 2004 PA 350, 2005 PA 11, 2006 PA 343, and 2007 PA 121 are appropriated for expenditure for any site listed in this article and any site listed in the public acts referenced in this section.

(5) Unexpended and unencumbered amounts remaining from appropriations from the environmental protection fund contained in 2001 PA 43, 2002 PA 520, and 2003 PA 171 are appropriated for expenditure for any site listed in this article and any site listed in the public acts referenced in this section.

(6) Unexpended and unencumbered amounts remaining from appropriations from the refined petroleum fund activities contained in 2005 PA 154, 2007 PA 121, 2008 PA 247, 2009 PA 118, and 2010 PA 189 are appropriated for expenditure for any site listed in this article and any site listed in the public acts referenced in this section.

Sec. 219. Unexpended settlement revenues at the end of the fiscal year may be carried forward into the settlement fund in the succeeding fiscal year up to a maximum carryforward of $2,500,000.00.

Sec. 221. Not later than November 15, the department shall prepare and transmit a report that provides for estimates of the total general fund/general purpose appropriation lapses at the close of the previous fiscal year. This report shall summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The report shall be transmitted to the office of the state budget, the chairpersons of the senate and house of representatives standing committees on appropriations, and the senate and house fiscal agencies.

Sec. 222. Within 14 days after the release of the executive budget recommendation, the department shall provide the state budget director, the senate and house appropriations chairs, the senate and house appropriations subcommittees on environmental quality, respectively, and the senate and house fiscal agencies with an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the fiscal years ending September 30, 2011 and September 30, 2012.

Sec. 223. Part 1 of this article provides authorizations to fund 1,334.5 FTE classified positions during the fiscal year ending September 30, 2012. Line-item appropriations include limitations on the number of payroll hours to be funded, on the basis of 2,088 hours per each FTE position. The department shall report the number of funded FTE positions within 15 days after the effective date of this article. The number of classified employees compensated through each line item is limited by the authorized FTE positions indicated in this article, as adjusted for the number of reported funded FTE positions. The report shall be provided to the house and senate appropriations subcommittees on environmental quality and the house and senate fiscal agencies.

Sec. 224. On a quarterly basis, the department shall report on the number of FTEs in pay status by civil service classification to the senate and house appropriations subcommittees on environmental quality and the senate and house fiscal agencies.

Sec. 225. (1) The department shall maintain a searchable website accessible by the public at no cost that includes, but is not limited to, all of the following:

(a) Fiscal year-to-date expenditures by category.

(b) Fiscal year-to-date expenditures by appropriation unit.

(c) Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.

(d) The number of active department employees by job classification.

(e) Job specifications and wage rates.

(2) The department may develop and operate its own website to provide this information or may reference the state’s central transparency website as the source for this information.

Sec. 226. The department shall not expend more than $10,000.00 from the appropriations in part 1 to implement the requirements of section 225.

Sec. 227. The department shall provide a report on the implementation of a permit application status tracking tool on the department’s public internet website to the house and senate appropriations subcommittees on environmental quality, the standing committees of the house and senate with primary responsibility for environmental quality issues, and the house and senate fiscal agencies by December 31, 2011. This permit application status tracking tool shall allow permit applicants and the general public to track and review pending permit applications. Searchable parameters shall include, but are not limited to, applicant name and address, county of request, date of application, most recent activity, and status of the permit application. The report shall include the estimated cost of the proposed tool, the information technology requirements that would be needed for the database, the FTE and/or contractual requirements to develop and maintain the proposed tool, an estimated timeline of the implementation of the tool, and any potential foreseen challenges to its implementation.

Sec. 228. The department shall develop a customer satisfaction evaluation program. The program shall utilize customer satisfaction surveys to receive feedback in select program areas to help identify opportunities for improvements and efficiencies. The department shall provide a report on the customer satisfaction evaluation program and the feedback received to the house and senate appropriations subcommittees on environmental quality and the house and senate fiscal agencies by July 1, 2012.

Sec. 229. (1) The department shall submit a report identifying specific permit programs for which an expedited permitting option to fast track the permit process could be developed and instituted. The report shall include, but is not limited to, all of the following:

(a) A listing of the proposed permit programs.

(b) Estimates of the amount of time a pending permit would be granted with the expedited process compared to the amount of time with the normal permit process in those programs.

(2) The report described in subsection (1) shall be submitted to the house and senate appropriations subcommittees on environmental quality, the standing committees of the house and senate with primary responsibility for environmental quality issues, and the house and senate fiscal agencies by December 31, 2011.

REMEDIATION DIVISION

Sec. 301. Revenues remaining in the interdepartmental transfers, laboratory services at the end of the fiscal year shall carry forward into the succeeding fiscal year.

Sec. 302. The unexpended funds appropriated in part 1 for emergency cleanup actions and the refined petroleum product cleanup program are 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.

(d) The tentative completion date is September 30, 2016.

Sec. 303. Effective October 1, 2011, surplus funds not to exceed $1,000,000.00 in the cleanup and redevelopment trust fund are appropriated to the environmental protection fund created in section 503a of the natural resources and environmental protection act, 1994 PA 451, MCL 324.503a.

Sec. 304. Effective October 1, 2011, surplus funds not to exceed $1,000,000.00 in the community pollution prevention fund created in section 3f of 1976 IL 1, MCL 445.573f, are appropriated to the environmental protection fund created in section 503a of the natural resources and environmental protection act, 1994 PA 451, MCL 324.503a.

Sec. 305. It is the intent of the legislature to repay the refined petroleum fund for the $70,000,000.00 that was transferred to the environmental protection fund created in section 503a of the natural resources and environmental protection act, 1994 PA 451, MCL 324.503a, as part of the resolution for the fiscal year 2006-2007 budget.

Sec. 306. The funds appropriated in part 1 for the refined petroleum product cleanup program shall be used to fund cleanup activities on the following sites:

Site Name County

Alcona Oil Company Alcona

Former Tavern & Gas Station Alcona

Paragon Metal Works/Mikado Total Alcona

Chatham Corners Store Alger

Christmas Sports Enterprises Alger

Midway Resort Inc. Alger

Superior Shell Munising Alger

Fennville Feed Supply Allegan

New Salem Grocery Allegan

Country Party Store Alpena

Hubbard Lake Garage Alpena

Bellaire Bay Mart Antrim

Res. Wells Torch Lake Twp. Antrim

Torch River Pit Stop Antrim

Arvon Township School Baraga

Blankenstein Pontiac Barry

Bud’s of Honor Benzie

Village of Honor Res. Wells Benzie

Berrien County Sheriff’s Substation Berrien

Coloma Citgo Berrien

Fredrick’s Auto Clinic Berrien

Randy’s Amoco Berrien

Sterling Express Ltd. Berrien

Baker Oil (E. Michigan) Calhoun

Helmer I-94 Inc. Calhoun

Korner Krossroads Party Store Calhoun

Indian Lake Mini Super Cass

Rigg’s Corner Store Cass

Service Mart 2, Union Cass

Unocal 76, Edwardsburg (Energy Oil) Cass

Arnold’s Bait and Tackle Charlevoix

Northern Oil (former) Charlevoix

Club Rd. Property Cheboygan

Park Shell Service Chippewa

Ackels Car Care Clinton

Bay Petroleum Corp. Eaton

Bob’s Marathon Eaton

Beckon & Larks Lake Rd. Emmet

Farmers Petroleum Coop - Petoskey Emmet

Action Auto #10 Genesee

Central Distributing Genesee

City of Davison-Mill St. Genesee

Flint FD Fleet Admin. Genesee

Flint Water Department Service Center Genesee

Sunshine Foods #119 Burton Genesee

United Cleaners Inc. Genesee

Watkins & Himelohoch Inc. Genesee

Bondale Dinkens Gladwin

Winegar’s Trading Post Gladwin

4 Corners Grand Traverse

Stop N Shop Grand Traverse

Woodland Shop N Go #175 Grand Traverse

KD’s Country Store Gratiot

Pat’s Service Gratiot

Wilson’s Grocery Gratiot

Action Auto Store #30 Ingham

Bay Gas Station Ingham

Bay Petroleum W. Willow Ingham

Bay Petroleum, S. MLK Ingham

Citgo #7 Ingham

Clark Station #1995 Ingham

Former Clark #531 Ingham

Fresh-Up Car Wash Ingham

Miller Oil Company Ingham

Forest Park School District Iron

Alamo General Store Kalamazoo

Bud’s Auto Repair Kalamazoo

Dutton Mills Kent

Former Clark #1481 Kent

Great Northern Packaging Kent

MSI #635 Kent

Hurly’s Lodge Lake

Church & Sons Gas Station Lapeer

E.J. Green Lapeer

P.T. Auto Sales Lapeer

Schaudt’s Service Station Lapeer

Former Ted’s Standard Leelanau

Lakeside Resort and Party Store Leelanau

Clark Store #2128 Livingston

Lakeland Montessori School Livingston

The Oasis Truck Stop Livingston

Bob’s Standard Service Luce

Action Auto (former) Macomb

Memphis Shell Macomb

Sokana Mobil Macomb

Muffler Man Manistee

Harvey Oil Co. Inc. Marquette

Joe & Son’s Service Marquette

Quick Lube Mason

Morley General Store Mecosta

Jack’s Mobil Menominee

Dutch Hutch Missaukee

Rinckey’s Store Missaukee

A.N. Russell & Son Inc. Montcalm

Coral General Store Montcalm

Edmore Mobil Montcalm

R.V. Jensen Inc. Montcalm

Lowell St. Hillman Twp. Montmorency

Wyson’s General Store Montmorency

Bennett Pump Muskegon

Bernie’s Amoco Muskegon

Grant Mini Mart Newaygo

Wesco #14/Triangle Market Newaygo

Emma Milner Property, Waterford Oakland

Jenny Enterprises/Wine Basket, Highland Oakland

Little Caesar’s Pizza, Ortonville Oakland

Wayne Oakland Oil Company Oakland

Village of Mears GW Contam. Oceana

Kimball’s Western Ogemaw

Rose City Feed & Tack Ogemaw

Andy’s Standard Osceola

Lowing’s Auto Osceola

Neal’s Service Osceola

Tiel Oil Company Osceola

Don’s Marathon Oscoda

West Otsego Lake Grocery Otsego

Radio Tavern Presque Isle

Westervelt, 805 S. Saginaw

Former Sav-U Station Shiawassee

Frank’s Service Shiawassee

Decker Service St. Joseph

Payless SuperAmerica St. Joseph

State Rd. 6842, Millington Tuscola

Clark Store #1126 Van Buren

Drew, Ripple Property Van Buren

Roy Smothers Van Buren

Jimmie’s Filling Station Washtenaw

Total #2542 (Huron Mini-mart) Washtenaw

B & H Food & Gas/Dix-Toledo Petro Mart Wayne

Cal’s Car Care, Incorporated - BTEX Wayne

City of Detroit - DOT - 5800 Russell St. Wayne

Garden Gas Station Wayne

Hail Investments Wayne

JJ Curran Crane Wayne

K & A Gas Wayne

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Speedy’s Gas & Goodies Wayne

Welcome Gas on Telegraph Wayne

Peterson’s Standard Wexford

Sec. 307. Effective October 1, 2011, surplus funds not to exceed $2,000,000.00 in the small business pollution prevention assistance revolving loan fund created in section 14513 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.14513, are appropriated to the environmental pollution prevention fund created in section 11130 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.11130.

Sec. 308. Effective October 1, 2011, surplus funds not to exceed $1,300,000.00 in the small business pollution prevention assistance revolving loan fund created in section 14513 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.14513, are appropriated to the environmental protection fund created in section 503a of the natural resources and environmental protection act, 1994 PA 451, MCL 324.503a.

Sec. 309. The funds appropriated in part 1 for the brownfield grants and loans program are 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 is to provide contaminated site cleanup.

(b) The projects will be accomplished by contract.

(d) The tentative completion date is September 30, 2016.

Sec. 310. The funds appropriated in part 1 for the environmental bond site reclamation program are 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.

(d) The tentative completion date is September 30, 2016.

Sec. 311. The department shall enter into a memorandum of understanding with the department of treasury to develop a process for the review and approval of tax exemption certificates in accordance with the list of commonly approved air pollution control equipment adopted by the state tax commission on August 16, 2010 and the list of commonly approved water pollution equipment adopted by the state tax commission on August 16, 2010.

WATER RESOURCES DIVISION

Sec. 401. From the funds appropriated in part 1 for surface water, $100,000.00 shall be allocated to support the 1 additional FTE position for the aquatic nuisance control program that was added in the fiscal year ending September 30, 2011. The department shall report to the house and senate appropriations subcommittees on environmental quality and the house and senate fiscal agencies by September 30, 2012 on the use of this funding and the number of permit applications processed by the program in 2012.

Sec. 402. From the funds appropriated in part 1, the department shall fund a groundwater dispute resolution process in such a manner that maintains a strategically selected dispute resolution process given funds available. The department may utilize any and all available resources in providing this process and shall report to the legislature on the need for additional funds.

Sec. 403. From the funds appropriated in part 1, contingent upon the creation of an aquatic invasive species advisory council, the department shall support funding for the advisory council to provide recommendations to appropriate parties and bodies for a basin-wide approach to managing invasive species.

GRANTS

Sec. 501. 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 324.11720, 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.

RESOURCE MANAGEMENT DIVISION

Sec. 601. (1) The department shall develop a report that addresses implementation of the state’s solid waste policy. At a minimum, the report shall do both of the following:

(a) Identify options for long-term funding for the solid waste management program. For each option, the report shall take into account the extent to which additional activities or materials, or both, such as recycling, composting, and beneficial reuse would impact the long-term funding of the solid waste management program.

(b) Assess the feasibility of contracting out landfill inspections.

(2) The department shall provide the report prepared under subsection (1) to the state budget director, the house and senate appropriations subcommittees on environmental quality, and the house and senate fiscal agencies by June 30, 2012.

ONE-TIME BASIS ONLY

Sec. 1001. For the state fiscal year ending September 30, 2012, there is appropriated from general fund/general purpose revenue, on a 1-time basis only, $6,000,000.00 for the Muskegon cleanup site.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS FOR FISCAL YEAR 2012-2013

GENERAL SECTIONS

ARTICLE VIII

GENERAL GOVERNMENT

PART 1

LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2011-2012

Sec. 101. Subject to the conditions set forth in this article, the amounts listed in this part are appropriated for the departments of attorney general, civil rights, state, technology, management, and budget, and treasury, the executive office, the legislative branch, and certain other state purposes, for the fiscal year ending September 30, 2012, from the funds indicated in this part. The following is a summary of the appropriations in this part:

TOTAL GENERAL GOVERNMENT

APPROPRIATION SUMMARY

Full-time equated unclassified positions...............................................................................43.0

Full-time equated classified positions..............................................................................8,116.2

GROSS APPROPRIATION.......................................................................................................... $ 3,897,242,100

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 669,027,400

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 3,228,214,700

Federal revenues:

Total federal revenues................................................................................................................... 768,099,400

Special revenue funds:

Total local revenues...................................................................................................................... 7,989,300

Total private revenues................................................................................................................... 979,400

Total other state restricted revenues............................................................................................. 1,726,410,300

State general fund/general purpose.............................................................................................. $ 724,736,300

Sec. 102. DEPARTMENT OF ATTORNEY GENERAL

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions.............................................................................514.0

GROSS APPROPRIATION.......................................................................................................... $ 74,590,900

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... $ 21,885,400

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 52,705,500

Federal revenues:

Total federal revenues................................................................................................................... 8,848,800

Special revenue funds:

Total local revenues...................................................................................................................... 0

Total private revenues................................................................................................................... 0

Total other state restricted revenues............................................................................................. 15,489,100

State general fund/general purpose.............................................................................................. $ 28,367,600

(2) ATTORNEY GENERAL OPERATIONS

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions.............................................................................514.0

Attorney general........................................................................................................................... $ 112,500

Unclassified positions—5.0 FTE positions.................................................................................. 476,300

Attorney general operations—477.0 FTE positions..................................................................... 68,330,700

Child support enforcement—25.0 FTE positions......................................................................... 3,008,000

Prosecuting attorneys coordinating council—12.0 FTE positions............................................... 1,881,800

GROSS APPROPRIATION.......................................................................................................... $ 73,809,300

Appropriated from:

Interdepartmental grant revenues:

IDG from MDCH, health services............................................................................................... 2,062,400

IDG from MDCH, WIC............................................................................................................... 77,000

IDG from department of corrections............................................................................................ 527,700

IDG from MDE............................................................................................................................ 317,000

IDG from MDEQ......................................................................................................................... 1,917,700

IDG from MDHS.......................................................................................................................... 3,617,000

IDG from Michigan state housing development authority........................................................... 540,200

IDG from MDLARA, children’s protection registry.................................................................... 39,100

IDG from MDLARA, financial and insurance regulation............................................................ 1,154,400

IDG from MDLARA, licensing and regulation fees.................................................................... 197,800

IDG from MDLARA, Michigan occupational safety and health administration......................... 100,800

IDG from MDLARA, remonumentation fees............................................................................... 85,000

IDG from MDMVA...................................................................................................................... 131,500

IDG from MDOT, comprehensive transportation fund................................................................ 177,200

IDG from MDOT, state aeronautics fund..................................................................................... 165,900

IDG from MDOT, state trunkline fund........................................................................................ 2,817,500

IDG from MDSP.......................................................................................................................... 322,300

IDG from MDSP, Michigan justice training fund........................................................................ 139,000

IDG from MDTMB...................................................................................................................... 208,000

IDG from MDTMB, civil service commission............................................................................ 300,600

IDG from MDTMB, risk management revolving fund................................................................ 1,419,300

IDG from MSF, workforce development agency......................................................................... 205,400

IDG from treasury........................................................................................................................ 5,220,000

IDG from treasury, Michigan strategic fund................................................................................ 142,600

Federal revenues:

DAG, state administrative match grant/food stamps.................................................................... 413,300

Federal funds................................................................................................................................ 2,645,200

HHS, medical assistance, medigrant............................................................................................ 645,100

HHS-OS, state Medicaid fraud control units............................................................................... 5,045,200

National criminal history improvement program......................................................................... 100,000

Special revenue funds:

Antitrust enforcement collections................................................................................................. 656,600

Assigned claims assessments....................................................................................................... 132,800

Attorney general’s operations fund.............................................................................................. 985,600

Auto repair facilities fees............................................................................................................. $ 261,300

Franchise fees............................................................................................................................... 331,700

Game and fish protection fund..................................................................................................... 797,100

Liquor purchase revolving fund................................................................................................... 1,165,700

Manufactured housing fees........................................................................................................... 217,200

Merit award trust fund.................................................................................................................. 408,600

Michigan employment security act - administrative fund............................................................ 1,785,800

Prisoner reimbursement................................................................................................................ 515,200

Prosecuting attorneys training fees............................................................................................... 375,000

Public utility assessments............................................................................................................. 1,888,800

Real estate enforcement fund....................................................................................................... 549,100

Reinstatement fees........................................................................................................................ 175,400

Retirement funds.......................................................................................................................... 832,100

Second injury fund....................................................................................................................... 913,600

Self-insurers security fund............................................................................................................ 640,800

Silicosis and dust disease fund..................................................................................................... 210,900

State building authority revenue................................................................................................... 104,200

State casino gaming fund............................................................................................................. 1,235,200

State lottery fund.......................................................................................................................... 275,600

Utility consumers fund................................................................................................................. 623,700

Waterways fund............................................................................................................................ 111,800

Worker’s compensation administrative revolving fund................................................................ 295,300

State general fund/general purpose.............................................................................................. $ 27,586,000

(3) INFORMATION TECHNOLOGY

Information technology services and projects.............................................................................. $ 781,600

GROSS APPROPRIATION.......................................................................................................... $ 781,600

Appropriated from:

State general fund/general purpose.............................................................................................. $ 781,600

Sec. 103. DEPARTMENT OF CIVIL RIGHTS

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions.............................................................................5.0

Full-time equated classified positions.............................................................................121.0

GROSS APPROPRIATION.......................................................................................................... $ 13,730,200

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 0

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 13,730,200

Federal revenues:

Total federal revenues................................................................................................................... 2,880,600

Special revenue funds:

Total local revenues...................................................................................................................... 0

Total private revenues................................................................................................................... 18,700

Total other state restricted revenues............................................................................................. 151,900

State general fund/general purpose.............................................................................................. $ 10,679,000

(2) CIVIL RIGHTS OPERATIONS

Full-time equated unclassified positions.............................................................................5.0

Full-time equated classified positions.............................................................................121.0

Unclassified positions—5.0 FTE positions.................................................................................. $ 267,100

Civil rights operations—113.0 FTE positions.............................................................................. 11,454,100

Commission on disability concerns—7.0 FTE positions............................................................. 1,186,100

Hispanic/Latino commission of Michigan—1.0 FTE positions................................................... 206,700

GROSS APPROPRIATION.......................................................................................................... $ 13,114,000

Appropriated from:

Federal revenues:

EEOC, state and local antidiscrimination agency contracts......................................................... 885,000

HUD, grant................................................................................................................................... 1,313,200

Federal revenues....................