No. 53

STATE OF MICHIGAN

Journal of the Senate

96th Legislature

REGULAR SESSION OF 2012

Senate Chamber, Lansing, Wednesday, May 30, 2012.

10:00 a.m.

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

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

Anderson—present Hood—excused 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—excused Moolenaar—present Young—present

Hildenbrand—present Nofs—present

Pastor Brian LeMew of Mt. Pleasant Community Church of Mt. Pleasant offered the following invocation:

Father in heaven, we thank You for the gift of this day; for each day, each moment, and each breath that comes from You. In You we live and breathe and have our being, and right now we pause to acknowledge the fact that You are with us. You have been with us from the moment we woke up this morning and put our feet on the floor to this very moment in this great assembly. You are a God who is not far away, but You are a God who is near and attentive to every detail.

God, we are fearfully and wonderfully made with minds to think, discern, and create; with hearts to feel compassion for those in need; with hands to take action to bring about change, restoration, and new beginnings. We gather to apply our minds, bodies, and hearts, our whole selves to bring about Your good for the towns, the cities, and the counties of the great state of Michigan.

God, You are the giver of every good and perfect gift. We come today with grateful hearts for all that You provide. As the wealthiest nation in the world, we have been given so much. May we be good stewards of all that we have and provide for those who suffer at home and abroad. God, You have placed within our hands the ability to change lives, to make an impact by taking what You have placed in our hands to bring hope.

We exist for more than accumulation of wealth and possessions. We exist for more than the gaining of more influence and esteem. We exist to reflect Your goodness and glory to our neighbors, our co-workers, our friends, and our families.

I thank you for these men and women who are gathered here this morning. I thank You for their insights, wisdom, and leadership. I thank You for the time, energy, and sacrifices they make in order to provide for the needs of this state. May You guide them today. Give them clarity, discernment, and courage as they lead. May You also watch over them and remind them that You are present as they bear heavy burdens in their offices and at home. May You also give them rest as the work. They have devoted themselves to make great demands on their time and families.

Thank You, God, for meeting us here in this place at this hour for this important work ahead. It is in Christ’s name that I pray. Amen.

The President pro tempore, Senator Schuitmaker, led the members of the Senate in recital of the Pledge of Allegiance.

Motions and Communications

Senator Pavlov entered the Senate Chamber.

Senator Meekhof moved that Senators Jansen and Richardville be temporarily excused from today’s session.

The motion prevailed.

Senator Meekhof moved that Senator Hansen be excused from today’s session.

The motion prevailed.

Senator Bieda moved that Senators Johnson, Smith and Young be temporarily excused from today’s session.

The motion prevailed.

Senator Bieda moved that Senator Hood be excused from today’s session.

The motion prevailed.

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.

Senator Meekhof moved that rule 3.902 be suspended to allow the guests of Senator Robertson admittance to the Senate floor, including the center aisle.

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.

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 10:07 a.m.

10:16 a.m.

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

During the recess, Senator Robertson introduced the Waterford Our Lady of the Lakes Catholic High School Girls Basketball Team, Class D State Champions; Coach Steve Robak; and presented them with a Special Tribute.

Coach Robak responded briefly.

During the recess, Senators Richardville, Jansen, Young and Johnson entered the Senate Chamber.

The Secretary announced that the following House bill was received in the Senate and filed on Tuesday, May 29:

House Bill No. 5660

The Secretary announced that the following official bills were printed on Tuesday, May 29, and are available at the legislative website:

Senate Bill Nos. 1146 1147 1148 1149 1150 1151

Messages from the Governor

Senator Smith entered the Senate Chamber.

The following message from the Governor was received on May 29, 2012, and read:

EXECUTIVE ORDER

No. 2012-8

Activation of National Guard to Luce County

and Schoolcraft County

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

WHEREAS, Under Section 12 of Article V of the Michigan Constitution of 1963 the Governor is the Commander-in‑Chief of the state armed forces and may call them out to execute the laws; and

WHEREAS, Section 151 of the Michigan Military Act, No. 150 of the Public Acts of 1967, MCL 32.551, authorizes the Governor to order to activate state service any members of the organized militia for service in the aid of civil authority in times of public danger, disaster, crisis, catastrophe, or other public emergency within the state; and

WHEREAS, by Executive Proclamation, on May 25, 2012, the Governor declared a state of disaster in Luce County and Schoolcraft County due to a wildfire that had consumed over 19,000 acres of land, causing severe damage and loss of property; and

WHEREAS, the wildfire continues to grow due to exceptionally dry and hot weather conditions and shifting wind patterns; and

WHEREAS, additional assistance is needed to supplement existing firefighting capabilities to lessen or avert the threat of a catastrophe, and to protect and preserve the lives and property, and public health and safety in Luce County and Schoolcraft County;

WHEREAS, by Executive Proclamation, on May 25, 2012, the Governor directed, consistent with the Michigan Emergency Management Plan, that the Director of the Department of State Police, or her designee within the Department of State Police, coordinate and maximize all state efforts to assist political subdivisions and officials in Luce County and Schoolcraft County, and has authority to call upon all state departments and agencies to utilize available resources, including, but not limited to, manpower, supplies, equipment, materials, or facilities, to assist with response to the state of disaster;

NOW, THEREFORE, I, RICHARD D. SNYDER, Governor of the state of Michigan, by virtue of the power and authority vested in the Governor by the Michigan Constitution of 1963 and Michigan law, order:

1. The Adjutant General is directed to order to active state service, units and individuals of the Michigan National Guard that in his discretion he deems appropriate to meet general mission assignments as determined by the Director of the Department of State Police, or her designee within the Department of State Police.

2. The Director of the Department of State Police, or her designee within the Department of State Police shall coordinate and maximize all state efforts, including such units and individuals of the Michigan National Guard that may be activated to state service, to assist Luce County and Schoolcraft County and other units of government affected pursuant to the Michigan Emergency Management Plan.

3. The Michigan National Guard is activated until such time as determined by the Adjutant General, after consultation with the Director of the Department of State Police, or her designee within the Department of State Police.

This Order is effective upon filing.

[SEAL] Given under my hand and the Great Seal of the state of Michigan this twenty-fifth day of May in the year of our Lord, two thousand and twelve.

Richard D. Snyder

Governor

By the Governor:

Ruth A. Johnson

Secretary of State

The executive order was referred to the Committee on Government Operations.

Messages from the House

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

Senate Bill No. 300

Senate Bill No. 557

Senate Bill No. 560

The motion prevailed.

Senate Bill No. 454, entitled

A bill to amend 1961 PA 236, entitled “Revised judicature act of 1961,” by amending section 2163a (MCL 600.2163a), as amended by 2002 PA 604.

The House of Representatives has substituted (H-1) the bill.

The House of Representatives has passed the bill as substituted (H-1), ordered that it be given immediate effect and pursuant to Joint Rule 20, inserted the full title.

Pursuant to rule 3.202, the bill was laid over one day.

Senate Bill No. 455, entitled

A bill to amend 1927 PA 175, entitled “The code of criminal procedure,” by amending sections 16i and 16o of chapter XVII (MCL 777.16i and 777.16o), section 16i as amended by 2010 PA 95 and section 16o as amended by 2010 PA 130.

The House of Representatives has substituted (H-1) the bill.

The House of Representatives has passed the bill as substituted (H-1), ordered that it be given immediate effect and amended the title to read as follows:

A bill to amend 1927 PA 175, entitled “An act to revise, consolidate, and codify the laws relating to criminal procedure and to define the jurisdiction, powers, and duties of courts, judges, and other officers of the court under the provisions of this act; to provide laws relative to the rights of persons accused of criminal offenses and ordinance violations; to provide for the arrest of persons charged with or suspected of criminal offenses and ordinance violations; to provide for bail of persons arrested for or accused of criminal offenses and ordinance violations; to provide for the examination of persons accused of criminal offenses; to regulate the procedure relative to grand juries, indictments, informations, and proceedings before trial; to provide for trials of persons complained of or indicted for criminal offenses and ordinance violations and to provide for the procedure in those trials; to provide for judgments and sentences of persons convicted of criminal offenses and ordinance violations; to establish a sentencing commission and to prescribe its powers and duties; to provide for procedure relating to new trials and appeals in criminal and ordinance violation cases; to provide a uniform system of probation throughout this state and the appointment of probation officers; to prescribe the powers, duties, and compensation of probation officers; to provide penalties for the violation of the duties of probation officers; to provide for procedure governing proceedings to prevent crime and proceedings for the discovery of crime; to provide for fees of officers, witnesses, and others in criminal and ordinance violation cases; to set forth miscellaneous provisions as to criminal procedure in certain cases; to provide penalties for the violation of certain provisions of this act; and to repeal all acts and parts of acts inconsistent with or contravening any of the provisions of this act,” by amending sections 16i and 16o of chapter XVII (MCL 777.16i and 777.16o), section 16i as amended by 2012 PA 6 and section 16o as amended by 2010 PA 130.

Pursuant to rule 3.202, the bill was laid over one day.

Senate Bill No. 457, entitled

A bill to amend 1953 PA 181, entitled “An act relative to investigations in certain instances of the causes of death within this state due to violence, negligence or other act or omission of a criminal nature or to protect public health; to provide for the taking of statements from injured persons under certain circumstances; to abolish the office of coroner and to create the office of county medical examiner in certain counties; to prescribe the powers and duties of county medical examiners; to prescribe penalties for violations of the provisions of this act; and to prescribe a referendum thereon,” by amending sections 1c, 2, and 3 (MCL 52.201c, 52.202, and 52.203), section 2 as amended by 2004 PA 153 and section 3 as amended by 2006 PA 569.

The House of Representatives has substituted (H-2) the bill.

The House of Representatives has passed the bill as substituted (H-2) and ordered that it be given immediate effect.

Pursuant to rule 3.202, the bill was laid over one day.

Senate Bill No. 459, entitled

A bill to amend 1931 PA 328, entitled “The Michigan penal code,” by amending sections 159g, 174a, and 273 (MCL 750.159g, 750.174a, and 750.273), section 159g as amended by 2010 PA 362 and section 174a as amended by 2004 PA 255.

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

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

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

The motion prevailed.

Senate Bill No. 465, entitled

A bill to amend 1927 PA 175, entitled “The code of criminal procedure,” by amending section 16i of chapter XVII (MCL 777.16i), as amended by 2010 PA 95.

The House of Representatives has substituted (H-1) the bill.

The House of Representatives has passed the bill as substituted (H-1), ordered that it be given immediate effect and amended the title to read as follows:

A bill to amend 1927 PA 175, entitled “An act to revise, consolidate, and codify the laws relating to criminal procedure and to define the jurisdiction, powers, and duties of courts, judges, and other officers of the court under the provisions of this act; to provide laws relative to the rights of persons accused of criminal offenses and ordinance violations; to provide for the arrest of persons charged with or suspected of criminal offenses and ordinance violations; to provide for bail of persons arrested for or accused of criminal offenses and ordinance violations; to provide for the examination of persons accused of criminal offenses; to regulate the procedure relative to grand juries, indictments, informations, and proceedings before trial; to provide for trials of persons complained of or indicted for criminal offenses and ordinance violations and to provide for the procedure in those trials; to provide for judgments and sentences of persons convicted of criminal offenses and ordinance violations; to establish a sentencing commission and to prescribe its powers and duties; to provide for procedure relating to new trials and appeals in criminal and ordinance violation cases; to provide a uniform system of probation throughout this state and the appointment of probation officers; to prescribe the powers, duties, and compensation of probation officers; to provide penalties for the violation of the duties of probation officers; to provide for procedure governing proceedings to prevent crime and proceedings for the discovery of crime; to provide for fees of officers, witnesses, and others in criminal and ordinance violation cases; to set forth miscellaneous provisions as to criminal procedure in certain cases; to provide penalties for the violation of certain provisions of this act; and to repeal all acts and parts of acts inconsistent with or contravening any of the provisions of this act,” by amending section 16i of chapter XVII (MCL 777.16i), as amended by 2012 PA 6.

Pursuant to rule 3.202, the bill was laid over one day.

Senate Bill No. 466, entitled

A bill to prescribe the senior or vulnerable adult medical alert as the official response to reports of certain missing persons; to provide for the broadcast of information regarding those incidents; and to provide for certain civil immunity.

The House of Representatives has amended the bill as follows:

1. Amend page 4, line 7, after “a” by inserting “missing”.

2. Amend page 4, line 22, after “a” by inserting “missing”.

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

Pursuant to rule 3.202, the bill was laid over one day.

Conference Reports

Senator Meekhof moved that joint rule 9 be suspended to permit immediate consideration of the conference reports relative to the following bills:

Senate Bill No. 947

Senate Bill No. 949

Senate Bill No. 950

Senate Bill No. 951

Senate Bill No. 952

Senate Bill No. 954

Senate Bill No. 956

Senate Bill No. 957

Senate Bill No. 958

Senate Bill No. 959

Senate Bill No. 962

Senate Bill No. 963

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

Senator Meekhof moved that the following bills be placed at the head of the Conference Reports calendar:

Senate Bill No. 947

Senate Bill No. 949

Senate Bill No. 950

Senate Bill No. 951

Senate Bill No. 954

Senate Bill No. 956

Senate Bill No. 957

Senate Bill No. 958

Senate Bill No. 959

Senate Bill No. 962

Senate Bill No. 963

Senate Bill No. 952

The motion prevailed.

Senator Green submitted the following:

FIRST CONFERENCE REPORT

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

Senate Bill No. 947, entitled

A bill to make appropriations for the department of agriculture and rural development for the fiscal year ending September 30, 2013; and to provide for the expenditure of the appropriations.

Recommends:

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

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

A bill to make appropriations for the department of agriculture and rural development for the fiscal year ending September 30, 2013; and to provide for the expenditure of the appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2012-2013

Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for the department of agriculture and rural development for the fiscal year ending September 30, 2013, from the funds indicated in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

APPROPRIATION SUMMARY

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions.............................................................................425.0

GROSS APPROPRIATION.......................................................................................................... $ 76,953,000

Interdepartmental grant revenues:

IDG from LARA (LCC), liquor quality testing fees.................................................................... 209,900

IDG from MDNR, forest development fund................................................................................ 200,000

IDG from MDEQ, biosolids......................................................................................................... 107,000

One-time interdepartmental grant revenues.................................................................................. 2,400

Total interdepartmental grants and intradepartmental transfers................................................... 519,300

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 76,433,700

Federal revenues:

USDA, multiple grants................................................................................................................. 7,629,800

EPA, multiple grants..................................................................................................................... 1,704,400

HHS-FDA..................................................................................................................................... 1,780,400

One-time federal revenues............................................................................................................ 85,000

Total federal revenues................................................................................................................... 11,199,600

Special revenue funds:

Total local revenues...................................................................................................................... 0

Private - slow-the-spread foundation............................................................................................ 86,800

Private - commodity group revenue............................................................................................. 87,500

One-time private revenues............................................................................................................ 1,500

Total private revenues................................................................................................................... 175,800

Agricultural preservation fund...................................................................................................... 1,395,300

Agriculture equine industry development fund............................................................................ 3,834,900

Animal welfare fund..................................................................................................................... 209,600

Commodity inspection fees.......................................................................................................... 566,300

Consumer and industry food safety education fund..................................................................... 306,200

Dairy and food safety fund.......................................................................................................... 3,159,800

Freshwater protection fund........................................................................................................... 5,095,500

Gasoline inspection and testing fund........................................................................................... 2,570,200

Grain dealer fee fund.................................................................................................................... 535,200

Horticulture fund.......................................................................................................................... 75,800

Industry support funds.................................................................................................................. 549,100

Licensing and inspection fees...................................................................................................... 4,266,800

Migratory labor housing fund...................................................................................................... 157,000

Nonretail liquor fees..................................................................................................................... 782,900

Refined petroleum fund................................................................................................................ 4,012,000

Renewable fuels fund................................................................................................................... 50,000

Testing fees................................................................................................................................... 475,300

Weights and measures regulation fees.......................................................................................... 771,400

One-time state restricted revenues................................................................................................ 146,100

Total other state restricted revenues............................................................................................. 28,959,400

State general fund/general purpose.............................................................................................. $ 36,098,900

State general fund/general purpose schedule:

Ongoing state general fund/general purpose..........................................................33,863,600

One-time state general fund/general purpose...........................................................2,235,300

Sec. 102. DEPARTMENTWIDE

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions...............................................................................27.0

Commissions and boards.............................................................................................................. $ 23,800

Unclassified positions—6.0 FTE positions.................................................................................. 700,000

Executive direction—9.0 FTE positions....................................................................................... 1,287,300

Management services—15.0 FTE positions................................................................................. 995,200

Statistical reporting service—1.0 FTE position........................................................................... 157,300

Emergency management—2.0 FTE positions............................................................................... 770,500

Accounting service center............................................................................................................ 920,200

Rent and building occupancy....................................................................................................... 1,008,700

GROSS APPROPRIATION.......................................................................................................... $ 5,863,000

Appropriated from:

Federal revenues:

USDA, multiple grants................................................................................................................. 228,400

EPA, multiple grants..................................................................................................................... 177,000

HHS-FDA..................................................................................................................................... 552,300

Special revenue funds:

Private - commodity group revenue............................................................................................. 87,500

Agricultural preservation fund...................................................................................................... 23,100

Freshwater protection fund........................................................................................................... 34,100

Industry support funds.................................................................................................................. 49,500

Licensing and inspection fees...................................................................................................... 159,500

Nonretail liquor fees..................................................................................................................... 38,100

Refined petroleum fund................................................................................................................ 320,300

State general fund/general purpose.............................................................................................. $ 4,193,200

Sec. 103. INFORMATION AND TECHNOLOGY

Information technology services and projects.............................................................................. $ 1,384,900

GROSS APPROPRIATION.......................................................................................................... $ 1,384,900

Appropriated from:

Interdepartmental grant revenues:

IDG from LARA (LCC), liquor quality testing fees.................................................................... 3,000

Special revenue funds:

Agricultural preservation fund...................................................................................................... 200

Agriculture equine industry development fund............................................................................ 80,800

Freshwater protection fund........................................................................................................... 100

Gasoline inspection testing fund.................................................................................................. 29,500

Licensing and inspection fees...................................................................................................... 30,400

Nonretail liquor fees..................................................................................................................... 500

State general fund/general purpose.............................................................................................. $ 1,240,400

Sec. 104. FOOD AND DAIRY

Full-time equated classified positions.............................................................................101.0

Food safety and quality assurance—75.0 FTE positions............................................................. $ 10,167,500

Milk safety and quality assurance—26.0 FTE positions.............................................................. 3,474,800

GROSS APPROPRIATION.......................................................................................................... $ 13,642,300

Appropriated from:

Federal revenues:

USDA, multiple grants................................................................................................................. 247,500

HHS-FDA..................................................................................................................................... 476,400

Special revenue funds:

Consumer and industry food safety education fund..................................................................... 306,200

Dairy and food safety fund.......................................................................................................... 3,159,800

State general fund/general purpose.............................................................................................. $ 9,452,400

Sec. 105. ANIMAL INDUSTRY

Full-time equated classified positions...............................................................................60.0

Animal disease prevention and response—60.0 FTE positions................................................... $ 8,956,700

Indemnification - livestock depredation....................................................................................... 50,000

GROSS APPROPRIATION.......................................................................................................... $ 9,006,700

Appropriated from:

Federal revenues:

USDA, multiple grants................................................................................................................. $ 836,200

HHS-FDA..................................................................................................................................... 44,200

Special revenue funds:

Animal welfare fund..................................................................................................................... 209,600

Licensing and inspection fees...................................................................................................... 123,100

State general fund/general purpose.............................................................................................. $ 7,793,600

Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT

Full-time equated classified positions...............................................................................81.0

Pesticide and plant pest management—77.0 FTE positions........................................................ $ 10,610,100

Producer security/grain dealers—4.0 FTE positions.................................................................... 574,200

GROSS APPROPRIATION.......................................................................................................... $ 11,184,300

Appropriated from:

Federal revenues:

USDA, multiple grants................................................................................................................. 1,166,100

EPA, multiple grants..................................................................................................................... 769,500

HHS-FDA..................................................................................................................................... 113,700

Special revenue funds:

Private - slow-the-spread foundation............................................................................................ 86,800

Commodity inspection fees.......................................................................................................... 566,300

Grain dealers fee fund.................................................................................................................. 535,200

Horticulture fund.......................................................................................................................... 75,800

Industry support funds.................................................................................................................. 350,800

Licensing and inspection fees...................................................................................................... 3,866,700

State general fund/general purpose.............................................................................................. $ 3,653,400

Sec. 107. ENVIRONMENTAL STEWARDSHIP

Full-time equated classified positions...............................................................................50.0

Environmental stewardship—18.0 FTE positions........................................................................ $ 6,146,500

Michigan agriculture environmental assurance program—7.0 FTE positions............................. 1,621,500

Farmland and open space preservation—9.0 FTE positions........................................................ 872,000

Private forest development program............................................................................................. 200,000

Local conservation districts.......................................................................................................... 100

Migrant labor housing—9.0 FTE positions.................................................................................. 1,156,900

Right-to-farm—3.0 FTE positions................................................................................................ 555,100

Intercounty drain—4.0 FTE positions.......................................................................................... 453,100

GROSS APPROPRIATION.......................................................................................................... $ 11,005,200

Appropriated from:

Interdepartmental grant revenues:

IDG from MDNR, forest development fund................................................................................ 200,000

IDG from MDEQ, biosolids......................................................................................................... 107,000

Federal revenues:

USDA, multiple grants................................................................................................................. 1,035,200

EPA, multiple grants..................................................................................................................... 373,800

Special revenue funds:

Agricultural preservation fund...................................................................................................... 872,000

Freshwater protection fund........................................................................................................... 5,061,300

Migratory labor housing fund...................................................................................................... 157,000

State general fund/general purpose.............................................................................................. $ 3,198,900

Sec. 108. LABORATORY PROGRAM

Full-time equated classified positions...............................................................................90.0

Laboratory services—38.0 FTE positions.................................................................................... $ 5,686,400

USDA monitoring—13.0 FTE positions...................................................................................... 2,548,700

Consumer protection program—39.0 FTE positions.................................................................... 5,667,300

GROSS APPROPRIATION.......................................................................................................... $ 13,902,400

Appropriated from:

Interdepartmental grant revenues:

IDG from LARA (LCC), liquor quality testing fees.................................................................... $ 206,900

Federal revenues:

USDA, multiple grants................................................................................................................. 2,549,600

EPA, multiple grants..................................................................................................................... 384,100

HHS-FDA..................................................................................................................................... 593,800

Special revenue funds:

Agriculture equine industry development fund............................................................................ 592,400

Gasoline inspection and testing fund........................................................................................... 2,540,700

Licensing and inspection fees...................................................................................................... 87,100

Refined petroleum fund................................................................................................................ 3,691,700

Renewable fuels fund................................................................................................................... 50,000

Testing fees................................................................................................................................... 475,300

Weights and measures regulation fees.......................................................................................... 771,400

State general fund/general purpose.............................................................................................. $ 1,959,400

Sec. 109. AGRICULTURE DEVELOPMENT

Full-time equated classified positions...............................................................................13.0

Agriculture development—10.0 FTE positions............................................................................ $ 2,712,000

Grape and wine program—3.0 FTE positions.............................................................................. 788,600

Rural development value-added grants......................................................................................... 1,050,000

GROSS APPROPRIATION.......................................................................................................... $ 4,550,600

Appropriated from:

Federal revenues:

USDA, multiple grants................................................................................................................. 1,566,800

Special revenue funds:

Industry support funds.................................................................................................................. 148,800

Nonretail liquor fees..................................................................................................................... 744,300

State general fund/general purpose.............................................................................................. $ 2,090,700

Sec. 110. FAIRS AND EXPOSITIONS

Full-time equated classified positions.................................................................................3.0

Fairs and racing—3.0 FTE positions............................................................................................ $ 351,100

County fairs capital improvement grants..................................................................................... 281,600

Purses and supplements - fairs/licensed tracks............................................................................ 708,300

Licensed tracks - light horse racing............................................................................................. 40,300

Light horse racing – breeders awards.......................................................................................... 20,000

Standardbred breeders’ awards..................................................................................................... 285,900

Standardbred purses and supplements - licensed tracks............................................................... 527,800

Standardbred sire stakes............................................................................................................... 239,000

Thoroughbred supplements - licensed tracks............................................................................... 385,900

Thoroughbred breeder’s awards................................................................................................... 358,600

Thoroughbred sire stakes.............................................................................................................. 244,800

GROSS APPROPRIATION.......................................................................................................... $ 3,443,300

Appropriated from:

Special revenue funds:

Agriculture equine industry development fund............................................................................ 3,161,700

State general fund/general purpose.............................................................................................. $ 281,600

Sec. 111. CAPITAL OUTLAY

Farmland and open space development acquisition..................................................................... $ 500,000

GROSS APPROPRIATION.......................................................................................................... $ 500,000

Appropriated from:

Special revenue funds:

Agriculture preservation fund....................................................................................................... 500,000

State general fund/general purpose.............................................................................................. $ 0

Sec. 112. ONE-TIME BASIS ONLY

State employee lump-sum payments............................................................................................ $ 470,300

Private forestry program............................................................................................................... 600,000

Rural development value-added grants (1-time).......................................................................... 900,000

New food safety requirements...................................................................................................... 500,000

GROSS APPROPRIATION.......................................................................................................... $ 2,470,300

Appropriated from:

One-time interdepartmental grant revenues.................................................................................. 2,400

One-time federal revenues............................................................................................................ 85,000

One-time private revenues............................................................................................................ 1,500

One-time state restricted revenues................................................................................................ 146,100

State general fund/general purpose.............................................................................................. $ 2,235,300

PART 2

PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2012-2013

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 2012-2013 is $65,058,300.00 and state spending from state resources to be paid to local units of government for fiscal year 2012-2013 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 act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 203. As used in this act:

(a) “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 act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $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 act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

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

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

Sec. 207. 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.

Sec. 208. Unless otherwise specified, the departments shall use the Internet to fulfill the reporting requirements of this act. 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. 218. The departments and agencies receiving appropriations in part 1 shall prepare a report on out-of-state travel expenses not later than January 1 of each year. The travel report shall be a listing of 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 dates of each travel occurrence.

(b) The total 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.

Sec. 219. It is the intent of the legislature that all principal executive departments and agencies cooperate with the development and implementation of the department of technology, management, and budget statewide office space consolidation plan.

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, 2012 and September 30, 2013.

Sec. 230. 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 outside services that the attorney general authorizes.

Sec. 231. By October 31, 2012, the department shall identify 10 principal measurable outcomes to be affected by expenditure of the funds appropriated in part 1 and submit a report to the house and senate appropriations committees, the house and senate fiscal agencies, and the state budget director that ranks the outcomes by level of importance and contains current data on those outcomes. Beginning on April 1, 2013, the department shall provide biannual updates to the house and senate appropriations committees on changes in those measurable outcomes and departmental efforts to improve the outcomes.

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 rural development 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 rural development 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 and rural development 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, 2013, the department shall provide a report to the senate and house appropriations subcommittees on agriculture and rural development 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 2011-2012 fiscal year.

ANIMAL INDUSTRY

Sec. 451. From the funds appropriated in part 1 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 rural development 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.

(3) The funds appropriated in part 1 for indemnification – livestock depredation are appropriated for indemnification payments and related department costs under subsection (2). On or before March 1, 2013, the department shall report to the house and senate appropriations subcommittees on agriculture and rural development, and the house and senate fiscal agencies, on costs incurred in the 2010-2011 and 2011-2012 fiscal years for indemnification payments to producers made under subsection (2) and related department costs.

Sec. 454. The department shall use its resources to collaborate with the United States department of agriculture and rural development 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, 2012, 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 rural development, 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 part 1 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.

Sec. 552. The department is encouraged to work with local public health departments and with the USDA to maintain and expand the clean sweep program for the safe disposal of hazardous household chemicals and prescription drugs. The department shall report to the house and senate appropriations subcommittees on agriculture and rural development and the house and senate fiscal agencies by March 1, 2013 on clean sweep locations in this state and on factors affecting program success and expansion including funding requirements.

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.

Sec. 608. From the funds appropriated in part 1 for Michigan agriculture environmental assurance program, the department shall work to address water quality issues affecting Lake St. Clair, including efforts to reduce nonpoint source pollution.

AGRICULTURE DEVELOPMENT

Sec. 706. Not later than April 1, 2013, the department shall provide a report to the senate and house appropriations subcommittees on agriculture and rural development 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, 2013, the department shall provide a report to the senate and house appropriations subcommittees on agriculture and rural development 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.

Sec. 710. The department shall administer the rural development value-added grant program as prescribed in section 1101.

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, 2012 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 rural development 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.

Sec. 805. (1) The department shall establish and administer a county fairs capital improvement grant program. The program shall assist in the promotion of building improvements or other capital improvements at county fairgrounds of the state.

(2) The department shall award grants on a competitive basis to county fair organizations from the funds appropriated in part 1 for county fairs capital improvements grants. Grantees will be required to provide a dollar-for-dollar cash match with grant awards and identify measurable project outcomes.

(3) The department shall identify criteria, evaluate applications, and provide recommendations to the director for final approval of grant awards.

(4) The department may expend money from the funds appropriated in part 1 for the county fairs capital improvement grants for administering the program.

(5) The unexpended portion of the county fairs capital improvement grant program is considered a work project appropriation in accordance with the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

(6) The department shall provide an interim report no later than March 15, 2013 and a year-end report no later than September 30, 2013 to the senate and house appropriations subcommittees on agriculture and rural development and the senate and house fiscal agencies, including the grantees, award amount, match funding, and project outcomes.

CAPITAL OUTLAY

Sec. 1002. (1) The director shall allocate lump-sum appropriations made in this act 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.

ONE-TIME BASIS ONLY APPROPRIATIONS

Sec. 1101. (1) The department shall establish and administer a rural development value-added grant program. The program shall promote the expansion of value-added agricultural production, processing, and access within the state.

(2) The department shall award grants on a competitive basis from the funds appropriated in part 1 for rural development value-added grants. Grantees will be required to provide a cash match and identify measurable project outcomes. Eligible grantees may include, but are not limited to, individuals, partnerships, cooperatives, private or public corporations, and local units of government.

(3) A joint evaluation committee shall be selected by the director with representatives with agriculture, business, and economic development expertise. The joint evaluation committee shall identify criteria, evaluate applications, and provide recommendations to the director for final approval of grant awards.

(4) The department may expend money from the funds appropriated in part 1 for the rural development valued-added grants for administering the program.

(5) The unexpended portion of the rural development value-added grant program is considered a work project appropriation in accordance with the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

(6) The department shall provide an interim report no later than March 15, 2013 and year-end report no later than September 30, 2013 to the senate and house appropriations subcommittees on agriculture and rural development and the senate and house fiscal agencies, including the grantees, award amount, match funding, and project outcomes.

Sec. 1103. (1) The appropriations in part 1 for private forestry program is for the purpose of increasing the knowledge of nonindustrial private forestland owners of sound forest management practices and increasing the amount of commercial timber production from those lands.

(2) The department shall work in partnership with stakeholder groups and other state and federal agencies to increase the active management of nonindustrial private forestland to foster the growth of Michigan’s timber product industry.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS FOR FISCAL YEAR 2013-2014

GENERAL SECTIONS

Sec. 1201. It is the intent of the legislature to provide appropriations for the fiscal year ending on September 30, 2014 for the line items listed in part 1. The fiscal year 2013-2014 appropriations are anticipated to be the same as those for fiscal year 2012-2013, 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 2013 consensus revenue estimating conference.

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

A bill to make appropriations for the department of agriculture and rural development for the fiscal year ending September 30, 2013; and to provide for the expenditure of the appropriations.

Mike Green

Roger Kahn

Hoon-Yung Hopgood

Conferees for the Senate

Phil Potvin

Anthony G. Forlini

Jim Ananich

Conferees for the House

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. 390 Yeas—29

Anderson Gleason Kahn Pavlov

Bieda Green Kowall Proos

Booher Hildenbrand Marleau Richardville

Brandenburg Hopgood Meekhof Robertson

Casperson Hune Moolenaar Rocca

Caswell Jansen Nofs Schuitmaker

Colbeck Jones Pappageorge Walker

Emmons

Nays—7

Gregory Johnson Warren Young

Hunter Smith Whitmer

Excused—2

Hansen Hood

Not Voting—0

In The Chair: Schuitmaker

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

The recommendation was not concurred in, 2/3 of the members serving not voting therefor.

Senator Booher submitted the following:

FIRST CONFERENCE REPORT

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

Senate Bill No. 949, entitled

A bill to amend 1979 PA 94, entitled “The state school aid act of 1979,” by amending sections 201, 201a, 202, 203, 204, 205, 206, 207, 208, 209, 210, 212, 213, 217, 218, 219, 220, 221, 222, 223, 224, 225, 226, 227, 228, 229, and 230 (MCL 388.1801, 388.1801a, 388.1802, 388.1803, 388.1804, 388.1805, 388.1806, 388.1807, 388.1808, 388.1809, 388.1810, 388.1812, 388.1813, 388.1817, 388.1818, 388.1819, 388.1820, 388.1821, 388.1822, 388.1823, 388.1824, 388.1825, 388.1826, 388.1827, 388.1828, 388.1829, and 388.1830), as added by 2011 PA 62, and by adding sections 202a and 229a; and to repeal acts and parts of acts.

Recommends:

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

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

A bill to amend 1979 PA 94, entitled “The state school aid act of 1979,” by amending sections 201, 201a, 202, 203, 204, 205, 206, 207, 208, 209, 210, 210a, 212, 213, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 226, 227, 228, 229, and 230 (MCL 388.1801, 388.1801a, 388.1802, 388.1803, 388.1804, 388.1805, 388.1806, 388.1807, 388.1808, 388.1809, 388.1810, 388.1810a, 388.1812, 388.1813, 388.1816, 388.1817, 388.1818, 388.1819, 388.1820, 388.1821, 388.1822, 388.1823, 388.1824, 388.1825, 388.1826, 388.1827, 388.1828, 388.1829, and 388.1830), as added by 2011 PA 62, and by adding sections 202a and 229a; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 201. (1) Subject to the conditions set forth in this article, the amounts listed in subsection SUBSECTIONS (2) AND (4) are appropriated for community colleges for the fiscal year ending September 30, 2012, 2013, from the funds indicated in this section. The following is a summary of the appropriations in subsection SUBSECTIONS (2) AND (4):

(a) The gross appropriation is $283,880,500.00. $294,130,500.00. After deducting total interdepartmental grants and intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is $283,880,500.00.$294,130,500.00.

(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.$197,614,100.00.

(v) State general fund/general purpose money, $88,000,000.00.$96,516,400.00.

(2) Subject to subsection (3), the amount appropriated for community college operations is $283,880,500.00,$292,396,900.00, allocated as follows:

(a) Alpena Community College, $4,984,300.00.$5,111,200.00.

(b) Bay de Noc Community College, $5,040,200.00.$5,161,300.00.

(c) Delta College, $13,336,200.00.$13,712,700.00.

(d) Glen Oaks Community College, $2,320,900.00.$2,383,000.00.

(e) Gogebic Community College, $4,140,500.00.$4,233,100.00.

(f) Grand Rapids Community College, $16,649,700.00.$17,054,300.00.

(g) Henry Ford Community College, $20,145,000.00.$20,596,700.00.

(h) Jackson Community College, $11,219,700.00.$11,491,500.00.

(i) Kalamazoo Valley Community College, $11,522,700.00.$11,828,300.00.

(j) Kellogg Community College, $9,047,900.00.$9,289,300.00.

(k) Kirtland Community College, $2,872,900.00.$2,968,300.00.

(l) Lake Michigan College, $4,937,700.00.$5,059,300.00.

(m) Lansing Community College, $28,651,900.00.$29,335,000.00.

(n) Macomb Community College, $30,490,300.00.$31,206,500.00.

(o) Mid Michigan Community College, $4,266,800.00.$4,393,400.00.

(p) Monroe County Community College, $4,094,000.00.$4,223,500.00.

(q) Montcalm Community College, $2,946,800.00.$3,038,500.00.

(r) C.S. Mott Community College, $14,526,400.00.$14,890,400.00.

(s) Muskegon Community College, $8,256,700.00.$8,456,100.00.

(t) North Central Michigan College, $2,886,500.00.$2,979,900.00.

(u) Northwestern Michigan College, $8,430,300.00.$8,624,100.00.

(v) Oakland Community College, $19,455,900.00.$19,977,500.00.

(w) St. Clair County Community College, $6,534,100.00.$6,697,300.00.

(x) Schoolcraft College, $11,477,300.00.$11,800,500.00.

(y) Southwestern Michigan College, $6,143,700.00.$6,269,000.00.

(z) Washtenaw Community College, $11,827,300.00.$12,242,000.00.

(aa) Wayne County Community College, $15,425,900.00.$15,798,500.00.

(bb) West Shore Community College, $2,248,900.00.$2,298,200.00.

(CC) LOCAL STRATEGIC VALUE, $1,277,500.00.

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

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

(b) State general fund/general purpose money, $88,000,000.00.$96,516,400.00.

(4) FROM THE APPROPRIATIONS DESCRIBED IN SUBSECTION (1), THERE IS APPROPRIATED FOR FISCAL YEAR 2012-2013 AN AMOUNT NOT TO EXCEED $1,733,600.00 FOR PAYMENTS TO COMMUNITY COLLEGES FROM THE STATE SCHOOL AID FUND. A COMMUNITY COLLEGE THAT RECEIVES MONEY UNDER THIS SUBSECTION SHALL USE THAT MONEY SOLELY FOR THE PURPOSE OF OFFSETTING A PORTION OF THE RETIREMENT CONTRIBUTIONS OWED BY THE COLLEGE FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2013. THE AMOUNT ALLOCATED TO EACH COMMUNITY COLLEGE UNDER THIS SUBSECTION IS AS FOLLOWS:

(A) ALPENA COMMUNITY COLLEGE, $30,400.00.

(B) BAY DE NOC COMMUNITY COLLEGE, $30,800.00.

(C) DELTA COLLEGE, $81,400.00.

(D) GLEN OAKS COMMUNITY COLLEGE, $14,200.00.

(E) GOGEBIC COMMUNITY COLLEGE, $25,300.00.

(F) GRAND RAPIDS COMMUNITY COLLEGE, $101,700.00.

(G) HENRY FORD COMMUNITY COLLEGE, $123,000.00.

(H) JACKSON COMMUNITY COLLEGE, $68,500.00.

(I) KALAMAZOO VALLEY COMMUNITY COLLEGE, $70,400.00.

(J) KELLOGG COMMUNITY COLLEGE, $55,300.00.

(K) KIRTLAND COMMUNITY COLLEGE, $17,500.00.

(l) LAKE MICHIGAN COLLEGE, $30,200.00.

(M) LANSING COMMUNITY COLLEGE, $175,000.00.

(N) MACOMB COMMUNITY COLLEGE, $186,200.00.

(O) MID MICHIGAN COMMUNITY COLLEGE, $26,100.00

(P) MONROE COUNTY COMMUNITY COLLEGE, $25,000.00.

(Q) MONTCALM COMMUNITY COLLEGE, $18,000.00.

(R) C.S. MOTT COMMUNITY COLLEGE, $88,700.00.

(S) MUSKEGON COMMUNITY COLLEGE, $50,400.00.

(T) NORTH CENTRAL MICHIGAN COLLEGE, $17,600.00.

(U) NORTHWESTERN MICHIGAN COLLEGE, $51,500.00.

(V) OAKLAND COMMUNITY COLLEGE, $118,800.00.

(W) ST. CLAIR COUNTY COMMUNITY COLLEGE, $39,900.00.

(X) SCHOOLCRAFT COLLEGE, $70,100.00.

(Y) SOUTHWESTERN MICHIGAN COLLEGE, $37,500.00.

(Z) WASHTENAW COMMUNITY COLLEGE, $72,200.00.

(AA) WAYNE COUNTY COMMUNITY COLLEGE, $94,200.00.

(BB) WEST SHORE COMMUNITY COLLEGE, $13,700.00.

Sec. 201a. It is the intent of the legislature to provide appropriations for the fiscal year ending on September 30, 2013 2014 for the items listed in section 201. The fiscal year 2012-2013 2013-2014 appropriations are anticipated to be the same as those for fiscal year 2011-2012, 2012-2013, 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 2013 consensus revenue estimating conference.

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

SEC. 202A. AS USED IN THIS ARTICLE, “WORKFORCE DEVELOPMENT AGENCY” MEANS THE WORKFORCE DEVELOPMENT AGENCY OF THE MICHIGAN STRATEGIC FUND.

Sec. 203. Unless otherwise specified, a community college receiving THAT RECEIVES appropriations in section 201 and the workforce development agency shall use the Internet 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 INTERNET or Intranet 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 THAT ARE 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 THAT RECEIVES 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 BUSINESSES 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 2013 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. 2012. Each community college shall accrue its July and August 2012 2013 payments to its institutional fiscal year ending June 30, 2012. 2013. However, if THE STATE BUDGET DIRECTOR DETERMINES THAT a community college fails FAILED to submit all verified Michigan community colleges activities classification structure data for school year 2010-2011 2011-2012 to the workforce development agency by November 1, 2011, 2012, OR FAILED TO SUBMIT ITS LONGITUDINAL DATA SYSTEM DATA SET FOR SCHOOL YEAR 2011-2012 TO THE CENTER FOR EDUCATIONAL PERFORMANCE AND INFORMATION UNDER SECTION 219, THE STATE TREASURER SHALL WITHHOLD the monthly installments shall be withheld from that community college until those data are submitted. THE STATE BUDGET DIRECTOR SHALL NOTIFY THE CHAIRS OF THE HOUSE AND SENATE APPROPRIATIONS SUBCOMMITTEES ON COMMUNITY COLLEGES AT LEAST 10 DAYS BEFORE WITHHOLDING FUNDS FROM ANY COMMUNITY COLLEGE.

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 THIS PAYMENT IS 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 A COMMUNITY COLLEGE SHALL NOT USE 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.WITHIN 30 DAYS AFTER THE BOARD OF A COMMUNITY COLLEGE ADOPTS ITS ANNUAL OPERATING BUDGET FOR THE FOLLOWING SCHOOL FISCAL YEAR, OR AFTER THE BOARD ADOPTS A SUBSEQUENT REVISION TO THAT BUDGET, THE COMMUNITY COLLEGE SHALL MAKE ALL OF THE FOLLOWING AVAILABLE THROUGH A LINK ON ITS WEBSITE HOMEPAGE:

(A) THE ANNUAL OPERATING BUDGET AND SUBSEQUENT BUDGET REVISIONS.

(B) A LINK TO THE MOST RECENT “ACTIVITIES CLASSIFICATION STRUCTURE MANUAL FOR MICHIGAN COMMUNITY COLLEGES”.

(C) LINKS TO ALL OF THE FOLLOWING FOR THE COMMUNITY COLLEGE:

(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 OF THE COMMUNITY COLLEGE.

(iii) AUDITS AND FINANCIAL REPORTS FOR THE MOST RECENT FISCAL YEAR FOR WHICH THEY ARE AVAILABLE.

(iv) A COPY OF THE BOARD OF TRUSTEES RESOLUTION REGARDING COMPLIANCE WITH BEST PRACTICES FOR THE LOCAL STRATEGIC VALUE COMPONENT DESCRIBED IN SECTION 230(3).

(2) FOR STATEWIDE CONSISTENCY AND PUBLIC VISIBILITY, COMMUNITY COLLEGES MUST USE THE ICON BADGE PROVIDED BY THE DEPARTMENT OF TECHNOLOGY, MANAGEMENT, AND BUDGET CONSISTENT WITH THE ICON BADGE DEVELOPED BY THE DEPARTMENT OF EDUCATION FOR K-12 SCHOOL DISTRICTS. IT MUST APPEAR ON THE FRONT OF EACH COMMUNITY COLLEGE’S HOMEPAGE. THE SIZE OF THE ICON MAY BE REDUCED TO 150 X 150 PIXELS. TO BE IN COMPLIANCE WITH THIS SECTION, ALL DATA ELEMENTS DEFINED IN THIS SECTION MUST BE AVAILABLE ON THE COLLEGE’S HOMEPAGE BY DECEMBER 31, 2012. EACH COMMUNITY COLLEGE SHALL NOTIFY THE STATE BUDGET OFFICE WHEN ALL DATA ELEMENTS DEFINED IN THIS SECTION ARE MADE AVAILABLE ON ITS WEBSITE.

(3) THE STATE BUDGET DIRECTOR SHALL DETERMINE WHETHER A COMMUNITY COLLEGE HAS COMPLIED WITH THIS SECTION. THE STATE BUDGET DIRECTOR MAY WITHHOLD A COMMUNITY COLLEGE’S MONTHLY INSTALLMENTS DESCRIBED IN SECTION 206 UNTIL THE COMMUNITY COLLEGE COMPLIES WITH THIS SECTION. THE STATE BUDGET DIRECTOR SHALL NOTIFY THE CHAIRS OF THE HOUSE AND SENATE APPROPRIATIONS SUBCOMMITTEE ON COMMUNITY COLLEGES AT LEAST 10 DAYS BEFORE WITHHOLDING FUNDS FROM ANY COMMUNITY COLLEGE.

(4) (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, 2012, and post that information on the Internet website required under subsection (1):

(a) Budgeted fiscal year 2011-2012 2012-2013 general fund revenue from tuition and fees.

(b) Budgeted fiscal year 2011-2012 2012-2013 general fund revenue from state appropriations.

(c) Budgeted fiscal year 2011-2012 2012-2013 general fund revenue from property taxes.

(d) Budgeted fiscal year 2011-2012 2012-2013 total general fund revenue.

(e) Budgeted fiscal year 2011-2012 2012-2013 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 EACH COMMUNITY COLLEGE 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 FIVE representatives from community colleges selected by the Michigan community college association.

(b) Ten FIVE 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 REPORTS 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, 2012.2013 AND SEPTEMBER 1, 2013.

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 COMMUNITY COLLEGES shall also include reviewing REVIEW 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, THESE statewide agreements be in place between community colleges and public universities that SHALL 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 TRANSFERRED the credits earned at the baccalaureate institution back to the community college in order to be awarded a credential of value.

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 IF 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 appropriations 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 SPECIFICALLY 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 COMMUNITY COLLEGES 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.BY JUNE 30 OF EACH YEAR, EACH COMMUNITY COLLEGE SHALL PROVIDE ITS LONGITUDINAL DATA SYSTEM DATA SET FOR THE PRECEDING ACADEMIC YEAR TO THE CENTER FOR EDUCATIONAL PERFORMANCE AND INFORMATION FOR INCLUSION IN THE STATEWIDE P-20 EDUCATION LONGITUDINAL DATA SYSTEM DESCRIBED IN SECTION 94A.

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 WITHIN 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 A COMMUNITY COLLEGE SHALL RETAIN ALL 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. OF EACH YEAR. 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 INTERNET website.

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

(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.DEPARTMENT OF CIVIL RIGHTS.

(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 PREVIOUS academic year, in a manner prescribed by the Michigan community college association and in cooperation with the Michigan association of secondary school principals. COMMUNITY COLLEGES SHALL COOPERATE WITH THE CENTER FOR EDUCATIONAL PERFORMANCE AND INFORMATION TO DESIGN AND IMPLEMENT A SYSTEMATIC APPROACH FOR ACCOMPLISHING THIS WORK.

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, 2012, 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 2011-2012 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 2011-2012 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.OF EACH YEAR.

Sec. 227. Funds A COMMUNITY COLLEGE SHALL NOT USE 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 THE LEGISLATOR’S staff.

Sec. 229. It is the intent of the legislature that each community college receiving THAT RECEIVES 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. 229A. INCLUDED IN THE FISCAL YEAR 2012-2013 APPROPRIATIONS FOR THE DEPARTMENT OF TECHNOLOGY, MANAGEMENT, AND BUDGET ARE APPROPRIATIONS TO PROVIDE FUNDING FOR THE STATE SHARE OF COSTS FOR PREVIOUSLY CONSTRUCTED CAPITAL PROJECTS FOR COMMUNITY COLLEGES. THOSE APPROPRIATIONS FOR STATE BUILDING AUTHORITY RENT REPRESENT ADDITIONAL STATE GENERAL FUND SUPPORT FOR COMMUNITY COLLEGES, AND THE FOLLOWING IS AN ESTIMATE OF THE AMOUNT OF THAT SUPPORT TO EACH COMMUNITY COLLEGE:

(A) ALPENA COMMUNITY COLLEGE, $428,100.00.

(B) BAY DE NOC COMMUNITY COLLEGE, $618,000.00.

(C) DELTA COLLEGE, $2,610,000.00.

(D) GLEN OAKS COMMUNITY COLLEGE, $123,000.00.

(E) GOGEBIC COMMUNITY COLLEGE, $60,000.00.

(F) GRAND RAPIDS COMMUNITY COLLEGE, $1,675,000.00.

(G) HENRY FORD COMMUNITY COLLEGE, $1,110,000.00.

(H) JACKSON COMMUNITY COLLEGE, $1,563,000.00.

(I) KALAMAZOO VALLEY COMMUNITY COLLEGE, $1,467,000.00.

(J) KELLOGG COMMUNITY COLLEGE, $520,000.00.

(K) KIRTLAND COMMUNITY COLLEGE, $363,300.00.

(l) LAKE MICHIGAN COLLEGE, $340,000.00.

(M) LANSING COMMUNITY COLLEGE, $384,000.00.

(N) MACOMB COMMUNITY COLLEGE, $1,313,100.00.

(O) MID MICHIGAN COMMUNITY COLLEGE, $915,000.00.

(P) MONROE COUNTY COMMUNITY COLLEGE, $1,355,000.00.

(Q) MONTCALM COMMUNITY COLLEGE, $756,000.00.

(R) C.S. MOTT COMMUNITY COLLEGE, $1,803,000.00.

(S) MUSKEGON COMMUNITY COLLEGE, $198,000.00.

(T) NORTHWESTERN MICHIGAN COLLEGE, $1,305,000.00.

(U) OAKLAND COMMUNITY COLLEGE, $465,000.00.

(V) ST. CLAIR COUNTY COMMUNITY COLLEGE, $356,100.00.

(W) SCHOOLCRAFT COLLEGE, $1,546,100.00.

(X) SOUTHWESTERN MICHIGAN COLLEGE, $530,600.00.

(Y) WASHTENAW COMMUNITY COLLEGE, $1,993,000.00.

(Z) WAYNE COUNTY COMMUNITY COLLEGE, $1,890,000.00.

(AA) WEST SHORE COMMUNITY COLLEGE, $577,000.00.

Sec. 230. (1) It is the intent of the legislature that the recommendations and performance measures developed by the performance indicators task force formed pursuant to UNDER 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.

(2) ANY ADDITIONAL FUNDING PROVIDED TO COMMUNITY COLLEGE OPERATIONS UNDER SECTION 201(2) IN FISCAL YEAR 2012-2013 THAT EXCEEDS THE AMOUNTS APPROPRIATED FOR OPERATIONS IN FISCAL YEAR 2011-2012 IS ALLOCATED SOLELY FOR THE PURPOSE OF OFFSETTING A PORTION OF THE RETIREMENT CONTRIBUTIONS OWED BY THE COLLEGE FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2013. THE ADDITIONAL FUNDING IS DISTRIBUTED BASED ON THE FOLLOWING FORMULA:

(A) ALLOCATED PROPORTIONATE TO FISCAL YEAR 2011-2012 BASE APPROPRIATIONS, 50%.

(B) BASED ON CONTACT HOUR EQUATED STUDENTS, 10%.

(C) BASED ON ADMINISTRATIVE COSTS, 7.5%.

(D) BASED ON A WEIGHTED DEGREE FORMULA AS PROVIDED FOR IN THE 2006 RECOMMENDATIONS OF THE PERFORMANCE INDICATORS TASK FORCE, 17.5%.

(E) BASED ON THE LOCAL STRATEGIC VALUE COMPONENT, AS DEVELOPED IN COOPERATION WITH THE MICHIGAN COMMUNITY COLLEGE ASSOCIATION AND DESCRIBED IN SUBSECTION (3), 15%.

(3) THE APPROPRIATION IN SECTION 201(2)(CC) FOR LOCAL STRATEGIC VALUE SHALL BE ALLOCATED TO EACH COMMUNITY COLLEGE THAT CERTIFIES TO THE STATE BUDGET DIRECTOR, THROUGH A BOARD OF TRUSTEES RESOLUTION ON OR BEFORE NOVEMBER 1, 2012, THAT THE COLLEGE HAS MET 4 OUT OF 5 BEST PRACTICES LISTED IN EACH CATEGORY DESCRIBED IN SUBSECTION (4). THE RESOLUTION SHALL PROVIDE SPECIFICS AS TO HOW THE COMMUNITY COLLEGE MEETS EACH BEST PRACTICE MEASURE WITHIN EACH CATEGORY. ONE-THIRD OF FUNDING AVAILABLE UNDER THE STRATEGIC VALUE COMPONENT SHALL BE ALLOCATED TO EACH CATEGORY DESCRIBED IN SUBSECTION (4). AMOUNTS DISTRIBUTED UNDER LOCAL STRATEGIC VALUE SHALL BE ON A PROPORTIONATE BASIS TO EACH COLLEGE’S FISCAL YEAR 2011-2012 OPERATIONS FUNDING. PAYMENTS TO COMMUNITY COLLEGES THAT QUALIFY FOR LOCAL STRATEGIC VALUE FUNDING SHALL BE DISTRIBUTED WITH THE NOVEMBER INSTALLMENT PAYMENT DESCRIBED IN SECTION 206.

(4) FOR PURPOSES OF SUBSECTION (3), THE FOLLOWING CATEGORIES OF BEST PRACTICES REFLECT FUNCTIONAL ACTIVITIES OF COMMUNITY COLLEGES THAT HAVE STRATEGIC VALUE TO THE LOCAL COMMUNITIES AND REGIONAL ECONOMIES:

(A) FOR CATEGORY A, ECONOMIC DEVELOPMENT AND BUSINESS OR INDUSTRY PARTNERSHIPS, THE FOLLOWING:

(i) THE COMMUNITY COLLEGE HAS ACTIVE PARTNERSHIPS WITH LOCAL EMPLOYERS INCLUDING HOSPITALS AND HEALTH CARE PROVIDERS.

(ii) THE COMMUNITY COLLEGE PROVIDES CUSTOMIZED ON-SITE TRAINING FOR AREA COMPANIES, EMPLOYEES, OR BOTH.

(iii) THE COMMUNITY COLLEGE SUPPORTS ENTREPRENEURSHIP THROUGH A SMALL BUSINESS ASSISTANCE CENTER OR OTHER TRAINING OR CONSULTING ACTIVITIES TARGETED TOWARD SMALL BUSINESSES.

(iv) THE COMMUNITY COLLEGE SUPPORTS TECHNOLOGICAL ADVANCEMENT THROUGH INDUSTRY PARTNERSHIPS, INCUBATION ACTIVITIES, OR OPERATION OF A MICHIGAN TECHNICAL EDUCATION CENTER OR OTHER ADVANCED TECHNOLOGY CENTER.

(v) THE COMMUNITY COLLEGE HAS ACTIVE PARTNERSHIPS WITH LOCAL OR REGIONAL WORKFORCE AND ECONOMIC DEVELOPMENT AGENCIES.

(B) FOR CATEGORY B, EDUCATIONAL PARTNERSHIPS, THE FOLLOWING:

(i) THE COMMUNITY COLLEGE HAS ACTIVE PARTNERSHIPS WITH REGIONAL HIGH SCHOOLS, INTERMEDIATE SCHOOL DISTRICTS, AND CAREER-TECH CENTERS TO PROVIDE INSTRUCTION THROUGH DUAL ENROLLMENT, DIRECT CREDIT, MIDDLE COLLEGE, OR ACADEMY PROGRAMS.

(ii) THE COMMUNITY COLLEGE HOSTS, SPONSORS, OR PARTICIPATES IN ENRICHMENT PROGRAMS FOR AREA K-12 STUDENTS, SUCH AS COLLEGE DAYS, SUMMER OR AFTER-SCHOOL PROGRAMMING, OR SCIENCE OLYMPIAD.

(iii) THE COMMUNITY COLLEGE PROVIDES, SUPPORTS, OR PARTICIPATES IN PROGRAMMING TO PROMOTE SUCCESSFUL TRANSITIONS TO COLLEGE FOR TRADITIONAL AGE STUDENTS, INCLUDING GRANT PROGRAMS SUCH AS TALENT SEARCH, UPWARD BOUND, OR OTHER ACTIVITIES TO PROMOTE COLLEGE READINESS IN AREA HIGH SCHOOLS AND COMMUNITY CENTERS.

(iv) THE COMMUNITY COLLEGE PROVIDES, SUPPORTS, OR PARTICIPATES IN PROGRAMMING TO PROMOTE SUCCESSFUL TRANSITIONS TO COLLEGE FOR NEW OR REENTERING ADULT STUDENTS, SUCH AS ADULT BASIC EDUCATION, GED PREPARATION, GED TESTING, OR RECRUITING, ADVISING, OR ORIENTATION ACTIVITIES SPECIFIC TO ADULTS.

(v) THE COMMUNITY COLLEGE HAS ACTIVE PARTNERSHIPS WITH REGIONAL 4-YEAR COLLEGES AND UNIVERSITIES TO PROMOTE SUCCESSFUL TRANSFER, SUCH AS ARTICULATION, 2+2, OR REVERSE TRANSFER AGREEMENTS OR OPERATION OF A UNIVERSITY CENTER.

(C) FOR CATEGORY C, COMMUNITY SERVICES, THE FOLLOWING:

(i) THE COMMUNITY COLLEGE PROVIDES CONTINUING EDUCATION PROGRAMMING FOR LEISURE, WELLNESS, PERSONAL ENRICHMENT, OR PROFESSIONAL DEVELOPMENT.

(ii) THE COMMUNITY COLLEGE OPERATES OR SPONSORS OPPORTUNITIES FOR COMMUNITY MEMBERS TO ENGAGE IN ACTIVITIES THAT PROMOTE LEISURE, WELLNESS, CULTURAL OR PERSONAL ENRICHMENT SUCH AS COMMUNITY SPORTS TEAMS, THEATER OR MUSICAL ENSEMBLES, OR ARTIST GUILDS.

(iii) THE COMMUNITY COLLEGE OPERATES PUBLIC FACILITIES TO PROMOTE CULTURAL, EDUCATIONAL, OR PERSONAL ENRICHMENT FOR COMMUNITY MEMBERS, SUCH AS LIBRARIES, COMPUTER LABS, PERFORMING ARTS CENTERS, MUSEUMS, ART GALLERIES, OR TELEVISION OR RADIO STATIONS.

(iv) THE COMMUNITY COLLEGE OPERATES PUBLIC FACILITIES TO PROMOTE LEISURE OR WELLNESS ACTIVITIES FOR COMMUNITY MEMBERS, INCLUDING GYMNASIUMS, ATHLETIC FIELDS, TENNIS COURTS, FITNESS CENTERS, HIKING OR BIKING TRAILS, OR NATURAL AREAS.

(v) THE COMMUNITY COLLEGE PROMOTES, SPONSORS, OR HOSTS COMMUNITY SERVICE ACTIVITIES FOR STUDENTS, STAFF, OR COMMUNITY MEMBERS.

Enacting section 1. 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 2012-2013 under article II is estimated at $294,130,500.00 and the amount of that state spending from state sources to be paid to local units of government for fiscal year 2012-2013 is estimated at $294,130,500.00.

Enacting section 2. Sections 211 and 214 of the state school aid act of 1979, 1979 PA 94, MCL 388.1811 and 388.1814, are repealed.

Enacting section 3. This amendatory act takes effect October 1, 2012.

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

A bill to amend 1979 PA 94, entitled “An act to make appropriations to aid in the support of the public schools, 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 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 sections 201, 201a, 202, 203, 204, 205, 206, 207, 208, 209, 210, 210a, 212, 213, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 226, 227, 228, 229, and 230 (MCL 388.1801, 388.1801a, 388.1802, 388.1803, 388.1804, 388.1805, 388.1806, 388.1807, 388.1808, 388.1809, 388.1810, 388.1810a, 388.1812, 388.1813, 388.1816, 388.1817, 388.1818, 388.1819, 388.1820, 388.1821, 388.1822, 388.1823, 388.1824, 388.1825, 388.1826, 388.1827, 388.1828, 388.1829, and 388.1830), as added by 2011 PA 62, and by adding sections 202a and 229a; and to repeal acts and parts of acts.

Darwin L. Booher

Roger Kahn

Conferees for the Senate

Ken Goike

Bob Genetski

Conferees for the House

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. 391 Yeas—21

Booher Hune Meekhof Proos

Brandenburg Jansen Moolenaar Richardville

Casperson Kahn Nofs Robertson

Caswell Kowall Pappageorge Schuitmaker

Emmons Marleau Pavlov Walker

Hildenbrand

Nays—15

Anderson Green Johnson Warren

Bieda Gregory Jones Whitmer

Colbeck Hopgood Rocca Young

Gleason Hunter Smith

Excused—2

Hansen Hood

Not Voting—0

In The Chair: Schuitmaker

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

The recommendation was not concurred in, 2/3 of the members serving not voting therefor.

Senator Moolenaar submitted the following:

FIRST CONFERENCE REPORT

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

Senate Bill No. 950, entitled

A bill to make appropriations for the department of community health for the fiscal year ending September 30, 2013; and to provide for the expenditure of the appropriations.

Recommends:

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

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

A bill to make appropriations for the department of community health for the fiscal year ending September 30, 2013; and to provide for the expenditure of the appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2012-2013

Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for the department of community health for the fiscal year ending September 30, 2013, 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..........................................................................3,546.6

Average population..........................................................................................................893.0

GROSS APPROPRIATION.......................................................................................................... $ 15,034,057,700

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 10,023,800

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 15,024,033,900

Federal revenues:

Total federal revenues................................................................................................................... 9,673,682,000

Social security act, temporary assistance for needy families....................................................... 22,341,500

Special revenue funds:

Total local revenues...................................................................................................................... 257,148,600

Total private revenues................................................................................................................... 93,364,000

Merit award trust fund.................................................................................................................. 81,202,200

Total other state restricted revenues............................................................................................. 2,078,857,800

State general fund/general purpose.............................................................................................. $ 2,817,437,800

State general fund/general purpose schedule:

Ongoing state general fund/general purpose......................................................2,802,091,300

One-time state general fund/general purpose.........................................................15,346,500

Sec. 102. DEPARTMENTWIDE ADMINISTRATION

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions.............................................................................176.7

Director and other unclassified—6.0 FTE positions.................................................................... $ 700,000

Departmental administration and management—166.7 FTE positions........................................ 24,453,200

Worker’s compensation program.................................................................................................. 7,612,800

Rent and building occupancy....................................................................................................... 9,386,500

Developmental disabilities council and projects—10.0 FTE positions........................................ 2,986,900

GROSS APPROPRIATION.......................................................................................................... $ 45,139,400

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 14,797,300

Special revenue funds:

Total private revenues................................................................................................................... 34,600

Total other state restricted revenues............................................................................................. 780,500

State general fund/general purpose.............................................................................................. $ 29,527,000

Sec. 103. BEHAVIORAL HEALTH PROGRAM ADMINISTRATION AND SPECIAL

PROJECTS

Full-time equated classified positions.............................................................................103.0

Behavioral health program administration—102.0 FTE positions............................................... $ 17,810,400

Gambling addiction—1.0 FTE position....................................................................................... 3,000,000

Protection and advocacy services support.................................................................................... 194,400

Community residential and support services................................................................................ 1,549,100

Federal and other special projects................................................................................................ 3,541,600

Family support subsidy................................................................................................................ $ 19,161,000

Housing and support services....................................................................................................... 11,322,500

GROSS APPROPRIATION.......................................................................................................... $ 56,579,000

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 20,260,000

Social security act, temporary assistance for needy families....................................................... 19,341,500

Special revenue funds:

Total private revenues................................................................................................................... 400,000

Total other state restricted revenues............................................................................................. 3,000,000

State general fund/general purpose.............................................................................................. $ 13,577,500

Sec. 104. BEHAVIORAL HEALTH SERVICES

Full-time equated classified positions.................................................................................9.5

Medicaid mental health services.................................................................................................. $ 2,160,013,200

Community mental health non-Medicaid services....................................................................... 274,136,200

Medicaid adult benefits waiver..................................................................................................... 32,056,100

Mental health services for special populations............................................................................ 5,842,800

Medicaid substance abuse services.............................................................................................. 47,033,500

CMHSP, purchase of state services contracts............................................................................... 144,602,500

Civil service charges.................................................................................................................... 1,499,300

Federal mental health block grant—2.5 FTE positions................................................................ 15,424,900

State disability assistance program substance abuse services...................................................... 2,018,800

Community substance abuse prevention, education, and treatment programs............................. 80,093,000

Children’s waiver home care program......................................................................................... 19,444,800

Nursing home PAS/ARR-OBRA—7.0 FTE positions.................................................................. 12,233,600

Children with serious emotional disturbance waiver................................................................... 12,651,000

GROSS APPROPRIATION.......................................................................................................... $ 2,807,049,700

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant from the department of human services................................................. 6,194,900

Federal revenues:

Total federal revenues................................................................................................................... 1,599,844,700

Special revenue funds:

Total local revenues...................................................................................................................... 25,228,900

Total other state restricted revenues............................................................................................. 22,261,900

State general fund/general purpose.............................................................................................. $ 1,153,519,300

Sec. 105. STATE PSYCHIATRIC HOSPITALS AND FORENSIC MENTAL HEALTH

SERVICES

Total average population..................................................................................................893.0

Full-time equated classified positions..........................................................................2,130.9

Caro Regional Mental Health Center - psychiatric hospital - adult—461.3 FTE positions........ $ 62,292,300

Average population..........................................................................................................185.0

Kalamazoo Psychiatric Hospital - adult—466.1 FTE positions................................................... 60,127,200

Average population..........................................................................................................189.0

Walter P. Reuther Psychiatric Hospital - adult—420.8 FTE positions......................................... 55,662,500

Average population..........................................................................................................234.0

Hawthorn Center - psychiatric hospital - children and adolescents—226.4 FTE positions......... 28,632,900

Average population............................................................................................................75.0

Center for forensic psychiatry—556.3 FTE positions.................................................................. 69,129,600

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.......................................................................................................... $ 278,492,600

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... $ 33,729,100

Special revenue funds:

CMHSP, purchase of state services contracts............................................................................... 144,602,500

Other local revenues..................................................................................................................... 18,707,400

Total private revenues................................................................................................................... 1,000,000

Total other state restricted revenues............................................................................................. 16,537,300

State general fund/general purpose.............................................................................................. $ 63,916,300

Sec. 106. PUBLIC HEALTH ADMINISTRATION

Full-time equated classified positions.............................................................................101.9

Public health administration—7.3 FTE positions......................................................................... $ 1,594,000

Health and wellness initiatives—10.7 FTE positions................................................................... 7,146,600

Minority health grants and contracts—2.5 FTE positions........................................................... 612,700

Vital records and health statistics—81.4 FTE positions.............................................................. 9,643,300

GROSS APPROPRIATION.......................................................................................................... $ 18,996,600

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant from the department of human services................................................. 1,181,200

Federal revenues:

Total federal revenues................................................................................................................... 4,229,700

Special revenue funds:

Total other state restricted revenues............................................................................................. 10,301,600

State general fund/general purpose.............................................................................................. $ 3,284,100

Sec. 107. HEALTH POLICY

Full-time equated classified positions...............................................................................64.8

Emergency medical services program state staff—23.0 FTE positions....................................... $ 4,502,400

Emergency medical services grants and services......................................................................... 660,000

Health policy administration—24.1 FTE positions...................................................................... 4,304,600

Nurse education and research program—3.0 FTE positions........................................................ 762,300

Certificate of need program administration—12.3 FTE positions............................................... 2,021,900

Rural health services—1.0 FTE position..................................................................................... 1,529,100

Michigan essential health provider............................................................................................... 1,491,300

Primary care services—1.4 FTE positions................................................................................... 3,235,900

GROSS APPROPRIATION.......................................................................................................... $ 18,507,500

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant from the department of licensing and regulatory affairs....................... 2,058,800

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

 authority.................................................................................................................................... 112,400

Federal revenues:

Total federal revenues................................................................................................................... 6,145,800

Special revenue funds:

Total private revenues................................................................................................................... 255,000

Total other state restricted revenues............................................................................................. 5,783,000

State general fund/general purpose.............................................................................................. $ 4,152,500

Sec. 108. INFECTIOUS DISEASE CONTROL

Full-time equated classified positions...............................................................................44.5

AIDS prevention, testing, and care programs—12.7 FTE positions............................................ $ 58,558,700

Immunization local agreements.................................................................................................... 11,975,200

Immunization program management and field support—12.8 FTE positions.............................. 1,835,300

Pediatric AIDS prevention and control—1.0 FTE position......................................................... 1,233,100

Sexually transmitted disease control local agreements................................................................ 3,360,700

Sexually transmitted disease control management and field support—18.0 FTE positions........ 3,794,100

GROSS APPROPRIATION.......................................................................................................... $ 80,757,100

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... $ 42,597,900

Special revenue funds:

Total private revenues................................................................................................................... 27,707,700

Total other state restricted revenues............................................................................................. 7,605,200

State general fund/general purpose.............................................................................................. $ 2,846,300

Sec. 109. LABORATORY SERVICES

Full-time equated classified positions.............................................................................100.0

Laboratory services—100.0 FTE positions.................................................................................. $ 18,023,400

GROSS APPROPRIATION.......................................................................................................... $ 18,023,400

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant from the department of environmental quality...................................... 456,800

Federal revenues:

Total federal revenues................................................................................................................... 2,730,500

Special revenue funds:

Total other state restricted revenues............................................................................................. 8,310,400

State general fund/general purpose.............................................................................................. $ 6,525,700

Sec. 110. EPIDEMIOLOGY

Full-time equated classified positions.............................................................................115.1

AIDS surveillance and prevention program................................................................................. $ 2,254,100

Bioterrorism preparedness—55.0 FTE positions.......................................................................... 35,201,400

Epidemiology administration—41.6 FTE positions..................................................................... 9,253,000

Healthy homes program—8.0 FTE positions............................................................................... 4,932,100

Newborn screening follow-up and treatment services—10.5 FTE positions............................... 5,629,000

Tuberculosis control and prevention............................................................................................. 867,000

GROSS APPROPRIATION.......................................................................................................... $ 58,136,600

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 47,078,200

Special revenue funds:

Total private revenues................................................................................................................... 100,000

Total other state restricted revenues............................................................................................. 9,007,500

State general fund/general purpose.............................................................................................. $ 1,950,900

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.................................................................................... 524,400

Medicaid outreach cost reimbursement to local health departments............................................ 9,000,000

GROSS APPROPRIATION.......................................................................................................... $ 46,930,500

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 9,524,400

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...............................................................................64.3

Cancer prevention and control program—11.0 FTE positions..................................................... $ 14,932,600

Chronic disease control and health promotion administration—29.4 FTE positions................... 6,833,800

Diabetes and kidney program—8.0 FTE positions...................................................................... 1,855,700

Injury control intervention project............................................................................................... 200,000

Public health traffic safety coordination—1.0 FTE position........................................................ $ 93,800

Smoking prevention program—12.0 FTE positions..................................................................... 2,172,100

Violence prevention—2.9 FTE positions...................................................................................... 2,158,000

GROSS APPROPRIATION.......................................................................................................... $ 28,246,000

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 25,183,400

Special revenue funds:

Total private revenues................................................................................................................... 500,000

Total other state restricted revenues............................................................................................. 721,200

State general fund/general purpose.............................................................................................. $ 1,841,400

Sec. 113. FAMILY, MATERNAL, AND CHILDREN’S HEALTH SERVICES

Full-time equated classified positions...............................................................................49.6

Childhood lead program—2.5 FTE positions............................................................................... $ 653,900

Dental programs—3.0 FTE positions........................................................................................... 1,134,300

Dental program for persons with developmental disabilities....................................................... 151,000

Family, maternal, and children’s health services administration—41.6 FTE positions............... 6,654,000

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.................................................................... 11,101,400

Special projects—2.5 FTE positions............................................................................................ 8,421,700

Sudden infant death syndrome program....................................................................................... 321,300

GROSS APPROPRIATION.......................................................................................................... $ 45,143,500

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 35,518,100

Social security act, temporary assistance for needy families....................................................... 3,000,000

Special revenue funds:

Total local revenues...................................................................................................................... 75,000

Total private revenues................................................................................................................... 873,200

State general fund/general purpose.............................................................................................. $ 5,677,200

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... $ 16,294,500

Women, infants, and children program local agreements and food costs.................................... 253,825,500

GROSS APPROPRIATION.......................................................................................................... $ 270,120,000

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 211,501,600

Special revenue funds:

Total private revenues................................................................................................................... 58,618,400

State general fund/general purpose.............................................................................................. $ 0

Sec. 115. CHILDREN’S SPECIAL HEALTH CARE SERVICES

Full-time equated classified positions...............................................................................46.8

Children’s special health care services administration—44.0 FTE positions.............................. $ 5,385,600

Bequests for care and services—2.8 FTE positions..................................................................... 1,511,400

Outreach and advocacy................................................................................................................. 5,510,000

Nonemergency medical transportation......................................................................................... 2,679,300

Medical care and treatment.......................................................................................................... 285,901,200

GROSS APPROPRIATION.......................................................................................................... $ 300,987,500

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 168,451,400

Special revenue funds:

Total private revenues................................................................................................................... $ 996,800

Total other state restricted revenues............................................................................................. 3,848,500

State general fund/general purpose.............................................................................................. $ 127,690,800

Sec. 116. CRIME VICTIM SERVICES COMMISSION

Full-time equated classified positions...............................................................................13.0

Grants administration services—13.0 FTE positions................................................................... $ 2,460,000

Justice assistance grants............................................................................................................... 19,106,100

Crime victim rights services grants.............................................................................................. 16,570,000

GROSS APPROPRIATION.......................................................................................................... $ 38,136,100

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 24,083,800

Special revenue funds:

Total other state restricted revenues............................................................................................. 14,052,300

State general fund/general purpose.............................................................................................. $ 0

Sec. 117. OFFICE OF SERVICES TO THE AGING

Full-time equated classified positions...............................................................................40.0

Office of services to aging administration—40.0 FTE positions................................................. $ 6,724,100

Community services..................................................................................................................... 36,414,400

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................................................................................................................. 3,500,000

Respite care program.................................................................................................................... 5,868,700

GROSS APPROPRIATION.......................................................................................................... $ 92,402,700

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 57,029,700

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.............................................................................................. $ 28,826,800

Sec. 118. MEDICAL SERVICES ADMINISTRATION

Full-time equated classified positions.............................................................................439.5

Medical services administration—415.5 FTE positions............................................................... $ 66,711,200

Facility inspection contract.......................................................................................................... 132,800

MIChild administration................................................................................................................ 4,327,800

Electronic health record incentive program—24.0 FTE positions............................................... 144,081,400

GROSS APPROPRIATION.......................................................................................................... $ 215,253,200

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 190,711,800

Special revenue funds:

Total local revenues...................................................................................................................... 105,900

Total private revenues................................................................................................................... 100,000

Total other state restricted revenues............................................................................................. 115,400

State general fund/general purpose.............................................................................................. $ 24,220,100

Sec. 119. MEDICAL SERVICES

Hospital services and therapy....................................................................................................... $ 1,351,575,600

Hospital disproportionate share payments.................................................................................... 45,000,000

Physician services......................................................................................................................... 373,703,700

Medicare premium payments....................................................................................................... 404,000,000

Pharmaceutical services................................................................................................................ $ 279,612,900

Home health services................................................................................................................... 4,239,600

Hospice services........................................................................................................................... 104,794,300

Transportation............................................................................................................................... 19,651,600

Auxiliary medical services........................................................................................................... 8,963,000

Dental services............................................................................................................................. 186,666,700

Ambulance services...................................................................................................................... 12,253,000

Long-term care services............................................................................................................... 1,696,149,600

Medicaid home- and community-based services waiver.............................................................. 282,393,100

Adult home help services............................................................................................................. 291,972,700

Personal care services................................................................................................................... 14,247,900

Program of all-inclusive care for the elderly............................................................................... 34,792,800

Autism services............................................................................................................................ 17,544,600

Health plan services..................................................................................................................... 4,365,050,200

MIChild program.......................................................................................................................... 66,264,400

Plan first family planning waiver................................................................................................. 14,295,500

Medicaid adult benefits waiver..................................................................................................... 105,877,700

Special indigent care payments.................................................................................................... 95,738,900

Federal Medicare pharmaceutical program.................................................................................. 184,470,300

Maternal and child health............................................................................................................. 20,279,500

Subtotal basic medical services program..................................................................................... 9,979,537,600

School-based services................................................................................................................... 131,502,700

Special Medicaid reimbursement................................................................................................. 390,962,100

Subtotal special medical services payments................................................................................. 522,464,800

GROSS APPROPRIATION.......................................................................................................... $ 10,502,002,400

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 7,104,340,200

Special revenue funds:

Total local revenues...................................................................................................................... 63,128,500

Total private revenues................................................................................................................... 2,100,000

Merit award trust fund.................................................................................................................. 76,733,500

Total other state restricted revenues............................................................................................. 1,972,928,900

State general fund/general purpose.............................................................................................. $ 1,282,771,300

Sec. 120. INFORMATION TECHNOLOGY

Information technology services and projects.............................................................................. $ 36,028,300

Michigan Medicaid information system....................................................................................... 30,201,100

GROSS APPROPRIATION.......................................................................................................... $ 66,229,400

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 44,780,800

Special revenue funds:

Total other state restricted revenues............................................................................................. 1,940,600

State general fund/general purpose.............................................................................................. $ 19,508,000

Sec. 121. ONE-TIME BASIS ONLY APPROPRIATIONS

State employee lump-sum payments............................................................................................ $ 4,285,300

Health and wellness initiatives..................................................................................................... 5,000,000

Hospital services and therapy - graduate medical education....................................................... 4,314,200

Mental health services for special populations............................................................................ 3,000,000

Michigan Medicaid information system....................................................................................... 30,000,000

Primary care services - island health clinics................................................................................ 325,000

GROSS APPROPRIATION.......................................................................................................... $ 46,924,500

Appropriated from:

Interdepartmental grant revenues:

Total interdepartmental grant revenues........................................................................................ 19,700

Federal revenues:

Total federal revenues................................................................................................................... $ 31,143,600

Special revenue funds:

Total local revenues...................................................................................................................... 150,400

Total private revenues................................................................................................................... 800

Total other state restricted revenues............................................................................................. 263,500

State general fund/general purpose.............................................................................................. $ 15,346,500

PART 2

PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2012-2013

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 2012-2013 is $4,977,497,800.00 and state spending from state resources to be paid to local units of government for fiscal year 2012-2013 is $1,229,341,700.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF COMMUNITY HEALTH

BEHAVIORAL HEALTH PROGRAM ADMINISTRATION

Community residential and support services................................................................................ $ 215,800

Housing and support services....................................................................................................... 645,600

BEHAVIORAL HEALTH SERVICES

State disability assistance program substance abuse services...................................................... $ 2,018,000

Community substance abuse prevention, education, and treatment programs............................. 12,762,200

Medicaid mental health services.................................................................................................. 697,991,400

Community mental health non-Medicaid services....................................................................... 274,136,200

Mental health services for special populations............................................................................ 8,842,800

Medicaid adult benefits waiver..................................................................................................... 10,774,100

Medicaid substance abuse services.............................................................................................. 15,808,000

Children’s waiver home care program......................................................................................... 5,857,500

Nursing home PAS/ARR-OBRA.................................................................................................. 2,703,800

PUBLIC HEALTH ADMINISTRATION

Health and wellness initiatives..................................................................................................... 1,803,000

HEALTH POLICY

Primary care services................................................................................................................... $ 88,900

INFECTIOUS DISEASE CONTROL

AIDS prevention, testing, and care programs.............................................................................. $ 1,000,000

Immunization local agreements.................................................................................................... 1,352,000

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........................................................................................... 32,236,100

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.......................................................................................................... $ 1,935,000

Outreach and advocacy................................................................................................................. 1,185,900

CRIME VICTIM SERVICES COMMISSION

Crime victim rights services grants.............................................................................................. $ 10,300,000

OFFICE OF SERVICES TO THE AGING

Community services..................................................................................................................... $ 13,333,700

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

MEDICAL SERVICES

Dental services............................................................................................................................. $ 1,803,200

Long-term care services............................................................................................................... 88,294,300

Transportation............................................................................................................................... 4,943,700

Medicaid adult benefits waiver..................................................................................................... 8,999,600

Hospital services and therapy....................................................................................................... 2,615,100

Physician services......................................................................................................................... 10,180,800

TOTAL OF PAYMENTS TO LOCAL UNITS OF GOVERNMENT.............................................. $ 1,229,341,700

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

Sec. 203. As used in this act:

(a) “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.

(c) “Current fiscal year” means the fiscal year ending September 30, 2013.

(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) “PAS/ARR-OBRA” 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) “Temporary assistance for needy families” means part A of title IV of the social security act, 42 USC 601 to 619.

(u) “Title XVIII” and “Medicare” mean title XVIII of the social security act, 42 USC 1395 to 1395kkk-1.

(v) “Title XIX” and “Medicaid” mean title XIX of the social security act, 42 USC 1396 to 1396w-5.

(w) “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 act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $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 act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $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 act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $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 act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 207. By October 31, 2012, the department shall identify 10 principal measurable outcomes to be affected by expenditure of the funds appropriated in part 1 of this act and submit a report to the house and senate appropriations committees, the house and senate fiscal agencies, and the state budget director that ranks the outcomes by level of importance and contains current data on those outcomes. Beginning on April 1, 2013, the department shall provide biannual updates to the house and senate appropriations committees on changes in those measurable outcomes and departmental efforts to improve the outcomes.

Sec. 208. Unless otherwise specified, the departments shall use the Internet to fulfill the reporting requirements of this act. 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 the 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. 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.

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

(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. 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.

(c) Sexually transmitted 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.

(c) The expected project duration.

(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.

(3) The department shall inform the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies of any alterations or adjustments made to the published plan for integrated care for individuals who are dual Medicare/Medicaid eligibles when the final version of the plan has been submitted to the federal centers for Medicare and Medicaid services or the federal department of health and human services.

(4) At least 30 days before implementation of the plan for integrated care for individuals who are dual Medicare/Medicaid eligibles, the department shall submit the plan to the legislature for review.

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) The departments and agencies receiving appropriations in part 1 shall prepare a report on out-of-state travel expenses not later than January 1 of each year. The travel report shall be a listing of 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 dates of each travel occurrence.

(b) The total 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.

(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 outside services 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 30, 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 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. 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, 2012 and September 30, 2013.

Sec. 297. It is the intent of the legislature that all principal executive departments and agencies cooperate with the development and implementation of the department of technology, management, and budget statewide office space consolidation plan.

BEHAVIORAL HEALTH SERVICES

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 wraparound 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. 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 develop a plan to maximize uniformity and consistency in the standards required of providers contracting directly with PIHPs and CMHSPs. 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.

(2) The department shall provide a status report to the senate and house appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director on implementation of the plan by July 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.

Sec. 498. (1) The department shall use standard program evaluation measures to assess the effectiveness of heroin and other opiates treatment programs provided through coordinating agencies and service providers in reducing and preventing the incidence of substance use disorders. The measures established by the department shall be modeled after the program outcome measures and best practice guidelines for the treatment of heroin and other opiates as prescribed by the federal substance abuse and mental health services administration.

(2) By May 15 of the current fiscal year, the department shall provide a report to the house and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget office on the effectiveness of treatment programs for heroin and other opiates.

Sec. 499. The department shall explore ways to use mental health funding to address the mental health needs of deaf and hard-of-hearing persons. The department shall report to the senate and house appropriations subcommittees on community health on the results of this process by March 1 of the current fiscal year.

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. 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, 2012, 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. 654. From the funds appropriated in part 1 for health and wellness initiatives, $1,000,000.00 shall be allocated for a pilot before- and after-school healthy exercise program to promote and advance physical health for school children in kindergarten through grade 6. The department shall develop a model for program sites that incorporates evidence-based best practices. The department shall establish guidelines for program sites, which may include public schools, community-based organizations, private facilities, recreation centers, or other similar sites. The program format shall encourage local determination of site activities and shall encourage local inclusion of youth in the decision-making regarding site activities. Program goals shall include children experiencing good physical health, the reduction of obesity, providing a safe place to play and exercise, and nutrition education. To be eligible to participate in the pilot, program sites shall provide a 20% match to the state funding. The department shall seek financial support from corporate, foundation, or other private partners for the program or for individual program sites.

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. (1) 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.

(2) From the funds appropriated in part 1 for the Michigan essential health provider program, the department may reduce the local and private share of the loan repayment costs to 25% for obstetricians and gynecologists working in underserved areas.

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.

Sec. 715. The department shall evaluate options for incentivizing students attending medical schools in this state to meet their primary care residency requirements in this state and ultimately, for some period of time, to remain in this state and serve as primary care physicians.

Sec. 716. (1) The department is encouraged to create and implement a pilot program limited to counties with a population of less than 100,000 to incentivize students attending medical schools in Michigan through a loan repayment program or other approaches for committing to provide medical services in rural counties with a medically underserved population. The program shall be limited to those students or individuals performing primary care or specialty services as identified by the department.

(2) By no later than September 30 of the current fiscal year, the department shall prepare a report and submit it to the senate and house appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director. The department shall evaluate the effectiveness of the pilot program, identify potential changes to improve the program, and make recommendations for statewide implementation in its report under this subsection.

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. By January 3 of the current fiscal year 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 voluntarily self-reported by individuals utilizing those services. The department shall provide the actual expenditures by marital status or, where actual expenditures are not available, shall provide estimated expenditures by marital status. The department may utilize the Plan First application (Form MSA 1582), MIChild, and Healthy Kids application (DCH 0373) or Assistance Application (DHS 1171) or any other official application for public assistance for medical coverage to determine the actual or estimated public expenditures based on marital status.

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.

(c) A breakdown of the expenditure of these funds between urban and rural communities.

(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. 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.

(c) The health administration in the department of community health.

(d) The behavioral health and developmental disabilities 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.

Sec. 1136. From the funds appropriated in part 1 for prenatal care outreach and service delivery support, $2,000,000.00 shall be allocated for a real alternatives pregnancy and parenting support services program as a pilot project. Funding for the program shall be from the federal temporary assistance for needy families grant. The department shall establish a fee-for-service contract with 1 or more qualified agencies to provide free counseling, support, and referral services to eligible women during pregnancy through 12 months after birth. As appropriate, the goals for client outcomes shall include an increase of counseling support, childbirth choice, and adoption knowledge and an improvement in parenting skills and knowledge of reproductive health. The department shall provide for counselor training, client educational material, program marketing, and annual provider site monitoring.

Sec. 1137. From the funds appropriated in part 1 for prenatal care outreach and service delivery support, not less than $1,000,000.00 shall be allocated for the nurse family partnership program from federal temporary assistance for needy families grant funds. The funds shall be used for enhanced support and education to nursing teams and for client recruitment in high-need communities. The funds shall also be used for a nurse family partnership program in a city with a population of 600,000 or more for strategic planning to expand and sustain the program and for marketing and communications of the program to raise awareness, engage stakeholders, and recruit nurses.

Sec. 1138. The department shall allocate funds appropriated in section 113 of part 1 for family, maternal, and children’s health services pursuant to section 1 of 2002 PA 360, MCL 333.1091.

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, 2012, 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. 1403. (1) By February 1 of the current fiscal year, 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.

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

(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.

Sec. 1421. From the funds appropriated in part 1 for community services, $1,100,000.00 shall be allocated to area agencies on aging for locally determined needs.

MEDICAL SERVICES ADMINISTRATION

Sec. 1501. The unexpended funds appropriated in part 1 for the electronic health records incentive program are considered work project appropriations, and any unencumbered or unallotted funds are carried forward into the following fiscal year. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project to be carried forward is to implement the Medicaid electronic health record program that provides financial incentive payments to Medicaid health care providers to encourage the adoption and meaningful use of electronic health records to improve quality, increase efficiency, and promote safety.

(b) The projects will be accomplished according to the approved federal advanced planning document.

(c) The estimated cost of this project phase is identified in the appropriation line item.

(d) The tentative completion date for the work project is September 30, 2017.

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. (1) 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.

(2) Medicaid coverage for adult chiropractic and vision 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.

(c) Fifty dollars for the first day of an inpatient hospital stay.

(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. 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 act 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, 1815, 1820, 1835, 1850, and 1863.

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 act. 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.

(10) MIChild services shall include treatment for autism spectrum disorders for children who are eligible for MIChild and are 18 years of age or younger.

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. 1677. The MIChild program shall provide all benefits available under the state employee insurance plan that are delivered through contracted providers and consistent with federal law, including, but not limited to, the following medically necessary services:

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

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

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

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

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

(f) Care management services for mental health diagnoses.

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

(h) Emergency ambulance services.

Sec. 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. 1689.(1) 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.

(2) 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.

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).

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

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. (1) The department shall distribute $1,122,300.00 for poison control services to an academic health care system that includes a children’s hospital that has a high indigent care volume.

(2) By March 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 fiscal agencies on the adequacy of the payment described in subsection (1).

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.

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 and specialty prepaid inpatient 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 eligibles is approved by the federal government, the department shall provide quarterly reports to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies on progress in implementing the waiver.

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. 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 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 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.

(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. 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 2012-2013.

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 conduct research on the effectiveness of graduate medical education funding.

(2) The research shall do all of the following:

(a) Identify physician shortages by practice and geographic area.

(b) Consider efforts by other states to use graduate medical education funding to address shortages.

(c) Consider policy changes to the graduate medical education program to reduce practitioner shortages.

(3) The department shall report the results of the research 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.

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. 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. 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 by June 1 of the current fiscal year 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.

Sec. 1858. Medicaid services shall include treatment for autism spectrum disorders for children who are eligible for Medicaid and are 18 years of age or younger.

Sec. 1860. The department may receive separate reports from the health care association of Michigan, the Michigan county medical care facility council, and aging services of Michigan regarding each group’s proposal to design and implement a Medicaid reimbursement payment system for nursing facilities that incorporates changes to both the plant and variable components. The department shall provide copies of any reports received pursuant to this section to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies by July 1 of the current fiscal year.

Sec. 1861. Nonemergency medical transportation services offered to Medicaid recipients may be competitively bid and may take into consideration a minimum of 2 bids by qualified vendors, 1 of which must be a public transportation agency where such agencies offer service. For the purpose of this section, “qualified vendor” means a transportation provider that either meets or exceeds the quality and safety standards of public transportation agencies, including, but not limited to, ongoing training requirements for motor vehicle operators including training on passenger safety, passenger assistance, and assistive devices, including wheelchair lifts, tie-down equipment, and child safety seats. In addition, a qualified vendor shall be able to document that all drivers have complied with all state licensing regulations and that they have passed a criminal background check and successfully passed a drug screening test.

Sec. 1862. From the funds appropriated in part 1, the department shall use $11,901,200.00 to increase reimbursement rates for Medicaid obstetrical services by 20%.

Sec. 1863. For the purposes of the next rebidding of contracts with Medicaid health plans, the department shall study the possibility of excluding health plans that score in the lowest quartile on quality indicators from eligibility to bid.

Sec. 1865. Upon federal approval of the department’s proposal for integrated care for individuals who are dual Medicare/Medicaid eligibles, the department shall provide the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies its plan and organizational chart for administering and providing oversight of this proposal. The plan shall include information on how the department intends to organize staff in an integrated manner to ensure that key components of the proposal are implemented effectively.

Sec. 1866. (1) From the funds appropriated in part 1 for hospital services and therapy, $12,000,000.00 in 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 2013-2014

GENERAL SECTIONS

Sec. 2001. It is the intent of the legislature to provide appropriations for the fiscal year ending on September 30, 2014 for the line items listed in part 1. The fiscal year 2013-2014 appropriations are anticipated to be the same as those for fiscal year 2012-2013, 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 2013 consensus revenue estimating conference.

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

A bill to make appropriations for the department of community health for the fiscal year ending September 30, 2013; and to provide for the expenditure of the appropriations.

John Moolenaar

Roger Kahn

Conferees for the Senate

Matt Lori

Peter MacGregor

Conferees for the House

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. 392 Yeas—22

Booher Hildenbrand Moolenaar Richardville

Casperson Jansen Nofs Robertson

Caswell Jones Pappageorge Rocca

Colbeck Kahn Pavlov Schuitmaker

Emmons Kowall Proos Walker

Green Marleau

Nays—14

Anderson Gregory Johnson Warren

Bieda Hopgood Meekhof Whitmer

Brandenburg Hune Smith Young

Gleason Hunter

Excused—2

Hansen Hood

Not Voting—0

In The Chair: Schuitmaker

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

The recommendation was not concurred in, 2/3 of the members serving not voting therefor.

Senator Kahn asked and was granted unanimous consent to make a statement and moved that the statement be printed in the Journal.

The motion prevailed.

Senator Kahn’s statement is as follows:

I rise to respond, through you, to my good friend from the 14th District whose passion for the least of us, or those of us who live in the shadows, I share and respect. I think some perspective on Healthy Kids dental is warranted. That program has been gradually expanded through the state of Michigan through two administrations.

During the last administration, I had talked about ways to expand Healthy Kids dental to bigger counties—bigger and therefore more expensive counties. The methodology that we have come up with, which passed here in the Senate but was ultimately excluded in the budgets under the last administration, was to go by zip code for smaller communities to deal with the affordability issue. The last administration didn’t support that.

Fast-forward now to this administration and this administration has made a public statement that they would like to get all of Michigan into Healthy Kids dental over approximately a four-year period of time. This is the first time that we have been able to address that and, in fact, are including about a quarter of the state’s areas of population in the new bill. What happens next year and the year after? We will run up against the same issue that the last administration had difficulty coming to grips with—large counties with large populations.

I would ask, through you, Madam President, that my good friend from the 14th District would embrace this budget which does make a change in the first place. In the second place, to work with the chair of the Department of Community Health committee, the good Senator from the 36th District, to find a way to deal with the disparity issue, and by that I mean disparity in size of the remaining counties.

Senator Proos submitted the following:

FIRST CONFERENCE REPORT

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

Senate Bill No. 951, entitled

A bill to make appropriations for the department of corrections for the fiscal year ending September 30, 2013; and to provide for the expenditure of the appropriations.

Recommends:

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

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

A bill to make appropriations for the department of corrections for the fiscal year ending September 30, 2013; and to provide for the expenditure of the appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2012-2013

Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for the department of corrections for the fiscal year ending September 30, 2013, 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........................................................................................................43,953

Full-time equated unclassified positions...........................................................................16.0

Full-time equated classified positions........................................................................14,679.2

GROSS APPROPRIATION.......................................................................................................... $ 2,000,915,900

Appropriated from:

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 992,100

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 1,999,923,800

Federal revenues:

Total federal revenues................................................................................................................... 8,784,400

Special revenue funds:

Total local revenues...................................................................................................................... 264,300

Total private revenues................................................................................................................... 0

Total other state restricted revenues............................................................................................. 49,389,500

State general fund/general purpose.............................................................................................. $ 1,941,485,600

State general fund/general purpose schedule:

Ongoing state general fund/general purpose......................................................1,927,482,300

One-time state general fund/general purpose.........................................................14,003,300

Sec. 102. EXECUTIVE

Full-time equated unclassified positions...........................................................................16.0

Full-time equated classified positions.................................................................................5.0

Unclassified positions—16.0 FTE positions................................................................................ $ 1,493,000

Executive direction—5.0 FTE positions....................................................................................... 1,892,800

Neal, et al. settlement agreement................................................................................................. 20,000,000

GROSS APPROPRIATION.......................................................................................................... $ 23,385,800

Appropriated from:

State general fund/general purpose.............................................................................................. $ 23,385,800

Sec. 103. PRISONER RE-ENTRY AND COMMUNITY SUPPORT

Prisoner re-entry local service providers...................................................................................... $ 22,711,500

Prisoner re-entry MDOC programs.............................................................................................. 23,526,200

Prisoner re-entry federal grants.................................................................................................... 1,035,000

Prisoner re-entry reintegration, training, and employment........................................................... 600,000

Public safety initiative.................................................................................................................. 4,750,000

GROSS APPROPRIATION.......................................................................................................... $ 52,622,700

Appropriated from:

Federal revenues:

DOJ, prisoner reintegration.......................................................................................................... 1,035,000

Special revenue funds:

State general fund/general purpose.............................................................................................. $ 51,587,700

Sec. 104. OPERATIONS SUPPORT ADMINISTRATION

Full-time equated classified positions.............................................................................184.9

Operations support administration—97.0 FTE positions............................................................. $ 10,715,300

New custody staff training........................................................................................................... 8,672,300

Compensatory buyout and union leave bank................................................................................ $ 100

Worker’s compensation................................................................................................................. 18,566,200

Bureau of fiscal management—65.9 FTE positions..................................................................... 8,111,000

Office of legal services—15.0 FTE positions.............................................................................. 2,134,800

Internal affairs—7.0 FTE positions.............................................................................................. 1,172,500

Rent.............................................................................................................................................. 2,095,200

Equipment and special maintenance............................................................................................ 6,725,500

Administrative hearings officers................................................................................................... 3,013,600

Judicial data warehouse user fees................................................................................................ 50,000

Sheriffs’ coordinating and training office.................................................................................... 500,000

Prosecutorial and detainer expenses............................................................................................. 4,551,000

County jail reimbursement program............................................................................................. 15,072,100

GROSS APPROPRIATION.......................................................................................................... $ 81,379,600

Appropriated from:

Interdepartmental grant revenues:

IDG-MDSP, Michigan justice training fund................................................................................. 328,200

Special revenue funds:

Jail reimbursement program fund................................................................................................. 5,900,000

Special equipment fund................................................................................................................ 5,800,000

Local corrections officer training fund......................................................................................... 500,000

Correctional industries revolving fund......................................................................................... 572,100

State general fund/general purpose.............................................................................................. $ 68,279,300

Sec. 105. FIELD OPERATIONS ADMINISTRATION

Full-time equated classified positions..........................................................................2,112.3

Field operations—1,789.9 FTE positions..................................................................................... $ 186,232,100

Parole board operations—41.0 FTE positions.............................................................................. 4,686,100

Parole/probation services.............................................................................................................. 2,243,500

Community re-entry centers—201.4 FTE positions..................................................................... 30,224,200

Electronic monitoring center—56.0 FTE positions...................................................................... 15,962,400

Community corrections administration—10.0 FTE positions...................................................... 1,210,200

Substance abuse testing and treatment services—14.0 FTE positions......................................... 25,271,400

Residential services...................................................................................................................... 16,075,500

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

GROSS APPROPRIATION.......................................................................................................... $ 297,303,600

Appropriated from:

Special revenue funds:

Local - community tether program reimbursement...................................................................... 263,000

Re-entry center offender reimbursements..................................................................................... 23,400

Parole and probation oversight fees............................................................................................. 5,995,600

Parole and probation oversight fees set-aside.............................................................................. 2,657,000

Tether program participant contributions..................................................................................... 2,200,700

DOJ, office of justice programs, RSAT........................................................................................ 574,200

State general fund/general purpose.............................................................................................. $ 285,589,700

Sec. 106. CORRECTIONAL FACILITIES-ADMINISTRATION

Full-time equated classified positions..........................................................................1,142.1

Correctional facilities administration—30.0 FTE positions......................................................... $ 9,135,800

Prison food service—395.0 FTE positions................................................................................... 59,691,300

Transportation—205.6 FTE positions.......................................................................................... 18,422,700

Central records—52.5 FTE positions........................................................................................... 4,589,800

Inmate legal services.................................................................................................................... 715,900

Loans to parolees.......................................................................................................................... 179,400

Housing inmates in federal institutions........................................................................................ 993,800

Prison store operations—65.0 FTE positions............................................................................... 5,436,500

Prison industries operations—145.0 FTE positions..................................................................... $ 17,647,900

Federal school lunch program...................................................................................................... 812,800

Leased beds and alternatives to leased beds................................................................................ 10,000,100

Public works programs—5.0 FTE positions................................................................................. 1,000,000

Cost-effective housing initiative................................................................................................... 100

Inmate housing fund..................................................................................................................... 100

Education program—244.0 FTE positions................................................................................... 32,181,800

GROSS APPROPRIATION.......................................................................................................... $ 160,808,000

Appropriated from:

Interdepartmental grant revenues:

IDG-MDCH, forensic center food service................................................................................... 660,000

Federal revenues:

DAG-FNS, national school lunch................................................................................................. 812,800

DED-OESE, title 1....................................................................................................................... 538,000

DED-OVAE, adult education........................................................................................................ 919,000

DED-OSERS................................................................................................................................ 111,100

DED, vocational education equipment......................................................................................... 286,800

DED, youthful offender/Specter grant.......................................................................................... 1,329,600

DOJ-BOP, federal prisoner reimbursement.................................................................................. 411,000

DOJ-OJP, serious and violent offender reintegration initiative.................................................... 10,600

DOJ, prison rape elimination act grant........................................................................................ 646,000

SSA-SSI, incentive payment........................................................................................................ 262,400

Federal education revenues.......................................................................................................... 152,300

Special revenue funds:

Correctional industries revolving fund......................................................................................... 17,647,900

Public works user fees.................................................................................................................. 1,000,000

Resident stores.............................................................................................................................. 5,436,500

State general fund/general purpose.............................................................................................. $ 130,584,000

Sec. 107. HEALTH CARE

Full-time equated classified positions..........................................................................1,656.0

Health care administration—17.0 FTE positions......................................................................... $ 3,278,000

Prisoner health care services........................................................................................................ 91,851,700

Vaccination program..................................................................................................................... 691,200

Interdepartmental grant to human services, eligibility specialists............................................... 100,000

Mental health services and support—494.0 FTE positions.......................................................... 62,412,700

Clinical complexes—1,145.0 FTE positions................................................................................ 158,448,900

GROSS APPROPRIATION.......................................................................................................... $ 316,782,500

Appropriated from:

Special revenue funds:

Prisoner health care copayments.................................................................................................. 278,700

State general fund/general purpose.............................................................................................. $ 316,503,800

Sec. 108. NORTHERN REGION CORRECTIONAL FACILITIES

Average population........................................................................................................20,731

Full-time equated classified positions..........................................................................4,294.1

Alger correctional facility - Munising—250.1 FTE positions..................................................... $ 26,374,200

Average population.............................................................................................................889

Baraga correctional facility - Baraga—298.9 FTE positions....................................................... 32,493,400

Average population.............................................................................................................884

Earnest C. Brooks correctional facility - Muskegon—436.5 FTE positions................................ 47,064,800

Average population..........................................................................................................2,512

Chippewa correctional facility - Kincheloe—454.2 FTE positions............................................. 46,908,700

Average population..........................................................................................................2,282

Kinross correctional facility - Kincheloe—321.5 FTE positions................................................. 34,399,400

Average population..........................................................................................................1,799

Marquette branch prison - Marquette—336.3 FTE positions....................................................... $ 38,421,600

Average population..........................................................................................................1,201

Muskegon correctional facility - Muskegon—208.4 FTE positions............................................. 22,867,600

Average population..........................................................................................................1,338

Newberry correctional facility - Newberry—201.6 FTE positions.............................................. 22,972,500

Average population.............................................................................................................978

Oaks correctional facility - Eastlake—302.6 FTE positions........................................................ 35,698,700

Average population..........................................................................................................1,156

Ojibway correctional facility - Marenisco—203.7 FTE positions............................................... 20,628,900

Average population..........................................................................................................1,090

Central Michigan correctional facility - St. Louis—397.7 FTE positions................................... 41,383,300

Average population..........................................................................................................2,554

Pugsley correctional facility - Kingsley—211.0 FTE positions................................................... 22,131,700

Average population..........................................................................................................1,342

Saginaw correctional facility - Freeland—306.6 FTE positions.................................................. 32,043,200

Average population..........................................................................................................1,480

St. Louis correctional facility - St. Louis—311.0 FTE positions................................................ 33,705,200

Average population..........................................................................................................1,226

Northern region administration and support—54.0 FTE positions.............................................. 4,804,000

GROSS APPROPRIATION.......................................................................................................... $ 461,897,200

Appropriated from:

Special revenue funds:

State general fund/general purpose.............................................................................................. $ 461,897,200

Sec. 109. SOUTHERN REGION CORRECTIONAL FACILITIES

Average population........................................................................................................23,222

Full-time equated classified positions..........................................................................5,284.8

Bellamy Creek correctional facility - Ionia—391.2 FTE positions............................................. $ 41,177,200

Average population..........................................................................................................1,850

Carson City correctional facility - Carson City—449.7 FTE positions....................................... 48,089,700

Average population..........................................................................................................2,440

Cooper street correctional facility - Jackson—257.7 FTE positions............................................ 28,334,800

Average population..........................................................................................................1,799

G. Robert Cotton correctional facility - Jackson—395.3 FTE positions..................................... 39,996,300

Average population..........................................................................................................1,841

Charles E. Egeler correctional facility - Jackson—355.3 FTE positions..................................... 40,660,800

Average population..........................................................................................................1,376

Richard A. Handlon correctional facility - Ionia—227.2 FTE positions..................................... 23,955,600

Average population..........................................................................................................1,373

Gus Harrison correctional facility - Adrian—420.2 FTE positions............................................. 45,306,100

Average population..........................................................................................................2,342

Womens Huron Valley correctional complex - Ypsilanti—536.4 FTE positions......................... 58,902,000

Average population..........................................................................................................1,872

Ionia correctional facility - Ionia—287.0 FTE positions............................................................. 30,814,200

Average population.............................................................................................................654

Lakeland correctional facility - Coldwater—257.6 FTE positions.............................................. 24,469,800

Average population..........................................................................................................1,336

Macomb correctional facility - New Haven—298.1 FTE positions............................................. 32,521,900

Average population..........................................................................................................1,376

Maxey/Woodland Center correctional facility - Whitmore Lake—265.9 FTE positions............. 23,813,800

Average population.............................................................................................................328

Michigan reformatory - Ionia—322.4 FTE positions................................................................... 35,416,700

Average population..........................................................................................................1,338

Parnall correctional facility - Jackson—274.5 FTE positions...................................................... 29,173,200

Average population..........................................................................................................1,678

Thumb correctional facility - Lapeer—282.3 FTE positions....................................................... $ 30,579,700

Average population..........................................................................................................1,219

Special alternative incarceration program (Camp Cassidy Lake)—120.0 FTE positions............ 12,101,800

Average population.............................................................................................................400

Southern region administration and support—144.0 FTE positions............................................ 22,663,900

GROSS APPROPRIATION.......................................................................................................... $ 567,977,500

Appropriated from:

Federal revenues:

Federal revenues and reimbursements.......................................................................................... 1,612,200

Special revenue funds:

State restricted revenues and reimbursements.............................................................................. 283,900

State general fund/general purpose.............................................................................................. $ 566,081,400

Sec. 110. INFORMATION TECHNOLOGY

Information technology services and projects.............................................................................. $ 24,403,600

GROSS APPROPRIATION.......................................................................................................... $ 24,403,600

Appropriated from:

Special revenue funds:

Correctional industries revolving fund......................................................................................... 168,600

Parole and probation oversight fees set-aside.............................................................................. 661,600

State general fund/general purpose.............................................................................................. $ 23,573,400

Sec. 111. ONE-TIME APPROPRIATIONS

Information technology services and projects.............................................................................. $ 1,129,500

State employee lump-sum payments............................................................................................ 13,225,900

GROSS APPROPRIATION.......................................................................................................... $ 14,355,400

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant revenues................................................................................................. 3,900

Federal revenues:

Federal revenues and reimbursements.......................................................................................... 83,400

Special revenue funds:

Local revenues.............................................................................................................................. 1,300

State restricted revenues and reimbursements.............................................................................. 263,500

State general fund/general purpose.............................................................................................. $ 14,003,300

PART 2

PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2012-2013

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 2012-2013 is $1,990,875,100.00 and state spending from state resources to be paid to local units of government for fiscal year 2012-2013 is $91,166,400.00. 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............................................................. $ 55,192,700

Community corrections comprehensive plans and services......................................................... 13,958,000

Community corrections residential services................................................................................. 16,075,500

Felony drunk driver jail reduction and community treatment program....................................... 1,440,100

Regional jail program................................................................................................................... 100

Public safety initiative.................................................................................................................. 4,500,000

TOTAL.......................................................................................................................................... $ 91,166,400

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

Sec. 203. As used in this act:

(a) “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 2011-2012:

(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.

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

(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. 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. 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, 2012.

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 act. 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. 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.

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. The departments and agencies receiving appropriations in part 1 shall prepare a report on out-of-state travel expenses not later than January 1 of each year. The travel report shall be a listing of 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 dates of each travel occurrence.

(b) The total 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.

Sec. 217. It is the intent of the legislature that all principal executive departments and agencies cooperate with the development and implementation of the department of technology, management, and budget statewide office space consolidation plan.

Sec. 219. (1) Any contract for prisoner telephone services entered into after the effective date of this act 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.

(2) Revenues appropriated and collected for special equipment funds shall be considered state restricted revenue and shall be used for special equipment and security projects to facilitate the replacement of personal protection systems, and the acquisition of contraband detection systems. Unexpended funds remaining at the close of the fiscal year shall not lapse to the general fund but shall be carried forward and be available for appropriation in subsequent fiscal years.

(3) The department shall submit a report to the house and senate appropriations subcommittees on corrections, the house and senate fiscal agencies, and the state budget director by February 1 outlining revenues and expenditures from special equipment funds. The report shall include all of the following:

(a) A list of all individual projects and purchases financed with special equipment funds in the immediately preceding fiscal year and the amounts expended on each project or purchase.

(b) A list of planned projects and purchases to be financed with special equipment funds during the current fiscal year and the amounts to be expended on each project or purchase.

(c) A review of projects and purchases planned for future fiscal years from special equipment funds.

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. The department of technology, management, and budget shall maintain a searchable website accessible by the public at no cost that includes, but is not limited to, all of the following for each department or agency:

(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.

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 act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

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

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $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 act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $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 act 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. 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, 2012 and September 30, 2013.

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 follow 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 not more than 1 supervisor for each 5 employees at the department’s central office in Lansing and at both the northern and southern region administration offices.

EXECUTIVE

Sec. 301. 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.

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.

(c) A description of the circumstances of the suicide.

(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.

PRISONER RE-ENTRY 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. (1) It is the intent of the legislature that the funds appropriated in part 1 for prisoner re-entry programs be expended for the purpose of reducing victimization by reducing repeat offending through the following prisoner re-entry programming:

(a) The provision of employment or employment services and job training.

(b) The provision of housing assistance.

(c) Referral to mental health services.

(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.

(2) By March 1, the department shall provide a report on prisoner re-entry 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 quarterly, if any revisions to allocations or planned expenditures occurred during that quarter.

(3) The department shall continue its efforts, with technical assistance provided by the justice center of the council of state governments, on establishing criteria and 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.

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 2011-2012 and projected for fiscal year 2012-2013. 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 2013-2014 budget.

Sec. 407. (1) By June 30, the department shall place the 2012 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. 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.

(c) Open jail beds through the increase of pretrial release options.

(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.

(c) Status of the community corrections information system and the jail population information system.

(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, 2012, 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. Allowable uses of the felony drunk driver jail reduction and community treatment program 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.

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.

(c) Any new initiatives to control prison population growth funded or proposed to be funded under part 1.

(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.

(c) The impact on jail utilization.

(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 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.

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.

(c) Probation populations, with identification of the number in special alternative incarceration.

(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.

(c) Evaluation status and methodology.

(d) Preliminary results, if any.

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, 2013, April 1, 2013, July 1, 2013, and September 30, 2013 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.

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 provide for the training of 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.

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. 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. 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.

(c) Number of successful terminations.

(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 act 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 imprisonment for life with the possibility of parole who have good institutional records, the parole board shall calculate each inmate’s parole guidelines score. The parole board shall provide the legislature with the specific reason or reasons why any individual inmate who scores “high probability of release” is not being paroled. The parole board shall submit a report containing a list of these reasons for each inmate 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. 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 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. 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. 806. 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 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.

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 have access to at least a 30-day supply of medication and a prescription for refills to allow for continuity of care in the community.

Sec. 809. The department, in conjunction with efforts to implement prisoner re-entry, 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. 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. 814. The department shall assure that psychotropic medications are available, when deemed medically necessary by a licensed medical service provider, to prisoners who have mental illness diagnoses but are not enrolled in corrections mental health services.

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. 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 and vocational programs. The report shall provide information relevant to an assessment of the department’s academic and vocational programs, including, but not limited to, all of 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, for example, 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 program 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, assaultive offender programming, violent offender programming, and thinking for change. At a minimum, the report shall include the following:

(a) A full accounting of the number of individuals who are required to complete the 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 programming.

(c) A plan of action for addressing any waiting lists or backlogs for 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, and in particular shall provide detail on the extent to which computers are utilized for education programming, for both academic and vocational purposes.

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, 2012 as a result of closing correctional facilities and correctional camps between January 1, 2009 and January 1, 2013, itemized by correctional facility or correctional camp.

(b) The projected fiscal year 2012-2013 savings by closing correctional facilities and correctional camps between January 1, 2009 and January 1, 2013, 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, 2013.

Sec. 923. (1) The department shall cooperate with the department of education to evaluate the feasibility of local intermediate 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. 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 by a mental health professional at a frequency set forth in the mental health code, 1974 PA 258, MCL 330.1001 to 330.2106, or at least every 12 hours, whichever would require more frequent evaluations, in order to remain in therapeutic seclusion.

Sec. 925. By March 1, 2013, 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, 2012, and the annual number of prisoners in administrative segregation between October 1, 2003 and September 30, 2012 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. 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 that 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. 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. 935. The department shall regularly evaluate each correctional facility in terms of cost effectiveness and make a determination as to how long each facility should remain open based upon the age of the facility, the costs of its continued operation, and the relative costs of alternative bed space that could be utilized. When it is determined that a facility is no longer cost-effective to operate due to the age of the facility or that the facility has become functionally obsolete, or both, the department should analyze the economic impact of the facility on the surrounding community. If the department determines that the facility is critical to the economic viability of the surrounding community, the department shall work with the Michigan economic development corporation and any other relevant state or local agencies to encourage private sector investment in that community.

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. 939. (1) By January 1, the department shall release a request for proposal seeking competitive bids for the special alternative incarceration facility, the prison stores, the food service operations, and up to 1,750 custody beds.

(2) The department, working with the department of technology, management, and budget, shall issue a quarterly report detailing the current status of any requests for proposal required under this section. If the status of any item listed in the report remains unchanged for more than 2 consecutive reporting periods, the report shall provide an explanation of the delay.

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.

Sec. 943. It is the intent of the legislature that the department maintains sufficient perimeter security measures at department prison facilities to ensure the safety of communities surrounding those facilities.

Sec. 945. As a condition for expending funds appropriated in part 1, the department shall allow a person acting as a prisoner mentor to continue his or her mentoring relationship with a prisoner as that prisoner transitions back into the community during his or her term of parole unless the department has specific reasons as to why the continuation of the mentoring relationship is not in the best interest of the prisoner’s transition success. The department shall not establish or practice a policy that automatically disqualifies a mentor from continuing an established mentoring relationship during a prisoner’s term of parole.

Sec. 946. As a condition for expending funds appropriated in part 1, the department shall not restrict prisoner access to programming and shall not deny prisoner access to persons qualified to deliver programming because of the faith-based nature of the programming. The department shall establish clear policy guidance regarding the validity of faith-based programming for prisoners who desire that programming and prohibiting discrimination against faith-based programming relative to other types of programming for those prisoners. The policy shall be communicated to all prison wardens and key facility management staff to ensure compliance.

MISCELLANEOUS

Sec. 1009. The department shall create an information packet for the families of incoming prisoners. This packet shall be made available on the department website by February 1, 2013 and shall be updated by February 1 of each year thereafter. The packet shall provide information on topics including, but not limited to: how to put money into prisoner accounts, how to make phone calls or create Jpay email accounts, how to visit in person, proper procedures for filing complaints or grievances, the rights of prisoners to physical and mental health care, how to utilize the offender tracking information system (OTIS), truth-in-sentencing and how it applies to minimum sentences, the parole process, and guidance on the importance of the role of families in the reentry process. The department is encouraged to partner with external advocacy groups and actual families of prisoners in the packet-writing process to ensure that the information is useful and complete.

Sec. 1011. The department shall accept in-kind services and equipment donations to facilitate the addition of a cable network that provides programming that will address the religious needs of incarcerated individuals. This network shall be a cable television network that presently reaches the majority of households in the United States. A bilingual channel affiliated with this network may also be added to department programming to assist the religious needs of Spanish-speaking inmates. The addition of these channels shall be of no additional cost to this state.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS FOR FISCAL YEAR 2013-2014

GENERAL SECTIONS

Sec. 1201. It is the intent of the legislature to provide appropriations for the fiscal year ending on September 30, 2014 for the line items listed in part 1. The fiscal year 2013-2014 appropriations are anticipated to be the same as those for fiscal year 2012-2013, 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 2013 consensus revenue estimating conference.

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

A bill to make appropriations for the department of corrections for the fiscal year ending September 30, 2013; and to provide for the expenditure of the appropriations.

John Proos

Roger Kahn

Conferees for the Senate

Joe Haveman

Greg MacMaster

Conferees for the House

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. 393 Yeas—20

Booher Hune Marleau Proos

Brandenburg Jansen Meekhof Richardville

Colbeck Jones Moolenaar Robertson

Green Kahn Pappageorge Rocca

Hildenbrand Kowall Pavlov Schuitmaker

Nays—16

Anderson Emmons Hunter Walker

Bieda Gleason Johnson Warren

Casperson Gregory Nofs Whitmer

Caswell Hopgood Smith Young

Excused—2

Hansen Hood

Not Voting—0

In The Chair: Schuitmaker

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

The recommendation was not concurred in, 2/3 of the members serving not voting therefor.

Senator Pappageorge submitted the following:

FIRST CONFERENCE REPORT

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

Senate Bill No. 954, entitled

A bill to make appropriations for the legislature, the executive, the department of attorney general, the department of state, the department of treasury, the department of technology, management, and budget, the department of civil rights, and certain state purposes related thereto for the fiscal year ending September 30, 2013; to provide for the expenditure of the appropriations; to provide for the disposition of fees and other income received by the state agencies; and to declare the effect of this act.

Recommends:

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

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

A bill to make appropriations for the legislature, the executive, the department of attorney general, the department of state, the department of treasury, the department of technology, management, and budget, the department of civil rights, and certain state purposes related thereto for the fiscal year ending September 30, 2013; to provide for the expenditure of the appropriations; to provide for the disposition of fees and other income received by the state agencies; and to declare the effect of this act.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. There is appropriated for the legislature, the executive, the department of attorney general, the department of state, the department of treasury, the department of technology, management, and budget, the department of civil rights, and certain state purposes related thereto, for the fiscal year ending September 30, 2013, from the following funds:

TOTAL GENERAL GOVERNMENT

APPROPRIATION SUMMARY

Full-time equated unclassified positions...........................................................................44.0

Full-time equated classified positions..........................................................................7,722.7

GROSS APPROPRIATION.......................................................................................................... $ 4,309,363,700

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 692,338,500

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 3,617,025,200

Federal revenues:

Total federal revenues................................................................................................................... 722,234,100

Special revenue funds:

Total local revenues...................................................................................................................... 8,007,000

Total private revenues................................................................................................................... 5,989,000

Total other state restricted revenues............................................................................................. $ 1,889,816,800

State general fund/general purpose.............................................................................................. $ 990,978,300

Sec. 102. DEPARTMENT OF ATTORNEY GENERAL

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions.............................................................................508.0

GROSS APPROPRIATION.......................................................................................................... $ 85,082,500

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 24,082,100

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 61,000,400

Federal revenues:

Total federal revenues................................................................................................................... 9,932,600

Special revenue funds:

Total local revenues...................................................................................................................... 0

Total private revenues................................................................................................................... 0

Total other state restricted revenues............................................................................................. 17,242,000

State general fund/general purpose.............................................................................................. $ 33,825,800

State general fund/general purpose schedule:

Ongoing state general fund/general purpose..........................................................33,432,500

One-time state general fund/general purpose..............................................................393,300

(2) ATTORNEY GENERAL OPERATIONS

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions.............................................................................508.0

Attorney general........................................................................................................................... $ 112,500

Unclassified positions—5.0 FTE positions.................................................................................. 700,000

Attorney general operations—470.0 FTE positions..................................................................... 75,528,700

Child support enforcement—25.0 FTE positions......................................................................... 3,410,700

Prosecuting attorneys coordinating council—12.0 FTE positions............................................... 2,033,400

Public safety initiative—1.0 FTE position................................................................................... 900,000

GROSS APPROPRIATION.......................................................................................................... $ 82,685,300

Appropriated from:

Interdepartmental grant revenues:

IDG from MDCH, health policy.................................................................................................. 187,000

IDG from MDCH, WIC............................................................................................................... 87,200

IDG from department of corrections............................................................................................ 598,200

IDG from MDE............................................................................................................................ 359,300

IDG from MDEQ......................................................................................................................... 2,174,000

IDG from MDHS.......................................................................................................................... 4,129,300

IDG from MSF, workforce development agency......................................................................... 232,800

IDG from MDLARA, children’s protection registry.................................................................... 44,300

IDG from MDLARA, financial and insurance regulation............................................................ 1,308,600

IGD from MDLARA, health professions..................................................................................... 2,153,400

IDG from MDLARA, licensing and regulation fees.................................................................... 224,100

IDG from MDLARA, Michigan occupational safety and health administration......................... 106,000

IDG from MDLARA, remonumentation fees............................................................................... 96,300

IDG from MDTMB, civil service commission............................................................................ 300,600

IDG from MDTMB, risk management revolving fund................................................................ 1,442,900

IDG from MDMVA...................................................................................................................... 148,800

IDG from MDOT, comprehensive transportation fund................................................................ 200,900

IDG from MDOT, state aeronautics fund..................................................................................... 174,400

IDG from MDOT, state trunkline fund........................................................................................ 2,387,000

IDG from MDSP, Michigan justice training fund........................................................................ 150,100

IDG from MDSP.......................................................................................................................... 352,700

IDG from Michigan state housing development authority........................................................... 612,300

IDG from treasury........................................................................................................................ $ 5,917,500

IDG from treasury, strategic fund................................................................................................ 161,500

IDG from MDTMB...................................................................................................................... 235,600

Federal revenues:

DAG, state administrative match grant/food stamps.................................................................... 434,500

Federal funds................................................................................................................................ 2,999,200

HHS, medical assistance, medigrant............................................................................................ 678,200

HHS-OS, state Medicaid fraud control units............................................................................... 5,590,000

National criminal history improvement program......................................................................... 108,100

Special revenue funds:

Antitrust enforcement collections................................................................................................. 690,300

Assigned claims assessments....................................................................................................... 150,600

Attorney general’s operations fund.............................................................................................. 1,117,200

Auto repair facilities fees............................................................................................................. 296,300

Franchise fees............................................................................................................................... 375,900

Game and fish protection fund..................................................................................................... 838,000

Liquor purchase revolving fund................................................................................................... 1,321,400

Manufactured housing fees........................................................................................................... 246,200

Merit award trust fund.................................................................................................................. 463,100

Michigan employment security act - administrative fund............................................................ 2,024,400

Prisoner reimbursement................................................................................................................ 584,000

Prosecuting attorneys training fees............................................................................................... 405,300

Public utility assessments............................................................................................................. 2,141,300

Real estate enforcement fund....................................................................................................... 474,300

Reinstatement fees........................................................................................................................ 198,700

Retirement funds.......................................................................................................................... 943,400

Second injury fund....................................................................................................................... 807,500

Self-insurers security fund............................................................................................................ 561,400

Silicosis and dust disease fund..................................................................................................... 221,700

State building authority revenue................................................................................................... 109,500

State casino gaming fund............................................................................................................. 1,578,000

State lottery fund.......................................................................................................................... 312,500

Utility consumers fund................................................................................................................. 706,900

Waterways fund............................................................................................................................ 126,700

Worker’s compensation administrative revolving fund................................................................ 334,700

State general fund/general purpose.............................................................................................. $ 32,061,200

(3) INFORMATION TECHNOLOGY

Information technology services and projects.............................................................................. $ 1,371,300

GROSS APPROPRIATION.......................................................................................................... $ 1,371,300

Appropriated from:

State general fund/general purpose.............................................................................................. $ 1,371,300

(4) ONE-TIME BASIS ONLY APPROPRIATIONS

State employee lump-sum payments............................................................................................ $ 1,025,900

GROSS APPROPRIATION.......................................................................................................... $ 1,025,900

Appropriated from:

Interdepartmental grant revenues:

IDG from state agency funds....................................................................................................... 297,300

Federal revenues:

Federal revenues........................................................................................................................... 122,600

Special revenue funds:

State restricted revenues............................................................................................................... 212,700

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

Sec. 103. DEPARTMENT OF CIVIL RIGHTS

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions.............................................................................121.0

GROSS APPROPRIATION.......................................................................................................... $ 14,765,500

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 0

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 14,765,500

Federal revenues:

Total federal revenues................................................................................................................... 2,641,300

Special revenue funds:

Total local revenues...................................................................................................................... 0

Private revenues............................................................................................................................ 18,700

Total other state restricted revenues............................................................................................. 151,900

State general fund/general purpose.............................................................................................. $ 11,953,600

State general fund/general purpose schedule:

Ongoing state general fund/general purpose..........................................................11,849,300

One-time state general fund/general purpose..............................................................104,300

(2) CIVIL RIGHTS OPERATIONS

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions.............................................................................121.0

Unclassified positions—6.0 FTE positions.................................................................................. $ 700,000

Civil rights operations—114.0 FTE positions.............................................................................. 12,332,600

Division on deaf and hard of hearing—5.0 FTE positions.......................................................... 654,700

Hispanic/Latino commission of Michigan—1.0 FTE position..................................................... 196,500

Asian Pacific American affairs commission—1.0 FTE position.................................................. 100,000

GROSS APPROPRIATION.......................................................................................................... $ 13,983,800

Appropriated from:

Federal revenues:

EEOC, state and local antidiscrimination agency contracts......................................................... 1,142,600

HUD, grant................................................................................................................................... 1,459,100

Special revenue funds:

Private revenues............................................................................................................................ 18,700

Division on deafness fund............................................................................................................ 93,400

State restricted indirect funds....................................................................................................... 58,500

State general fund/general purpose.............................................................................................. $ 11,211,500

(3) INFORMATION TECHNOLOGY

Information technology services and projects.............................................................................. $ 652,800

GROSS APPROPRIATION.......................................................................................................... $ 652,800

Appropriated from:

Federal revenues:

EEOC, state and local antidiscrimination agency contracts......................................................... 15,000

State general fund/general purpose.............................................................................................. $ 637,800

(4) ONE-TIME BASIS ONLY APPROPRIATIONS

State employee lump-sum payments............................................................................................ $ 128,900

GROSS APPROPRIATION.......................................................................................................... $ 128,900

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 24,600

State general fund/general purpose.............................................................................................. $ 104,300

Sec. 104. EXECUTIVE OFFICE

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions...........................................................................10.0

Full-time equated classified positions...............................................................................74.2

GROSS APPROPRIATION.......................................................................................................... $ 4,887,900

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 0

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 4,887,900

Federal revenues:

Total federal revenues................................................................................................................... $ 0

Special revenue funds:

Total local revenues...................................................................................................................... 0

Total private revenues................................................................................................................... 0

Total other state restricted revenues............................................................................................. 0

State general fund/general purpose.............................................................................................. $ 4,887,900

State general fund/general purpose schedule:

Ongoing state general fund/general purpose............................................................4,829,200

One-time state general fund/general purpose................................................................58,700

(2) EXECUTIVE OFFICE OPERATIONS

Full-time equated unclassified positions...........................................................................10.0

Full-time equated classified positions...............................................................................74.2

Governor....................................................................................................................................... $ 159,300

Lieutenant governor...................................................................................................................... 111,600

Executive office—74.2 FTE positions.......................................................................................... 3,708,500

Unclassified positions—8.0 FTE positions.................................................................................. 849,800

GROSS APPROPRIATION.......................................................................................................... $ 4,829,200

Appropriated from:

State general fund/general purpose.............................................................................................. $ 4,829,200

(3) ONE-TIME BASIS ONLY APPROPRIATIONS

State employee lump-sum payments............................................................................................ $ 58,700

GROSS APPROPRIATION.......................................................................................................... $ 58,700

Appropriated from:

State general fund/general purpose.............................................................................................. $ 58,700

Sec. 105. LEGISLATURE

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION.......................................................................................................... $ 129,610,200

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 3,792,100

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 125,818,100

Federal revenues:

Total federal revenues................................................................................................................... 0

Special revenue funds:

Total local revenues...................................................................................................................... 0

Total private revenues................................................................................................................... 400,000

Total other state restricted revenues............................................................................................. 3,000,500

State general fund/general purpose.............................................................................................. $ 122,417,600

State general fund/general purpose schedule:

Ongoing state general fund/general purpose.........................................................122,232,800

One-time state general fund/general purpose..............................................................184,800

(2) LEGISLATURE

Senate........................................................................................................................................... $ 27,646,400

Senate automated data processing................................................................................................ 2,264,600

Senate fiscal agency..................................................................................................................... 3,105,200

House of representatives............................................................................................................... 42,895,600

House automated data processing................................................................................................ 1,797,900

House fiscal agency...................................................................................................................... 3,105,200

GROSS APPROPRIATION.......................................................................................................... $ 80,814,900

Appropriated from:

State general fund/general purpose.............................................................................................. $ 80,814,900

(3) LEGISLATIVE COUNCIL

Legislative council........................................................................................................................ $ 9,975,200

Legislative service bureau automated data processing................................................................. 1,221,800

Worker’s compensation................................................................................................................. 132,600

National association dues............................................................................................................. $ 425,000

Legislative corrections ombudsman.............................................................................................. 624,500

GROSS APPROPRIATION.......................................................................................................... $ 12,379,100

Appropriated from:

Special revenue funds:

Private - gifts and bequests revenues........................................................................................... 400,000

State general fund/general purpose.............................................................................................. $ 11,979,100

(4) LEGISLATIVE RETIREMENT SYSTEM

General nonretirement expenses................................................................................................... $ 4,410,000

GROSS APPROPRIATION.......................................................................................................... $ 4,410,000

Appropriated from:

Special revenue funds:

Court fees..................................................................................................................................... 1,109,800

State general fund/general purpose.............................................................................................. $ 3,300,200

(5) PROPERTY MANAGEMENT

Capitol building............................................................................................................................ $ 2,680,400

Cora Anderson building............................................................................................................... 8,731,600

Farnum building and other properties.......................................................................................... 1,906,500

GROSS APPROPRIATION.......................................................................................................... $ 13,318,500

Appropriated from:

State general fund/general purpose.............................................................................................. $ 13,318,500

(6) OFFICE OF THE AUDITOR GENERAL

Unclassified positions................................................................................................................... $ 313,500

Field operations............................................................................................................................ 18,103,300

GROSS APPROPRIATION.......................................................................................................... $ 18,416,800

Appropriated from:

Interdepartmental grant revenues:

IDG from MDTMB, civil service commission............................................................................ 141,100

IDG from MDLARA, liquor purchase revolving fund................................................................. 14,500

IDG from MDOT, comprehensive transportation fund................................................................ 32,900

IDG from MDOT, Michigan transportation fund......................................................................... 267,400

IDG from MDOT, state aeronautics fund..................................................................................... 25,600

IDG from MDOT, state trunkline fund........................................................................................ 620,700

IDG, single audit act.................................................................................................................... 2,630,900

Special revenue funds:

21st century jobs fund.................................................................................................................. 60,600

Clean Michigan initiative implementation bond fund.................................................................. 46,400

Commercial mobile radio system emergency telephone fund...................................................... 46,400

Contract audit administration fees................................................................................................ 65,200

Correctional industries revolving fund......................................................................................... 38,500

Fee adequacy, air quality delegated authority.............................................................................. 11,800

Game and fish protection fund..................................................................................................... 26,500

Legislative retirement system....................................................................................................... 23,000

Michigan economic development corporation.............................................................................. 65,700

Michigan education trust fund...................................................................................................... 37,100

Michigan justice training commission fund................................................................................. 34,800

Michigan state housing development authority fees.................................................................... 27,300

Michigan strategic fund................................................................................................................ 107,700

Michigan tobacco settlement authority......................................................................................... 32,600

Michigan veterans’ trust fund...................................................................................................... 30,000

Motor transport revolving fund.................................................................................................... 6,400

Office services revolving fund..................................................................................................... 8,400

State disbursement unit, office of child support........................................................................... 33,300

State services fee fund.................................................................................................................. 1,152,400

Waterways fund............................................................................................................................ $ 9,500

State general fund/general purpose.............................................................................................. $ 12,820,100

(7) ONE-TIME BASIS ONLY APPROPRIATIONS - AUDITOR GENERAL

State employee lump-sum payments............................................................................................ $ 270,900

GROSS APPROPRIATION.......................................................................................................... $ 270,900

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant revenues................................................................................................. 59,000

Special revenue funds:

State restricted revenues............................................................................................................... 27,100

State general fund/general purpose.............................................................................................. $ 184,800

Sec. 106. DEPARTMENT OF STATE

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions..........................................................................1,689.0

GROSS APPROPRIATION.......................................................................................................... $ 220,669,300

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 20,000,000

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 200,669,300

Federal revenues:

Total federal revenues................................................................................................................... 1,810,000

Special revenue funds:

Total local revenues...................................................................................................................... 0

Total private revenues................................................................................................................... 100

Total other state restricted revenues............................................................................................. 183,971,100

State general fund/general purpose.............................................................................................. $ 14,888,100

State general fund/general purpose schedule:

Ongoing state general fund/general purpose..........................................................13,853,200

One-time state general fund/general purpose...........................................................1,034,900

(2) EXECUTIVE DIRECTION

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions...............................................................................30.0

Secretary of state.......................................................................................................................... $ 112,500

Unclassified positions—5.0 FTE positions.................................................................................. 700,000

Operations—30.0 FTE positions.................................................................................................. 3,807,600

GROSS APPROPRIATION.......................................................................................................... $ 4,620,100

Appropriated from:

Special revenue funds:

Auto repair facilities fees............................................................................................................. 69,200

Driver fees.................................................................................................................................... 254,200

Expedient service fees.................................................................................................................. 66,800

Parking ticket court fines.............................................................................................................. 9,300

Personal identification card fees.................................................................................................. 29,900

Reinstatement fees - operator licenses......................................................................................... 234,000

Transportation administration collection fund.............................................................................. 2,363,600

Vehicle theft prevention fees........................................................................................................ 40,700

State general fund/general purpose.............................................................................................. $ 1,552,400

(3) DEPARTMENT SERVICES

Full-time equated classified positions.............................................................................157.0

Operations—150.0 FTE positions................................................................................................ $ 23,108,200

Assigned claims assessments—7.0 FTE positions....................................................................... 1,098,600

GROSS APPROPRIATION.......................................................................................................... $ 24,206,800

Appropriated from:

Special revenue funds:

Abandoned vehicle fees................................................................................................................ 481,900

Assigned claims assessments....................................................................................................... $ 1,098,600

Auto repair facilities fees............................................................................................................. 426,700

Driver improvement course fund.................................................................................................. 309,200

Child support clearance fees........................................................................................................ 35,200

Driver fees.................................................................................................................................... 786,100

Expedient service fees.................................................................................................................. 264,100

Marine safety fund....................................................................................................................... 81,900

Off-road vehicle title fees............................................................................................................. 8,200

Parking ticket court fines.............................................................................................................. 54,300

Personal identification card fees.................................................................................................. 122,600

Reinstatement fees - operator licenses......................................................................................... 705,800

Scrap tire fund.............................................................................................................................. 75,100

Snowmobile registration fee revenue........................................................................................... 18,300

Transportation administration collection fund.............................................................................. 19,337,400

Vehicle theft prevention fees........................................................................................................ 250,300

State general fund/general purpose.............................................................................................. $ 151,100

(4) REGULATORY SERVICES

Full-time equated classified positions.............................................................................175.5

Operations—173.5 FTE positions................................................................................................ $ 19,888,100

Motorcycle safety education administration—2.0 FTE positions................................................ 321,800

Motorcycle safety education grants.............................................................................................. 1,500,000

GROSS APPROPRIATION.......................................................................................................... $ 21,709,900

Appropriated from:

Special revenue funds:

Auto repair facilities fees............................................................................................................. 4,265,300

Driver education provider and instructor fund............................................................................. 75,100

Driver fees.................................................................................................................................... 2,615,700

Expedient service fees.................................................................................................................. 36,200

Motorcycle safety fund................................................................................................................. 1,821,800

Notary fee fund............................................................................................................................ 14,100

Parking ticket court fines.............................................................................................................. 21,300

Personal identification card fees.................................................................................................. 108,100

Reinstatement fees - operator licenses......................................................................................... 2,108,200

Transportation administration collection fund.............................................................................. 9,262,700

Vehicle theft prevention fees........................................................................................................ 1,369,600

State general fund/general purpose.............................................................................................. $ 11,800

(5) CUSTOMER DELIVERY SERVICES

Full-time equated classified positions..........................................................................1,283.5

Branch operations—909.5 FTE positions..................................................................................... $ 80,202,300

Central operations—347.0 FTE positions.................................................................................... 41,528,500

Commemorative license plates—24.0 FTE positions................................................................... 2,147,300

Credit and debit assessment service fees..................................................................................... 5,000,000

Specialty license plates—3.0 FTE positions................................................................................ 1,000,000

Olympic center plate.................................................................................................................... 75,700

Organ donor program................................................................................................................... 79,100

GROSS APPROPRIATION.......................................................................................................... $ 130,032,900

Appropriated from:

Interdepartmental grant revenues:

IDG from MDOT, Michigan transportation fund......................................................................... 20,000,000

Federal revenues:

Federal funds................................................................................................................................ 1,460,000

Special revenue funds:

Private funds................................................................................................................................. 100

Abandoned vehicle fees................................................................................................................ 204,800

Driver improvement course fund.................................................................................................. 1,248,400

Auto repair facilities fees............................................................................................................. $ 100,400

Child support clearance fees........................................................................................................ 311,700

Credit and debit assessment service fees..................................................................................... 5,000,000

Driver fees.................................................................................................................................... 24,849,900

Expedient service fees.................................................................................................................. 2,555,800

Enhanced driver license and enhanced official state personal identification card fund............... 5,302,300

Marine safety fund....................................................................................................................... 1,355,700

Michigan state police auto theft fund........................................................................................... 123,700

Mobile home commission fees..................................................................................................... 508,200

Off-road vehicle title fees............................................................................................................. 152,200

Parking ticket court fines.............................................................................................................. 1,545,400

Personal identification card fees.................................................................................................. 2,205,000

Recreation passport fee................................................................................................................ 1,000,000

Reinstatement fees - operator licenses......................................................................................... 1,554,400

Snowmobile registration fee revenue........................................................................................... 372,000

Transportation administration collection fund.............................................................................. 57,876,800

Vehicle theft prevention fees........................................................................................................ 218,900

State general fund/general purpose.............................................................................................. $ 2,087,200

(6) ELECTION REGULATION

Full-time equated classified positions...............................................................................43.0

Election administration and services—43.0 FTE positions.......................................................... $ 6,020,000

County clerk education and training fund.................................................................................... 100,000

Help America vote act.................................................................................................................. 350,000

Fees to local units........................................................................................................................ 109,800

GROSS APPROPRIATION.......................................................................................................... $ 6,579,800

Appropriated from:

Federal revenues:

Federal funds - HAVA HHS......................................................................................................... 350,000

Special revenue funds:

Notary education and training fund.............................................................................................. 100,000

Notary fee fund............................................................................................................................ 330,000

State general fund/general purpose.............................................................................................. $ 5,799,800

(7) DEPARTMENTWIDE APPROPRIATIONS

Building occupancy charges/rent.................................................................................................. $ 9,686,400

Worker’s compensation................................................................................................................. 290,200

GROSS APPROPRIATION.......................................................................................................... $ 9,976,600

Appropriated from:

Special revenue funds:

Auto repair facilities fees............................................................................................................. 135,300

Driver fees.................................................................................................................................... 728,800

Expedient service fees.................................................................................................................. 26,000

Parking ticket court fines.............................................................................................................. 447,500

Transportation administration collection fund.............................................................................. 5,923,700

State general fund/general purpose.............................................................................................. $ 2,715,300

(8) INFORMATION TECHNOLOGY

Information technology services and projects.............................................................................. $ 21,248,800

GROSS APPROPRIATION.......................................................................................................... $ 21,248,800

Appropriated from:

Special revenue funds:

Administrative order processing fee............................................................................................. 11,600

Auto repair facilities fees............................................................................................................. 186,100

Child support clearance fees........................................................................................................ 16,900

Driver fees.................................................................................................................................... 771,000

Expedient service fees.................................................................................................................. 1,063,000

Parking ticket court fines.............................................................................................................. 85,800

Personal identification card fees.................................................................................................. $ 166,200

Reinstatement fees - operator licenses......................................................................................... 580,400

Transportation administration collection fund.............................................................................. 16,655,000

Vehicle theft prevention fees........................................................................................................ 177,200

State general fund/general purpose.............................................................................................. $ 1,535,600

(9) ONE-TIME BASIS ONLY APPROPRIATIONS

State employee lump-sum payments............................................................................................ $ 1,544,400

Executive direction....................................................................................................................... 150,000

Central operations......................................................................................................................... 600,000

GROSS APPROPRIATION.......................................................................................................... $ 2,294,400

Appropriated from:

Special revenue funds:

State restricted revenues............................................................................................................... 1,259,500

State general fund/general purpose.............................................................................................. $ 1,034,900

Sec. 107. DEPARTMENT OF TECHNOLOGY, MANAGEMENT, AND BUDGET

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions..........................................................................2,808.0

GROSS APPROPRIATION.......................................................................................................... $ 1,142,973,600

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 635,564,900

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 507,408,700

Federal revenues:

Total federal revenues................................................................................................................... 9,464,300

Special revenue funds:

Total local revenues...................................................................................................................... 1,320,800

Total private revenues................................................................................................................... 190,200

Total other state restricted revenues............................................................................................. 90,517,200

State general fund/general purpose.............................................................................................. $ 405,916,200

State general fund/general purpose schedule:

Ongoing state general fund/general purpose.........................................................384,124,000

One-time state general fund/general purpose.........................................................21,792,200

(2) EXECUTIVE DIRECTION

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions...............................................................................12.0

Unclassified positions—6.0 FTE positions.................................................................................. $ 796,500

Executive operations—12.0 FTE positions.................................................................................. 1,997,900

GROSS APPROPRIATION.......................................................................................................... $ 2,794,400

Appropriated from:

Interdepartmental grant revenues:

IDG from building occupancy and parking charges..................................................................... 178,200

IDG from technology user fees.................................................................................................... 1,537,600

Special revenue funds:

Special revenue, internal service, and pension trust funds........................................................... 267,500

State general fund/general purpose.............................................................................................. $ 811,100

(3) DEPARTMENT SERVICES

Full-time equated classified positions.............................................................................714.5

Administrative services—134.5 FTE positions............................................................................ $ 16,376,300

Budget and financial management—135.0 FTE positions........................................................... 16,685,200

Office of the state employer—23.0 FTE positions....................................................................... 3,233,100

Design and construction services—40.0 FTE positions............................................................... 6,376,700

Business support services—95.0 FTE positions........................................................................... 10,040,300

Building operation services—210.0 FTE positions...................................................................... 89,263,600

Building occupancy charges, rent, and utilities............................................................................ 5,095,800

Motor vehicle fleet—35.0 FTE positions..................................................................................... 57,624,000

Information technology services and projects.............................................................................. $ 27,443,500

Bureau of labor market information and strategies—42.0 FTE positions.................................... 5,587,900

GROSS APPROPRIATION.......................................................................................................... $ 237,726,400

Appropriated from:

Interdepartmental grant revenues:

IDG from accounting service centers user charges...................................................................... 2,716,100

IDG from building occupancy and parking charges..................................................................... 91,927,000

IDG from MDLARA.................................................................................................................... 100,000

IDG from motor transport fund.................................................................................................... 57,624,000

IDG from MDCH......................................................................................................................... 470,900

IDG from MDHS.......................................................................................................................... 203,200

IDG from user fees....................................................................................................................... 6,489,300

IDG from technology user fees.................................................................................................... 7,437,000

Federal revenues:

Federal funds................................................................................................................................ 5,930,200

Special revenue funds:

Deferred compensation................................................................................................................. 2,600

Health management funds............................................................................................................ 2,122,400

MAIN user charges...................................................................................................................... 4,404,400

Pension trust funds....................................................................................................................... 7,060,700

Special revenue, internal service, and pension trust funds........................................................... 16,351,900

State building authority revenue................................................................................................... 686,000

State restricted indirect funds....................................................................................................... 2,874,500

State general fund/general purpose.............................................................................................. $ 31,326,200

(4) TECHNOLOGY SERVICES

Full-time equated classified positions..........................................................................1,459.5

Education services—29.0 FTE positions...................................................................................... $ 3,815,800

Health and human services—617.5 FTE positions...................................................................... 261,710,500

Public protection—254.5 FTE positions...................................................................................... 61,653,600

Resources services—146.5 FTE positions................................................................................... 18,389,500

Transportation services—89.5 FTE positions............................................................................... 29,547,400

General services—322.5 FTE positions....................................................................................... 82,075,300

Information technology innovation fund...................................................................................... 2,500,000

Enterprisewide information technology investments.................................................................... 47,000,000

GROSS APPROPRIATION.......................................................................................................... $ 506,692,100

Appropriated from:

Interdepartmental grant revenues:

IDG from technology user fees.................................................................................................... 457,192,100

State general fund/general purpose.............................................................................................. $ 49,500,000

(5) STATEWIDE APPROPRIATIONS

Professional development fund - MPE, SEIU, scientific and engineering unit........................... $ 125,000

Professional development fund - AFSCME................................................................................. 50,000

GROSS APPROPRIATION.......................................................................................................... $ 175,000

Appropriated from:

Interdepartmental grant revenues:

IDG from employer contributions................................................................................................ 175,000

State general fund/general purpose.............................................................................................. $ 0

(6) SPECIAL PROGRAMS

Full-time equated classified positions.............................................................................172.0

Building occupancy charges - property management services for executive/legislative building

occupancy................................................................................................................................. $ 1,138,600

Retirement services—162.0 FTE positions.................................................................................. 23,922,300

Office of children’s ombudsman—10.0 FTE positions................................................................ 1,194,000

GROSS APPROPRIATION.......................................................................................................... $ 26,254,900

Appropriated from:

Special revenue funds:

Deferred compensation................................................................................................................. $ 1,542,400

Pension trust funds....................................................................................................................... 18,398,200

State general fund/general purpose.............................................................................................. $ 6,314,300

(7) STATE BUILDING AUTHORITY RENT

State building authority rent - state agencies............................................................................... $ 68,305,800

State building authority rent - department of corrections............................................................ 47,379,900

State building authority rent - universities................................................................................... 117,225,300

State building authority rent - community colleges..................................................................... 23,959,600

GROSS APPROPRIATION.......................................................................................................... $ 256,870,600

Appropriated from:

State general fund/general purpose.............................................................................................. $ 256,870,600

(8) CIVIL SERVICE COMMISSION

Full-time equated classified positions.............................................................................450.0

Agency services—81.5 FTE positions......................................................................................... $ 12,176,300

Executive direction—32.5 FTE positions..................................................................................... 9,134,500

Employee benefits—16.0 FTE positions...................................................................................... 5,587,900

Training........................................................................................................................................ 1,300,000

Human resources operations—320.0 FTE positions.................................................................... 34,394,200

Information technology services and projects.............................................................................. 4,187,100

GROSS APPROPRIATION.......................................................................................................... $ 66,780,000

Appropriated from:

Interdepartmental grant revenues:

IDG, training charges................................................................................................................... 1,300,000

IDG, 1% special funds................................................................................................................. 3,110,400

Federal revenues:

Federal funds 1%.......................................................................................................................... 3,107,400

Special revenue funds:

Local funds 1%............................................................................................................................ 1,320,800

Private funds 1%.......................................................................................................................... 190,200

State restricted funds 1%.............................................................................................................. 21,182,700

State restricted indirect funds....................................................................................................... 6,789,100

State sponsored group insurance.................................................................................................. 2,743,100

State sponsored group insurance, flexible spending accounts and COBRA................................ 5,734,500

State general fund/general purpose.............................................................................................. $ 21,301,800

(9) CAPITAL OUTLAY

Major special maintenance, remodeling, and additions for state agencies.................................. $ 2,000,000

Enterprisewide special maintenance for state facilities................................................................ 18,000,000

GROSS APPROPRIATION.......................................................................................................... $ 20,000,000

Appropriated from:

Interdepartmental grant revenues:

IDG from building occupancy charges......................................................................................... 2,000,000

State general fund/general purpose.............................................................................................. $ 18,000,000

(10) ONE-TIME BASIS ONLY APPROPRIATIONS

State employee lump-sum payments............................................................................................ $ 4,680,200

Special maintenance, remodeling and addition - state facilities.................................................. 10,000,000

Space consolidation fund.............................................................................................................. 7,000,000

Teacher evaluation pilot program................................................................................................. 4,000,000

GROSS APPROPRIATION.......................................................................................................... $ 25,680,200

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant revenues................................................................................................. 3,104,100

Federal revenues:

Federal Funds............................................................................................................................... 426,700

Special revenue funds:

State restricted revenues............................................................................................................... $ 357,200

State general fund/general purpose.............................................................................................. $ 21,792,200

Sec. 108. DEPARTMENT OF TREASURY

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions...........................................................................10.0

Full-time equated classified positions..........................................................................2,522.5

GROSS APPROPRIATION.......................................................................................................... $ 2,711,374,700

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 8,899,400

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 2,702,475,300

Federal revenues:

Total federal revenues................................................................................................................... 698,385,900

Special revenue funds:

Total local revenues...................................................................................................................... 6,686,200

Total private revenues................................................................................................................... 5,380,000

Total other state restricted revenues............................................................................................. 1,594,934,100

State general fund/general purpose.............................................................................................. $ 397,089,100

State general fund/general purpose schedule:

Ongoing state general fund/general purpose.........................................................343,636,700

One-time state general fund/general purpose.........................................................53,452,400

(2) EXECUTIVE DIRECTION

Full-time equated unclassified positions...........................................................................10.0

Full-time equated classified positions.................................................................................5.0

Unclassified positions—10.0 FTE positions................................................................................ $ 924,000

Office of the director—5.0 FTE positions................................................................................... 1,497,400

GROSS APPROPRIATION.......................................................................................................... $ 2,421,400

Appropriated from:

Federal revenues:

DED-OPSE, federal lenders allowance........................................................................................ 20,000

DED-OPSE, higher education act of 1965, insured loans........................................................... 45,000

Special revenue funds:

State lottery fund.......................................................................................................................... 255,700

State services fee fund.................................................................................................................. 459,300

State general fund/general purpose.............................................................................................. $ 1,641,400

(3) DEPARTMENTWIDE APPROPRIATIONS

Travel............................................................................................................................................ $ 1,209,500

Rent and building occupancy charges - property management services...................................... 5,488,300

Worker’s compensation insurance premium................................................................................. 158,600

GROSS APPROPRIATION.......................................................................................................... $ 6,856,400

Appropriated from:

Special revenue funds:

Delinquent tax collection revenue................................................................................................ 3,885,000

State general fund/general purpose.............................................................................................. $ 2,971,400

(4) LOCAL GOVERNMENT PROGRAMS

Full-time equated classified positions.............................................................................100.0

Supervision of the general property tax law—75.0 FTE positions.............................................. $ 20,614,500

Property tax assessor training—4.0 FTE positions...................................................................... 509,100

Local finance—21.0 FTE positions.............................................................................................. 2,449,900

GROSS APPROPRIATION.......................................................................................................... $ 23,573,500

Appropriated from:

Federal revenues:

Special revenue funds:

Local - assessor training fees....................................................................................................... 1,344,100

Local - audit charges.................................................................................................................... 768,600

Local - equalization study chargebacks........................................................................................ $ 40,000

Local - revenue from local government....................................................................................... 100,000

Delinquent tax collection revenue................................................................................................ 1,448,400

Land reutilization fund................................................................................................................. 5,156,300

Municipal finance fees................................................................................................................. 521,400

Public private partnership investment fund.................................................................................. 1,513,700

State general fund/general purpose.............................................................................................. $ 12,681,000

(5) TAX PROGRAMS

Full-time equated classified positions.............................................................................812.0

Customer contact—108.0 FTE positions...................................................................................... $ 10,911,900

Tax compliance—333.0 FTE positions........................................................................................ 41,669,100

Tax and economic policy—121.0 FTE positions......................................................................... 15,020,600

Tax processing—148.0 FTE positions.......................................................................................... 15,943,400

Tax plan implementation—74.0 FTE positions............................................................................ 10,861,600

Health insurance claims fund—15.0 FTE positions..................................................................... 1,948,400

Home heating assistance.............................................................................................................. 2,887,300

Bottle act implementation............................................................................................................ 250,000

Tobacco tax enforcement—13.0 FTE positions........................................................................... 1,500,000

GROSS APPROPRIATION.......................................................................................................... $ 100,992,300

Appropriated from:

Interdepartmental grant revenues:

IDG, data/collection services fees................................................................................................ 50,900

IDG from MDOT, Michigan transportation fund......................................................................... 2,500,000

IDG from MDOT, state aeronautics fund..................................................................................... 68,700

Federal revenues:

HHS-SSA, low-income energy assistance.................................................................................... 2,887,300

Special revenue funds:

Bottle deposit fund....................................................................................................................... 250,000

Delinquent tax collection revenue................................................................................................ 71,857,500

Emergency 911 fund..................................................................................................................... 148,800

Health insurance claims assessment fund.................................................................................... 1,948,400

Tobacco tax revenue..................................................................................................................... 975,600

Waterways fund............................................................................................................................ 101,700

State general fund/general purpose.............................................................................................. $ 20,203,400

(6) BANKING AND MANAGEMENT SERVICES

Full-time equated classified positions.............................................................................341.0

Department and budget services—51.0 FTE positions................................................................ $ 4,799,600

Unclaimed property—26.0 FTE positions.................................................................................... 4,614,800

Collections—203.0 FTE positions................................................................................................ 26,040,300

Finance and accounting—23.0 FTE positions.............................................................................. 2,201,900

Receipts processing—38.0 FTE positions.................................................................................... 4,006,700

GROSS APPROPRIATION.......................................................................................................... $ 41,663,300

Appropriated from:

Interdepartmental grant revenues:

IDG from accounting service center user charges....................................................................... 454,600

IDG from MDHS, title IV-D........................................................................................................ 735,900

IDG, levy/warrant cost assessment fees....................................................................................... 2,000,000

IDG, state agency collection fees................................................................................................. 2,513,500

IDG, data/collection services fees................................................................................................ 229,600

Special revenue funds:

Delinquent tax collection revenue................................................................................................ 23,274,100

Escheats revenue........................................................................................................................... 4,614,900

Garnishment fees.......................................................................................................................... 2,405,200

Justice system fund...................................................................................................................... 696,100

State restricted indirect funds....................................................................................................... 258,500

Treasury fees................................................................................................................................ $ 43,900

State general fund/general purpose.............................................................................................. $ 4,437,000

(7) FINANCIAL PROGRAMS

Full-time equated classified positions.............................................................................207.5

Investments—82.0 FTE positions................................................................................................. $ 19,147,400

John R. Justice grant program...................................................................................................... 287,000

Common cash and debt management—22.5 FTE positions......................................................... 1,542,800

Dual enrollment payments............................................................................................................ 10,000,000

Student financial assistance programs—30.5 FTE positions........................................................ 3,818,600

Michigan finance authority - bond finance programs—72.5 FTE positions................................ 38,032,400

GROSS APPROPRIATION.......................................................................................................... $ 72,828,200

Appropriated from:

Interdepartmental grant revenues:

IDG, fiscal agent service fees...................................................................................................... 195,800

Federal revenues:

DED-OPSE, federal lenders allowance........................................................................................ 11,332,300

DED-OPSE, higher education act of 1965, insured loans........................................................... 25,025,400

Federal - John R. Justice grant..................................................................................................... 287,000

Special revenue funds:

Defined contribution administrative fee revenue.......................................................................... 100,000

MFA, bond and loan program revenue......................................................................................... 2,918,000

Michigan merit award trust fund.................................................................................................. 1,092,500

Retirement funds.......................................................................................................................... 17,827,200

School bond fees.......................................................................................................................... 791,300

Treasury fees................................................................................................................................ 1,421,800

State general fund/general purpose.............................................................................................. $ 11,836,900

(8) DEBT SERVICE

Water pollution control bond and interest redemption................................................................. $ 2,054,000

Quality of life bond...................................................................................................................... 77,694,800

Clean Michigan initiative............................................................................................................. 54,300,900

Great Lakes water quality bond................................................................................................... 6,505,200

GROSS APPROPRIATION.......................................................................................................... $ 140,554,900

Appropriated from:

Special revenue funds:

Refined petroleum fund................................................................................................................ 5,514,500

State general fund/general purpose.............................................................................................. $ 135,040,400

(9) GRANTS

Convention facility development distribution............................................................................... $ 74,850,000

Senior citizen cooperative housing tax exemption program......................................................... 12,020,000

Emergency 911 payments............................................................................................................. 27,000,000

Facility for rare isotope beams..................................................................................................... 2,339,900

Health and safety fund grants....................................................................................................... 9,000,000

Community college renaissance zone reimbursement.................................................................. 3,500,000

GROSS APPROPRIATION.......................................................................................................... $ 128,709,900

Appropriated from:

Special revenue funds:

Emergency 911 fund..................................................................................................................... 27,000,000

Convention facility development fund.......................................................................................... 74,850,000

Health and safety fund................................................................................................................. 9,000,000

State general fund/general purpose.............................................................................................. $ 17,859,900

(10) BUREAU OF STATE LOTTERY

Full-time equated classified positions.............................................................................183.0

Lottery operations—183.0 FTE positions.................................................................................... $ 23,294,500

Promotion and advertising............................................................................................................ 18,622,000

Lottery information technology services and projects................................................................. 5,083,600

GROSS APPROPRIATION.......................................................................................................... $ 47,000,100

Appropriated from:

Special revenue funds:

State lottery fund.......................................................................................................................... $ 47,000,100

State general fund/general purpose.............................................................................................. $ 0

(11) CASINO GAMING

Full-time equated classified positions.............................................................................126.0

Michigan gaming control board................................................................................................... $ 50,000

Casino gaming control administration—116.0 FTE positions..................................................... 24,437,100

Casino gaming information technology services and projects..................................................... 1,743,600

Racing commission—10.0 FTE positions.................................................................................... 2,352,200

GROSS APPROPRIATION.......................................................................................................... $ 28,582,900

Appropriated from:

Casino gambling agreements........................................................................................................ 719,300

Equine development fund............................................................................................................. 2,475,200

Laboratory fees............................................................................................................................. 700,000

State services fee fund.................................................................................................................. 24,688,400

State general fund/general purpose.............................................................................................. $ 0

(12) PAYMENTS IN LIEU OF TAXES

Commercial forest reserve............................................................................................................ $ 2,334,100

Purchased lands............................................................................................................................ 5,695,500

Swamp and tax reverted lands...................................................................................................... 6,227,300

GROSS APPROPRIATION.......................................................................................................... $ 14,256,900

Appropriated from:

Special revenue funds:

Game and fish protection fund..................................................................................................... 1,475,000

Michigan natural resources trust fund.......................................................................................... 2,505,500

Michigan state waterways fund.................................................................................................... 120,000

State general fund/general purpose.............................................................................................. $ 10,156,400

(13) MICHIGAN STRATEGIC FUND

Full-time equated classified positions.............................................................................401.0

Administration—22.0 FTE positions............................................................................................ $ 2,989,200

Job creation services—137.0 FTE positions................................................................................ 18,124,400

Pure Michigan.............................................................................................................................. 25,000,000

Innovation and entrepreneurship.................................................................................................. 25,000,000

Business attraction and economic gardening............................................................................... 100,000,000

Community ventures..................................................................................................................... 10,000,000

Michigan film office—6.0 FTE positions.................................................................................... 859,400

Community development block grants......................................................................................... 47,000,000

Arts and cultural program............................................................................................................ 6,150,000

GEAR-UP program grants............................................................................................................ 3,000,000

Carl D. Perkins grants.................................................................................................................. 19,000,000

Adult basic education................................................................................................................... 20,000,000

Adult education—16.0 FTE positions.......................................................................................... 2,751,100

Bureau of energy systems............................................................................................................ 4,610,900

Postsecondary education—9.0 FTE positions.............................................................................. 2,738,700

Employment services—125.0 FTE positions............................................................................... 48,999,200

Wage and hour division—1.0 FTE position................................................................................. 132,300

Workforce development agency administrative services—22.0 FTE positions............................ 1,740,100

Workforce program administration—57.0 FTE positions............................................................ 13,848,200

Workforce training programs........................................................................................................ 250,798,500

Welfare-to-work programs............................................................................................................ 93,158,800

Workforce development agency rent and property management.................................................. 1,070,400

Land bank fast track authority - bond finance—6.0 FTE positions............................................. 2,993,900

Information technology services and projects.............................................................................. 2,951,400

GROSS APPROPRIATION.......................................................................................................... $ 702,916,500

Appropriated from:

Interdepartmental grant revenues:

IDG, MDEQ, air quality fees....................................................................................................... $ 37,600

Federal revenues:

DAG, employment and training.................................................................................................... 7,308,500

DED-OESE, GEAR-UP................................................................................................................ 3,000,000

DED-OSERS, rehabilitation services, vocational rehabilitation state grants............................... 1,497,300

DED-OVAE, adult education........................................................................................................ 20,000,000

DED-OVAE, basic grants to states............................................................................................... 19,000,000

DOE-OEERE, multiple grants...................................................................................................... 4,796,800

DOL-ETA, workforce investment act........................................................................................... 184,003,300

DOL, federal funds....................................................................................................................... 127,237,700

Federal funds................................................................................................................................ 7,179,000

Social security act, temporary assistance to needy families........................................................ 64,898,800

NFAH-NEA, promotion of the arts, partnership agreements....................................................... 1,050,000

HUD-CPD, community development block grant........................................................................ 49,780,700

U.S. EPA revolving loan fund...................................................................................................... 1,000,000

Special revenue funds:

Local revenues.............................................................................................................................. 4,433,500

Private funds................................................................................................................................. 5,000,000

Private - oil overcharge................................................................................................................ 30,000

Private - special project advances................................................................................................ 250,000

Private - Michigan council for the arts fund................................................................................ 100,000

Industry support fees.................................................................................................................... 5,500

Defaulted loan collection fees...................................................................................................... 100,000

Land bank fast track fund............................................................................................................ 2,151,400

Michigan film promotion fund..................................................................................................... 631,000

Public utility assessments............................................................................................................. 864,700

21st century jobs trust fund.......................................................................................................... 75,000,000

State general fund/general purpose.............................................................................................. $ 123,560,700

(14) REVENUE SHARING

Constitutional state general revenue sharing grants..................................................................... $ 725,496,300

County incentive program............................................................................................................ 23,620,000

County revenue sharing................................................................................................................ 104,480,000

Economic vitality incentive program........................................................................................... 217,500,000

Competitive grant assistance program.......................................................................................... 5,000,000

GROSS APPROPRIATION.......................................................................................................... $ 1,076,096,300

Appropriated from:

Sales tax....................................................................................................................................... 1,076,096,300

State general fund/general purpose.............................................................................................. $ 0

(15) MICHIGAN STRATEGIC FUND - MICHIGAN STATE HOUSING

DEVELOPMENT AUTHORITY

Full-time equated classified positions.............................................................................347.0

Payments on behalf of tenants..................................................................................................... $ 166,860,000

Housing and rental assistance—322.0 FTE positions.................................................................. 52,588,900

State historic preservation programs—25.0 FTE positions.......................................................... 3,411,500

Lighthouse preservation program................................................................................................. 307,500

Rent and administrative support................................................................................................... 3,846,100

Michigan state housing development authority technology services and projects....................... 3,368,200

GROSS APPROPRIATION.......................................................................................................... $ 230,382,200

Appropriated from:

Federal revenues:

HUD, lower income housing assistance....................................................................................... 166,860,000

Special revenue funds:

Michigan state housing development authority fees and charges................................................ 63,214,700

Michigan lighthouse preservation fund........................................................................................ $ 307,500

State general fund/general purpose.............................................................................................. $ 0

(16) INFORMATION TECHNOLOGY

Treasury operations information technology services and projects............................................. $ 17,661,500

GROSS APPROPRIATION.......................................................................................................... $ 17,661,500

Appropriated from:

Interdepartmental grant revenues:

Federal revenues:

DED-OPSE, federal lenders allowance........................................................................................ 596,600

Special revenue funds:

Delinquent tax collection revenue................................................................................................ 12,960,300

Tobacco tax revenue..................................................................................................................... 125,600

Retirement funds.......................................................................................................................... 730,800

State general fund/general purpose.............................................................................................. $ 3,248,200

(17) ONE-TIME BASIS ONLY APPROPRIATIONS

Competitive grant assistance program.......................................................................................... $ 10,000,000

County incentive program............................................................................................................ 2,500,000

Economic vitality incentive program........................................................................................... 7,500,000

MSF - film incentives................................................................................................................... 50,000,000

MSF and MSHDA, state employee lump-sum payments............................................................. 1,135,700

Treasury, legal services................................................................................................................ 3,000,000

Treasury, state employee lump-sum payments............................................................................. 2,742,700

GROSS APPROPRIATION.......................................................................................................... $ 76,878,400

Appropriated from:

Interdepartmental grant revenues:

IDG, state agency funds to treasury............................................................................................. 112,800

Federal revenues:

Federal funds, MSF...................................................................................................................... 408,500

Federal funds, treasury................................................................................................................. 171,700

Special revenue funds:

Sales tax....................................................................................................................................... 20,000,000

State restricted funds, MSF.......................................................................................................... 54,700

State restricted funds, MSHDA.................................................................................................... 531,600

State restricted funds, treasury..................................................................................................... 2,146,700

State general fund/general purpose.............................................................................................. $ 53,452,400

PART 2

PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2012-2013

GENERAL SECTIONS

Sec. 201. (1) 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 2012-2013 is $2,880,795,100.00 and state spending from state resources to be paid to local units of government for fiscal year 2012-2013 is $1,267,847,600.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF STATE

Fees to local units........................................................................................................................ $ 109,800

Motorcycle safety grants.............................................................................................................. 1,251,000

Subtotal......................................................................................................................................... $ 1,360,800

DEPARTMENT OF TREASURY

Senior citizen cooperative housing tax exemption....................................................................... $ 12,020,000

Health and safety fund grants....................................................................................................... 9,000,000

Constitutional state general revenue sharing grants..................................................................... 725,496,300

Economic vitality incentive program........................................................................................... 225,000,000

Convention facility development fund distribution...................................................................... 74,850,000

Emergency 9-1-1 payments.......................................................................................................... 27,000,000

Community college renaissance zone reimbursement.................................................................. 3,500,000

Competitive grant assistance program.......................................................................................... 15,000,000

County incentive program............................................................................................................ 26,120,000

County revenue sharing payments................................................................................................ 104,480,000

Airport parking distribution pursuant to section 909................................................................... 14,539,800

Payments in lieu of taxes............................................................................................................. 14,256,900

Welfare-to-work programs............................................................................................................ 15,224,800

Subtotal......................................................................................................................................... $ 1,266,487,800

TOTAL GENERAL GOVERNMENT.......................................................................................... $ 1,267,847,600

(2) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources for fiscal year 2012-2013 is estimated at $27,543,124,300.00 in the 2012-2013 appropriations acts and total state spending from state sources paid to local units of government for fiscal year 2012-2013 is estimated at $15,085,108,300.00. The state-local proportion is estimated at 54.8% of total state spending from state resources.

(3) If payments to local units of government and state spending from state sources for fiscal year 2012-2013 are different than the amounts estimated in subsection (2), the state budget director shall report the payments to local units of government and state spending from state sources that were made for fiscal year 2012-2013 to the senate and house of representatives standing committees on appropriations within 30 days after the final book-closing for fiscal year 2012-2013.

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

Sec. 203. As used in this act:

(a) “AFSCME” means American federation of state, county, and municipal employees.

(b) “ATM” means automated teller machine.

(c) “CDBG” means community development block grants.

(d) “COBRA” means the consolidated omnibus budget reconciliation act of 1985, Public Law 99-272, 100 Stat. 82.

(e) “CPI” means consumer price index.

(f) “DAG” means the United States department of agriculture.

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

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

(i) “DED-OPSE” means the DED, office of postsecondary education.

(j) “DED-OSERS” means the DED office of special education rehabilitation services.

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

(l) “DOE-OEERE” means the United States department of energy, office of energy efficiency and renewable energy.

(m) “DOI-NPS” means the United State department of interior, national park service.

(n) “DOL-ETA” means the United States department of labor, employment and training administration.

(o) “DOL-OSHA” means the United States department of labor, occupational safety and health administration.

(p) “EEOC” means the United States equal employment opportunity commission.

(q) “EPA” means the United States environmental protection agency.

(r) “FTE” means full-time equated.

(s) “Fund” means the Michigan strategic fund.

(t) “GEAR-UP” means gaining early awareness and readiness for undergraduate programs.

(u) “GF/GP” means general fund/general purpose.

(v) “HAVA” means help America vote act.

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

(x) “HHS-OS” means the HHS office of the secretary.

(y) “HHS-SSA” means the HHS social security administration.

(z) “HUD” means the United States department of housing and urban development.

(aa) “HUD-CPD” means the United States department of housing and urban development – community planning and development.

(bb) “IDG” means interdepartmental grant.

(cc) “IDT” means intradepartmental transfer.

(dd) “JCOS” means the joint capital outlay subcommittee.

(ee) “MAIN” means the Michigan administrative information network.

(ff) “MCL” means the Michigan Compiled Laws.

(gg) “MDCH” means the Michigan department of community health.

(hh) “MDE” means the Michigan department of education.

(ii) “MDLARA” means the Michigan department of licensing and regulatory affairs.

(jj) “MDEQ” means the Michigan department of environmental quality.

(kk) “MDHS” means the Michigan department of human services.

(ll) “MDMVA” means the Michigan department of military and veterans affairs.

(mm) “MDOC” means the Michigan department of corrections.

(nn) “MDOT” means the Michigan department of transportation.

(oo) “MDSP” means the Michigan department of state police.

(pp) “MDTMB” means the Michigan department of technology, management, and budget.

(qq) “MEDC” means the Michigan economic development corporation, which is the public body corporate created under section 28 of article VII of the state constitution of 1963 and the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by contractual interlocal agreement effective April 5, 1999, between local participating economic development corporations formed under the economic development corporations act, 1974 PA 338, MCL 125.1601 to 125.1636, and the Michigan strategic fund.

(rr) “MFA” means the Michigan finance authority.

(ss) “MPE” means the Michigan public employees.

(tt) “MSC” means managerial, supervisory, and confidential.

(uu) “MSF” means the Michigan strategic fund.

(vv) “MSHDA” means Michigan state housing development authority.

(ww) “NCCUSL” means the national conference of commissioners on uniform state laws.

(xx) “NCSL” means the national council of state legislatures.

(yy) “NERE” means nonexclusively represented employees.

(zz) “NFAH-NEA” means the national foundation of the arts and the humanities – national endowment for the arts.

(aaa) “PA” means public act.

(bbb) “PACC” means the prosecuting attorneys coordinating council.

(ccc) “SEIU” means service employees international union.

(ddd) “WIC” means women, infants, and children.

Sec. 206. The department of technology, management, and budget shall maintain a searchable website that is updated at least quarterly and that is accessible by the public at no cost that includes, but is not limited to, all of the following for each department or agency:

(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.

Sec. 207. Amounts appropriated in part 1 for information technology may be designated as work project accounts 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. 208. The departments and agencies receiving appropriations in part 1 shall use the Internet to fulfill the reporting requirements of this act. 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. 210. The director of each department receiving appropriations in part 1 shall take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies, or both. Each director shall strongly encourage firms with which the department contracts to subcontract with certified businesses in depressed and deprived communities for services, supplies, or both.

Sec. 211. Pursuant to section 352 of the management and budget act, 1984 PA 431, MCL 18.1352, which provides for a transfer of state general funds into or out of the countercyclical budget and economic stabilization fund, there is appropriated for the fiscal year ending September 30, 2013, from general fund/general purpose revenue for deposit into the countercyclical budget and economic stabilization fund the sum of $140,000,000.00. The calculation required by section 352 of the management and budget act, 1984 PA 431, MCL 18.1352, is determined as follows:

2012 2013

Michigan personal income (millions)............................................................ $372,355 $382,781

less: transfer payments.........................................................................   84,544   87,080

Subtotal................................................................................................ $287,811 $295,701

Divided by: Detroit CPI for 12 months ending June 30............................... 2.153 2.192

Equals: real adjusted Michigan personal income.......................................... $133,692 $134,928

Percentage change ........................................................................................ 0.9%

Percentage change greater than 2% ............................................................. 0.0%

Multiplied by: estimated GF/GP revenue in FY 2012-2013 (millions)........ 9,034.6

Equals: countercyclical budget and economic stabilization fund payout calculation for the fiscal year ending September 30, 2013 (millions)................................................................................................... $0.0

Sec. 212. The departments 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. 213. Funds appropriated in part 1 shall not be used by this state, a department, an agency, or an authority of this state to purchase an ownership interest in a casino enterprise or a gambling operation as those terms are defined in the Michigan gaming control and revenue act, 1996 IL 1, MCL 432.201 to 432.226.

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. 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. 215. A department or state agency shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

Sec. 216. The departments and agencies receiving appropriations in part 1 shall prepare a report on out-of-state travel expenses not later than January 1 of each year. The travel report shall be a listing of 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 dates of each travel occurrence.

(b) The total 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.

Sec. 217. General fund appropriations in this act shall not be expended for items in cases where federal funding is available for the same expenditures.

Sec. 220. Funds appropriated in this act shall not be used to administer a committee or to solicit or obtain contributions for a committee. As used in this section, “committee” means that term as defined in section 3 of the Michigan campaign finance act, 1976 PA 388, MCL 169.203.

Sec. 221. Each department shall report no later than April 1 on each specific policy change made to implement a public act affecting the department that took effect during the prior calendar year to the senate and house of representatives standing committees on appropriations subcommittees on general government, the joint committee on administrative rules, and the senate and house fiscal agencies.

Sec. 226. 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. 227. Within 14 days after the release of the executive budget recommendation, the departments and agencies receiving appropriations in this act shall provide the state budget director, the chairs of the senate and house of representatives standing committees on appropriations, the senate and house of representatives standing committees on appropriations subcommittees on general government, 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, 2012 and September 30, 2013.

Sec. 228. Not later than November 15, the state budget office shall prepare and transmit a report that provides for estimates of the total general fund/general purpose appropriation lapses at the close of the prior 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. If the office of the auditor general has identified an initiative or made a recommendation that is related to savings and efficiencies in an audit report for an executive branch department or agency, the department or agency shall report within 6 months of the release of the audit on their efforts and progress made toward achieving the savings and efficiencies identified in the audit report. The report shall be submitted to the chairs of the senate and house of representatives standing committees on appropriations, the chairs of the senate and house of representatives standing committees with jurisdiction over matters relating to the department that is audited, and the senate and house fiscal agencies.

Sec. 231. (1) It is the intent of the legislature that departments and agencies receiving appropriations in part 1 properly account for their spending and do not use full-time equated positions as placeholders for spending in other parts of their budgets.

(2) The departments and agencies receiving appropriations under part 1 shall provide a report to the legislature specifying the number of filled, full-time equated positions in pay status in the immediately preceding fiscal year by February 1. When reporting on the number of filled, full-time equated positions in pay status, the department or agency shall provide the maximum number of filled, full-time equated positions in pay status by appropriation line item in the last pay period of each quarter of the immediately preceding fiscal year. The report shall also include a listing of all funded, full-time equated positions by position title.

Sec. 232. (1) Except as provided in subsection (2), by October 31, 2012, each principal executive department and agency receiving funds in part 1 of this act shall identify 10 principal measurable outcomes to be affected by expenditure of the funds appropriated in part 1 of this act and submit a report to the house and senate appropriations committees, the house and senate fiscal agencies, and the state budget director that ranks the outcomes by level of importance and contains current data on those outcomes. Beginning on April 1, 2013, each principal executive department and agency shall provide biannual updates to the house and senate appropriations committees on changes in those measurable outcomes and departmental efforts to improve the outcomes.

(2) For purposes of the requirements of subsection (1), the department of attorney general, the department of civil rights, the bureau of state lottery, and the Michigan gaming control board shall identify and report on 5, rather than 10, principal measurable outcomes.

Sec. 233. In addition to the general fund/general purpose appropriations for special maintenance, remodeling, and addition – state facilities in part 1, there is also appropriated related federal and state restricted funds up to the amounts that will be earned based upon the initiatives undertaken with the funds in part 1. The state budget director shall determine and authorize the appropriate manner for implementing this section.

Sec. 234. In addition to the general fund/general purpose appropriations for enterprisewide information technology investments in part 1, there is also appropriated related federal and state restricted funds up to the amounts that will be earned based upon the initiatives undertaken with the funds in part 1. The state budget director shall determine and authorize the appropriate manner for implementing this section.

DEPARTMENT OF ATTORNEY GENERAL

Sec. 301. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $1,500,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act 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 $1,500,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

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

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

Sec. 302. (1) The attorney general shall perform all legal services, including representation before courts and administrative agencies rendering legal opinions and providing legal advice to a principal executive department or state agency. A principal executive department or state agency shall not employ or enter into a contract with any other person for services described in this section.

(2) The attorney general shall defend judges of all state courts if a claim is made or a civil action is commenced for injuries to persons or property caused by the judge through the performance of the judge’s duties while acting within the scope of his or her authority as a judge.

(3) The attorney general shall perform the duties specified in 1846 RS 12, MCL 14.28 to 14.35, and 1919 PA 232, MCL 14.101 to 14.102, and as otherwise provided by law.

Sec. 303. The attorney general may sell copies of the biennial report in excess of the 350 copies that the attorney general may distribute on a gratis basis. Gratis copies shall not be provided to members of the legislature. Electronic copies of biennial reports shall be made available on the department of attorney general’s website. The attorney general shall sell copies of the report at not less than the actual cost of the report and shall deposit the money received into the general fund.

Sec. 304. The department of attorney general is responsible for the legal representation for state of Michigan state employee worker’s disability compensation cases. The risk management revolving fund revenue appropriation in part 1 is to be satisfied by billings from the department of attorney general for the actual costs of legal representation, including salaries and support costs.

Sec. 305. In addition to the funds appropriated in part 1, not more than $400,000.00 shall be reimbursed per fiscal year for food stamp fraud cases heard by the third circuit court of Wayne County that were initiated by the department of attorney general pursuant to the existing contract between the department of human services, the prosecuting attorneys association of Michigan, and the department of attorney general. The source of this funding is money earned by the department of attorney general under the agreement after the allowance for reimbursement to the department of attorney general for costs associated with the prosecution of food stamp fraud cases. It is recognized that the federal funds are earned by the department of attorney general for its documented progress on the prosecution of food stamp fraud cases according to the United States department of agriculture regulations and that, once earned by this state, the funds become state funds.

Sec. 306. Any proceeds from a lawsuit initiated by or settlement agreement entered into on behalf of this state against a manufacturer of tobacco products by the attorney general are state funds and are subject to appropriation as provided by law.

Sec. 307. (1) In addition to the antitrust revenues in part 1, antitrust, securities fraud, consumer protection or class action enforcement revenues, or attorney fees recovered by the department, not to exceed $250,000.00, are appropriated to the department for antitrust, securities fraud, and consumer protection or class action enforcement cases.

(2) Any unexpended funds from antitrust, securities fraud, or consumer protection or class action enforcement revenues at the end of the fiscal year, including antitrust funds in part 1, may be carried forward for expenditure in the following fiscal year up to the maximum authorization of $250,000.00.

Sec. 308. (1) In addition to the funds appropriated in part 1, there is appropriated up to $500,000.00 from litigation expense reimbursements awarded to the state.

(2) The funds may be expended for the payment of court judgments or settlements, attorney fees, and litigation expenses not including salaries and support costs, assessed against the office of the governor, the department of the attorney general, the governor, or the attorney general when acting in an official capacity as the named party in litigation against the state. The funds may also be expended for the payment of state costs incurred under section 16 of chapter X of the code of criminal procedure, 1927 PA 175, MCL 770.16.

(3) Unexpended funds at the end of the fiscal year may be carried forward for expenditure in the following year, up to a maximum authorization of $500,000.00.

Sec. 309. From the prisoner reimbursement funds appropriated in part 1, the department may spend up to $497,900.00 on activities related to the state correctional facilities reimbursement act, 1935 PA 253, MCL 800.401 to 800.406. In addition to the funds appropriated in part 1, if the department collects in excess of $1,131,000.00 in gross annual prisoner reimbursement receipts provided to the general fund, the excess, up to a maximum of $1,000,000.00, is appropriated to the department of attorney general and may be spent on the representation of the department of corrections and its officers, employees, and agents, including, but not limited to, the defense of litigation against the state, its departments, officers, employees, or agents in civil actions filed by prisoners.

Sec. 310. (1) For the purposes of providing title IV-D child support enforcement funding, the department of human services, as the state IV-D agency, shall maintain a cooperative agreement with the attorney general for federal IV-D funding to support the child support enforcement activities within the office of the attorney general.

(2) The attorney general or his or her designee shall, to the extent allowable under federal law, have access to any information used by the state to locate parents who fail to pay court-ordered child support.

Sec. 312. The department of attorney general shall not receive and expend funds in addition to those authorized in part 1 for legal services provided specifically to other state departments or agencies except for costs for expert witnesses, court costs, or other nonsalary litigation expenses associated with a pending legal action.

DEPARTMENT OF CIVIL RIGHTS

Sec. 401. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $2,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $750,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 402. (1) In addition to the appropriations contained in part 1, the department of civil rights may receive and expend funds from local or private sources for all of the following purposes:

(a) Developing and presenting training for employers on equal employment opportunity law and procedures.

(b) The publication and sale of civil rights related informational material.

(c) The provision of copy material made available under freedom of information requests.

(d) Other copy fees, subpoena fees, and witness fees.

(e) Developing, presenting, and participating in mediation processes for certain civil rights cases.

(f) Workshops, seminars, and recognition or award programs consistent with the programmatic mission of the individual unit sponsoring or coordinating the programs.

(g) Staffing costs for all activities included in this subsection.

(2) The department of civil rights shall annually report to the state budget director, the senate and house of representatives standing committees on appropriations, and the senate and house fiscal agencies the amount of funds received and expended for purposes authorized under this section.

Sec. 403. The department of civil rights may contract with local units of government to review equal employment opportunity compliance of potential contractors and may charge for and expend amounts received from local units of government for the purpose of developing and providing these contractual services.

LEGISLATURE

Sec. 600. The senate, the house of representatives, or an agency within the legislative branch may receive, expend, and transfer funds in addition to those authorized in part 1.

Sec. 601. (1) Funds appropriated in part 1 to an entity within the legislative branch shall not be expended or transferred to another account without written approval of the authorized agent of the legislative entity. If the authorized agent of the legislative entity notifies the state budget director of its approval of an expenditure or transfer before the year-end book-closing date for that legislative entity, the state budget director shall immediately make the expenditure or transfer. The authorized legislative entity agency shall be designated by the speaker of the house of representatives for house entities, the senate majority leader for senate entities, and the legislative council for legislative council entities.

(2) Funds appropriated within the legislative branch, to a legislative council component, shall not be expended by any agency or other subgroup included in that component without the approval of the legislative council.

Sec. 602. The senate may charge rent and assess charges for utility costs. The amounts received for rent charges and utility assessments are appropriated to the senate for the renovation, operation, and maintenance of the Farnum building and other properties.

Sec. 603. The appropriation contained in part 1 for national association dues is to be distributed by the legislative council.

Sec. 604. (1) The appropriation in part 1 to the legislative council includes funds to operate the legislative parking facilities in the capitol area. The legislative council shall establish rules regarding the operation of the legislative parking facilities.

(2) The legislative council shall collect a fee from state employees and the general public using certain legislative parking facilities. The revenues received from the parking fees shall be allocated by the legislative council.

Sec. 605. The appropriation in part 1 to the legislative council for publication of the Michigan manual is a work project account. The unexpended portion remaining on September 30 shall not lapse and shall be carried forward into the subsequent fiscal year for use in paying the associated biennial costs of publication of the Michigan manual.

Sec. 606. The appropriations in part 1 to the legislative branch, for property management, shall be used to purchase equipment and services for building maintenance in order to ensure a safe and productive work environment. These funds are designated as work project appropriations and shall not lapse at the end of the fiscal year, and shall continue to be available for expenditure until the project has been completed. The total cost is estimated at $500,000.00, and the tentative completion date is September 30, 2017.

Sec. 607. The appropriations in part 1 to the legislative branch, for automated data processing, shall be used to purchase equipment, software, and services in order to support and implement data processing requirements and technology improvements. These funds are designated as work project appropriations and shall not lapse at the end of the fiscal year, and shall continue to be available for expenditure until the project has been completed. The total cost is estimated at $500,000.00, and the tentative completion date is September 30, 2017.

Sec. 608. In addition to funds appropriated in part 1, the Michigan capitol committee publications save the flags fund account may accept contributions, gifts, bequests, devises, grants, and donations. Those funds that are not expended in the fiscal year ending September 30 shall not lapse at the close of the fiscal year, and shall be carried forward for expenditure in the following fiscal years.

Sec. 609. (1) It is the intent of the legislature that the office of the Michigan veterans’ facility ombudsman be created within the legislative council. The ombudsman shall be appointed by and serve at the pleasure of the legislative council.

(2) The legislative council shall establish procedures for approving the budget of the office, for expending funds of the office, and for the employment of personnel for the office.

(3) The purpose of the ombudsman is to conduct investigations, when deemed necessary, upon his or her own initiative or upon receipt of a complaint from a resident veteran, family member of a resident veteran, or legislator who files a complaint concerning an action, omission, decision, recommendation, practice, or other procedure of the department of military and veterans affairs or a condition existing at a Michigan veterans’ facility that is alleged to be contrary to law or departmental policy or that poses a significant health or safety issue for which there is no effective administrative remedy.

(4) Subject to approval of the legislative council, the ombudsman shall establish procedures for receiving and processing complaints, conducting investigations, holding hearings, and reporting the findings resulting from the investigations.

(5) Upon request and without the requirement of any release, the ombudsman shall be given access to all information, records, and documents in the possession of the department of military and veterans affairs or a Michigan veterans’ facility that the ombudsman deems necessary in an investigation.

(6) Upon request and without notice, the ombudsman shall be granted entrance to inspect at any time any Michigan veterans’ facility.

(7) The ombudsman may hold informal hearings and may request that any person appear before the ombudsman or at a hearing and give testimony or produce documentary or other evidence that the ombudsman deems relevant to an investigation.

(8) The ombudsman shall advise a complainant to pursue all administrative remedies open to the complainant. The ombudsman may request and shall receive from the department of military and veterans affairs or from a Michigan veterans’ facility a progress report concerning the administrative processing of a complaint. After administrative action on a complaint, the ombudsman may conduct further investigation on the request of a complainant or on his or her own initiative.

(9) The ombudsman is not required to conduct an investigation on a complaint brought before the ombudsman. A complainant is not entitled as a right to be heard by the ombudsman.

(10) Upon receiving a complaint and deciding to investigate the complaint, the ombudsman shall notify the complainant, the resident veteran or resident veterans affected, and the department of military and veterans affairs. If the ombudsman declines to investigate, the ombudsman shall notify the complainant, in writing, and inform the resident veteran or veterans affected of the reasons for the ombudsman’s decision.

(11) Correspondence between the ombudsman and a complainant is confidential and is privileged communication. A report prepared and recommendations made by the ombudsman and submitted to the legislative council are exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

(12) The ombudsman shall prepare and submit a report of the findings of an investigation and make recommendations to the legislative council within 30 days after completing the investigation if the ombudsman finds any of the following:

(a) A matter that should be considered by the department.

(b) An act that should be modified or canceled.

(c) A statute or rule that should be altered.

(d) Acts for which justification is necessary.

(e) Significant resident veteran health and safety issues as determined by the council.

(f) Any other significant concerns as determined by the council.

(13) Before announcing a conclusion or recommendation that expressly or by implication criticizes a person or Michigan veterans’ facility or the department of military and veterans affairs, the ombudsman shall consult with that person or facility or the department.

(14) The ombudsman may request to be notified by a person or Michigan veterans’ facility or the department of military and veterans affairs, within a specified time, of any action taken on any recommendation presented. The ombudsman shall notify the complainant of the actions taken by the person, the facility, or the department of military and veterans affairs.

(15) The ombudsman shall submit to the legislative council and the legislature an annual report on the conduct of the office.

(16) A resident veteran shall not be penalized in any way by a person or Michigan veterans’ facility or the department of military and veterans affairs as a result of filing a complaint, complaining to a legislator, or cooperating with the ombudsman in investigating a complaint. A person or facility or the department shall not hinder the lawful actions of the ombudsman or employees of the office or willfully refuse to comply with any lawful demand of the office.

LEGISLATIVE AUDITOR GENERAL

Sec. 620. Pursuant to section 53 of article IV of the state constitution of 1963, the auditor general shall conduct audits of the judicial branch. The audits may include the supreme court and its administrative units, the court of appeals, and trial courts.

Sec. 621. (1) The auditor general shall take all reasonable steps to ensure that certified minority- and women-owned and operated accounting firms, and accounting firms owned and operated by persons with disabilities participate in the audits of the books, accounts, and financial affairs of each principal executive department, branch, institution, agency, and office of this state.

(2) The auditor general shall strongly encourage firms with which the auditor general contracts to perform audits of the principal executive departments and state agencies to subcontract with certified minority- and women-owned and operated accounting firms, and accounting firms owned and operated by persons with disabilities.

(3) The auditor general shall compile an annual report regarding the number of contracts entered into with certified minority- and women-owned and operated accounting firms, and accounting firms owned and operated by persons with disabilities. The auditor general shall deliver the report to the state budget director and the senate and house of representatives standing committees on appropriations subcommittees on general government by November 1 of each year.

Sec. 622. From the funds appropriated in part 1 to the legislative auditor general, the auditor general’s salary and the salaries of the remaining 2.0 FTE unclassified positions shall be set by the speaker of the house of representatives, the senate majority leader, the house of representatives minority leader, and the senate minority leader.

Sec. 623. Any audits, reviews, or investigations requested of the auditor general by the legislature or by legislative leadership, legislative committees, or individual legislators shall include an estimate of the additional costs involved and, when those costs exceed $50,000.00, should provide supplemental funding. The auditor general shall determine whether to perform those activities in keeping with Audit Directive No. 29, which describes the office of the auditor general’s policy on responding to legislative requests.

DEPARTMENT OF STATE

Sec. 701. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $2,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $7,500,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $50,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

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

Sec. 702. All funds made available by section 3171 of the insurance code of 1956, 1956 PA 218, MCL 500.3171, are appropriated and made available to the department of state to be expended only for the uses and purposes for which the funds are received as provided by sections 3171 to 3177 of the insurance code of 1956, 1956 PA 218, MCL 500.3171 to 500.3177.

Sec. 703. From the funds appropriated in part 1, the department of state shall sell copies of records including, but not limited to, records of motor vehicles, off-road vehicles, snowmobiles, watercraft, mobile homes, personal identification cardholders, drivers, and boat operators and shall charge $7.00 per record sold only as authorized in section 208b of the Michigan vehicle code, 1949 PA 300, MCL 257.208b, section 7 of 1972 PA 222, MCL 28.297, and sections 80130, 80315, 81114, and 82156 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.80130, 324.80315, 324.81114, and 324.82156. The revenue received from the sale of records shall be credited to the transportation administration collection fund created under section 810b of the Michigan vehicle code, 1949 PA 300, MCL 257.810b.

Sec. 704. From the funds appropriated in part 1, the secretary of state may enter into agreements with the department of corrections for the manufacture of vehicle registration plates 15 months before the registration year in which the registration plates will be used.

Sec. 705. (1) The department of state may accept gifts, donations, contributions, and grants of money and other property from any private or public source to underwrite, in whole or in part, the cost of a departmental publication that is prepared and disseminated under the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923. A private or public funding source may receive written recognition in the publication and may furnish a traffic safety message, subject to departmental approval, for inclusion in the publication. The department may reject a gift, donation, contribution, or grant. The department may furnish copies of a publication underwritten, in whole or in part, by a private source to the underwriter at no charge.

(2) The department of state may sell and accept paid advertising for placement in a departmental publication that is prepared and disseminated under the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923. The department may charge and receive a fee for any advertisement appearing in a departmental publication and shall review and approve the content of each advertisement. The department may refuse to accept advertising from any person or organization. The department may furnish a reasonable number of copies of a publication to an advertiser at no charge.

(3) Pending expenditure, the funds received under this section shall be deposited in the Michigan department of state publications fund created by section 211 of the Michigan vehicle code, 1949 PA 300, MCL 257.211. Funds given, donated, or contributed to the department from a private source are appropriated and allocated for the purpose for which the revenue is furnished. Funds granted to the department from a public source are allocated and may be expended upon receipt. The department shall not accept a gift, donation, contribution, or grant if receipt is conditioned upon a commitment of state funding at a future date. Revenue received from the sale of advertising is appropriated and may be expended upon receipt.

(4) Any unexpended revenues received under this section shall be carried over into subsequent fiscal years and shall be available for appropriation for the purposes described in this section.

(5) On March 1 of each year, the department of state shall file a report with the senate and house of representatives standing committees on appropriations, the senate and house fiscal agencies, and the state budget director. The report shall include all of the following information:

(a) The amount of gifts, contributions, donations, and grants of money received by the department under this section for the prior fiscal year.

(b) A listing of the expenditures made from the amounts received by the department as reported in subdivision (a).

(c) A listing of any gift, donation, contribution, or grant of property other than funding received by the department under this section for the prior year.

(d) The total revenue received from the sale of paid advertising accepted under this section and a statement of the total number of advertising transactions.

(6) In addition to copies delivered without charge as the secretary of state considers necessary, the department of state may sell copies of manuals and other publications regarding the sale, ownership, or operation or regulation of motor vehicles, with amendments, at prices to be established by the secretary of state. As used in this subsection, the term “manuals and other publications” includes videos and proprietary electronic publications. All funds received from sales of these manuals and other publications shall be credited to the Michigan department of state publications fund.

Sec. 707. Funds collected by the department of state under section 211 of the Michigan vehicle code, 1949 PA 300, MCL 257.211, are appropriated for all expenses necessary to provide for the costs of the publication. Funds are allotted for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 708. From the funds appropriated in part 1, the department of state shall use available balances at the end of the state fiscal year to provide payment to the department of state police in the amount of $332,000.00 for the services provided by the traffic accident records program as first appropriated in 1990 PA 196 and 1990 PA 208.

Sec. 709. From the funds appropriated in part 1, the department of state may restrict funds from miscellaneous revenue to cover cash shortages created from normal branch office operations. This amount shall not exceed $50,000.00 of the total funds available in miscellaneous revenue.

Sec. 710. (1) Commemorative and specialty license plate fee revenue collected by the department of state and deposited into the transportation administration collection fund is authorized for expenditure up to the amount of revenue collected but not to exceed the amount appropriated to the department of state in part 1 to administer commemorative and specialty license plate programs.

(2) Commemorative and specialty license plate fee revenue collected by the department of state and deposited in the transportation administration collection fund, in addition to the amount appropriated in part 1 to the department of state, shall remain in the transportation administration collection fund and be available for future appropriation.

Sec. 711. Collector plate and fund-raising registration plate revenues collected by the department of state are appropriated and allotted for distribution to the recipient university or public or private agency overseeing a state-sponsored goal when received. Distributions shall occur on a quarterly basis or as otherwise authorized by law. Any revenues remaining at the end of the fiscal year shall not lapse to the general fund but shall remain available for distribution to the university or agency in the next fiscal year.

Sec. 712. The department of state may produce and sell copies of a training video designed to inform registered automotive repair facilities of their obligations under Michigan law. The price shall not exceed the cost of production and distribution. The money received from the sale of training videos shall revert to the department of state and be placed in the auto repair facility account.

Sec. 713. (1) The department of state, in collaboration with the gift of life transplantation society or its successor federally designated organ procurement organization, may develop and administer a public information campaign concerning the Michigan organ donor program.

(2) The department may solicit funds from any private or public source to underwrite, in whole or in part, the public information campaign authorized by this section. The department may accept gifts, donations, contributions, and grants of money and other property from private and public sources for this purpose. A private or public funding source underwriting the public information campaign, in whole or in substantial part, shall receive sponsorship credit for its financial backing.

(3) Funds received under this section, including grants from state and federal agencies, shall not lapse to the general fund at the end of the fiscal year but shall remain available for expenditure for the purposes described in this section.

(4) Funding appropriated in part 1 for the organ donor program shall be used for producing a pamphlet to be distributed with driver licenses and personal identification cards regarding organ donations. The funds shall be used to update and print a pamphlet that will explain the organ donor program and encourage people to become donors by marking a checkoff on driver license and personal identification card applications.

(5) The pamphlet shall include a return reply form addressed to the gift of life organization. Funding appropriated in part 1 for the organ donor program shall be used to pay for return postage costs.

(6) In addition to the appropriations in part 1, the department of state may receive and expend funds from the organ and tissue donation education fund for administrative expenses.

Sec. 714. At least 180 days before closing or consolidating a branch office and at least 60 days before relocating a branch office, the department of state shall inform members of the senate and house of representatives standing committees on appropriations and legislators who represent affected areas regarding the details of the proposal. The information provided shall be in written form and include all analyses done regarding criteria for changes in the location of branch offices, including, but not limited to, branch transactions, revenue, and the impact on citizens of the affected area. The impact on citizens shall include information regarding additional distance to branch office locations resulting from the plan. The written notice provided by the department of state shall also include detailed estimates of costs and savings that will result from the overall changes made to the branch office structure and the same level of detail regarding costs for new leased facilities and expansions of current leased space.

Sec. 715. (1) Any service assessment collected by the department of state from the user of a credit or debit card under section 3 of 1995 PA 144, MCL 11.23, may be used by the department for necessary expenses related to that service and may be remitted to a credit or debit card company, bank, or other financial institution.

(2) The service assessment imposed by the department of state for credit and debit card services may be based either on a percentage of each individual credit or debit card transaction, or on a flat rate per transaction, or both, scaled to the amount of the transaction. However, the department shall not charge any amount for a service assessment which exceeds the costs billable to the department for service assessments.

(3) If there is a balance of service assessments received from credit and debit card services remaining on September 30, the balance may be carried forward to the following fiscal year and appropriated for the same purpose.

(4) As used in this section, “service assessment” means and includes costs associated with service fees imposed by credit and debit card companies and processing fees imposed by banks and other financial institutions.

Sec. 716b. The department of state shall provide a report that calculates the total amount of funds expended for the business application modernization project to date from the inception of the program. The report shall contain information on the original start and completion dates for the project, the original cost to complete the project, and a listing of all revisions to project completion dates and costs. The report shall include the total amount of funds paid to the state by the contract provider for penalties. The report shall be submitted to the senate and house of representatives standing committees on appropriations, the senate and house fiscal agencies, and the state budget director by January 1.

Sec. 717. (1) The department of state may accept nonmonetary gifts, donations, or contributions of property from any private or public source to support, in whole or in part, the operation of a departmental function relating to licensing, regulation, or safety. The department may recognize a private or public contributor for making the contribution. The department may reject a gift, donation, or contribution.

(2) The department of state shall not accept a gift, donation, or contribution under subsection (1) if receipt of the gift, donation, or contribution is conditioned upon a commitment of future state funding.

(3) On March 1 of each year, the department of state shall file a report with the senate and house of representatives standing committees on appropriations, the senate and house fiscal agencies, and the state budget director. The report shall list any gift, donation, or contribution received by the department under subsection (1) for the prior calendar year.

Sec. 718. From the funds appropriated in part 1 to the department of state, branch operations, the department shall maintain a full service secretary of state branch office in Buena Vista Township.

Sec. 719. From the funds appropriated in part 1 for the department of state, the department shall first use restricted funding for expenditures, when available for that purpose, before using general fund dollars.

Sec. 721. From the funds appropriated in part 1, the department of state may collect ATM commission fees from companies that have ATMs located in secretary of state branch offices. The commission received from the use of these ATMs shall be credited to the transportation administration collection fund created under section 810b of the Michigan vehicle code, 1949 PA 300, MCL 257.810b.

DEPARTMENT OF TECHNOLOGY, MANAGEMENT, AND BUDGET

Sec. 801. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $4,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $8,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $150,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

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

Sec. 802. Proceeds in excess of necessary costs incurred in the conduct of transfers or auctions of state surplus, salvage, or scrap property made pursuant to section 267 of the management and budget act, 1984 PA 431, MCL 18.1267, are appropriated to the department of technology, management, and budget to offset costs incurred in the acquisition and distribution of federal surplus property. The department of technology, management, and budget shall provide consolidated Internet auction services through the state’s contractors for all local units of government.

Sec. 803. (1) The department of technology, management, and budget may receive and expend funds in addition to those authorized by part 1 for maintenance and operation services provided specifically to other principal executive departments or state agencies, the legislative branch, the judicial branch, or private tenants, or provided in connection with facilities transferred to the operational jurisdiction of the department of technology, management, and budget.

(2) The department of technology, management, and budget may receive and expend funds in addition to those authorized by part 1 for real estate, architectural, design, and engineering services provided specifically to other principal executive departments or state agencies, the legislative branch, or the judicial branch.

(3) The department of technology, management, and budget may receive and expend funds in addition to those authorized in part 1 for mail pickup and delivery services provided specifically to other principal executive departments and state agencies, the legislative branch, or the judicial branch.

(4) The department of technology, management, and budget may receive and expend funds in addition to those authorized in part 1 for purchasing services provided specifically to other principal executive departments and state agencies, the legislative branch, or the judicial branch.

(5) The department of technology, management, and budget shall develop a plan regarding a statewide state-owned inventory management system. The plan shall be distributed to the senate and house of representatives standing committees on appropriations subcommittees on general government, as well as the senate and house fiscal agencies, by February 1. The plan shall include, but not be limited to, all of the following:

(a) A listing of all current state-owned inventory management systems.

(b) A listing of the necessary steps the department must take in order to implement a statewide state-owned inventory management system that will provide for an accurate accounting of all state-owned inventory.

(c) A cost estimate for implementing a statewide state-owned inventory management system.

Sec. 804. (1) The source of financing in part 1 for statewide appropriations shall be funded by assessments against longevity and insurance appropriations throughout state government in a manner prescribed by the department of technology, management, and budget. Funds shall be used as specified in joint labor/management agreements or through the coordinated compensation hearings process. Any deposits made under this subsection and any unencumbered funds are restricted revenues, may be carried over into the succeeding fiscal years, and are appropriated.

(2) In addition to the funds appropriated in part 1 for statewide appropriations, the department of technology, management, and budget may receive and expend funds in such additional amounts as may be specified in joint labor/management agreements or through the coordinated compensation hearings process in the same manner and subject to the same conditions as prescribed in subsection (1).

Sec. 805. To the extent a specific appropriation is required for a detailed source of financing included in part 1 for the department of technology, management, and budget appropriations financed from special revenue and internal service and pension trust funds, or MAIN user charges, the specific amounts are appropriated within the special revenue internal service and pension trust funds in portions not to exceed the aggregate amount appropriated in part 1.

Sec. 806. In addition to the funds appropriated in part 1 to the department of technology, management, and budget, the department may receive and expend funds from other principal executive departments and state agencies to implement administrative leave bank transfer provisions as may be specified in joint labor/management agreements. The amounts may also be transferred to other principal executive departments and state agencies under the joint agreement and any amounts transferred under the joint agreement are authorized for receipt and expenditure by the receiving principal executive department or state agency. Any amounts received by the department of technology, management, and budget under this section and intended, under the joint labor/management agreements, to be available for use beyond the close of the fiscal year and any unencumbered funds may be carried over into the succeeding fiscal year.

Sec. 807. The source of financing in part 1 for the Michigan administrative information network shall be funded by proportionate charges assessed against the respective state funds benefiting from this project in the amounts determined by the department.

Sec. 808. (1) Deposits against the interdepartmental grant from building occupancy and parking charges appropriated in part 1 shall be collected, in part, from state agencies, the legislative branch, and the judicial branch based on estimated costs associated with maintenance and operation of buildings managed by the department of technology, management, and budget. To the extent excess revenues are collected due to estimates of building occupancy charges exceeding actual costs, the excess revenues may be carried forward into succeeding fiscal years for the purpose of returning funds to state agencies.

(2) Appropriations in part 1 to the department of technology, management, and budget, for management and budget services from building occupancy charges and parking charges, may be increased to return excess revenue collected to state agencies.

Sec. 809. The department of technology, management, and budget shall notify the chairpersons of the senate and house of representatives standing committees on appropriations and the chairpersons of the senate and house of representatives standing committees on appropriations subcommittees on general government on any revisions that increase or decrease current contracts by more than $500,000.00 for computer software development, hardware acquisition, or quality assurance at least 14 days before the department of technology, management, and budget finalizes the revisions.

Sec. 810. The department of technology, management, and budget shall maintain an Internet website that contains notice of all invitations for bids and requests for proposals over $50,000.00 issued by the department or by any state agency operating under delegated authority. The department shall not accept an invitation for bid or request for proposal in less than 14 days after the notice is made available on the Internet website, except in situations where it would be in the best interest of the state and documented by the department. In addition to the requirements of this section, the department may advertise the invitations for bids and requests for proposals in any manner the department determines appropriate, in order to give the greatest number of individuals and businesses the opportunity to make bids or requests for proposals.

Sec. 811. The department of technology, management, and budget may receive and expend funds from the Vietnam veterans memorial monument fund as provided in the Michigan Vietnam veterans memorial act, 1988 PA 234, MCL 35.1051 to 35.1057. Funds are appropriated and allocated when received and may be expended upon receipt.

Sec. 812. The Michigan veterans’ memorial park commission may receive and expend money from any source, public or private, including, but not limited to, gifts, grants, donations of money, and government appropriations, for the purposes described in Executive Order No. 2001-10. Funds are appropriated and allocated when received and may be expended upon receipt. Any deposits made under this section and unencumbered funds are restricted revenues and may be carried over into succeeding fiscal years.

Sec. 813. (1) Funds in part 1 for motor vehicle fleet are appropriated to the department of technology, management, and budget for administration and for the acquisition, lease, operation, maintenance, repair, replacement, and disposal of state motor vehicles.

(2) The appropriation in part 1 for motor vehicle fleet shall be funded by revenue from rates charged to principal executive departments and agencies for utilizing vehicle travel services provided by the department. Revenue in excess of the amount appropriated in part 1 from the motor transport fund and any unencumbered funds are restricted revenues and may be carried over into the succeeding fiscal year.

(3) Pursuant to the department of technology, management, and budget’s authority under sections 213 and 215 of the management and budget act, 1984 PA 431, MCL 18.1213 and 18.1215, the department shall maintain a plan regarding the operation of the motor vehicle fleet. The plan shall include the number of vehicles assigned to, or authorized for use by, state departments and agencies, efforts to reduce travel expenditures, the number of cars in the motor vehicle fleet, the number of miles driven by fleet vehicles, and the number of gallons of fuel consumed by fleet vehicles. The plan shall include a calculation of the amount of state motor vehicle fuel taxes that would have been incurred by fleet vehicles if fleet vehicles were required by law to pay motor fuel taxes. The plan shall include a description of fleet garage operations, the goods sold and services provided by the fleet garage, the cost to operate the fleet garage, the number of fleet garage locations, and the number of employees assigned to each fleet garage. The plan may be adjusted during the fiscal year based on needs and cost savings to achieve the maximum value and efficiency from the state motor fleet. Within 60 days after the close of the fiscal year, the department shall provide a report to the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies detailing the current plan and changes made to the plan during the fiscal year.

(4) The department of technology, management, and budget may charge state agencies for fuel cost increases that exceed $3.04 per gallon of unleaded gasoline. The department shall notify state agencies, in writing or by electronic mail, at least 30 days before implementing additional charges for fuel cost increases. Revenues received from these charges are appropriated upon receipt.

(5) In order to reduce costs and maintain quality, it is the intent of the legislature that, excluding the fleet of motor vehicles for the department of state police, when economically feasible, the department of technology, management, and budget will prioritize the utilization of remanufactured parts as the primary means of maintenance and repair for the state of Michigan’s fleet of motor vehicles.

Sec. 814. The department of technology, management, and budget shall develop a plan regarding the use of the funds appropriated in part 1 for the enterprisewide information technology investments. The plan shall include, but not be limited to, a description of proposed information technology investments, the time frame for completion of the information technology investments, the proposed cost of the information technology investments, the number of employees assigned to implement each information technology investment, the contracts entered into for each information technology investment, and any other information the department deems necessary. The plan shall be distributed to the senate and house of representatives standing committees on appropriations subcommittees on general government, as well as the senate and house fiscal agencies, by February 1.

Sec. 817. The department of technology, management, and budget may require that any vendor or subcontractor providing call or contact center services to the state of Michigan disclose to inbound callers the location from which the call or contact center services are being provided.

Sec. 818. In addition to the funds appropriated in part 1, the department of technology, management, and budget may receive and expend money from the Michigan law enforcement officers memorial monument fund as provided in the Michigan law enforcement officers memorial act, 2004 PA 177, MCL 28.781 to 28.787.

Sec. 819. In addition to the funds appropriated in part 1, the department of technology, management, and budget may receive and expend money from the Ronald Wilson Reagan memorial monument fund as provided in the Ronald Wilson Reagan memorial monument fund commission act, 2004 PA 489, MCL 399.261 to 399.266.

Sec. 820. The department shall make available to the public a list of all parcels of real property owned by the state that are available for purchase. The list shall be posted on the Internet through the department’s website.

Sec. 821. The department of technology, management, and budget shall develop a plan regarding the use of the funds appropriated in part 1 for the space consolidation fund. The plan shall include, but not be limited to, the description of the proposed office space to be consolidated, the time frame for completion of the office space consolidation, the proposed itemized cost of the office space consolidation, the number of employees assigned to implement the office space consolidation, the contracts entered into for the office space consolidation, and any other information the department deems necessary. The plan shall be distributed to the senate and house of representatives standing committees on appropriations subcommittees on general government, as well as the senate and house fiscal agencies, by February 1.

Sec. 822. The department of technology, management, and budget shall compile a report by January 1 pertaining to the salaries of unclassified employees, as well as gubernatorial appointees, within all state departments and agencies. The report shall enumerate each unclassified employee and gubernatorial appointee and his or her annual salary individually. The report shall be distributed to the chairs of the senate and house of representatives standing committees on appropriations subcommittees on general government, as well as the senate and house fiscal agencies.

INFORMATION TECHNOLOGY

Sec. 823. (1) The department of technology, management, and budget may sell and accept paid advertising for placement on any state website under its jurisdiction. The department shall review and approve the content of each advertisement. The department may refuse to accept advertising from any person or organization or require modification to advertisements based upon criteria determined by the department. Revenue received under this subsection shall be used for operating costs of the department and for future technology enhancements to state of Michigan e-government initiatives. Funds received under this subsection shall be limited to $250,000.00. Any funds in excess of $250,000.00 shall be deposited in the state general fund.

(2) The department of technology, management, and budget may accept gifts, donations, contributions, bequests, and grants of money from any public or private source to assist with the underwriting or sponsorship of state webpages or services offered on those webpages. A private or public funding source may receive recognition in the webpage. The department of technology, management, and budget may reject any gift, donation, contribution, bequest, or grant.

(3) Funds accepted by the department of technology, management, and budget under subsection (1) are appropriated and allotted when received and may be expended upon approval of the state budget director. The state budget office shall notify the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies within 10 days after the approval is given.

(4) By April 1, the department of technology, management, and budget shall report to the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies that a statement of the total revenue received from the sale of paid advertising accepted under this section and a statement of the total number of advertising transactions are available on the department’s website.

Sec. 824. The department of technology, management, and budget may enter into agreements to supply spatial information and technical services to other principal executive departments, state agencies, local units of government, and other organizations. The department of technology, management, and budget may receive and expend funds in addition to those authorized in part 1 for providing information and technical services, publications, maps, and other products. The department of technology, management, and budget may expend amounts received for salaries, supplies, and equipment necessary to provide informational products and technical services. Prior to December 1 of each year, the department shall provide a report to the senate and house of representatives standing committees on appropriations subcommittees on general government, detailing the sources of funding and expenditures made under this section.

Sec. 825. The legislature shall have access to all historical and current data contained within MAIN pertaining to state departments. State departments shall have access to all historical and current data contained within MAIN.

Sec. 826. When used in this act, “information technology services” means services involving all aspects of managing and processing information, including, but not limited to, all of the following:

(a) Application development and maintenance.

(b) Desktop computer support and management.

(c) Mainframe computer support and management.

(d) Server support and management.

(e) Local area network support and management, including, but not limited to, wireless networking.

(f) Information technology project management.

(g) Information technology planning and budget management.

(h) Telecommunication services, security, infrastructure, and support.

Sec. 827. (1) Funds appropriated in part 1 for the Michigan public safety communications system shall be expended upon approval of an expenditure plan by the state budget director.

(2) The department of technology, management, and budget shall assess all subscribers of the Michigan public safety communications system reasonable access and maintenance fees.

(3) All money received by the department of technology, management, and budget under this section shall be expended for the support and maintenance of the Michigan public safety communications system.

(4) The department of technology, management, and budget shall provide a report to the senate and house of representatives standing committees on appropriations, the senate and house fiscal agencies, and the state budget director on April 15 and on October 15, indicating the amount of revenue collected under this section and expended for support and maintenance of the Michigan public safety communications system for the immediately preceding 6-month period. Any deposits made under this section and unencumbered funds are restricted revenues and shall be carried forward into succeeding fiscal years.

Sec. 828. The department of technology, management, and budget shall submit a report for the immediately preceding fiscal year ending September 30 to the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies by March 1. The report shall include the following:

(a) The total amount of funding appropriated for information technology services and projects, by funding source, for all principal executive departments and agencies.

(b) A listing of the expenditures made from the amounts received by the department of technology, management, and budget as reported in subdivision (a).

Sec. 829. The department of technology, management, and budget shall provide a report that analyzes and makes recommendations on the life-cycle of information technology hardware and software. The report shall be submitted to the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies by March 1.

Sec. 830. By December 31, the department shall provide a report that lists all information technology-related change orders and follow-on contracts, greater than $50,000.00, whether they are bid, exercise options, or no-bid, and the amount of each change order or contract extension contract entered into by the department to the senate and house of representatives standing committees on appropriations subcommittees on general government, the senate and house fiscal agencies, and the state budget director.

Sec. 832. The department shall provide a report that calculates the total amount of funds expended for the child support enforcement system to date from the inception of the program. The report shall contain information on the original start and completion dates for the project, the original cost to complete the project, and a listing of all revisions to project completion dates and costs. The report shall include the total amount of funds paid to the federal government for penalties. The report shall be submitted to the senate and house of representatives standing committees on government operations, the senate and house of representatives standing committees on appropriations subcommittees on general government, and the senate and house fiscal agencies by January 1.

Sec. 833. (1) The state budget director, upon notification to the senate and house of representatives standing committees on appropriations, may adjust spending authorization and user fees in the department of technology, management, and budget budget in order to ensure that the appropriations for information technology in the department budget equal the appropriations for information technology in the budgets for all executive branch agencies.

(2) If during the course of the fiscal year a transfer or supplemental to or from the information technology line item within an agency budget is made under section 393 of the management and budget act, 1984 PA 431, MCL 18.1393, there is appropriated an equal amount of user fees in the department of technology, management, and budget budget to accommodate an increase or decrease in spending authorization.

Sec. 834. (1) Revenue collected from licenses issued under the antenna site management project shall be deposited into the antenna site management revolving fund created for this purpose in the department of technology, management, and budget. The department may receive and expend money from the fund for costs associated with the antenna site management project, including the cost of a third-party site manager. Any excess revenue remaining in the fund at the close of the fiscal year shall be proportionately transferred to the appropriate state restricted funds as designated in statute or by constitution.

(2) An antenna shall not be placed on any site pursuant to this section without complying with the respective local zoning codes and local unit of government processes.

Sec. 835. In addition to the funds appropriated in part 1, the funds collected by the department for supplying census-related information and technical services, publications, statistical studies, population projections and estimates, and other demographic products area 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.

STATE BUILDING AUTHORITY

Sec. 840. (1) Subject to section 242 of the management and budget act, 1984 PA 431, MCL 18.1242, and upon the approval of the state building authority, the department may expend from the general fund of the state during the fiscal year an amount to meet the cash flow requirements of those state building authority projects solely for lease to a state agency identified in both part 1 and this section, and for which state building authority bonds or notes have not been issued, and for the sole acquisition by the state building authority of equipment and furnishings for lease to a state agency as permitted by 1964 PA 183, MCL 830.411 to 830.425, for which the issuance of bonds or notes is authorized by a legislative concurrent resolution that is effective for the fiscal year ending September 30, 2013. Any general fund advances for which state building authority bonds have not been issued shall bear an interest cost to the state building authority at a rate not to exceed that earned by the state treasurer’s common cash fund during the period in which the advances are outstanding and are repaid to the general fund of the state.

(2) Upon sale of bonds or notes for the projects identified in part 1 or for equipment as authorized by legislative concurrent resolution and in this section, the state building authority shall credit the general fund of the state an amount equal to that expended from the general fund plus interest, if any, as defined in this section.

(3) For state building authority projects for which bonds or notes have been issued and upon the request of the state building authority, the state treasurer shall make advances without interest from the general fund as necessary to meet cash flow requirements for the projects, which advances shall be reimbursed by the state building authority when the investments earmarked for the financing of the projects mature.

(4) In the event that a project identified in part 1 is terminated after final design is complete, advances made on behalf of the state building authority for the costs of final design shall be repaid to the general fund in a manner recommended by the director and approved by the JCOS.

Sec. 841. (1) State building authority funding to finance construction or renovation of a facility that collects revenue in excess of money required for the operation of that facility shall not be released to a university or community college unless the institution agrees to reimburse that excess revenue to the state building authority. The excess revenue shall be credited to the general fund to offset rent obligations associated with the retirement of bonds issued for that facility. The auditor general shall annually identify and present an audit of those facilities that are subject to this section. Costs associated with the administration of the audit shall be charged against money recovered pursuant to this section.

(2) As used in this section, “revenue” includes state appropriations, facility opening money, other state aid, indirect cost reimbursement, and other revenue generated by the activities of the facility.

Sec. 842. (1) The state building authority rent appropriations in part 1 may also be expended for the payment of required premiums for insurance on facilities owned by the state building authority or payment of costs that may be incurred as the result of any deductible provisions in such insurance policies.

(2) If the amount appropriated in part 1 for state building authority rent is not sufficient to pay the rent obligations and insurance premiums and deductibles identified in subsection (1) for state building authority projects, there is appropriated from the general fund of the state the amount necessary to pay such obligations.

Sec. 843. The state building authority shall provide to the JCOS, state budget director, and senate and house fiscal agencies a report relative to the status of construction projects associated with state building authority bonds as of September 30 of each year, on or before October 15, or not more than 30 days after a refinancing or restructuring bond issue is sold. The report shall include, but is not limited to, the following:

(a) A list of all completed construction projects for which state building authority bonds have been sold, and which bonds are currently active.

(b) A list of all projects under construction for which sale of state building authority bonds is pending.

(c) A list of all projects authorized for construction or identified in an appropriations act for which approval of schematic/preliminary plans or total authorized cost is pending that have state building authority bonds identified as a source of financing.

CIVIL SERVICE

Sec. 850. (1) In accordance with section 5 of article XI of the state constitution of 1963, all restricted funds shall be assessed a sum not less than 1% of the total aggregate payroll paid from those funds for financing the civil service commission on the basis of actual 1% restricted sources total aggregate payroll of the classified service for the preceding fiscal year. This includes, but is not limited to, restricted funds appropriated in part 1 of any appropriations act. Unexpended 1% appropriated funds shall be returned to each 1% fund source at the end of the fiscal year.

(2) The appropriations in part 1 are estimates of actual charges based on payroll appropriations. With the approval of the state budget director, the commission is authorized to adjust financing sources for civil service charges based on actual payroll expenditures, provided that such adjustments do not increase the total appropriation for the civil service commission.

(3) The financing from restricted sources shall be credited to the civil service commission by the end of the second fiscal quarter.

Sec. 851. Except where specifically appropriated for this purpose, financing from restricted sources shall be credited to the civil service commission. For restricted sources of funding within the general fund that have the legislative authority for carryover, if current spending authorization or revenues are insufficient to accept the charge, the shortage shall be taken from carryforward balances of that funding source. Restricted revenue sources that do not have carryforward authority shall be utilized to satisfy commission operating deducts first and civil service obligations second. General fund dollars are appropriated for any shortfall, pursuant to approval by the state budget director.

Sec. 852. The appropriation in part 1 to the civil service commission, for state-sponsored group insurance, flexible spending accounts, and COBRA, represents amounts, in part, included within the various appropriations throughout state government for the current fiscal year to fund the flexible spending account program included within the civil service commission. Deposits against state-sponsored group insurance, flexible spending accounts, and COBRA for the flexible spending account program shall be made from assessments levied during the current fiscal year in a manner prescribed by the civil service commission. Unspent employee contributions to the flexible spending accounts may be used to offset administrative costs for the flexible spending account program, with any remaining balance of unspent employee contributions to be lapsed to the general fund.

CAPITAL OUTLAY

Sec. 860. As used in sections 861 through 865:

(a) “Board” means the state administrative board.

(b) “Community college” does not include a state agency or university.

(c) “Department” means the department of technology, management, and budget.

(d) “Director” means the director of the department of technology, management, and budget.

(e) “Fiscal agencies” means the senate fiscal agency and the house fiscal agency.

(f) “State agency” means an agency of state government. State agency does not include a community college or university.

(g) “State building authority” means the authority created under 1964 PA 183, MCL 830.411 to 830.425.

(h) “University” means a 4-year university supported by the state. University does not include a community college or a state agency.

Sec. 861. Each capital outlay project authorized in this act or any previous capital outlay act shall comply with the procedures required by the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 862. (1) The department shall provide the JCOS, state budget director, and the senate and house fiscal agencies with reports as considered necessary relative to the status of each planning or construction project financed by the state building authority, by this act, or by previous acts.

(2) Before the end of each fiscal year, the department shall report to the JCOS, state budget director, and the senate and house fiscal agencies for each capital outlay project other than lump sums all of the following:

(a) The account number and name of each construction project.

(b) The balance remaining in each account.

(c) The date of the last expenditure from the account.

(d) The anticipated date of occupancy if the project is under construction.

(e) The appropriations history for the project.

(f) The professional service contractor.

(g) The amount of the project financed with federal funds.

(h) The amount of the project financed through the state building authority.

(i) The total authorized cost for the project and the state authorized share if different than the total.

(3) Before the end of each fiscal year, the department shall report the following for each project by a state agency, university, or community college that is authorized for planning but is not yet authorized for construction:

(a) The name of the project and account number.

(b) Whether a program statement is approved.

(c) Whether schematics are approved by the department.

(d) Whether preliminary plans are approved by the department.

(e) The name of the professional service contractor.

(4) As used in this section, “project” includes appropriation line items made for purchase of real estate.

Sec. 863. (1) The director of the department of technology, management, and budget shall allocate lump-sum appropriations made in this act 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. 864. 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.

Sec. 865. (1) A site preparation economic development fund is created in the department of technology, management, and budget. As used in this section, “economic development sites” means those state-owned sites declared as surplus property pursuant to section 251 of the management and budget act, 1984 PA 431, MCL 18.1251, that would provide economic benefit to the area or to the state. The Michigan economic development corporation board and the state budget director shall determine whether or not a specific state-owned site qualifies for inclusion in the fund created under this subsection.

(2) Proceeds from the sale of any sites designated in subsection (1) shall be deposited into the fund created in subsection (1) and shall be available for site preparation expenditures, unless otherwise provided by law. The economic development sites authorized in subsection (1) are authorized for sale consistent with state law. Expenditures from the fund are authorized for site preparation activities that enhance the marketable sale value of the sites. Site preparation activities include, but are not limited to, demolition, environmental studies and abatement, utility enhancement, and site excavation.

(3) A cash advance in an amount of not more than $25,000,000.00 is authorized from the general fund to the site preparation economic development fund.

(4) An annual report shall be transmitted to the senate and house of representatives standing committees on appropriations not later than December 31 of each year. This report shall detail both of the following:

(a) The revenue and expenditure activity in the fund for the preceding fiscal year.

(b) The sites identified as economic development sites under subsection (1).

CAPITAL OUTLAY - UNIVERSITIES AND COMMUNITY COLLEGES

Sec. 870. A statement of a proposed facility’s operating cost shall be included with the facility’s program statement and planning documents when the plans are presented to JCOS for approval.

Sec. 871. (1) Before proceeding with final planning and construction for projects at community colleges and universities included in an appropriations act, the community college or university shall sign an agreement with the department that includes the following provisions:

(a) The university or community college agrees to construct the project within the total authorized cost established by the legislature pursuant to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, and an appropriations act.

(b) The design and program scope of the project shall not deviate from the design and program scope represented in the program statement and preliminary planning documents approved by the department.

(c) Any other items as identified by the department that are necessary to complete the project.

(2) The department retains the authority and responsibility normally associated with the prudent maintenance of the public’s financial and policy interests relative to the state-financed construction projects managed by a community college or university.

Sec. 872. A state agency, community college, or university shall take steps necessary to make available federal and other money indicated in this act, to make available federal or other money that may become available for the purposes for which appropriations are made in this act, and to use any part or all of the appropriations to meet matching requirements that are considered to be in the best interest of this state. However, the purpose, scope, and total estimated cost of a project shall not be altered to meet the matching requirements. Any federal matching revenues received to support the construction of the project shall be applied to the total authorized project cost, with the state and community college or university financing shares proportionately adjusted.

Sec. 873. (1) This section applies only to projects for community colleges.

(2) State support is directed towards the remodeling and additions, special maintenance, or construction of certain community college buildings. The community college shall obtain or provide for site acquisition and initial main utility installation to operate the facility. Funding shall be composed of local and state shares and not more than 50% of a capital outlay project, not including a lump-sum special maintenance project or remodeling and addition project, for a community college shall be appropriated from state and federal funds, unless otherwise appropriated by the legislature.

(3) An expenditure under this act is authorized when the release of the appropriation is approved by the board upon the recommendation of the director. The director may recommend to the board the release of any appropriation in part 1 only after the director is assured that the legal entity operating the community college to which the appropriation is made has complied with this act and has matched the amounts appropriated as required by this act. A release of funds in part 1 shall not exceed 50% of the total cost of planning and construction of any project, not including lump-sum remodeling and additions and special maintenance, unless otherwise appropriated by the legislature. Further planning and construction of a project authorized by this act or applicable sections of the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, shall be in accordance with the purpose and scope as defined and delineated in the approved program statements and planning documents. This act is applicable to all projects for which planning appropriations were made in previous acts.

(4) The community college shall take the steps necessary to secure available federal construction and equipment money for projects funded for construction in this act if an application was not previously made. If there is a reasonable expectation that a prior year unfunded application may receive federal money in a subsequent year, the college shall take whatever action necessary to keep the application active.

Sec. 874. If university and community college matching revenues are received in an amount less than the appropriations for capital projects contained in this act, the state funds shall be reduced in proportion to the amount of matching revenue received.

Sec. 875. (1) The director may require that community colleges and universities that have an authorized project listed in part 1 submit documentation regarding the project match and governing board approval of the authorized project not more than 60 days after the beginning of the fiscal year.

(2) If the documentation required by the director under subsection (1) is not submitted, or does not adequately authenticate the availability of the project match or board approval of the authorized project, the authorization may terminate. The authorization terminates 30 days after the director notifies the JCOS of the intent to terminate the project unless the JCOS convenes to extend the authorization.

DEPARTMENT OF TREASURY

OPERATIONS

Sec. 901. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $1,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $10,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act 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 $200,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $40,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 902. (1) Amounts needed to pay for interest, fees, principal, mandatory and optional redemptions, arbitrage rebates as required by federal law, and costs associated with the payment, registration, trustee services, credit enhancements, and issuing costs in excess of the amount appropriated to the department of treasury in part 1 for debt service on notes and bonds that are issued by the state under sections 14, 15, and 16 of article IX of the state constitution of 1963 as implemented by 1967 PA 266, MCL 17.451 to 17.455, are appropriated.

(2) In addition to the amount appropriated to the department of treasury for debt service in part 1, there is appropriated an amount for fiscal year cash-flow borrowing costs to pay for interest on interfund borrowing made under 1967 PA 55, MCL 12.51 to 12.53.

(3) In addition to the amount appropriated to the department of treasury for debt service in part 1, there is appropriated all repayments received by the state on loans made from the school bond loan fund not required to be deposited in the school loan revolving fund by or pursuant to section 4 of 1961 PA 112, MCL 388.984, to the extent determined by the state treasurer, for the payment of debt service, including, without limitation, optional and mandatory redemptions, on bonds, notes or commercial paper issued by the state pursuant to 1961 PA 112, MCL 388.981 to 388.985.

Sec. 902a. The department of treasury shall notify the senate and house of representatives standing committees on appropriations, the senate and house fiscal agencies, and the state budget office not more than 30 days after a refunding or restructuring bond issue is sold. The notification shall compare the annual debt service prior to the refinancing or restructuring, the annual debt service after the refinancing or restructuring, the change in the principal and interest over the duration of the debt, and the projected change in the present value of the debt service due to the refinancing and restructuring.

Sec. 903. (1) From the funds appropriated in part 1, the department of treasury may contract with private collection agencies and law firms to collect taxes and other accounts due this state. In addition to the amounts appropriated in part 1 to the department of treasury, there are appropriated amounts necessary to fund collection costs and fees not to exceed 25% of the collections or 2.5% plus operating costs, whichever amount is prescribed by each contract. The appropriation to fund collection costs and fees for the collection of taxes or other accounts due this state are from the fund or account to which the revenues being collected are recorded or dedicated. However, if the taxes collected are constitutionally dedicated for a specific purpose, the appropriation of collection costs and fees are from the general purpose account of the general fund.

(2) From the funds appropriated in part 1, the department of treasury may contract with private collections agencies and law firms to collect defaulted student loans and other accounts due the Michigan guaranty agency. In addition to the amounts appropriated in part 1 to the department of treasury, there are appropriated amounts necessary to fund collection costs and fees not to exceed 24.34% of the collection or a lesser amount as prescribed by the contract. The appropriation to fund collection costs and fees for the auditing and collection of defaulted student loans due the Michigan guaranty agency is from the fund or account to which the revenues being collected are recorded or dedicated.

(3) The department of treasury shall submit a report for the immediately preceding fiscal year ending September 30 to the state budget director and the senate and house of representatives standing committees on appropriations not later than November 30 stating the agencies or law firms employed, the amount of collections for each, the costs of collection, and other pertinent information relating to determining whether this authority should be continued.

Sec. 904. (1) The department of treasury, through its bureau of investments, may charge an investment service fee against the applicable retirement funds. The fees may be expended for necessary salaries, wages, contractual services, supplies, materials, equipment, travel, worker’s compensation insurance premiums, and grants to the civil service commission and state employees’ retirement funds. Service fees shall not exceed the aggregate amount appropriated in part 1. The department of treasury shall maintain accounting records in sufficient detail to enable the retirement funds to be reimbursed periodically for fee revenue that is determined by the department of treasury to be surplus.

(2) In addition to the funds appropriated in part 1 from the retirement funds to the department of treasury, there is appropriated from retirement funds an amount sufficient to pay for the services of money managers, investment advisors, investment consultants, custodians, and other outside professionals, the state treasurer considers necessary to prudently manage the retirement funds’ investment portfolios. The state treasurer shall report annually to the senate and house of representatives standing committees on appropriations and the state budget office concerning the performance of each portfolio by investment advisor.

Sec. 904a. (1) There is appropriated an amount sufficient to recognize and pay expenditures for financial services provided by financial institutions as provided under section 1 of 1861 PA 111, MCL 21.181.

(2) The appropriations under subsection (1) shall be funded by restricting revenues from common cash interest earnings and investment earnings in an amount sufficient to record these expenditures.

Sec. 905. A revolving fund known as the municipal finance fee fund is created in the department of treasury. Fees are established under the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821, and the fees collected shall be credited to the municipal finance fee fund and may be carried forward for future appropriation.

Sec. 906. (1) The department of treasury shall charge for audits as permitted by state or federal law or under contractual arrangements with local units of government, other principal executive departments, or state agencies. A report detailing audits performed and audit charges for the immediately preceding fiscal year shall be submitted to the state budget director and the senate and house fiscal agencies not later than November 30.

(2) A revolving fund known as the audit charges fund is created in the department of treasury. The contractual charges collected shall be credited to the audit charges fund and may be carried forward for future appropriation.

Sec. 907. A revolving fund known as the assessor certification and training fund is created in the department of treasury. The assessor certification and training fund shall be used to organize and operate a property assessor certification and training program. Each participant certified and trained shall pay to the department of treasury an examination fee of $50.00, an initial certification fee of $50.00, an annual renewal fee of $75.00 for levels 1 and 2, and $125.00 for levels 3 and 4 to offset the cost of administering the certification and training program. Training courses shall be offered in assessment administration. Each participant shall pay a fee to cover the expenses incurred in offering the optional programs to certified assessing personnel and other individuals interested in an assessment career opportunity. The fees collected shall be credited to the assessor certification and training fund.

Sec. 908. The amount appropriated in part 1 to the department of treasury, home heating assistance program, is to cover the costs, including data processing, of administering federal home heating credits to eligible claimants and to administer the supplemental fuel cost payment program for eligible tax credit and welfare recipients.

Sec. 909. Revenue from the airport parking tax act, 1987 PA 248, MCL 207.371 to 207.383, is appropriated and shall be distributed under section 7a of the airport parking tax act, 1987 PA 248, MCL 207.377a.

Sec. 910. The disbursement by the department of treasury from the bottle deposit fund to dealers as required by section 3c(2) of 1976 IL 1, MCL 445.573c, is appropriated.

Sec. 911. (1) There is appropriated an amount sufficient to recognize and pay refundable income tax credits as provided by the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

(2) The appropriations under subsection (1) shall be funded by restricting income tax revenue in an amount sufficient to record these expenditures.

Sec. 912. A plaintiff in a garnishment action involving this state shall pay to the state treasurer 1 of the following:

(a) A fee of $6.00 at the time a writ of garnishment of periodic payments is served upon the state treasurer, as provided in section 4012 of the revised judicature act of 1961, 1961 PA 236, MCL 600.4012.

(b) A fee of $6.00 at the time any other writ of garnishment is served upon the state treasurer, except that the fee shall be reduced to $5.00 for each writ of garnishment for individual income tax refunds or credits filed by magnetic media.

Sec. 913. (1) The department of treasury may contract with private firms to appraise and, if necessary, appeal the assessments of senior citizen cooperative housing units. Payment for this service shall be from savings resulting from the appraisal or appeal process.

(2) Of the funds appropriated in part 1 to the department of treasury for the senior citizens’ cooperative housing tax exemption program, a portion may be utilized for a program audit of the program. The department of treasury shall forward copies of any audit report completed to the senate and house of representatives standing committees on appropriations subcommittees on general government and to the state budget office. The department of treasury may utilize up to 1% of the funds for program administration and auditing.

Sec. 914. The department of treasury may provide a $200.00 annual prize from the Ehlers internship award account in the gifts, bequests, and deposit fund to the runner-up of the Rosenthal prize for interns. The Ehlers internship award account is interest bearing.

Sec. 915. Pursuant to section 61 of the Michigan campaign finance act, 1976 PA 388, MCL 169.261, there is appropriated from the general fund to the state campaign fund an amount equal to the amounts designated for tax year 2011. Except as otherwise provided in this section, the amount appropriated shall not revert to the general fund and shall remain in the state campaign fund. Any amounts remaining in the state campaign fund in excess of $10,000,000.00 on December 31 shall revert to the general fund.

Sec. 916. The department of treasury may make available to interested entities otherwise unavailable customized unclaimed property listings of nonconfidential information in its possession. The charge for this information is as follows: 1 to 100,000 records at 2.5 cents per record and 100,001 or more records at .5 cents per record. The revenue received from this service shall be deposited to the appropriate revenue account or fund. The department shall submit an annual report on or before June 1 to the state budget director and the senate and house of representatives standing committees on appropriations that states the amount of revenue received from the sale of information.

Sec. 917. (1) There is appropriated for write-offs and advances an amount equal to total write-offs and advances for departmental programs, but not to exceed current year authorizations that would otherwise lapse to the general fund.

(2) The department of treasury shall submit a report for the immediately preceding fiscal year to the state budget director and the senate and house fiscal agencies not later than November 30 stating the amounts appropriated for write-offs and advances under subsection (1).

Sec. 918. In addition to funds appropriated in part 1, the department of treasury may receive and expend funds for conducting tax orientation workshops and seminars. Funds received may not exceed costs incurred in conducting the workshops and seminars.

Sec. 919. (1) From funds appropriated in part 1, the department of treasury may contract with private auditing firms to audit for and collect unclaimed property due this state in accordance with the uniform unclaimed property act, 1995 PA 29, MCL 567.221 to 567.265. In addition to the amounts appropriated in part 1 to the department of treasury, there are appropriated amounts necessary to fund auditing and collection costs and fees not to exceed 12% of the collections, or a lesser amount as prescribed by the contract. The appropriation to fund collection costs and fees for the auditing and collection of unclaimed property due this state is from the fund or account to which the revenues being collected are recorded or dedicated.

(2) The department of treasury shall submit a report for the immediately preceding fiscal year ending September 30 to the state budget director and the senate and house of representatives standing committees on appropriations not later than November 30 stating the auditing firms employed, the amount of collections for each, the costs of collection, and other pertinent information relating to determining whether this authority should be continued.

Sec. 924. (1) In addition to the funds appropriated in part 1, the department of treasury may receive and expend principal residence audit fund revenue for administration of principal residence audits under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155.

(2) The department of treasury shall submit a report for the immediately preceding fiscal year to the state budget director and the senate and house fiscal agencies not later than December 31 stating the amount of exemptions denied and the revenue received under the program.

Sec. 925. (1) A public-private partnership investment fund is created in the department of treasury. Subject to subsections (2) and (3), public-private partnership investments shall include, but are not limited to, all of the following:

(a) Capital asset improvements including buildings, land, or structures.

(b) Energy resource exploration, extraction, generation, and sales.

(c) Financial and investment incentive opportunities.

(d) Infrastructure construction, maintenance, and operation.

(e) Public-private sector joint ventures that provide economic benefit to an area or to the state.

(2) Public-private investments shall not include projects, consultant expenses, staff effort, or any other activity related to the development, financing, construction, operation, or implementation of the Detroit River International Crossing or any successor project unless the project is approved by the legislature and signed into law.

(3) The state treasurer and the state budget director shall determine whether or not a specific public-private partnership investment opportunity qualifies for funding under subsection (1).

(4) Investment development revenue, including a portion of the proceeds from the sale of any public-private partnership investment designated in subsection (1), shall be deposited into the fund created in subsection (1) and shall be available for administration, development, financing, marketing, and operating expenditures associated with public‑private partnerships, unless otherwise provided by law. Public-private partnership investments authorized in subsection (1) are authorized for public or private operation or sale consistent with state law. Expenditures from the fund are authorized for investment purposes as designated in subsection (1) to enhance the marketable value of each investment. The unencumbered balance remaining in the fund at the end of the fiscal year may be carried forward for appropriation in future years.

(5) An annual report shall be transmitted to the senate and house of representatives standing committees on appropriations, the senate and house fiscal agencies, and the state budget office not later than December 31 of each year. This report shall detail both of the following:

(a) The revenue and expenditure activity in the fund for the preceding fiscal year.

(b) Public-private partnership investments as identified under subsection (1).

(6) The department of treasury shall monitor the revenue deposited in the public-private partnership investment fund created in subsection (1). If the revenue in the fund is insufficient to pay the amount appropriated in part 1 for public-private partnership investment, then treasury shall propose a legislative transfer to fund the line from the appropriations in part 1.

Sec. 925a. The funds appropriated in part 1 shall not be used to support any staff effort, projects, consultant expenses, or any other activity related to the development, financing, construction, operation, or implementation of the Detroit River International Crossing or any successor project unless the project is approved by the legislature and signed into law.

Sec. 926. Unexpended appropriations of the John R. Justice grant program are designated as work project appropriations and shall not lapse at the end of the fiscal year and shall continue to be available for expenditure until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to provide student loan forgiveness to qualified public defenders and prosecutors.

(b) The project will be accomplished by utilizing state employees or contracts with private vendors, or both.

(c) The total estimated cost of the project is $287,000.00.

(d) The tentative completion date is September 30, 2014.

Sec. 927. The department of treasury shall submit annual progress reports to the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies, regarding personal property tax audits. The report shall include the number of audits, revenue generated, and number of complaints received by the department related to the audits.

Sec. 928. The department of treasury may provide receipt, warrant and cash processing, data, collection, investment, fiscal agent, levy and warrant cost assessment, writ of garnishment, and other user services on a contractual basis for other principal executive departments and state agencies. Funds for the services provided are appropriated and shall be expended for salaries and wages, fees, supplies, and equipment necessary to provide the services. Any unobligated balance of the funds received shall revert to the general fund of this state as of September 30.

Sec. 930. (1) The department of treasury shall provide accounts receivable collections services to other principal executive departments and state agencies under 1927 PA 375, MCL 14.131 to 14.134. The department of treasury shall deduct a fee equal to the cost of collections from all receipts except unrestricted general fund collections. Fees shall be credited to a restricted revenue account and appropriated to the department of treasury to pay for the cost of collections. The department of treasury shall maintain accounting records in sufficient detail to enable the respective accounts to be reimbursed periodically for fees deducted that are determined by the department of treasury to be surplus to the actual cost of collections.

(2) The department of treasury shall submit a report for the immediately preceding fiscal year to the state budget director and the senate and house fiscal agencies not later than November 30 stating the principal executive departments and state agencies served, funds collected, and costs of collection under subsection (1).

Sec. 931. (1) The appropriation in part 1 to the department of treasury for treasury fees shall be assessed against all restricted funds that receive common cash earnings or other investment income. Treasury fees include all costs, including administrative overhead, relating to the investment of each restricted fund. The fee assessed against each restricted fund will be based on the size of the restricted fund (the absolute value of the average daily cash balance plus the market value of investments in the prior fiscal year) and the level of effort necessary to maintain the restricted fund as required by each department. The department of treasury shall provide a report to the state budget director, the senate and house of representatives standing committees on appropriations subcommittees on general government, and the senate and house fiscal agencies by November 30 of each year identifying the fees assessed against each restricted fund and the methodology used for assessment.

(2) In addition to the funds appropriated in part 1, the department of treasury may receive and expend investment fees relating to new restricted funding sources that participate in common cash earnings or other investment income during the current fiscal year. When a new restricted fund is created starting on or after October 1, that restricted fund shall be assessed a fee using the same criteria identified in subsection (1).

Sec. 932. Revenue received under the Michigan education trust act, 1986 PA 316, MCL 390.1421 to 390.1442, may be expended by the board of directors of the Michigan education trust for necessary salaries, wages, supplies, contractual services, equipment, worker’s compensation insurance premiums, and grants to the civil service commission and state employees’ retirement fund.

Sec. 934. (1) The department of treasury may expend revenues received under the hospital finance authority act, 1969 PA 38, MCL 331.31 to 331.84, the shared credit rating act, 1985 PA 227, MCL 141.1051 to 141.1076, the higher education facilities authority act, 1969 PA 295, MCL 390.921 to 390.934, the Michigan public educational facilities authority, Executive Reorganization Order No. 2002-3, MCL 12.192, the Michigan tobacco settlement finance authority act, 2005 PA 226, MCL 129.261 to 129.279, the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774, part 505 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.50501 to 324.50522, the state housing development authority act of 1966, 1966 PA 346, MCL 125.1401 to 125.1499c, and the Michigan finance authority, Executive Reorganization Order No. 2010-2, MCL 12.194, for necessary salaries, wages, supplies, contractual services, equipment, worker’s compensation insurance premiums, grants to the civil service commission and state employees’ retirement fund, and other expenses as allowed under those acts.

(2) The department of treasury shall report by January 31 to the senate and house appropriations subcommittees, the senate and house fiscal agencies, and the state budget director on the amount and purpose of expenditures made under subsection (1) from funds received in addition to those appropriated in part 1. The report also shall include a listing of reimbursement of revenue, if any. The report shall cover the 2011-2012 fiscal year.

Sec. 944. If the department hires a pension plan consultant using any of the funds appropriated in part 1, the department shall annually forward any report provided to the department by that consultant to the senate and house of representatives standing committees on appropriations subcommittees on general government, the senate and house fiscal agencies, and the state budget director.

Sec. 945. The assessment and certification division of the department of treasury shall conduct a review of local unit assessment administration practices, procedures, and records, also known as the 14-point review, in at least 1 assessment jurisdiction per county.

REVENUE SHARING

Sec. 950. The funds appropriated in part 1 for constitutional revenue sharing shall be distributed by the department to cities, villages, and townships, as required under section 10 of article IX of the state constitution of 1963. Revenue collected in accordance with section 10 of article IX of the state constitution of 1963 in excess of the amount appropriated in part 1 for constitutional revenue sharing is appropriated for distribution to cities, villages, and townships, on a population basis as required under section 10 of article IX of the state constitution of 1963.

Sec. 951. (1) The funds appropriated in part 1 for the competitive grant assistance program are to be used for assistance grants to cities, villages, townships, counties, school districts, and intermediate school districts to offset the costs associated with mergers, interlocal agreements, and cooperative efforts for those cities, villages, townships, counties, school districts, and intermediate school districts that elect to combine government operations. For a school district or intermediate school district to qualify for grant funding under this section, the school district or intermediate school district must combine operations with a city, village, township, or county. However, a city, village, township, county, school district, or intermediate school district is not eligible to receive funding under this section if the city, village, township, county, school district, or intermediate school district receives a grant from the competitive grant assistance program under the state school aid act, 1979 PA 94, MCL 388.1601 to 388.1896. The department of treasury shall develop an application process and method of grant distribution.

(2) The unexpended funds appropriated in part 1 for the competitive grant assistance program, economic vitality incentive program, and the county incentive program are designated as work project appropriations and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditure for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the projects is to provide incentive-based grants to recipients under this section.

(b) The projects will be accomplished by grants to qualified governmental units.

(c) The total estimated cost of all projects is $266,120,000.00.

(d) The tentative completion date is September 30, 2016.

Sec. 952. (1) The funds appropriated in part 1 for the economic vitality incentive program are to be used for grants to cities, villages, and townships such that, subject to fulfilling the requirements under subsection (3), each city, village, or township that received a payment under section 950(2) of 2009 PA 128 greater than $4,500.00 is eligible to receive a maximum of 72.68289% of its total payment received under section 950(2) of 2009 PA 128, rounded to the nearest dollar. For the purposes of this subsection, any city or village that according to the 2010 federal decennial census is determined to have population in more than 1 county will be treated as a single entity when determining the payment received under section 950(2) of 2009 PA 128.

(2) The funds appropriated in part 1 for the county incentive program are to be used for grants to counties such that each county is eligible to receive an amount equal to the amount by which the balance in its revenue sharing reserve fund under section 44a of the general property tax act, 1893 PA 206, MCL 211.44a, for the county’s most recent fiscal year that ends prior to the January 1 of the state’s fiscal year is less than the amount calculated under section 44a(13) of the general property tax act, 1893 PA 206, MCL 211.44a, for the county fiscal year that begins in the state’s fiscal year. The amount calculated under this subsection shall be adjusted as necessary to reflect partial county fiscal years and prorated based on the total amount appropriated for distribution to all eligible counties. Payments under this subsection will be distributed to an eligible county subject to the county fulfilling the requirements under subsection (3).

(3) Cities, villages, townships, and counties eligible to receive a potential payment from the allocation under subsection (1) or (2) may qualify to receive payments under 1 or more of the following 3 categories:

(a) Category 1, accountability and transparency, requires each eligible city, village, township, or county to certify by October 1, 2012, or the first day of a payment month for this category, that it has produced a citizen’s guide of its most recent local finances, including a recognition of its unfunded liabilities, a performance dashboard, and a projected budget report including at a minimum the current fiscal year and a projection for the immediately following fiscal year. The projected budget report shall include revenues and expenditures, a detailed listing of its debt service requirements, and an explanation of the assumptions used for the projections. The citizen’s guide, performance dashboard, and projected budget report shall be made available for public viewing in the city, village, township, or county clerk’s office or posted on a publicly accessible Internet site. Each city, village, township, and county applying for a payment under this category shall submit a copy of the citizen’s guide, a copy of the performance dashboard, and a copy of the projected budget report to the department of treasury.

(b) Category 2, consolidation of services, requires each eligible city, village, township, or county to certify by February 1, 2013, or the first day of a payment month for this category, that it has produced a consolidation plan. The consolidation plan shall be made readily available for public viewing in the city, village, township, or county clerk’s office or posted on a publicly accessible Internet site. Each city, village, township, and county applying for a payment under this category shall submit a copy of the consolidation plan to the department of treasury. At a minimum, the consolidation plan shall include the following:

(i) For a city, village, township, or county that is submitting a consolidation plan for the first time, the plan shall include a listing of any previous services consolidated with an estimated cost savings amount for each consolidation. In addition, the plan shall include 1 or more new proposals to increase its existing level of cooperation, collaboration, and consolidation either within the jurisdiction or with other jurisdictions, an estimate of the potential savings amount, and a timeline for implementing the new proposal.

(ii) For a city, village, or township that submitted a consolidation plan in the previous fiscal year, the plan shall include an update on the status of the new proposals that were in the previous year’s consolidation plan, including whether or not the previously proposed plan has been fully implemented, a listing of the barriers experienced in implementing the proposal, and a timeline of the steps to accomplish the proposed plan. In addition, the plan shall include 1 or more new proposals to increase its existing level of cooperation, collaboration, and consolidation either within the jurisdiction or with other jurisdictions, or a detailed explanation of why increasing its existing level of cooperation, collaboration, and consolidation is not feasible.

(c) Category 3, employee compensation, requires each eligible city, village, township, or county to meet 1 of the following requirements:

(i) Certify by June 1, 2013, or the first day of a payment month for this category, that it has developed and publicized an employee compensation plan that the city, village, township, or county intends to implement with any new, modified, or extended contract or employment agreements for employees not covered under contract or employment agreement. The employee compensation plan that each city, village, township, or county plans to achieve shall be made available for public viewing in the city, village, township, or county clerk’s office or posted on a publicly accessible Internet site and must be submitted to the department of treasury. At a minimum, the employee compensation plan shall include all of the following:

(A) New hires that are eligible for retirement plans are placed on retirement plans that cap annual employer contributions at 10% of base salary for employees that are eligible for social security benefits. For employees that are not eligible for social security benefits, the annual employer contribution is capped at 16.2% of base salary.

(B) For defined benefit pension plans, a maximum multiplier of 1.5% for all employees that are eligible for social security benefits, except, where postemployment health care is not provided, the maximum multiplier shall be 2.25%. For all employees that are not eligible for social security benefits, a maximum multiplier of 2.25%, except, where postemployment health care is not provided, the maximum multiplier shall be 3.0%.

(C) For defined benefit pension plans, final average compensation for all employees is calculated using a minimum of 3 years of compensation and shall not include more than a total of 240 hours of paid leave. Overtime hours shall not be used in computing the final average compensation for an employee.

(D) Health care premium costs for new hires shall include a minimum employee share of 20%; or, an employer’s share of the local health care plan costs shall be cost competitive with the new state preferred provider organization health plan, on a per-employee basis.

(ii) Comply with 1 of the following:

(A) Any eligible city, village, township, or county that offers medical benefits to its employees or elected public officials shall certify to the department of treasury by June 1, 2013, or the first day of a payment month for this category, that it is in compliance with the publicly funded health insurance contribution act, 2011 PA 152, MCL 15.561 to 15.569. Dental and vision coverages are not considered medical benefits. The department shall develop a certification process and method for cities, villages, townships, and counties to follow.

(B) Any city, village, township, or county that does not offer medical benefits to its employees or elected public officials shall certify to the department of treasury by June 1, 2013, or the first day of a payment month for this category, that it does not offer medical benefits to its employees or elected public officials. Dental and vision coverages are not considered medical benefits. The department shall develop a certification process and method for cities, villages, townships, or counties to follow.

(4) Economic vitality incentive program payments and county incentive program payments are subject to the following conditions:

(a) In order for a city, village, township, or county to qualify for a category under subsection (3)(a), (b), or (c), the city, village, township, or county shall meet every criteria for that category including a certification to the department that it has met the required criteria for that category and submission of the required citizen’s guide, performance dashboard, and projected budget report; consolidation plan; or the employee compensation plan or certification of compliance with the publicly funded health insurance contribution act, 2011 PA 152, MCL 15.561 to 15.569, or certification that it does not offer medical benefits to employees or public officials, as required by subsection (3)(a), (b), or (c), respectively. A department of treasury review of the citizen’s guide, dashboard, or plan is not required in order for a city, village, township, or county to receive a payment under subsection (1) or (2). The department shall develop a certification process and method for cities, villages, townships, and counties to follow.

(b) Subject to subsection (4)(c), (d), and (e), for each category that a city, village, township, or county qualifies for in subsection (3), the city, village, township, or county shall receive 1/3 of its potential payment under this section.

(c) Payments under this section shall be issued to cities, villages, and townships as follows:

(i) Category 1, an eligible city, village, or township that certifies with the department of treasury that it has qualified for a payment under subsection (3)(a) by October 1, 2012 shall receive 1/6 of its available distribution on the last business day of October 2012 and 1/6 of its available distribution on the last business day of December 2012. If an eligible city, village, or township certifies with the department of treasury that it has qualified for a payment under subsection (3)(a) after October 1, 2012, but prior to December 1, 2012, the city, village, or township shall receive 1/6 of its available distribution on the last business day of December 2012.

(ii) Category 2, an eligible city, village, or township that certifies with the department of treasury that it has qualified for a payment under subsection (3)(b) by February 1, 2013 shall receive 1/6 of its available distribution on the last business day of February 2013 and 1/6 of its available distribution on the last business day of April 2013. If an eligible city, village, or township certifies with the department of treasury that it has qualified for a payment under subsection (3)(b) after February 1, 2013, but prior to April 1, 2013, the city, village, or township shall receive 1/6 of its available distribution on the last business day of April 2013.

(iii) Category 3, an eligible city, village, or township that certifies with the department of treasury that it has qualified for a payment under subsection (3)(c) by June 1, 2013 shall receive 1/6 of its available distribution on the last business day of June 2013 and 1/6 of its available distribution on the last business day of August 2013. If an eligible city, village, or township certifies with the department of treasury that it has qualified for a payment under subsection (3)(c) after June 1, 2013, but prior to August 1, 2013, the city, village, or township shall receive 1/6 of its available distribution on the last business day of August 2013.

(d) Payments under this section shall be issued to counties for each category in subsection (3) until the specified due date for the category. After the specified due date for the category, payments shall be made to a county only if that county has complied with subsection (4)(a).

(e) If a county does not provide the required certification or fails to submit the required citizen’s guide, performance dashboard, projected budget report, consolidation plan, or certification of compliance with the publicly funded health insurance contribution act, 2011 PA 152, MCL 15.561 to 15.569, by the first day of a payment month, the county shall forfeit the payment in that payment month for the uncertified category in subsection (3).

(f) Any city, village, township, or county that falsifies certification documents shall forfeit any future economic vitality incentive program payments or county incentive program payments and shall repay to this state all economic vitality incentive program payments or county incentive program payments it has received under this section.

(g) Economic vitality incentive program payments and county incentive program payments under this section shall be distributed on the last business day of October, December, February, April, June, and August.

(h) Payments distributed under this section may be withheld pursuant to sections 17a and 21 of the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.917a and 141.921.

(i) The department of treasury shall develop detailed guidance for an eligible city, village, township, or county to follow to qualify for a payment under subsection (3)(a), (b), and (c). The detailed guidance shall be posted on the department of treasury website and distributed to eligible cities, villages, townships, and counties by October 1, 2012.

(5) The unexpended funds appropriated in part 1 for the economic vitality incentive program and the county incentive program shall be available for expenditure for competitive grant assistance projects under section 951.

Sec. 955. (1) The funds appropriated in part 1 for county revenue sharing shall be distributed by the department to eligible counties pursuant to the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921.

(2) The department of treasury shall annually certify to the state budget director the amount each county is authorized to expend from its revenue sharing reserve fund.

LOTTERY

Sec. 960. In addition to the funds appropriated in part 1 to the bureau of state lottery, there is appropriated from state lottery fund revenues the amount necessary for, and directly related to, implementing and operating lottery games under the McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.1 to 432.47, and activities under the Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.101 to 432.120, including expenditures for contractually mandated payments for vendor commissions, contractually mandated payments for instant tickets intended for resale, the contractual costs of providing and maintaining the online system communications network, and incentive and bonus payments to lottery retailers.

Sec. 963. The bureau of state lottery shall inform all lottery retailers that the cash side of department of human services bridge cards cannot be used to purchase lottery tickets.

CASINO GAMING

Sec. 971. From the revenue collected by the Michigan gaming control board regarding the total annual assessment of each casino licensee, $2,000,000.00 is appropriated and shall be deposited in the compulsive gaming prevention fund as described in section 12a(5) of the Michigan gaming control and revenue act, 1996 IL 1, MCL 432.212a.

Sec. 973. (1) Funds appropriated in part 1 for local government programs may be used to provide assistance to a local revenue sharing board referenced in an agreement authorized by the Indian gaming regulatory act, Public Law 100-497.

(2) A local revenue sharing board described in subsection (1) shall comply with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275, and the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

(3) A county treasurer is authorized to receive and administer funds received for and on behalf of a local revenue sharing board. Funds appropriated in part 1 for local government programs may be used to audit local revenue sharing board funds held by a county treasurer. This section does not limit the ability of local units of government to enter into agreements with federally recognized Indian tribes to provide financial assistance to local units of government or to jointly provide public services.

(4) A local revenue sharing board described in subsection (1) shall comply with all applicable provisions of any agreement authorized by the Indian gaming regulatory act, Public Law 100-497, in which the local revenue sharing board is referenced, including, but not limited to, the disbursal of tribal casino payments received under applicable provisions of the tribal-state class III gaming compact in which those funds are received.

(5) The director of the department of state police and the executive director of the Michigan gaming control board are authorized to assist the local revenue sharing boards in determining allocations to be made to local public safety organizations.

(6) The department of treasury shall submit a report by September 30 to the senate and house of representatives standing committees on appropriations and the state budget director on the receipts and distribution of revenues by local revenue sharing boards.

Sec. 974. If revenues collected in the state services fee fund are less than the amounts appropriated from the fund, available revenues shall be used to fully fund the appropriation in part 1 for casino gaming regulation activities before distributions are made to other state departments and agencies. If the remaining revenue in the fund is insufficient to fully fund appropriations to other state departments or agencies, the shortfall shall be distributed proportionally among those departments and agencies.

Sec. 976. The executive director of the Michigan gaming control board may pay rewards of not more than $5,000.00 to a person who provides information that results in the arrest and conviction on a felony or misdemeanor charge for a crime that involves the horse racing industry. A reward paid pursuant to this section shall be paid out of the appropriation in part 1 for the racing commission.

Sec. 977. All appropriations from the Michigan agriculture equine industry development fund, except for the racing commission and laboratory analysis program appropriations, shall be reduced proportionately if revenues to the Michigan agriculture equine industry development fund decline during the fiscal year ending September 30, 2013 to a level lower than the amount appropriated in part 1.

Sec. 978. 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 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.

Sec. 979. In addition to the funds appropriated in part 1, the Michigan gaming control board may receive and expend state lottery fund revenue in an amount not to exceed $4,000,000.00 for necessary expenses incurred in the licensing and regulation of millionaire parties pursuant to Executive Order No. 2012-4. In accordance with section 8 of the Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.108, the amount of necessary expenses shall not exceed the amount of revenue received under that act. The Michigan gaming control board shall provide a report to the senate and house of representatives appropriations subcommittees on general government, the senate and house fiscal agencies, and the state budget office by April 15. The report shall include, but not be limited to, total expenditures related to the licensing and regulating of millionaire parties, steps taken to ensure charities are receiving revenue due to them, progress on promulgating rules to ensure compliance with the Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.101 to 432.120, and any enforcement actions taken.

MICHIGAN STRATEGIC FUND - HOUSING AND COMMUNITY DEVELOPMENT

Sec. 980. MSHDA shall annually present a report to the state budget office and the subcommittees on the status of the authority’s housing production goals under all financing programs established or administered by the authority. The report shall give special attention to efforts to raise affordable multifamily housing production goals.

Sec. 981. MSHDA shall report to the subcommittees, the state budget director, and the fiscal agencies by December 1 on the status of the loans entered into by the Michigan broadband development authority.

Sec. 983. In addition to the amounts appropriated in part 1 for the administration of the land bank fast track authority, the authority may expend revenues received under the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774, for the purposes authorized by the act including, but not limited to, the acquisition, lease, management, demolition, maintenance, or rehabilitation of real or personal property, payment of debt service for notes or bonds issued by the authority, and other expenses to clear or quiet title property held by the authority.

Sec. 984. In addition to the funds appropriated in part 1, the funds collected by state historic preservation programs for document reproduction and services and application fees 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 succeeding fiscal year.

MICHIGAN STRATEGIC FUND

Sec. 1001. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $20,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

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

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $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 act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

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

Sec. 1005. In addition to the appropriations in part 1, Travel Michigan may receive and expend private revenue related to the use of “Pure Michigan” and all other copyrighted slogans and images. This revenue may come from the direct licensing of the name and image or from the royalty payments from various merchandise sales. Revenue collected is appropriated for the marketing of the state as a travel destination. The funds are available for expenditure when they are received by the department of treasury.

Sec. 1006. The fund shall submit on February 15 to the subcommittees, the state budget office, and the fiscal agencies a listing of all grants which have been awarded by the fund or by the Michigan economic development corporation from the funds appropriated in part 1. The list shall include all of the following:

(a) The name of the recipient.

(b) The amount awarded to the recipient.

(c) The purpose of the grant.

Sec. 1007. (1) The fund shall provide reports to the relevant subcommittees, the state budget director, and the fiscal agencies concerning the activities of the Michigan economic development corporation grants and investment programs financed from the fund using investment or Indian gaming revenues. The report shall provide a list of individual grants, loans, and investments made from the fund. The report shall include, but not be limited to, the following programs funded in part 1:

(a) Travel Michigan, including any expenditures authorized under section 89b of the Michigan strategic fund act, 1984 PA 270, MCL 125.2089b, to supplement the Michigan promotion program. The report shall include the number of commercials produced, the markets in which media buys have been made, and any web-based products that were created with these funds.

(b) Business attraction, retention, and growth, including any expenditures authorized under section 89b of the Michigan strategic fund act, 1984 PA 270, MCL 125.2089b, to supplement the Michigan business marketing program. The report shall include the number of commercials produced, the markets in which media buys have been made, and any web-based products that were created as a result of this appropriation.

(c) Business services.

(d) Community development block grants.

(e) Strategic fund administration.

(f) Renaissance zones.

(g) 21st century investment program.

(h) Business and clean air ombudsman.

(i) Michigan business development program.

(j) Community revitalization program.

(k) Film incentives.

(l) Any other programs of the fund.

(2) The reports in subsection (1) shall be submitted by February 15. The report for each program in subsection (1)(a) through (l) shall include details on all revenue sources, actual expenditures, and number of FTEs for that program for the previous fiscal year.

Sec. 1008. As a condition of receiving funds under part 1, any interlocal agreement entered into by the fund shall include language which states that if a local unit of government has a contract or memorandum of understanding with a private economic development agency, the Michigan economic development corporation will work cooperatively with that private organization in that local area.

Sec. 1009. (1) Of the funds appropriated to the fund or through grants to the Michigan economic development corporation, no funds shall be expended for the purchase of options on land or the purchase of land unless at least 1 of the following conditions applies:

(a) The land is located in an economically distressed area.

(b) The land is obtained through a purchase or exercise of an option at the invitation of the local unit of government and local economic development agency.

(2) Consideration may be given to purchases where the proposed use of the land is consistent with a regional land use plan, will result in the redevelopment of an economically distressed area, can be supported by existing infrastructure, and will not cause shifts in population away from the area’s population centers.

(3) As used in this section, “economically distressed area” means an area in a city, village, or township that has been designated as blighted; a city, village, or township that shows negative population change from 1970 and a poverty rate and unemployment rate greater than the statewide average; or an area certified as a neighborhood enterprise zone under the neighborhood enterprise zone act, 1992 PA 147, MCL 207.771 to 207.786.

Sec. 1011. (1) From the general fund/general purpose appropriations in part 1 to the fund and granted or transferred to the Michigan economic development corporation, any unexpended or unencumbered balance shall be disposed of in accordance with the requirements in the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, unless carryforward authorization has been otherwise provided for.

(2) Any encumbered funds shall be used for the same purposes for which funding was originally appropriated in this act.

Sec. 1012. (1) As a condition of receiving funds under part 1, the fund shall ensure that the MEDC and the fund comply with all of the following:

(a) The freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

(b) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

(c) Annual audits of all financial records by the auditor general or his or her designee.

(d) All reports required by law to be submitted to the legislature.

(2) If the MEDC is unable for any reason to perform duties under this act, the fund may exercise those duties.

Sec. 1013. As a condition for receiving the appropriations in part 1, any staff of the Michigan economic development corporation involved in private fund-raising activities shall not be party to any decisions regarding the awarding of grants or tax abatements from the fund, the Michigan economic development corporation, or the Michigan economic growth authority.

Sec. 1014. (1) All funds received from repayment of loans, unused grants, revenues received from sales or cash flow participation agreements, guarantees, or any combination of these or accrued interest originally distributed as part of the core communities fund, created by 2000 PA 291, shall be received, held, and applied by the fund for the purposes described in 2000 PA 291.

(2) The fund shall provide an annual report on the status of this fund which includes information that details the awards made. The report shall be provided to the appropriations subcommittees on general government, the fiscal agencies, and the state budget office by January 31.

Sec. 1020. Federal pass-through funds to local institutions and governments that are received in amounts in addition to those included in part 1 and that do not require additional state matching funds are appropriated for the purposes intended. The fund may carry forward into the succeeding fiscal year unexpended federal pass-through funds to local institutions and governments that do not require additional state matching funds. The fund shall report the amount and source of the funds to the senate appropriation subcommittee on economic development, the house appropriation subcommittee on general government, the senate and house fiscal agencies, and the state budget office within 10 business days after receiving any additional pass-through funds.

Sec. 1023. The fund shall coordinate tourism promotion with the tourism industry. The fund shall submit a report on the geographical market locations and recreational activities used in Michigan tourism promotion material at the same time and in the same manner as it submits the report required under section 89d of the Michigan strategic fund act, 1984 PA 270, MCL 125.2089d.

Sec. 1024. From the funds appropriated in part 1 for business attraction and economic gardening, not less than $20,000,000.00 shall be granted by the Michigan strategic fund board for brownfield redevelopment incentives and historic preservation incentives.

Sec. 1031. The Michigan strategic fund shall report to the senate and house of representatives appropriations subcommittees on general government, the senate and house fiscal agencies, and the state budget office by April 15, 2013 on the spending plan for the line items for innovation and entrepreneurship and business attraction and economic gardening. If the spending plan for the fiscal year is changed after that date, the fund shall notify the report recipients listed previously within 10 business days.

Sec. 1032. (1) The Michigan film office shall report to the subcommittees and the fiscal agencies on the status of the film incentives at the same time as it submits the annual report required under section 455 of the Michigan business tax act, 2007 PA 36, MCL 208.1455. The department of treasury and the Michigan strategic fund shall provide the Michigan film office with the data necessary to prepare the report. Incentives included in the report shall include all of the following:

(a) The tax credit provided under section 455 of the Michigan business tax act, 2007 PA 36, MCL 208.1455.

(b) The tax credit provided under section 457 of the Michigan business tax act, 2007 PA 36, MCL 208.1457.

(c) The tax credit provided under section 459 of the Michigan business tax act, 2007 PA 36, MCL 208.1459.

(d) The amount of any tax credit claimed under former section 367 of the income tax act of 1967, 1967 PA 281.

(e) Any tax credits provided for film and digital media production under the Michigan economic growth authority act, 1995 PA 24, MCL 207.801 to 207.810.

(f) Loans to an eligible production company or film and digital media private equity fund authorized under section 88d(3), (4), and (5) of the Michigan strategic fund act, 2005 PA 225, MCL 125.2088d.

(g) Any spending or activities supported by the appropriation in part 1 for film incentives.

(2) The report shall include all of the following information:

(a) For each tax credit, the number of contracts signed, the projected expenditures qualifying for the credit, and the estimated value of the credits. For loans, the number of loans made under each section, the interest rate of those loans, the loan amount, the percent of the projected budget of each production financed by those loans, and the estimated interest earnings from the loan. For each film incentive awarded, including any program to support and promote a qualified facility and other film infrastructure as defined in section 29h of the Michigan strategic fund act, 1984 PA 270, MCL 125.2029h, the total funding awarded for each of the following:

(i) Direct production expenditures.

(ii) Michigan personnel expenditures.

(iii) Crew personnel expenditures.

(iv) Qualified personnel expenditures.

(v) Postproduction expenditures.

(vi) Qualified facility or infrastructure expenditures.

(vii) Spending for program administration.

(b) For credits authorized under section 455 of the Michigan business tax act, 2007 PA 36, MCL 208.1455, for productions completed by December 31, the expenditures of each production eligible for the credit that has filed a request for certificate of completion with the film office, broken down into expenditures for goods, services, or salaries and wages and showing separately expenditures in each local unit of government, including expenditures for personnel, whether or not they were made to a Michigan entity, and whether or not they were taxable under the laws of this state. For loans, the report shall include the number of loans that have been fully repaid, with principal and interest shown separately, and the number of loans that are delinquent or in default, and the amount of principal that is delinquent or is in default.

(c) For each of the tax credit incentives, loan incentives, and film incentives listed in subsection (1), a breakdown for each project or production showing each of the following:

(i) The number of temporary jobs created.

(ii) The number of permanent jobs created.

(iii) The number of persons employed in Michigan as a result of the incentive, on a full-time equated basis.

(3) For any information not included in the report due to the provisions of sections 455(6), 457(6), or 459(6) of the Michigan business tax act, 2007 PA 36, MCL 208.1455, 208.1457, and 208.1459, the report shall do all of the following:

(a) Indicate how the information would describe the commercial and financial operations or intellectual property of the company.

(b) Attest that the information has not been publicly disseminated at any time.

(c) Describe how disclosure of the information may put the company at a competitive disadvantage.

(4) Any information not disclosed due to the provisions of sections 455(6), 457(6), or 459(6) of the Michigan business tax act, 2007 PA 36, MCL 208.1455, 208.1457, and 208.1459, shall be presented at the lowest level of aggregation that would no longer describe the commercial and financial operations or intellectual property of the company.

Sec. 1033. The Michigan film office shall report to the chairpersons of the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies on the status of the film incentives approved under section 29h of the Michigan strategic fund act, 1984 PA 270, MCL 125.2029h, not later than 30 days following the end of each quarter of the fiscal year. The report shall include all of the following:

(a) Direct and indirect economic impacts in this state attributable to the assistance.

(b) Direct and indirect job creation in this state attributable to the assistance.

(c) Direct and indirect private investment in this state attributable to the assistance.

(d) The name of each eligible production company and the amount of each incentive disbursed for each state certified qualified production.

Sec. 1033b. It is the intent of the legislature that for funds appropriated from the general fund/general purpose revenue for the purpose of the Michigan strategic fund – film incentive program, the applicable percentage of the state certified qualified production expenditures provided in section 29h(3)(d) of the Michigan strategic fund act, 1984 PA 270, MCL 125.2029h, shall be determined based on the date of the agreement.

Sec. 1034. (1) From the funds appropriated in part 1 for innovation and entrepreneurship, the Michigan strategic fund shall award grants that total not more than $8,500,000.00 for business incubators and accelerators as follows:

(a) A high performance regional business incubator or accelerator that provides services in at least 8 counties and received funding as an auto technology business accelerator under section 88j of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088j, shall receive a grant of not less than $2,000,000.00 in fiscal year 2012-2013.

(b) Funding of not less than $750,000.00 in fiscal year 2012-2013 shall be awarded to 1 high performance business incubator or accelerator in a city with a population greater than 650,000.

(c) Funding of not less than $500,000.00 in fiscal year 2012-2013 shall be awarded to 1 high performance business incubator or accelerator in each of the following governmental units:

(i) Houghton County.

(ii) Isabella County.

(iii) Kent County.

(iv) Macomb County.

(v) Oakland County.

(vi) Washtenaw County.

(vii) Midland County.

(viii) A Mason County business incubator that provides services to Lake, Mason, Manistee, and Oceana Counties.

(d) Funding of not less than $275,000.00 in fiscal year 2012-2013 shall be awarded to 1 high performance business incubator or accelerator in Ingham County.

(2) Grant funding awarded under this section may be used to fund satellite locations, as determined by the Michigan strategic fund.

(3) Eligible recipients for these awards shall be operational as of October 1, 2012.

(4) No recipient under subsection (1)(b), (c), or (d) shall receive more than $1,000,000.00 under this section. The fund shall make 1 award under subsection (1)(a) and shall make 1 award to an incubator or accelerator located in each local government listed in subsection (1)(b), (c), or (d).

(5) Applicants shall submit a comprehensive business plan to the Michigan strategic fund that demonstrates the sustainability of the organization.

(6) Awards shall be announced by January 31.

(7) Each recipient business incubator or accelerator shall develop a dashboard of indicators to measure the effectiveness of the business incubator and accelerator programs. Indicators shall include the direct jobs created, new companies launched as a direct result of business incubator or accelerator involvement, businesses expanded as a direct result of business incubator or accelerator involvement, direct investment in client companies, private equity financing obtained by client companies, grant funding obtained by client companies, and other measures developed by the recipient business incubators and accelerators in conjunction with the Michigan economic development corporation. Dashboard indicators shall be reported for the prior fiscal year and cumulatively, if available. Each recipient shall submit a copy of their dashboard indicators to the Michigan strategic fund by March 1. The Michigan strategic fund shall transmit the local reports to the senate and house of representatives appropriations subcommittees on general government, the senate and house fiscal agencies, and the state budget office by March 15.

(8) It is the intent of the legislature that any funding awarded for business incubators or accelerators in the 2013-2014 fiscal year and subsequent years will be based on the performance of the program as a whole and the results of each incubator as reported in the dashboard indicators.

Sec. 1034b. From the funds appropriated in part 1 for innovation and entrepreneurship, the fund shall allocate $500,000.00 to the Van Andel Institute to be used as a match for funding received from the department of defense and the national institutes of health for advanced medical research.

Sec. 1035. (1) From the appropriation in part 1, the Michigan council for arts and cultural affairs shall administer an arts and cultural grant program that maintains an equitable geographic distribution of funding and utilizes past arts and cultural grant programs as a guideline for administering this program. The council shall do all of the following:

(a) On or before October 1, the fund shall publish proposed application criteria, instructions, and forms for use by eligible applicants. The fund shall provide at least a 2-week period for public comment before finalizing the application criteria, instructions, and forms.

(b) A nonrefundable application fee may be assessed for each application. Application fees shall be deposited in the council for the arts fund and are appropriated for expenses necessary to administer the programs. These funds are available for expenditure when they are received and may be carried forward to the following fiscal year.

(c) Grants are to be made to public and private arts and cultural entities.

(d) Within 1 business day after the award announcements, the council shall provide to each member of the legislature and the fiscal agencies a list of all grant recipients and the total award given to each recipient, sorted by county.

(2) Up to $100,000.00 from the appropriation in part 1 for arts and cultural program may be used for the administration of this grant program.

MICHIGAN STRATEGIC FUND – CAREER EDUCATION

Sec. 1050. (1) The fund shall publish the “activities classification structure data book” for Michigan community colleges on or before March 1.

(2) The fund shall compile information received from community colleges on North American Indian tuition waivers granted pursuant to 1976 PA 174, MCL 390.1251 to 390.1253, and shall submit this compilation to the house and senate appropriations subcommittees on community colleges, the fiscal agencies, and the state budget director by March 1.

(3) The fund shall compile information received from community colleges on the number and types of associate degrees and other certificates awarded during the previous fiscal year and shall submit this compilation to the house and senate appropriations subcommittees on community colleges, the fiscal agencies, and the state budget director by March 1.

(4) The fund shall place the reports required in this section on a publicly available website.

Sec. 1052. From the appropriation in part 1 for community ventures, $200,000.00 shall be allocated to a nonprofit community foundation to fund an existing workforce development program that provides job placement assistance, language development services, assistance in obtaining valid professional credentials or licenses, and other services that reduce or remove barriers to employment faced by refugees from the Iraq war.

Sec. 1053. From the appropriation in part 1 for community ventures, the fund shall allocate $340,000.00 for the final year of funding for precollege programs in engineering and sciences. The fund shall allocate 1/2 of the appropriated amount to the Detroit precollege engineering program and the Grand Rapids area precollege engineering program, which were appropriated funds under 2005 PA 156.

Sec. 1054. From the funds appropriated in part 1 for workforce programs subgrantees, the fund may allocate funding for grants to nonprofit organizations that offer programs to workforce investment act - eligible youth focusing on entrepreneurship, work-readiness skills, job shadowing, and financial literacy. Organizations eligible for funding under this section must have the capacity to provide similar programs in urban areas, as determined by the United States bureau of the census according to the most recent federal decennial census. Additionally, programs eligible for funding under this section must include the participation of local business partners. The fund shall develop other appropriate eligibility requirements to ensure compliance with applicable federal rules and regulations.

MICHIGAN STRATEGIC FUND – WORKFORCE DEVELOPMENT

Sec. 1060. The fund shall administer the jobs, education, and training program in accordance with the requirements of section 407(d) of title IV of the social security act, 42 USC 607, the state social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, and all other applicable laws and regulations.

Sec. 1062. The fund shall make available, in person or by telephone, 1 disabled veterans outreach program specialist or local veterans employment representative to Michigan works! service centers, as resources permit, during hours of operation, and shall continue to make the appropriate placement of veterans and disabled veterans a priority.

Sec. 1063. (1) In addition to the funds appropriated in part 1, any unencumbered and unrestricted federal workforce investment act or trade adjustment assistance funds available from prior fiscal years are appropriated for the purposes originally intended.

(2) The fund shall report by January 15 to the subcommittees, the fiscal agencies, and the state budget office on the amount by fiscal year of federal workforce investment act funds appropriated under this section.

Sec. 1068. (1) Of the funds appropriated in part 1 for the workforce training programs, the fund shall provide a report by February 1 to the senate and house of representatives standing committees on appropriations subcommittees on general government, the state budget director, and the fiscal agencies on the status of the workforce training programs. The report shall include the following:

(a) The amount of funding allocated to each Michigan works! agency and the total funding allocated to the workforce training programs statewide by fund source.

(b) The number of participants enrolled in education or training programs by each Michigan works! agency.

(c) The average duration of training for training program participants by each Michigan works! agency.

(d) The number of participants enrolled in remedial education programs and the number of participants enrolled in literacy programs.

(e) The number of participants enrolled in programs at 2-year institutions.

(f) The number of participants enrolled in 4-year institutions.

(g) The number of participants enrolled in proprietary schools or other technical training programs.

(h) The number of participants that have completed education or training programs.

(i) The number of participants who secured employment in Michigan within 1 year of completing a training program.

(j) The number of participants who completed a training program and secured employment in a field related to their training.

(k) The average wage earned by participants who completed a training program and secured employment within 1 year.

(2) Data collection for the report shall be for the period October 1, 2011 through September 30, 2012.

REVENUE STATEMENT

Sec. 1101. Pursuant to section 18 of article V of the state constitution of 1963, fund balances and estimates are presented in the following statement:

BUDGET RECOMMENDATIONS BY OPERATING FUNDS

(Amounts in millions)

Fiscal Year 2012-2013

Beginning

Fund Unreserved

Fund Estimated Ending

Balance Revenue Balance

OPERATING FUNDS

General fund/general purpose.................................................... 0110 541.9 8,619.3 73.9

General fund/special purpose..................................................... 910.0 22,462.3 213.3

Special Revenue Funds:

Countercyclical budget and economic stabilization................... 0111 261.1 3.1 264.2

Game and fish protection........................................................... 0112 3.3 62.5 2.9

Michigan employment security act administration.................... 0113 10.9 5.1 18.6

State aeronautics........................................................................ 0114 5.0 106.0 0.0

Michigan veterans’ benefit trust................................................ 0115 0.0 5.2 0.0

State trunkline............................................................................ 0116 0.0 1,838.8 0.0

Michigan state waterways.......................................................... 0117 2.0 26.7 2.4

Blue Water Bridge...................................................................... 0118 0.0 23.6 0.0

Michigan transportation............................................................. 0119 0.0 1,865.7 0.0

Comprehensive transportation................................................... 0120 18.7 322.7 0.0

School aid................................................................................... 0122 0.0 13,070.5 0.0

Game and fish protection trust................................................... 0124 0.0 7.0 0.0

State park improvement............................................................. 0125 0.1 5.2 0.1

Forest development.................................................................... 0126 2.5 31.2 0.0

Michigan natural resources trust................................................ 0129 28.3 25.7 27.6

Michigan state parks endowment............................................... 0130 5.3 40.1 1.1

Safety education and training..................................................... 0131 5.3 8.1 4.4

Bottle deposit............................................................................. 0136 0.0 13.4 0.0

State construction code.............................................................. 0138 3.8 13.1 5.9

Children’s trust........................................................................... 0139 1.1 2.9 1.1

State casino gaming................................................................... 0140 2.3 34.7 2.4

Michigan nongame fish and wildlife......................................... 0143 0.1 0.3 0.0

Michigan merit award trust........................................................ 0154 0.0 113.6 0.0

Outdoor recreation legacy.......................................................... 0162 0.2 2.9 0.0

Off-road vehicle account............................................................ 0163 0.1 3.3 0.0

Snowmobile account.................................................................. 0164 1.4 11.4 1.2

Silicosis dust disease and logging.............................................. 0870 2.0 0.9 1.4

Utility consumer representation................................................. 0893 2.6 1.1 2.3

TOTALS..................................................................................... $1,807.5 $48,726.4 $622.8

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS FOR FISCAL YEAR 2013-2014

GENERAL SECTIONS

Sec. 1201. It is the intent of the legislature to provide appropriations for the fiscal year ending on September 30, 2014 for the line items listed in part 1. The fiscal year 2013-2014 appropriations are anticipated to be the same as those for fiscal year 2012-2013, 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 2013 consensus revenue estimating conference.

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

A bill to make appropriations for the legislature, the executive, the department of attorney general, the department of state, the department of treasury, the department of technology, management, and budget, the department of civil rights, and certain state purposes related thereto for the fiscal year ending September 30, 2013; to provide for the expenditure of the appropriations; to provide for the disposition of fees and other income received by the state agencies; and to declare the effect of this act.

John Pappageorge

Roger Kahn

Conferees for the Senate

Earl Poleski

Matt Lori

Conferees for the House

The question being on the adoption of the conference report,

The first conference report was not adopted, a majority of the members serving not voting therefor, as follows:

Roll Call No. 394 Yeas—18

Booher Hildenbrand Meekhof Pavlov

Brandenburg Jansen Moolenaar Richardville

Casperson Kahn Nofs Rocca

Caswell Kowall Pappageorge Walker

Emmons Marleau

Nays—18

Anderson Gregory Jones Smith

Bieda Hopgood Proos Warren

Colbeck Hune Robertson Whitmer

Gleason Hunter Schuitmaker Young

Green Johnson

Excused—2

Hansen Hood

Not Voting—0

In The Chair: Schuitmaker

Senator Meekhof moved to reconsider the vote by which the conference report was not adopted.

The motion prevailed.

The question being on the adoption of the conference report,

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

The motion prevailed.

Senator Caswell submitted the following:

FIRST CONFERENCE REPORT

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

Senate Bill No. 956, entitled

A bill to make appropriations for the department of human services for the fiscal year ending September 30, 2013; and to provide for the expenditure of the appropriations.

Recommends:

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

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

A bill to make appropriations for the department of human services for the fiscal year ending September 30, 2013; and to provide for the expenditure of the appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. There is appropriated for the department of human services for the fiscal year ending September 30, 2013, from the following funds:

DEPARTMENT OF HUMAN SERVICES

APPROPRIATION SUMMARY

Full-time equated classified positions........................................................................11,758.0

Full-time equated unclassified positions.............................................................................6.0

Total full-time equated positions................................................................................11,764.0

GROSS APPROPRIATION.......................................................................................................... $ 6,553,832,200

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 30,581,300

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 6,523,250,900

Federal revenues:

Federal - supplemental nutrition assistance revenues (ARRA).................................................... 510,138,400

Social security act, temporary assistance for needy families....................................................... 579,039,800

Total other federal revenues......................................................................................................... 4,295,621,300

Special revenue funds:

Total private revenues................................................................................................................... 7,876,600

Total local revenues...................................................................................................................... 32,529,400

Total other state restricted revenues............................................................................................. 86,901,500

State general fund/general purpose.............................................................................................. $ 1,011,143,900

State general fund/general purpose schedule:

Ongoing state general fund/general purpose.........................................................975,507,100

One-time state general fund/general purpose.........................................................35,636,800

Sec. 102. EXECUTIVE OPERATIONS

Total full-time equated positions.....................................................................................639.7

Full-time equated unclassified positions.............................................................................6.0

Full-time equated classified positions.............................................................................633.7

Unclassified salaries—6.0 FTE positions..................................................................................... $ 700,000

Salaries and wages—257.7 FTE positions................................................................................... 15,700,300

Contractual services, supplies, and materials............................................................................... 11,260,700

Demonstration projects—7.0 FTE positions................................................................................ 6,447,100

Inspector general salaries and wages—132.0 FTE positions....................................................... 7,429,000

Electronic benefit transfer EBT.................................................................................................... 13,009,000

Michigan community service commission—15.0 FTE positions................................................. 11,348,500

AFC, children’s welfare and day care licensure—222.0 FTE positions...................................... 26,055,000

State office of administrative hearings and rules......................................................................... 6,831,000

GROSS APPROPRIATION.......................................................................................................... $ 98,780,600

Appropriated from:

Interdepartmental grant revenues:

IDG from department of education.............................................................................................. 13,874,900

Federal revenues:

Social security act, temporary assistance for needy families....................................................... $ 8,817,600

Total other federal revenues......................................................................................................... 44,807,000

Special revenue funds:

Total private revenues................................................................................................................... 3,836,600

Total local revenues...................................................................................................................... 16,400

Total other state restricted revenues............................................................................................. 5,400

State general fund/general purpose.............................................................................................. $ 27,422,700

Sec. 103. CHILD SUPPORT ENFORCEMENT

Full-time equated classified positions.............................................................................180.7

Child support enforcement operations—174.7 FTE positions..................................................... $ 20,038,700

Legal support contracts................................................................................................................ 113,253,600

Child support incentive payments................................................................................................ 32,409,600

State disbursement unit—6.0 FTE positions................................................................................ 8,289,400

GROSS APPROPRIATION.......................................................................................................... $ 173,991,300

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 152,169,100

State general fund/general purpose.............................................................................................. $ 21,822,200

Sec. 104. COMMUNITY ACTION AND ECONOMIC OPPORTUNITY

Full-time equated classified positions...............................................................................16.0

Bureau of community action and economic opportunity operations—16.0 FTE positions......... $ 1,989,700

Community services block grant.................................................................................................. 25,840,000

Weatherization assistance............................................................................................................. 28,340,000

GROSS APPROPRIATION.......................................................................................................... $ 56,169,700

Appropriated from:

Federal revenues:

Social security act, temporary assistance for needy families....................................................... 500

Total other federal revenues......................................................................................................... 56,169,200

State general fund/general purpose.............................................................................................. $ 0

Sec. 105. ADULT AND FAMILY SERVICES

Full-time equated classified positions...............................................................................46.7

Executive direction and support—4.0 FTE positions................................................................... $ 368,900

Guardian contract......................................................................................................................... 490,200

Adult services policy and administration—6.0 FTE positions..................................................... 688,500

Office of program policy—34.7 FTE positions............................................................................ 4,372,200

Employment and training support services.................................................................................. 5,377,800

Wage employment verification reporting..................................................................................... 547,300

Nutrition education—2.0 FTE positions...................................................................................... 30,025,000

Elder law of Michigan MiCAFE contract.................................................................................... 175,000

Elder abuse prosecuting attorney.................................................................................................. 300,000

GROSS APPROPRIATION.......................................................................................................... $ 42,344,900

Appropriated from:

Interdepartmental grant revenues:

IDG from department of education.............................................................................................. 22,500

Federal revenues:

Social security act, temporary assistance for needy families....................................................... 4,860,400

Total other federal revenues......................................................................................................... 32,508,000

State general fund/general purpose.............................................................................................. $ 4,954,000

Sec. 106. CHILDREN’S SERVICES

Full-time equated classified positions.............................................................................121.8

Salaries and wages—59.2 FTE positions..................................................................................... $ 3,184,200

Contractual services, supplies, and materials............................................................................... 1,134,900

Interstate compact......................................................................................................................... 179,600

Families first................................................................................................................................. $ 17,950,700

Strong families/safe children........................................................................................................ 12,350,100

Child protection and permanency—23.0 FTE positions.............................................................. 16,589,700

Family reunification program....................................................................................................... 3,977,100

Family preservation and prevention services administration—11.0 FTE positions..................... 1,368,200

Children’s trust fund administration—12.0 FTE positions.......................................................... 759,200

Children’s trust fund grants.......................................................................................................... 2,325,100

Attorney general contract............................................................................................................. 3,813,000

Prosecuting attorney contracts...................................................................................................... 2,561,700

Child protection............................................................................................................................ 673,900

Domestic violence prevention and treatment—14.6 FTE positions............................................. 14,644,200

Rape prevention and services—0.5 FTE position........................................................................ 2,572,300

Child advocacy centers—0.5 FTE position.................................................................................. 1,000,000

Child abuse and neglect-children’s justice act—1.0 FTE position............................................... 613,000

Family preservation and prevention services programs............................................................... 2,500,000

GROSS APPROPRIATION.......................................................................................................... $ 88,196,900

Appropriated from:

Federal revenues:

Social security act, temporary assistance for needy families....................................................... 48,793,400

Total other federal revenues......................................................................................................... 29,603,200

Special revenue funds:

Compulsive gaming prevention fund............................................................................................ 1,040,000

Sexual assault victims’ prevention and treatment fund................................................................ 1,000,000

Child advocacy centers fund........................................................................................................ 1,000,000

Children’s trust fund..................................................................................................................... 2,038,500

State general fund/general purpose.............................................................................................. $ 4,721,800

Sec. 107. CHILD WELFARE SERVICES

Full-time equated classified positions..........................................................................4,198.7

Children’s services administration—97.0 FTE positions............................................................. $ 6,831,400

Title IV-E compliance and accountability office—4.0 FTE positions......................................... 495,600

Child welfare institute—35.0 FTE positions................................................................................ 5,833,900

Child welfare staffing enhancement—577.0 FTE positions......................................................... 23,320,300

Child protective services workers—1,481.0 FTE positions......................................................... 65,198,200

Direct care workers—1,073.0 FTE positions............................................................................... 50,583,800

Education planners—14.0 FTE positions..................................................................................... 747,400

Permanency planning conference coordinators—55.0 FTE positions.......................................... 3,218,900

Child welfare first line supervisors—522.0 FTE positions.......................................................... 36,691,400

Administrative support workers—226.0 FTE positions............................................................... 10,074,700

Second line supervisors and technical staff—45.0 FTE positions............................................... 3,278,800

Permanency planning specialists—48.0 FTE positions................................................................ 3,693,200

Contractual services, supplies, and materials............................................................................... 7,343,200

Settlement monitor....................................................................................................................... 1,625,800

Foster care payments.................................................................................................................... 205,788,600

Serious emotional disturbance - waiver program......................................................................... 3,269,000

Serious emotional disturbance - nonwaiver program................................................................... 2,925,900

Guardianship assistance program................................................................................................. 4,785,300

Child care fund............................................................................................................................. 188,657,800

Child care fund administration—6.2 FTE positions..................................................................... 815,000

Adoption subsidies....................................................................................................................... 215,422,000

Adoption support services—10.0 FTE positions.......................................................................... 24,672,700

Youth in transition—5.5 FTE positions........................................................................................ 14,439,200

Child welfare medical/psychiatric evaluations............................................................................. 6,607,500

Psychotropic oversight contracts.................................................................................................. 1,118,200

GROSS APPROPRIATION.......................................................................................................... $ 887,437,800

Appropriated from:

Interdepartmental grant revenues:

IDG from department of education.............................................................................................. $ 237,600

Federal revenues:

Social security act, temporary assistance for needy families....................................................... 205,342,300

Total other federal revenues......................................................................................................... 292,782,300

Special revenue funds:

Private - collections...................................................................................................................... 1,600,000

Local funds - county chargeback................................................................................................. 18,274,500

State general fund/general purpose.............................................................................................. $ 369,201,100

Sec. 108. JUVENILE JUSTICE SERVICES

Full-time equated classified positions.............................................................................183.0

W.J. Maxey training school—69.0 FTE positions........................................................................ $ 10,514,300

Bay pines center—42.0 FTE positions......................................................................................... 4,457,400

Shawono center—42.0 FTE positions.......................................................................................... 4,523,900

County juvenile officers............................................................................................................... 3,649,600

Community support services—2.0 FTE positions........................................................................ 941,100

Juvenile justice administration and maintenance—23.0 FTE positions....................................... 4,362,400

Juvenile accountability block grant—1.0 FTE position............................................................... 1,281,300

Committee on juvenile justice administration—4.0 FTE positions.............................................. 331,200

Committee on juvenile justice grants........................................................................................... 5,000,000

GROSS APPROPRIATION.......................................................................................................... $ 35,061,200

Appropriated from:

Federal revenues:

Total federal revenues................................................................................................................... 7,091,300

Special revenue funds:

Local funds - state share education funds.................................................................................... 2,135,800

Local funds - county chargeback................................................................................................. 8,921,100

State general fund/general purpose.............................................................................................. $ 16,913,000

Sec. 109. LOCAL OFFICE STAFF AND OPERATIONS

Full-time equated classified positions..........................................................................5,798.0

Field staff, salaries and wages—5,559.0 FTE positions.............................................................. $ 291,359,000

Contractual services, supplies, and materials............................................................................... 12,082,300

Medical/psychiatric evaluations.................................................................................................... 1,420,100

Donated funds positions—208.0 FTE positions........................................................................... 13,197,200

Training and program support—21.0 FTE positions.................................................................... 2,756,400

Volunteer services and reimbursement......................................................................................... 1,142,400

SSI advocates—10.0 FTE positions............................................................................................. 755,500

GROSS APPROPRIATION.......................................................................................................... $ 322,712,900

Appropriated from:

Interdepartmental grant revenues:

IDG from department of corrections............................................................................................ 100,000

IDG from department of education.............................................................................................. 7,835,400

Federal revenues:

Social security act, temporary assistance for needy families....................................................... 60,630,100

Total other federal revenues......................................................................................................... 126,927,600

Special revenue funds:

Local funds................................................................................................................................... 3,181,600

Private funds - donated funds....................................................................................................... 2,440,000

Supplemental security income recoveries.................................................................................... 605,900

State general fund/general purpose.............................................................................................. $ 120,992,300

Sec. 110. DISABILITY DETERMINATION SERVICES

Full-time equated classified positions.............................................................................572.4

Disability determination operations—546.9 FTE positions......................................................... $ 83,048,100

Medical consultation program—21.4 FTE positions.................................................................... $ 2,436,200

Retirement disability determination—4.1 FTE positions............................................................. 411,300

GROSS APPROPRIATION.......................................................................................................... $ 85,895,600

Appropriated from:

Interdepartmental grant revenues:

IDG from DTMB - office of retirement services......................................................................... 522,800

Federal revenues:

Total federal revenues................................................................................................................... 83,114,000

State general fund/general purpose.............................................................................................. $ 2,258,800

Sec. 111. CENTRAL SUPPORT ACCOUNTS

Rent.............................................................................................................................................. $ 43,603,000

Occupancy charge......................................................................................................................... 8,236,400

Travel............................................................................................................................................ 7,265,900

Equipment..................................................................................................................................... 62,600

Worker’s compensation................................................................................................................. 1,928,800

Payroll taxes and fringe benefits.................................................................................................. 365,161,900

GROSS APPROPRIATION.......................................................................................................... $ 426,258,600

Appropriated from:

Interdepartmental grant revenues:

IDG from department of education.............................................................................................. 6,044,500

Federal revenues:

Social security act, temporary assistance for needy families....................................................... 97,687,400

Total other federal revenues......................................................................................................... 168,322,700

State general fund/general purpose.............................................................................................. $ 154,204,000

Sec. 112. PUBLIC ASSISTANCE

Full-time equated classified positions.................................................................................7.0

Family independence program..................................................................................................... $ 255,268,500

State disability assistance payments............................................................................................. 27,103,000

Food assistance program benefits................................................................................................. 3,007,487,900

Food assistance program benefits (ARRA).................................................................................. 510,138,400

State supplementation................................................................................................................... 62,231,500

State supplementation administration........................................................................................... 2,118,600

Low-income home energy assistance program............................................................................. 174,951,600

Food bank funding....................................................................................................................... 1,795,000

Homeless programs...................................................................................................................... 15,721,900

Chaldean community foundation.................................................................................................. 1,000,000

Multicultural integration funding................................................................................................. 1,515,500

Unclaimed bodies......................................................................................................................... 1,000,000

Emergency services local office allocations................................................................................. 16,092,600

Refugee assistance program—7.0 FTE positions......................................................................... 27,929,900

GROSS APPROPRIATION.......................................................................................................... $ 4,104,354,400

Appropriated from:

Federal revenues:

Federal supplemental nutrition assistance revenues (ARRA)...................................................... 510,138,400

Social security act, temporary assistance for needy families....................................................... 104,720,700

Total other federal revenues......................................................................................................... 3,207,501,800

Special revenue funds:

Child support collections.............................................................................................................. 29,145,800

Supplemental security income recoveries.................................................................................... 14,955,900

Merit award trust fund.................................................................................................................. 30,100,000

Public assistance recoupment revenue.......................................................................................... 7,010,000

State general fund/general purpose.............................................................................................. $ 200,781,800

Sec. 113. INFORMATION TECHNOLOGY

Information technology services and projects.............................................................................. $ 115,450,900

Child support automation............................................................................................................. 41,735,500

GROSS APPROPRIATION.......................................................................................................... $ 157,186,400

Appropriated from:

Interdepartmental grant revenues:

IDG from department of education.............................................................................................. $ 1,943,600

Federal revenues:

Social security act, temporary assistance for needy families....................................................... 15,987,400

Total other federal revenues......................................................................................................... 87,020,000

State general fund/general purpose.............................................................................................. $ 52,235,400

Sec. 114. ONE-TIME BASIS ONLY

State employee lump-sum payments............................................................................................ $ 10,541,900

Inspector general information technology.................................................................................... 2,500,000

Before- or after-school program................................................................................................... 1,000,000

Seita scholarship program............................................................................................................ 750,000

Juvenile justice behavioral health study....................................................................................... 500,000

Medicaid eligibility review........................................................................................................... 250,000

State emergency relief energy services........................................................................................ 59,900,000

GROSS APPROPRIATION.......................................................................................................... $ 75,441,900

Appropriated from:

Federal revenues:

Social security act, temporary assistance for needy families....................................................... 32,200,000

Total other federal revenues......................................................................................................... 7,605,100

State general fund/general purpose.............................................................................................. $ 35,636,800

PART 2

PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2012-2013

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 2012-2013 is $1,098,045,400.00 and state spending from state resources to be paid to local units of government for fiscal year 2012-2013 is $100,595,000.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF HUMAN SERVICES

Child care fund............................................................................................................................. $ 93,192,300

County juvenile officers............................................................................................................... 3,401,800

State disability assistance payments............................................................................................. 1,564,100

Legal support contracts................................................................................................................ 2,341,000

Child support enforcement operations.......................................................................................... 13,500

Family independence program..................................................................................................... 82,300

TOTAL.......................................................................................................................................... $ 100,595,000

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

Sec. 203. As used in this act:

(a) “AFC” means adult foster care.

(b) “ARRA” means the American recovery and reinvestment act of 2009, Public Law 111-5.

(c) “Children’s rights settlement agreement” means the settlement agreement entered in the case of Dwayne B. vs. Snyder, docket No. 2:06-cv-13548 in the United States district court for the eastern district of Michigan.

(d) “Current fiscal year” means the fiscal year ending September 30, 2013.

(e) “Department” means the department of human services.

(f) “Director” means the director of the department of human services.

(g) “FTE” means full-time equated.

(h) “IDG” means interdepartmental grant.

(i) “JET” means jobs, education, and training program.

(j) “Previous fiscal year” means the fiscal year ending September 30, 2012.

(k) “SSI” means supplemental security income.

(l) “Temporary assistance for needy families” or “TANF” or “title IV-A” means part A of title IV of the social security act, 42 USC 601 to 619.

(m) “Title IV-D” means part D of title IV of the social security act, 42 USC 651 to 669b.

(n) “Title IV-E” means part E of title IV of the social security act, 42 USC 670 to 679c.

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

Sec. 207. (1) Sanctions, suspensions, conditions for provisional license status, and other penalties shall not be more stringent for private service providers than for public entities performing equivalent or similar services.

(2) Neither the department nor private service providers or licensees shall be granted preferential treatment or considered automatically to be in compliance with administrative rules based on whether they have collective bargaining agreements with direct care workers. Private service providers or licensees without collective bargaining agreements shall not be subjected to additional requirements or conditions of licensure based on their lack of collective bargaining agreements.

Sec. 208. Unless otherwise specified, the department shall use the Internet to fulfill the reporting requirements of this act. This requirement shall include transmission of reports via electronic mail to the recipients identified for each reporting requirement, and it shall include placement of reports on the Internet.

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 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. 211. 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 outside services that the attorney general authorizes.

Sec. 212. (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 or current year revenues that are in excess of the authorized amount.

(2) The department’s ability to satisfy appropriation fund sources 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. 213. The department may retain all of the state’s share of food assistance overissuance collections as an offset to general fund/general purpose costs. Retained collections shall be applied against federal funds deductions in all appropriation units where department costs related to the investigation and recoupment of food assistance overissuances are incurred. Retained collections in excess of such costs shall be applied against the federal funds deducted in the executive operations appropriation unit.

Sec. 214. On a quarterly basis, the department shall report on the number of FTEs in pay status by type of staff.

Sec. 215. If a legislative objective of this act or the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, cannot be implemented without loss of federal financial participation because implementation would conflict with or violate federal regulations, the department shall notify the state budget director, the house and senate appropriations committees, and the house and senate fiscal agencies and policy offices of that fact.

Sec. 217. The departments and agencies receiving appropriations in part 1 shall prepare a report on out-of-state travel expenses not later than January 1 of each year. The travel report shall be a listing of 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 dates of each travel occurrence.

(b) The total 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.

Sec. 219. 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.

Sec. 220. The department shall ensure that faith-based organizations are able to apply and compete for services, programs, or contracts that they are qualified and suitable to fulfill. The department shall not disqualify faith-based organizations solely on the basis of the religious nature of their organization or their guiding principles or statements of faith.

Sec. 221. (1) If the revenue collected by the department from private and local sources exceeds the amount spent from amounts appropriated in part 1, the revenue may be carried forward, with approval from the state budget director, into the subsequent fiscal year.

(2) The department shall provide a report on the amount of each revenue stream to be carried forward, as well as the cumulative amount, for the closing fiscal year by October 30, 2013, to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on families and human services, and the senate and house fiscal agencies and policy offices.

Sec. 222. The department shall report no later than April 1 of the current fiscal year on each specific policy change made to implement a public act affecting the department that took effect during the prior calendar year 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.

Sec. 225. The department may hire physicians to be part of the medical review team (MRT) on a temporary basis if Medicaid applications are backlogged more than 2,000. The temporary physicians shall be retained until the backlog has dropped below 2,000 for 2 consecutive months. The role of the physicians will be to obtain medical evidence from and grant medical determinations to applicants.

Sec. 240. The department shall notify the house and senate appropriations committees and the house and senate fiscal agencies of any changes to a child welfare master contract that results in increased rates or increased spending on services not less than 30 days before the change takes effect.

Sec. 250. 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. 251. 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. 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. The department shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

Sec. 265. 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 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, 2012 and September 30, 2013.

Sec. 274. (1) The department, in collaboration with the state budget office, shall submit to the house and senate appropriations subcommittees on the department budget, the house and senate fiscal agencies, and the house and senate policy offices on the day the governor submits to the legislature the budget for the ensuing fiscal year a report on spending and revenue projections for each of the capped federal funds listed below. The report shall contain actual spending and revenue in the previous fiscal year, spending and revenue projections for the current fiscal year as enacted, and spending and revenue projections within the executive budget proposal for the fiscal year beginning October 1, 2013 for each individual line item for the department budget. The report shall also include federal funds transferred to other departments. The capped federal funds shall include, but not be limited to, all of the following:

(a) TANF.

(b) Title XX social services block grant.

(c) Title IV-B part I child welfare services block grant.

(d) Title IV-B part II promoting safe and stable families funds.

(2) By February 15 of the current fiscal year, the department shall prepare an annual report of its efforts to identify additional TANF maintenance of effort sources from all of the following, but not limited to:

(a) Other departments.

(b) Local units of government.

(c) Private sources.

Sec. 279. (1) All contracts relating to human services shall be performance-based contracts that employ a client-centered results-oriented process that is based on measurable performance indicators and desired outcomes and includes the annual assessment of the quality of services provided.

(2) During the annual budget presentation, the department shall provide the senate and house appropriations subcommittees on the department budget and the senate and house fiscal agencies and policy offices a report detailing measurable performance indicators, desired outcomes, and an assessment of the quality of services provided by the department during the previous fiscal year.

Sec. 284. (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 act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

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

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $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 act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $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 act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(5) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $40,000,000.00 for federal TANF contingency funds. It is the intent of the legislature that these funds shall be used to meet any shortfalls in budgeting for ongoing expenses that meet the eligibility requirements of the TANF block grant and for any other appropriate program expenses. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 290. Any public advertisement for state assistance shall also inform the public of the welfare fraud hotline operated by the department.

Sec. 291. (1) The department shall verify, using the e-verify system, that all new department employees, and new hire employees of contractors and subcontractors paid from funds appropriated in this act, are legally present in the United States. The department may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department.

(2) By March 1 of the current fiscal year, the department shall submit to the house and senate appropriations committees and the house and senate fiscal agencies a report certifying that it has verified, or has required contractors and subcontractors to verify, using the e-verify system, that all new department employees and new hire employees of contractors and subcontractors are legally present in the United States.

Sec. 293. The department may use funds from the funds appropriated in part 1 to strengthen marriage and family relations through the practice of marriage and family therapy for individuals, families, couples, or groups. The goal of the therapy shall be strengthening families by helping them avoid, eliminate, relieve, manage, or resolve marital or family conflict or discord.

Sec. 294. Funds appropriated in part 1 for the statewide automated child welfare information system is contingent upon the approval of an advanced planning document from the administration for children and families. If the necessary matching funds are identified and legislatively transferred to the information and technology services and projects line item for this purpose, any corresponding federal revenue required shall be appropriated at a 50% federal match rate. This appropriation may be designated as a work project under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a, and carried forward to support completion of this project.

Sec. 296. 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 appropriations committees, and the senate and house fiscal agencies.

Sec. 298. By March 1 of the current fiscal year, the department shall provide to the senate and house appropriations subcommittees on the department budget, the senate and house fiscal agencies, and the senate and house policy offices an annual report on the supervisor-to-staff ratio by department divisions and subdivisions.

EXECUTIVE OPERATIONS

Sec. 307. (1) From the funds appropriated in part 1 for demonstration projects, $400,000.00 shall be distributed as provided in subsection (2). The amount distributed under this subsection shall not exceed 50% of the total operating expenses of the program described in subsection (2), with the remaining 50% paid by local United Way organizations and other nonprofit organizations and foundations.

(2) Funds distributed under subsection (1) shall be distributed to Michigan 2-1-1, a nonprofit corporation organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code, 26 USC 501(c)(3), and whose mission is to coordinate and support a statewide 2-1-1 system. Michigan 2-1-1 shall use the funds only to fulfill the Michigan 2-1-1 business plan adopted by Michigan 2-1-1 in January 2005.

(3) Michigan 2-1-1 shall refer to the department any calls received reporting fraud, waste, or abuse of state-administered public assistance.

(4) Michigan 2-1-1 shall report annually to the department and the house and senate standing committees with primary jurisdiction over matters relating to human services and telecommunications on 2-1-1 system performance, including, but not limited to, call volume by community health and human service needs and unmet needs identified through caller data and customer satisfaction metrics.

ADULT AND FAMILY SERVICES

Sec. 415. (1) If funds become available in part 1, the department may contract with independent contractors from various counties, including, but not limited to, faith-based and nonprofit organizations. Preference shall be given to independent contractors that provide at least 10% in matching funds, through any combination of local, state, or federal funds or in-kind or other donations. However, an independent contractor that cannot secure matching funds shall not be excluded from consideration for the fatherhood program.

(2) The department may choose providers that will work with counties to help eligible fathers under TANF guidelines to acquire skills that will enable them to increase their responsible behavior toward their children and the mothers of their children. An increase of financial support for their children should be a very high priority as well as emotional support.

(3) A fatherhood initiative program established under this section shall minimally include at least 3 of the following components: promoting responsible, caring, and effective parenting through counseling; mentoring and parental education; enhancing the abilities and commitment of unemployed or low-income fathers to provide material support for their families and to avoid or leave welfare programs by assisting them to take advantage of job search programs, job training, and education to improve their work habits and work skills; improving fathers’ ability to effectively manage family business affairs by means such as education, counseling, and mentoring in household matters; infant care; effective communication and respect; anger management; children’s financial support; and drug-free lifestyle.

(4) The department is authorized to make allocations of TANF funds, of not more than 20% per county, under this section only to agencies that report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements.

(5) Upon receipt of the promotion of responsible fatherhood funds from the United States department of health and human services, the department shall use the program criteria set forth in subsection (3) to implement the program with the federal funds.

Sec. 416. (1) If funds become available in part 1, the department may contract with independent contractors from various counties, including, but not limited to, faith-based and nonprofit organizations. Preference shall be given to independent contractors that provide at least 10% in matching funds, through any combination of local, state, or federal funds or in-kind or other donations. However, an independent contractor that cannot secure matching funds shall not be excluded from consideration for a marriage initiative program.

(2) The department may choose providers to work with counties that will work to support and strengthen marriages of those eligible under the TANF guidelines. The areas of work may include, but are not limited to, marital counseling, domestic violence counseling, family counseling, effective communication, and anger management as well as parenting skills to improve the family structure.

(3) A marriage initiative program established under this section may include, but is not limited to, 1 or more of the following: public advertising campaigns on the value of marriage and the skills needed to increase marital stability and health; education in high schools on the value of marriage, relationship skills, and budgeting; premarital, marital, family, and domestic violence counseling; effective communication; marriage mentoring programs which use married couples as role models and mentors in at-risk communities; anger management; and parenting skills to improve the family structure.

(4) The department is authorized to make allocations of TANF funds, of not more than 20% per county, under this section only to agencies that report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements.

(5) Upon receipt of the healthy marriage promotion grant from the United States department of health and human services, the department shall use the program criteria set forth in subsection (3) to implement the program with the federal funds.

Sec. 420. (1) From the funds appropriated in part 1, the department shall contract with the prosecuting attorneys association of Michigan for 2 elder abuse resource prosecuting attorneys positions to provide the support and services necessary to increase the capability of the state’s prosecutors, adult protective service system, and criminal justice system to effectively identify, investigate, and prosecute elder abuse and financial exploitation.

(2) By March 1 of the current fiscal year, the prosecuting attorneys association shall provide a report on the efficacy of the contract to the state budget office, the house and senate appropriations subcommittees on the department budget, the house and senate fiscal agencies, and the house and senate policy offices.

Sec. 423. From the funds appropriated in part 1 for elder law of Michigan MiCAFE contract, the department shall allocate not less than $175,000.00 to the elder law of Michigan MiCAFE to assist this state’s elderly population to participate in the food assistance program. The funds may be used as state matching funds to acquire available United States department of agriculture funding to provide outreach program activities, such as eligibility screen and information services, as part of a statewide food stamp hotline.

Sec. 424. Not later than April 1, 2013, the department may enter into a contract with a nonprofit entity that operates throughout this state to provide vehicle purchases and vehicle repairs for all low-income individuals who the department determines are eligible. The department shall work in conjunction with the nonprofit entity to ensure that the barriers to self-sufficiency are removed for each individual.

Sec. 425. From the funds appropriated in part 1, the department shall provide individuals not more than $500.00 for vehicle repairs, including any repairs done in the previous 12 months. However, the department may in its discretion pay for repairs up to $900.00. Payments under this section shall include the combined total of payments made by the department and work participation program. By December 31, the department shall provide to the senate and house appropriations subcommittees on the department budget, the senate and house fiscal agencies, and the senate and house policy offices a report detailing the number of payments for repairs that exceeded $500.00 in the prior fiscal year.

CHILDREN’S SERVICES

Sec. 501. A goal is established that not more than 35% of all children in foster care at any given time during the current fiscal year will have been in foster care for 24 months or more. During the annual budget presentation, the department shall provide a report describing the steps that will be taken to achieve the specific goal established in this section.

Sec. 502. From the funds appropriated in part 1 for foster care, the department shall provide 50% reimbursement to Indian tribal governments for foster care expenditures for children who are under the jurisdiction of Indian tribal courts and who are not otherwise eligible for federal foster care cost sharing.

Sec. 503. The department shall oversee a contract with an outside vendor to establish per diem rates for private agencies providing foster care, residential care, and juvenile justice, and to establish per diem rates for the department providing same services, using an economic rate-setting methodology that results in a rate that is adequate, reasonable, cost-based, compliant with federal regulations, and supportive of state contractual requirements. The outside vendor shall consult with private providers that have contracts with the department on establishing the costs of providing services. The outside vendor shall establish an agreement among the private providers and the department on the parameters for setting the costs before recommending the per diem rates. The rates shall be established by an outside vendor before the implementation of contracts. The department shall provide to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on families and human services, and the senate and house fiscal agencies and policy offices a report detailing the rates by March 1 of the current fiscal year.

Sec. 504. The department shall establish the statewide automated child welfare information system by September 30, 2013.

Sec. 505. By March 1 of the current fiscal year, the department and Wayne County shall provide to the senate and house appropriations committees on the department budget and the senate and house fiscal agencies and policy offices a report for youth served in the previous fiscal year and in the first quarter of the current fiscal year outlining the number of youth served within each juvenile justice system, the type of setting for each youth, performance outcomes, and financial costs or savings.

Sec. 506. The department shall guarantee that a child under state or court supervision who receives Medicaid will continue to receive Medicaid with no break in coverage if the child moves to another county and remains under the supervision of the state or court. The state or court supervision in this section may be provided through public or private service providers.

Sec. 507. The department’s ability to satisfy appropriation deducts in part 1 for foster care private collections shall not be limited to collections and accruals pertaining to services provided only in the current fiscal year but may include revenues collected during the current fiscal year for services provided in prior fiscal years.

Sec. 508. (1) In addition to the amount appropriated in part 1 for children’s trust fund grants, money granted or money received as gifts or donations to the children’s trust fund created by 1982 PA 249, MCL 21.171 to 21.172, is appropriated for expenditure.

(2) The department and the child abuse neglect and prevention board shall collaborate to ensure that administrative delays are avoided and the local grant recipients and direct service providers receive money in an expeditious manner. The department and board shall seek to have the children’s trust fund grants distributed no later than October 31 of the current fiscal year.

Sec. 510. The department, in conjunction with the legislature and representatives from the counties and private child welfare providers, shall carry out a work group to determine how the state can best assist counties on identifying and providing performance-based community programs for foster care and juvenile justice. By March 1, 2013, the department shall provide to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on families and human services, and the senate and house fiscal agencies and policy offices a report detailing the work group findings.

Sec. 511. (1) By February 1, 2013, the department, in conjunction with the legislature, representatives from private providers, state court administrators, and other interested parties, shall carry out a work group to determine which statewide, standardized assessment tools will be used for children in both the foster care and juvenile justice systems, and the costs of implementing the tools. The tools shall be used by the state, the private providers, and the courts for all children under their supervision. By March 1, 2013, the department shall provide to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on families and human services, and the senate and house fiscal agencies and policy offices a report detailing the work group findings.

(2) The department shall track the number and percentage of children who received both a physical and mental health assessment before placement in the foster care and juvenile justice systems and provide quarterly reports to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on families and human services, and the senate and house fiscal agencies and policy offices on the number and percentage of children who received the assessments.

Sec. 512. The department shall conduct an analysis of expenses in the child care fund at the county level. By March 1, 2013, the department shall provide to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on families and human services, and the senate and house fiscal agencies and policy offices a report detailing the findings.

Sec. 513. (1) The department shall not expend funds appropriated in part 1 to pay for the direct placement by the department of a child in an out-of-state facility unless all of the following conditions are met:

(a) There is no appropriate placement available in this state as determined by the department interstate compact office.

(b) An out-of-state placement exists that is nearer to the child’s home than the closest appropriate in-state placement as determined by the department interstate compact office.

(c) The out-of-state facility meets all of the licensing standards of this state for a comparable facility.

(d) The out-of-state facility meets all of the applicable licensing standards of the state in which it is located.

(e) The department has done an on-site visit to the out-of-state facility, reviewed the facility records, reviewed licensing records and reports on the facility, and believes that the facility is an appropriate placement for the child.

(2) The department shall not expend money for a child placed in an out-of-state facility without approval of the deputy director for children’s services. The department shall notify the appropriate state agency in that state including the name of the out-of-state provider who accepted the placement.

(3) The department shall submit a report by February 1 of the current fiscal year on the number of children who were placed in out-of-state facilities during the previous fiscal year, the number of Michigan children residing in such facilities at the time of the report, the total cost and average per diem cost of these out-of-state placements to this state, and a list of each such placement arranged by the Michigan county of residence for each child.

Sec. 514. The department shall make a comprehensive report concerning children’s protective services (CPS) to the legislature, including the senate and house policy offices and the state budget director, by January 1 of the current fiscal year, that shall include all of the following:

(a) Statistical information including, at a minimum, all of the following:

(i) The total number of reports of abuse or neglect investigated under the child protection law, 1975 PA 238, MCL 722.621 to 722.638, and the number of cases classified under category I or category II and the number of cases classified under category III, category IV, or category V.

(ii) Characteristics of perpetrators of abuse or neglect and the child victims, such as age, relationship, race, and ethnicity and whether the perpetrator exposed the child victim to drug activity, including the manufacture of illicit drugs, that exposed the child victim to substance abuse, a drug house, or methamphetamine.

(iii) The mandatory reporter category in which the individual who made the report fits, or other categorization if the individual is not within a group required to report under the child protection law, 1975 PA 238, MCL 722.621 to 722.638.

(iv) The number of cases that resulted in the separation of the child from the parent or guardian and the period of time of that separation, up to and including termination of parental rights.

(v) For the reported complaints of abuse or neglect by teachers, school administrators, and school counselors, the number of cases classified under category I or category II and the number of cases classified under category III, category IV, or category V.

(vi) For the reported complaints of abuse or neglect by teachers, school administrators, and school counselors, the number of cases that resulted in separation of the child from the parent or guardian and the period of time of that separation, up to and including termination of parental rights.

(b) New policies related to children’s protective services including, but not limited to, major policy changes and court decisions affecting the children’s protective services system during the immediately preceding 12-month period.

(c) The information contained in the report required under section 8d(5) of the child protection law, 1975 PA 238, MCL 722.628d, on cases classified under category III.

(d) The department policy, or changes to the department policy, regarding children who have been exposed to the production or manufacture of methamphetamines.

Sec. 515. The department, in conjunction with court and county personnel and representatives of the private child welfare agencies operating in Kent County, shall conduct a work group that will identify a plan for implementing a pilot program to privatize all foster care and adoption services, except for child protective services, in Kent County by September 30, 2013.

Sec. 516. The department shall prepare a report by county that includes the number and percentage of foster care parents who were successfully retained in the foster care program and compares figures at the beginning of the fiscal year to the end-of-year totals and provide the report by October 30, 2013 to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on families and human services, and the senate and house fiscal agencies and policy offices.

Sec. 517. The department, in conjunction with the legislature, shall conduct a work group on the feasibility of implementing a dual-track child protective services pilot program and shall examine the state’s definition of child abuse and shall determine whether the definition should be amended. By March 1, 2013, the department shall provide a report on the findings of the work group to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on families and human services, and the senate and house fiscal agencies and policy offices.

Sec. 519. The department shall permit any private agency that has an existing contract with this state to provide foster care services to be also eligible to provide treatment foster care services.

Sec. 523. (1) By March 15 of the current fiscal year, the department shall report on family preservation programs for which money is appropriated in part 1 to the senate and house appropriations subcommittees on the department budget. The report shall contain all of the following for each program:

(a) The average cost per recipient served.

(b) Measurable performance indicators.

(c) Desired outcomes or results and goals that can be measured on an annual basis, or desired results for a defined number of years.

(d) Monitored results.

(e) Innovations that may include savings or reductions in administrative costs.

(2) If money becomes available in part 1 for youth in transition and domestic violence prevention and treatment, the department is authorized to make allocations of TANF funds only to agencies that report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements.

Sec. 525. The department shall implement the same on-site evaluation processes for privately operated child welfare and juvenile justice residential facilities as is used to evaluate state-operated facilities. Penalties for noncompliance shall be the same for privately operated child welfare and juvenile justice residential facilities and state-operated facilities.

Sec. 526. From the funds appropriated in part 1 for foster care payments and related administrative costs, the department may implement the federally approved title IV-E child welfare waiver demonstration project.

Sec. 527. Per the department’s request for 577.0 additional FTEs, the funds to cover these costs shall be transferred from the child welfare staffing enhancement line item to the appropriate salary and wages, central support, information technology, and contractual services, supplies, and materials line items. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 532. (1) The department, in collaboration with representatives of private child and family agencies, shall revise and improve the annual licensing review process and the annual contract compliance review process for child placing agencies and child caring institutions. The improvement goals shall be safety and care for children. Improvements to the review process shall be directed toward alleviating administrative burdens so that agency resources may be focused on children. The revision shall include identification of duplicative staff activities and information sought from child placing agencies and child caring institutions in the annual review process. The department shall report to the senate and house appropriations subcommittees on the department budget, the senate and house fiscal agencies and policy offices, and the state budget director on or before January 15 of the current fiscal year on the findings of the annual licensing review.

(2) The department shall conduct licensing reviews no more than once every 2 years for child placing agencies and child caring institutions that are nationally accredited and have no outstanding violations.

Sec. 533. (1) The department shall make payments to child placing facilities for in-home and out-of-home care services and adoption services within 30 days of receiving all necessary documentation from those agencies.

(2) The department shall establish a work group in conjunction with the legislature and private service providers to develop a plan to implement electronic invoices and payments for all contracts with child placing agencies.

(3) The department shall provide a report on the activities under this section by March 1, 2013 for implementation in the fiscal year ending September 30, 2014.

Sec. 537. The department, in collaboration with child placing agencies, shall develop a strategy to implement section 115o of the social welfare act, 1939 PA 280, MCL 400.115o. The strategy shall include a requirement that a department caseworker responsible for preparing a recommendation to a court concerning a juvenile placement shall provide, as part of the recommendation, information regarding the requirements of section 115o of the social welfare act, 1939 PA 280, MCL 400.115o.

Sec. 540. If a physician or psychiatrist who is providing services to state or court wards placed in a residential facility submits a formal request to the department to change the psychotropic medication of a ward, the department shall, if the ward is a state ward, make a determination on the proposed change within 30 days after the request or, if the ward is a temporary court ward, seek parental consent within 7 business days after the request.

Sec. 546. (1) From the funds appropriated in part 1 for foster care payments and from child care fund, the department shall pay providers of foster care services not less than a $37.00 administrative rate.

(2) From the funds appropriated in part 1 for foster care payments and from child care fund, the department shall pay providers of general independent living services not less than a $28.00 administrative rate.

(3) From the funds appropriated in part 1, the department shall reinstate the specialized independent living services administrative rate to levels that were in place for the fiscal year ending September 30, 2011.

Sec. 556. The department shall provide an annual report to the subcommittees of the senate and house appropriations committees on the department budget with the number of complaints filed by adoptive parents who were not notified that their adopted child had special needs.

Sec. 574. (1) From the funds appropriated in part 1 for foster care payments, $2,500,000.00 is allocated to support contracts with child placing agencies to facilitate the licensure of relative caregivers as foster parents. Agencies shall receive $2,300.00 for each facilitated licensure. The agency facilitating the licensure would retain the placement and continue to provide case management services for at least 50% of the newly licensed cases for which the placement was appropriate to the agency. Up to 50% of the newly licensed cases would have direct foster care services provided by the department.

(2) From the funds appropriated for foster care payments, $375,000.00 is allocated to support family incentive grants to private and community-based foster care service providers to assist with home improvements or payment for physical exams for applicants needed by foster families to accommodate foster children.

Sec. 583. By February 1 of the current fiscal year, the department shall implement the recommendations of the work group conducted in the fiscal year ending September 30, 2012 to determine what caused individuals participating as foster parents during the previous fiscal year to drop out of the program. The department shall provide to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on families and human services, and the senate and house fiscal agencies and policy offices a report detailing the department’s progress in implementing the recommendations.

Sec. 585. (1) The department shall allow private nationally accredited foster care and adoption agencies to conduct their own staff training, based on current department policies and procedures, provided that the agency trainer and training materials are accredited by the department and that the agency documents to the department that the training was provided. The department shall provide access to any training materials requested by the private agencies to facilitate this training.

(2) The department shall post on the department’s website a list of all relevant departmental training materials available to private child placing agencies that are allowed to conduct their own training in accordance with this section. The department shall also provide to private child placing agencies that are allowed to conduct their own training any updated training materials as they become available.

Sec. 588. (1) Concurrently with public release, the department shall transmit all reports from the court-appointed settlement monitor, including, but not limited to, the needs assessment and period outcome reporting, to the state budget office, the senate and house appropriations subcommittees on the department budget, and the senate and house fiscal agencies, without revision.

(2) The department shall report quarterly to the state budget office, the senate and house appropriations subcommittees on the department budget, and the senate and house fiscal agencies, on the number of children enrolled in the guardianship assistance and foster care - children with serious emotional disturbance waiver programs.

Sec. 589. (1) From the funds appropriated in part 1 to facilitate the transfer of foster care cases currently under department supervision from department supervision to private child placing agency supervision, the department shall not transfer any foster care cases that require a county contribution to the private agency administrative rate.

(2) On a monthly basis, the department shall report on the number of all foster care cases administered by the department and all foster care cases administered by private providers.

PUBLIC ASSISTANCE

Sec. 601. Whenever a client agrees to the release of his or her name and address to the local housing authority, the department shall request from the local housing authority information regarding whether the housing unit for which vendoring has been requested meets applicable local housing codes. Vendoring shall be terminated for those units that the local authority indicates in writing do not meet local housing codes until such time as the local authority indicates in writing that local housing codes have been met.

Sec. 604. (1) The department shall operate a state disability assistance program. Except as provided in subsection (3), persons eligible for this program shall include needy citizens of the United States or aliens exempted from the supplemental security income citizenship requirement who are at least 18 years of age or emancipated minors meeting 1 or more of the following requirements:

(a) A recipient of supplemental security income, social security, or medical assistance due to disability or 65 years of age or older.

(b) A person with a physical or mental impairment which meets federal supplemental security income disability standards, except that the minimum duration of the disability shall be 90 days. Substance abuse alone is not defined as a basis for eligibility.

(c) A resident of an adult foster care facility, a home for the aged, a county infirmary, or a substance abuse treatment center.

(d) A person receiving 30-day postresidential substance abuse treatment.

(e) A person diagnosed as having acquired immunodeficiency syndrome.

(f) A person receiving special education services through the local intermediate school district.

(g) A caretaker of a disabled person who meets the requirements specified in subdivision (a), (b), (e), or (f).

(2) Applicants for and recipients of the state disability assistance program shall be considered needy if they:

(a) Meet the same asset test as is applied for the family independence program.

(b) Have a monthly budgetable income that is less than the payment standards.

(3) Except for a person described in subsection (1)(c) or (d), a person is not disabled for purposes of this section if his or her drug addiction or alcoholism is a contributing factor material to the determination of disability. “Material to the determination of disability” means that, if the person stopped using drugs or alcohol, his or her remaining physical or mental limitations would not be disabling. If his or her remaining physical or mental limitations would be disabling, then the drug addiction or alcoholism is not material to the determination of disability and the person may receive state disability assistance. Such a person must actively participate in a substance abuse treatment program, and the assistance must be paid to a third party or through vendor payments. For purposes of this section, substance abuse treatment includes receipt of inpatient or outpatient services or participation in alcoholics anonymous or a similar program.

Sec. 605. The level of reimbursement provided to state disability assistance recipients in licensed adult foster care facilities shall be the same as the prevailing supplemental security income rate under the personal care category.

Sec. 606. County department offices shall require each recipient of family independence program and state disability assistance who has applied with the social security administration for supplemental security income to sign a contract to repay any assistance rendered through the family independence program or state disability assistance program upon receipt of retroactive supplemental security income benefits.

Sec. 607. (1) The department’s ability to satisfy appropriation deductions in part 1 for state disability assistance/supplemental security income recoveries and public assistance recoupment revenues shall not be limited to recoveries and accruals pertaining to state disability assistance, or family independence assistance grant payments provided only in the current fiscal year, but may include revenues collected during the current year that are prior year related and not a part of the department’s accrued entries.

(2) The department may use supplemental security income recoveries to satisfy the deduct in any line in which the revenues are appropriated, regardless of the source from which the revenue is recovered.

Sec. 608. Adult foster care facilities providing domiciliary care or personal care to residents receiving supplemental security income or homes for the aged serving residents receiving supplemental security income shall not require those residents to reimburse the home or facility for care at rates in excess of those legislatively authorized. To the extent permitted by federal law, adult foster care facilities and homes for the aged serving residents receiving supplemental security income shall not be prohibited from accepting third-party payments in addition to supplemental security income provided that the payments are not for food, clothing, shelter, or result in a reduction in the recipient’s supplemental security income payment.

Sec. 609. The state supplementation level under the supplemental security income program for the personal care/adult foster care and home for the aged categories shall not be reduced during the current fiscal year. The legislature shall be notified not less than 30 days before any proposed reduction in the state supplementation level.

Sec. 610. (1) In developing good cause criteria for the state emergency relief program, the department shall grant exemptions if the emergency resulted from unexpected expenses related to maintaining or securing employment.

(2) For purposes of determining housing affordability eligibility for state emergency relief, a group is considered to have sufficient income to meet ongoing housing expenses if their total housing obligation does not exceed 75% of their total net income.

(3) State emergency relief payments shall not be made to individuals who have been found guilty of fraud in regard to obtaining public assistance.

(4) State emergency relief payments shall not be made available to persons who are out-of-state residents or illegal immigrants.

(5) State emergency relief payments for rent assistance shall be distributed directly to landlords and shall not be added to Michigan bridge cards.

Sec. 611. The state supplementation level under the supplemental security income program for the living independently or living in the household of another categories shall not exceed the minimum state supplementation level as required under federal law or regulations.

Sec. 612. The department shall implement an asset test as part of the eligibility determination for applicants and existing recipients of the refugee assistance program medical benefits.

Sec. 613. The department shall provide reimbursements for the final disposition of indigent persons if the deceased’s remains have not been claimed by a person having the right to control the disposition of the body regardless of whether there is no person with that right, the person cannot be located, or the person fails or refuses to exercise that right. The maximum allowable reimbursement for the final disposition shall be $800.00. In addition, reimbursement for a cremation permit fee of up to $75.00 and for mileage at the standard rate will also be made available for an eligible cremation. The reimbursements under this section shall be used for disposal by cremation unless the deceased’s expressed religious preference prohibits cremation.

Sec. 615. Except as required by federal law or regulations, funds appropriated in part 1 shall not be used to provide public assistance to a person who is an illegal alien. This section shall not prohibit the department from entering into contracts with food banks, emergency shelter providers, or other human services agencies who may, as a normal part of doing business, provide food or emergency shelter.

Sec. 616. The department shall require retailers that participate in the electronic benefits transfer program to charge no more than $2.50 in fees for cash back as a condition of participation.

Sec. 617. The department shall prepare a report on the number and percentage of public assistance recipients, categorized by type of assistance received, who were no longer eligible for assistance because of their status in the law enforcement information network and provide the report by October 1, 2013 to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on families and human services, and the senate and house fiscal agencies and policy offices.

Sec. 619. (1) Subject to subsection (2), the department shall exempt from the denial of title IV-A assistance and food assistance benefits under 21 USC 862a any individual who has been convicted of a felony that included the possession, use, or distribution of a controlled substance, after August 22, 1996, provided that the individual is not in violation of his or her probation or parole requirements. Benefits shall be provided to such individuals as follows:

(a) A third-party payee or vendor shall be required for any cash benefits provided.

(b) An authorized representative shall be required for food assistance receipt.

(2) Subject to federal approval, an individual is not entitled to the exemption in this section if the individual was convicted in 2 or more separate cases of a felony that included the possession, use, or distribution of a controlled substance after August 22, 1996.

Sec. 643. As a condition of receipt of federal TANF funds, homeless shelters and human services agencies shall collaborate with the department to obtain necessary TANF eligibility information on families as soon as possible after admitting a family to the homeless shelter. From the funds appropriated in part 1 for homeless programs, the department is authorized to make allocations of TANF funds only to the agencies that report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements. Homeless shelters or human services agencies that do not report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements will not receive reimbursements which exceed the per diem amount they received in fiscal year 2000. The use of TANF funds under this section should not be considered an ongoing commitment of funding.

Sec. 645. An individual or family is considered homeless, for purposes of eligibility for state emergency relief, if living temporarily with others in order to escape domestic violence. For purposes of this section, domestic violence is defined and verified in the same manner as in the department’s policies on good cause for not cooperating with child support and paternity requirements.

Sec. 653. From the funds appropriated in part 1 for food assistance, an individual who is the victim of domestic violence and does not qualify for any other exemption may be exempt from the 3-month in 36-month limit on receiving food assistance under 7 USC 2015. This exemption can be extended an additional 3 months upon demonstration of continuing need.

Sec. 657. The department shall notify persons eligible for extended family independence program benefits under section 57s of the social welfare act, 1939 PA 280, MCL 400.57s, that receiving extended family independence program benefits will count toward the federal and state lifetime limits.

Sec. 660. From the funds appropriated in part 1 for food bank funding, the department is authorized to make allocations of TANF funds only to the agencies that report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements. The agencies that do not report necessary data to the department for the purpose of meeting TANF eligibility reporting requirements will not receive allocations in excess of those received in fiscal year 2000. The use of TANF funds under this section should not be considered an ongoing commitment of funding.

Sec. 669. The department shall allocate up to $2,880,000.00 for the annual clothing allowance. The allowance shall be granted to all eligible children in a family independence program group that does not include an adult.

Sec. 672. (1) The department’s office of inspector general shall report to the senate and house of representatives appropriations subcommittees on the department budget, the senate and house fiscal agencies, and the senate and house policy offices by March 1 of the current fiscal year on department efforts to reduce inappropriate use of Michigan bridge cards. The department shall provide information on the number of recipients of services who used their electronic benefit transfer card inappropriately and the current status of each case, the number of recipients whose benefits were revoked, whether permanently or temporarily, as a result of inappropriate use, and the number of retailers that were fined or removed from the electronic benefit transfer program for permitting inappropriate use of the cards.

(2) As used in this section, “inappropriate use” means not used to meet a family’s ongoing basic needs, including food, clothing, shelter, utilities, household goods, personal care items, and general incidentals.

Sec. 677. The department shall establish a state goal for the percentage of family independence program (FIP) cases involved in employment activities. The percentage established shall not be less than 50%. On a monthly basis, the department shall report to the senate and house appropriations subcommittees on the department budget, the senate and house fiscal agencies and policy offices, and the state budget director on the current percentage of FIP cases involved in JET employment activities and an estimate of the current percentage of FIP cases that meet federal work participation requirements.

Sec. 686. (1) The department shall ensure that program policy requires caseworkers to confirm that individuals presenting personal identification issued by another state seeking assistance through the family independence program, food assistance program, state disability assistance program, or medical assistance program are not receiving benefits from any other state.

(2) The department shall require caseworkers to confirm the address provided by any individual seeking family independence program benefits or state disability assistance benefits.

(3) The department shall prohibit individuals with property assets assessed at a value higher than $500,000.00 from accessing assistance through department-administered programs, unless such a prohibition would violate federal rules and guidelines.

(4) The department shall require caseworkers to obtain an up-to-date telephone number during the eligibility determination or redetermination process for individuals seeking medical assistance benefits. On a monthly basis, the department shall provide the department of community health an updated list of telephone numbers for medical assistance recipients.

Sec. 696. From the funds appropriated in part 1, the department shall allocate $1,000,000.00 to the Chaldean community foundation. This money shall be utilized to provide translation services, health care services, youth tutoring and mentoring programs, and refugee resettlement services.

JUVENILE JUSTICE SERVICES

Sec. 706. Counties shall be subject to 50% chargeback for the use of alternative regional detention services, if those detention services do not fall under the basic provision of section 117e of the social welfare act, 1939 PA 280, MCL 400.117e, or if a county operates those detention services programs primarily with professional rather than volunteer staff.

Sec. 707. In order to be reimbursed for child care fund expenditures, counties are required to submit department-developed reports to enable the department to document potential federally claimable expenditures. This requirement is in accordance with the reporting requirements specified in section 117a(7) of the social welfare act, 1939 PA 280, MCL 400.117a.

Sec. 708. As a condition of receiving funds appropriated in part 1 for the child care fund line item, by December 15 of the current fiscal year, counties shall have an approved service spending plan for the current fiscal year. Counties must submit the service spending plan to the department by October 1 of the current fiscal year for approval. The department shall approve within 30 calendar days after receipt a properly completed service plan that complies with the requirements of the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b.

Sec. 710. The department, Wayne County, and the third circuit court may rewrite the memorandum of understanding (MOU) that permits Wayne County to manage its juvenile justice system so that the MOU takes into account all interested parties, including, but not limited to, the legislature.

Sec. 719. The department shall notify the legislature at least 30 days before closing or making any change in the status, including the licensed bed capacity and operating bed capacity, of a state juvenile justice facility.

Sec. 721. If the demand for placements at state-operated juvenile justice residential facilities exceeds capacity, the department shall not increase the available occupancy or services at the facilities, and shall post a request for proposals for a contract with not less than 1 private provider of residential services for juvenile justice youth to be a residential facility of last resort.

LOCAL OFFICE SERVICES

Sec. 750. The department shall maintain out-stationed eligibility specialists in community-based organizations, community mental health agencies, nursing homes, and hospitals unless a community-based organization, community mental health agency, nursing home, or hospital requests that the program be discontinued at its facility.

Sec. 753. By January 1, 2012, the department shall implement the recommendations of the 2004 public private partnership initiative’s training committee to define, design, and implement a train-the-trainer program to certify private agency staff to deliver child welfare staff training, explore the use of e-learning technologies, and include consumers in the design and implementation of training. The intent of the legislature is to reduce training and travel costs for both the department and the private agencies. The department shall report no later than December 1 of the current fiscal year on each specific policy change made to implement enacted legislation and the plans to implement the recommendations, including timelines, to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on human services matters, the senate and house fiscal agencies and policy offices, and the state budget director.

CHILD SUPPORT ENFORCEMENT

Sec. 901. (1) The appropriations in part 1 assume a total federal child support incentive payment of $26,500,000.00.

(2) From the federal money received for child support incentive payments, $12,000,000.00 shall be retained by the state and expended for child support program expenses.

(3) From the federal money received for child support incentive payments, $14,500,000.00 shall be paid to the counties based on each county’s performance level for each of the federal performance measures as established in 45 CFR 305.2.

(4) If the child support incentive payment to the state from the federal government is greater than $26,500,000.00, then 100% of the excess shall be retained by the state and is appropriated until the total retained by the state reaches $15,397,400.00.

(5) If the child support incentive payment to the state from the federal government is greater than the amount needed to satisfy the provisions identified in subsections (1), (2), (3), and (4), the additional funds shall be subject to appropriation by the legislature.

(6) If the child support incentive payment to the state from the federal government is less than $26,500,000.00, then the state and county share shall each be reduced by 50% of the shortfall.

Sec. 909. (1) If statewide retained child support collections exceed $38,300,000.00, 75% of the amount in excess of $38,300,000.00 is appropriated to legal support contracts. This excess appropriation may be distributed to eligible counties to supplement and not supplant county title IV-D funding.

(2) Each county whose retained child support collections in the current fiscal year exceed its fiscal year 2004-2005 retained child support collections, excluding tax offset and financial institution data match collections in both the current year and fiscal year 2004-2005, shall receive its proportional share of the 75% excess.

Sec. 910. (1) If title IV-D-related child support collections are escheated, the state budget director is authorized to adjust the sources of financing for the funds appropriated in part 1 for legal support contracts to reduce federal authorization by 66% of the escheated amount and increase general fund/general purpose authorization by the same amount. This budget adjustment is required to offset the loss of federal revenue due to the escheated amount being counted as title IV-D program income in accordance with federal regulations at 45 CFR 304.50.

(2) The department shall notify the chairs of the house and senate appropriations subcommittees on the department budget and the house and senate fiscal agencies within 15 days of the authorization adjustment in subsection (1).

COMMUNITY ACTION AND ECONOMIC OPPORTUNITY

Sec. 1105. The department shall report to the house and senate appropriations subcommittees on the department budget, the house and senate fiscal agencies, the house and senate policy offices, and the state budget office by February 1 of the current fiscal year on the number of homes, the approximate value of each home, and the square footage of each home weatherized through the appropriations in section 104 during the preceding quarter of the calendar year.

ONE-TIME BASIS ONLY

Sec. 1201. From the funds appropriated in part 1, the department shall allocate $2,500,000.00 for information technology improvements that will improve the office of inspector general’s efforts to reduce waste, fraud, and abuse.

Sec. 1203. The department shall allocate $1,000,000.00 for the operation of a statewide before- or after-school program targeted to children in kindergarten through ninth grade. Eligible programs must serve geographic areas near school buildings that do not meet federal no child left behind annual yearly progress (AYP) requirements and that include the before- or after-school programs in the AYP plans as a means to improve outcomes and serve children living in households with income below 200% of the federal poverty guidelines as established by the United States department of health and human services.

Sec. 1205. (1) From the funds appropriated in part 1, the department shall allocate $500,000.00 to enter into a contract with a state university or outside research entity to conduct a behavioral health study of juvenile justice facilities operated or contracted for by the state. The study shall utilize diagnostic clinical interviews with and records reviews for a representative random sample of juvenile justice system detainees to develop a report on each of the following:

(a) The proportion of juvenile justice detainees with a primary diagnosis of emotional disorder, the percentage of those detainees considered to currently require mental health treatment, and the proportion of those detainees currently receiving mental health services, including a description and breakdown, encompassing, at a minimum, the categories of inpatient, residential, and outpatient care, of the type of mental health services provided to those detainees.

(b) The proportion of juvenile justice detainees with a primary diagnosis of addiction disorder, the percentage of those detainees considered to currently require substance abuse treatment, and the proportion of those detainees currently receiving substance abuse services, including a description and breakdown, encompassing, at a minimum, the categories of residential and outpatient care, of the type of substance abuse services provided to those detainees.

(c) The proportion of juvenile justice detainees with a dual diagnosis of emotional disorder and addiction disorder, the percentage of those detainees considered to currently require treatment for their condition, and the proportion of those detainees currently receiving that treatment, including a description and breakdown, encompassing, at a minimum, the categories of mental health inpatient, mental health residential, mental health outpatient, substance abuse residential, and substance abuse outpatient, of the type of treatment provided to those detainees.

(d) Data indicating whether juvenile justice detainees with a primary diagnosis of emotional disorder, a primary diagnosis of addiction disorder, and a dual diagnosis of emotional disorder and addiction disorder were previously hospitalized in a state psychiatric hospital for persons with mental illness. These data shall be broken down according to each of these 3 respective categories.

(e) Data indicating whether and with what frequency juvenile justice detainees with a primary diagnosis of emotional disorder, a primary diagnosis of addiction disorder, and a dual diagnosis of emotional disorder and addiction disorder have been detained previously. These data shall be broken down according to each of these 3 respective categories.

(f) Data classifying the types of offenses historically committed by juvenile justice detainees with a primary diagnosis of emotional disorder, a primary diagnosis of addiction disorder, and a dual diagnosis of emotional disorder and addiction disorder. These data shall be broken down according to each of these 3 respective categories.

(g) Data indicating whether juvenile justice detainees have previously received services managed by a community mental health program or substance abuse coordinating agency. These data shall be broken down according to the respective categories of detainees with a primary diagnosis of emotional disorder, a primary diagnosis of addiction disorder, and a dual diagnosis of emotional disorder and addiction disorder.

(2) The report referenced under subsection (1) would be provided not later than June 30 of the current fiscal year to the senate and house appropriations subcommittees on human services, the senate and house fiscal agencies and policy offices, and the state budget director.

Sec. 1207. (1) The department shall make a determination of Medicaid eligibility not later than 60 days after all information to make the determination is received from the applicant if disability is an eligibility factor. For all other Medicaid applicants, including patients of a nursing home, the department shall make a determination of Medicaid eligibility within 45 days of application.

(2) From the funds appropriated in part 1, the department shall implement at 2 local offices a LEAN process to increase the efficiency of Medicaid eligibility determination not later than December 1, 2012. The goals of the LEAN process shall include, but not be limited to, identifying ways to reduce the number of days that a determination is made for applicants who have submitted all required information from 60 days to 45 days for applicants for whom disability is an eligibility factor, and 45 days to 30 days for patients who reside in nursing homes and all other Medicaid applicants.

(3) Not later than April 1, 2013, the department shall provide a report to the senate and house appropriations subcommittees on the department budget, the senate and house standing committees on families and human services, and the senate and house fiscal agencies and policy offices detailing the outcomes of the LEAN process, the department’s progress in achieving the eligibility standard of promptness at the 2 local offices, and the department’s plan for implementing efficiency standards identified in the LEAN process statewide.

Sec. 1208. From the funds appropriated in part 1 for Seita scholarship program, the department shall allocate $750,000.00 to the Seita scholarship program.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS FOR FISCAL YEAR 2013-2014

GENERAL SECTIONS

Sec. 1301. It is the intent of the legislature to provide appropriations for the fiscal year ending on September 30, 2014 for the line items listed in part 1. The fiscal year 2013-2014 appropriations are anticipated to be the same as those for fiscal year 2012-2013, 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 2013 consensus revenue estimating conference.

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

A bill to make appropriations for the department of human services for the fiscal year ending September 30, 2013; and to provide for the expenditure of the appropriations.

Bruce Caswell

Roger Kahn

Conferees for the Senate

David Agema

Greg MacMaster

Conferees for the House

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. 395 Yeas—24

Booher Green Marleau Proos

Brandenburg Hildenbrand Meekhof Richardville

Casperson Jansen Moolenaar Robertson

Caswell Jones Nofs Rocca

Colbeck Kahn Pappageorge Schuitmaker

Emmons Kowall Pavlov Walker

Nays—12

Anderson Gregory Hunter Warren

Bieda Hopgood Johnson Whitmer

Gleason Hune Smith Young

Excused—2

Hansen Hood

Not Voting—0

In The Chair: Schuitmaker

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

The recommendation was not concurred in, 2/3 of the members serving not voting therefor.

Senator Proos submitted the following:

FIRST CONFERENCE REPORT

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

Senate Bill No. 957, entitled

A bill to make appropriations for the judiciary for the fiscal year ending September 30, 2013; and to provide for the expenditure of the appropriations.

Recommends:

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

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

A bill to make appropriations for the judiciary for the fiscal year ending September 30, 2013; and to provide for the expenditure of the appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2012-2013

Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for the judicial branch for the fiscal year ending September 30, 2013, from the funds indicated in this part. The following is a summary of the appropriations in this part:

JUDICIARY

 APPROPRIATION SUMMARY

Full-time equated exempted positions.............................................................................472.0

GROSS APPROPRIATION.......................................................................................................... $ 273,760,100

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 2,638,200

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 271,121,900

Federal revenues:

Total federal revenues................................................................................................................... 6,017,100

Special revenue funds:

Total local revenues...................................................................................................................... 7,049,300

Total private revenues................................................................................................................... 921,800

Total other state restricted revenues............................................................................................. $ 86,382,200

State general fund/general purpose.............................................................................................. $ 170,751,500

State general fund/general purpose schedule:

Ongoing state general fund/general purpose.......................................................$170,114,600

One-time state general fund/general purpose............................................................$636,900

Sec. 102. SUPREME COURT

Full-time equated exempted positions.............................................................................237.0

Supreme court administration—92.0 FTE positions.................................................................... $ 12,701,800

Judicial institute—13.0 FTE positions......................................................................................... 2,151,300

State court administrative office—61.0 FTE positions................................................................ 13,645,900

Judicial information systems—22.0 FTE positions...................................................................... 3,498,100

Direct trial court automation support—36.0 FTE positions......................................................... 6,970,700

Foster care review board—10.0 FTE positions............................................................................ 1,493,700

Community dispute resolution—3.0 FTE positions..................................................................... 2,350,900

Other federal grants...................................................................................................................... 275,100

Drug treatment courts................................................................................................................... 13,383,000

Community court pilot project..................................................................................................... 20,000

GROSS APPROPRIATION.......................................................................................................... $ 56,490,500

Appropriated from:

Interdepartmental grant revenues:

IDG from department of state police........................................................................................... 1,800,000

IDG from department of corrections............................................................................................ 50,000

IDG from state police - Michigan justice training fund.............................................................. 326,200

Federal revenues:

DOJ, victims assistance programs................................................................................................ 54,300

DOJ, drug court training and evaluation...................................................................................... 300,000

DOT, national highway traffic safety administration................................................................... 1,380,900

HHS, access and visitation grant.................................................................................................. 593,800

HHS, children’s justice grant....................................................................................................... 222,600

HHS, court improvement project.................................................................................................. 1,251,900

HHS, title IV-D child support program........................................................................................ 979,700

HHS, title IV-E foster care program............................................................................................ 625,900

Other federal grant revenues........................................................................................................ 275,100

Special revenue funds:

Local - user fees........................................................................................................................... 6,970,700

Private........................................................................................................................................... 182,500

Private - interest on lawyers trust accounts.................................................................................. 251,100

Private - state justice institute...................................................................................................... 401,000

Community dispute resolution fund............................................................................................. 2,350,900

Court of appeals filing/motion fees.............................................................................................. 1,641,800

Law exam fees.............................................................................................................................. 608,900

Drug court fund............................................................................................................................ 1,920,500

Miscellaneous revenue.................................................................................................................. 335,900

Justice system fund...................................................................................................................... 755,400

State court fund............................................................................................................................ 365,900

State general fund/general purpose.............................................................................................. $ 32,845,500

Sec. 103. COURT OF APPEALS

Full-time equated exempted positions.............................................................................175.0

Court of appeals operations—175.0 FTE positions..................................................................... $ 21,551,100

GROSS APPROPRIATION.......................................................................................................... $ 21,551,100

Appropriated from:

State general fund/general purpose.............................................................................................. $ 21,551,100

Sec. 104. BRANCHWIDE APPROPRIATIONS

Full-time equated exempted positions.................................................................................4.0

Branchwide appropriations—4.0 FTE positions........................................................................... $ 8,365,400

GROSS APPROPRIATION.......................................................................................................... $ 8,365,400

Appropriated from:

State general fund/general purpose.............................................................................................. $ 8,365,400

Sec. 105. JUSTICES’ AND JUDGES’ COMPENSATION

Full-time judges positions...............................................................................................607.0

Supreme court justices’ salaries—7.0 justices............................................................................. $ 1,152,300

Court of appeals judges’ salaries—28.0 judges........................................................................... 4,240,300

District court judges’ state base salaries—250.0 judges.............................................................. 23,183,300

District court judicial salary standardization................................................................................ 11,453,900

Probate court judges’ state base salaries—104.0 judges.............................................................. 9,722,100

Probate court judicial salary standardization................................................................................ 4,715,300

Circuit court judges’ state base salaries—218.0 judges............................................................... 20,558,100

Circuit court judicial salary standardization................................................................................. 9,979,300

Judges’ retirement system defined contributions......................................................................... 3,998,400

OASI, social security.................................................................................................................... 5,559,800

GROSS APPROPRIATION.......................................................................................................... $ 94,562,800

Appropriated from:

Special revenue funds:

Court fee fund.............................................................................................................................. 4,890,200

State general fund/general purpose.............................................................................................. $ 89,672,600

Sec. 106. JUDICIAL AGENCIES

Full-time equated exempted positions.................................................................................7.0

Judicial tenure commission—7.0 FTE positions.......................................................................... $ 1,084,600

GROSS APPROPRIATION.......................................................................................................... $ 1,084,600

Appropriated from:

State general fund/general purpose.............................................................................................. $ 1,084,600

Sec. 107. INDIGENT DEFENSE - CRIMINAL

Full-time equated exempted positions...............................................................................49.0

Appellate public defender program—42.0 FTE positions............................................................ $ 6,109,300

Appellate assigned counsel administration—7.0 FTE positions.................................................. 1,032,100

GROSS APPROPRIATION.......................................................................................................... $ 7,141,400

Appropriated from:

Interdepartmental grant revenues:

IDG from state police - Michigan justice training fund.............................................................. 452,900

Federal revenues:

Other federal grant revenues........................................................................................................ 281,700

Special revenue funds:

Private - interest on lawyers trust accounts.................................................................................. 79,000

Miscellaneous revenue.................................................................................................................. 127,500

State general fund/general purpose.............................................................................................. $ 6,200,300

Sec. 108. INDIGENT CIVIL LEGAL ASSISTANCE

Indigent civil legal assistance....................................................................................................... $ 7,937,000

GROSS APPROPRIATION.......................................................................................................... $ 7,937,000

Appropriated from:

Special revenue funds:

State court fund............................................................................................................................ 7,937,000

State general fund/general purpose.............................................................................................. $ 0

Sec. 109. TRIAL COURT OPERATIONS

Court equity fund reimbursements............................................................................................... $ 60,835,100

Judicial technology improvement fund........................................................................................ 4,815,000

GROSS APPROPRIATION.......................................................................................................... $ 65,650,100

Appropriated from:

Special revenue funds:

Court equity fund......................................................................................................................... 50,440,000

Judicial technology improvement fund........................................................................................ 4,815,000

State general fund/general purpose.............................................................................................. $ 10,395,100

Sec. 110. GRANTS AND REIMBURSEMENTS TO LOCAL GOVERNMENT

Drug case-flow program............................................................................................................... $ 250,000

Drunk driving case-flow program................................................................................................ 3,300,000

Juror compensation reimbursement.............................................................................................. 6,600,000

GROSS APPROPRIATION.......................................................................................................... $ 10,150,000

Appropriated from:

Special revenue funds:

Drug fund..................................................................................................................................... 250,000

Drunk driving fund....................................................................................................................... 3,300,000

Juror compensation fund.............................................................................................................. 6,600,000

State general fund/general purpose.............................................................................................. $ 0

Sec. 111. ONE-TIME BASIS ONLY APPROPRIATIONS

State employee lump-sum payments............................................................................................ $ 827,200

GROSS APPROPRIATION.......................................................................................................... $ 827,200

Appropriated from:

One-time interdepartmental grant................................................................................................. 9,100

One-time federal revenue............................................................................................................. 51,200

One-time local revenue................................................................................................................. 78,600

One-time private revenue............................................................................................................. 8,200

One-time state restricted revenue................................................................................................. 43,200

State general fund/general purpose.............................................................................................. $ 636,900

PART 2

PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2012-2013

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 2012-2013 is $257,133,700.00 and state spending from state resources to be paid to local units of government for fiscal year 2012-2013 is $127,604,200.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

JUDICIARY

SUPREME COURT

State court administrative office................................................................................................... $ 1,611,900

Drug treatment courts................................................................................................................... 13,383,000

TRIAL COURT OPERATIONS

Court equity fund reimbursements............................................................................................... $ 60,835,100

Judicial technology improvement fund........................................................................................ 4,815,000

JUSTICES’ AND JUDGES’ COMPENSATION

District court judicial salary standardization................................................................................ $ 11,453,900

Probate court judges’ state base salaries...................................................................................... 9,722,100

Probate court judicial salary standardization................................................................................ 4,715,300

Circuit court judicial salary standardization................................................................................. 9,979,300

Grant to OASI contribution fund, employers share, social security............................................ 938,600

GRANTS AND REIMBURSEMENTS TO LOCAL GOVERNMENT

Drunk driving case-flow program................................................................................................ $ 3,300,000

Drug case-flow program............................................................................................................... 250,000

Juror compensation reimbursement.............................................................................................. 6,600,000

TOTAL.......................................................................................................................................... $ 127,604,200

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

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

Sec. 203. As used in this act:

(a) “DOJ” means the United States department of justice.

(b) “DOT” means the United States department of transportation.

(c) “FTE” means full-time equated.

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

(e) “IDG” means interdepartmental grant.

(f) “OASI” means old age survivor’s insurance.

Sec. 204. The judicial branch shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

Sec. 208. The reporting requirements of this act shall be completed with the approval of, and at the direction of, the supreme court, except as otherwise provided in this act. The judicial branch shall use the Internet to fulfill the reporting requirements of this act. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement, or it may include placement of reports on an Internet or Intranet site.

Sec. 212. The judicial branch 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 judicial branch may electronically retain copies of reports unless otherwise required by federal and state guidelines.

Sec. 214. 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. 215. Not later than January 1 of each year, the state court administrative office shall prepare a travel report listing all travel by judicial branch employees outside this state in the immediately preceding fiscal year that was funded in whole or in part with funds appropriated in the budget for the judicial branch. The report shall be submitted to the senate and house of representatives standing committees on appropriations, the senate and house fiscal agencies, and the state budget director. The report shall include the following information:

(a) The dates of each travel occurrence.

(b) The total 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.

Sec. 219. Not later than November 15, 2013, the judiciary 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 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. 221. From the funds appropriated in part 1, the judicial branch shall develop, post, and maintain, on a user-friendly and publicly accessible Internet site, all expenditures made by the judicial branch within a fiscal year. The posting shall include the purpose for which each expenditure is made. The judicial branch 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. 222. Within 14 days after the release of the executive budget recommendation, the judicial branch shall provide the state budget director, the senate and house appropriations chairs, the senate and house appropriations subcommittees on the judiciary, 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, 2012 and September 30, 2013.

JUDICIAL BRANCH

Sec. 301. Pursuant to the appropriations in part 1, the direct trial court automation support program of the state court administrative office shall recover direct and overhead costs from trial courts by charging for services rendered. The fee shall cover the actual costs incurred to the direct trial court automation support program in providing the service, including development of future versions of case management systems.

Sec. 302. Funds appropriated within the judicial branch shall not be expended by any component within the judicial branch without the approval of the supreme court.

Sec. 303. Of the amount appropriated in part 1 for the judicial branch, $325,000.00 is allocated for circuit court reimbursement under section 3 of 1978 PA 16, MCL 800.453, and $186,900.00 is allocated for court of claims reimbursement under section 6413 of the revised judicature act of 1961, 1961 PA 236, MCL 600.6413.

Sec. 306. The supreme court and the state court administrative office shall continue to maintain, as a priority, the assisting of local trial courts in improving the collection of judgments.

Sec. 308. If sufficient funds are not available from the court fee fund to pay judges’ compensation, the difference between the appropriated amount from that fund for judges’ compensation and the actual amount available after the amount appropriated for trial court reimbursement is made shall be appropriated from the state general fund for judges’ compensation.

Sec. 309. By April 1, 2013, the state court administrative office shall provide an update on the status of the pilot mental health courts to the state budget director, the senate and house appropriations subcommittees on the judiciary, and the senate and house fiscal agencies.

Sec. 310. From the funds appropriated in part 1 for drug treatment court programs, with the approval of and at the discretion of the supreme court, the state court administrative office shall evaluate and collect data on the performance of drug treatment court programs. The state court administrative office shall provide an annual review of the performance of drug courts as prescribed in section 1078(6) of the revised judicature act of 1961, 1961 PA 236, MCL 600.1078. All of the following apply to that annual review:

(a) It shall include measures of the impact of drug court programs in changing offender criminal involvement (recidivism) and substance abuse and in reducing prison admissions.

(b) It shall be completed no later than April 1 of each year and shall also be provided to the senate and house appropriations subcommittees on the judiciary, the senate and house fiscal agencies, and the state budget director.

(c) The evaluation of a program funded with federal Byrne funds shall be consistent with the requirements contained in the federal Byrne grant for that program.

Sec. 311. (1) The funds appropriated in part 1 for drug treatment courts shall be administered by the state court administrative office to operate drug treatment court programs. A drug treatment court shall be responsible for handling cases involving substance abusing nonviolent offenders through comprehensive supervision, testing, treatment services, and immediate sanctions and incentives. A drug treatment court shall use all available county and state personnel involved in the disposition of cases including, but not limited to, parole and probation agents, prosecuting attorneys, defense attorneys, and community corrections providers. The funds may be used in connection with other federal, state, and local funding sources.

(2) From the funds appropriated in part 1, the chief justice shall allocate sufficient funds for the judicial institute to provide in-state training for those identified in subsection (1), including training for new drug treatment court judges.

(3) For drug treatment court grants, consideration for priority may be given to those courts where higher instances of substance abuse cases are filed.

(4) The judiciary shall receive $1,800,000.00 in Byrne formula grant funding as an interdepartmental grant from the department of state police to be used for expansion of drug treatment courts, to assist in avoiding prison bed space growth for nonviolent offenders in collaboration with the department of corrections.

Sec. 312. From the funds appropriated in part 1, the state court administrator shall produce a statistical report regarding the implementation of the parental rights restoration act, 1990 PA 211, MCL 722.901 to 722.908, as it pertains to minors seeking a court-issued waiver of parental consent. The state court administrative office shall report the total number of petitions filed and the total number of petitions granted in accordance with section 208.

Sec. 317. Funds appropriated in part 1 shall not be used for the permanent assignment of state-owned vehicles to justices or judges or any other judicial branch employee. This section does not preclude the use of state-owned motor pool vehicles for state business in accordance with approved guidelines.

Sec. 318. The funds appropriated in part 1 for the community court pilot project shall be used for the purposes of administering a pilot program of neighborhood-focused community courts. The state court administrative office shall work collaboratively with the designated courts when establishing the community courts.

Sec. 320. (1) From the funds appropriated in part 1 for drug treatment courts, $6,000,000.00, including $1,641,800.00 from court of appeals filing fees and motion fees and $87,600.00 of miscellaneous revenue transferred from court of appeals funding, shall be administered by the state court administrative office to distribute as grants to qualifying courts to support a swift-and-sure sanctions grant program. Of the $6,000,000.00 designated for the program, not more than $100,000.00 shall be available to the state court administrative office to pay for employee costs associated with the administration of the program funds. Courts interested in participating in the swift-and-sure sanctions program may apply to the state court administrative office for a portion of the funds appropriated in part 1 under this section.

(2) The state court administrative office may award the swift-and-sure sanctions grant funds to any court that applies under subsection (1), that intends to operate, or is already operating, a swift-and-sure sanctions program, and that meets 1 or both of the following qualifications:

(a) The court operates a drug treatment court.

(b) The court is part of a unified trial court system.

(3) The state court administrative office shall give the following priority in awarding swift-and-sure sanctions grant funds:

(a) Courts that have already had a swift-and-sure sanctions program in operation in prior years and are making satisfactory progress in establishing and improving their programs.

(b) Courts located in counties that have high numbers of residents or former residents under the supervision of the department of corrections.

(4) By April 1, 2013, a court that receives funding under this section shall provide a report on the program to the state budget director, the senate and house appropriations subcommittees on the judiciary, and the senate and house fiscal agencies. The report shall include all of the following:

(a) The number of offenders who participate in the program.

(b) The criminal history of offenders who participate in the program.

(c) The recidivism rate of offenders who participate in the program, including the rate of return to jail, prison, or both.

(d) A detailed description of the establishment and parameters of the program.

(5) As used in this section:

(a) “Program” means a swift-and-sure sanctions program.

(b) “Unified trial court system” means a trial court in which all of the circuit, district, and probate court judges may be assigned to any division of that trial court to meet the demands of the trial court’s caseload.

Sec. 321. It is the intent of the legislature that the judicial branch support a statewide legal self-help Internet website and local nonprofit self-help centers that use the statewide website to provide assistance to individuals representing themselves in civil legal proceedings.

Sec. 322. If Byrne formula grant funding is awarded to the state appellate defender, the state appellate defender office may receive and expend Byrne formula grant funds in an amount not exceeding $250,000.00 as an interdepartmental grant from the department of state police.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS FOR FISCAL YEAR 2013-2014

GENERAL SECTIONS

Sec. 1201. It is the intent of the legislature to provide appropriations for the fiscal year ending on September 30, 2014 for the line items listed in part 1. The fiscal year 2013-2014 appropriations are anticipated to be the same as those for fiscal year 2012-2013, 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 2013 consensus revenue estimating conference.

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

A bill to make appropriations for the judiciary for the fiscal year ending September 30, 2013; and to provide for the expenditure of the appropriations.

John Proos

Roger Kahn

Conferees for the Senate

Kevin Cotter

Anthony G. Forlini

Conferees for the House

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. 396 Yeas—23

Booher Hildenbrand Marleau Richardville

Casperson Hune Moolenaar Robertson

Caswell Jansen Nofs Rocca

Colbeck Jones Pappageorge Schuitmaker

Emmons Kahn Pavlov Walker

Green Kowall Proos

Nays—13

Anderson Gregory Johnson Warren

Bieda Hopgood Meekhof Whitmer

Brandenburg Hunter Smith Young

Gleason

Excused—2

Hansen Hood

Not Voting—0

In The Chair: Schuitmaker

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

The recommendation was not concurred in, 2/3 of the members serving not voting therefor.

Senator Jansen submitted the following:

FIRST CONFERENCE REPORT

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

Senate Bill No. 958, entitled

A bill to make appropriations for the department of licensing and regulatory affairs and certain other state purposes for the fiscal year ending September 30, 2013; to provide for the expenditure of those appropriations; to provide for the imposition of certain fees; to provide for the disposition of fees and other income received by the state agencies; to provide for reports to certain persons; and to prescribe powers and duties of certain state departments and certain state and local agencies and officers.

Recommends:

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

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

A bill to make appropriations for the department of licensing and regulatory affairs and certain other state purposes for the fiscal year ending September 30, 2013; to provide for the expenditure of those appropriations; to provide for the imposition of certain fees; to provide for the disposition of fees and other income received by the state agencies; to provide for reports to certain persons; and to prescribe powers and duties of certain state departments and certain state and local agencies and officers.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2012-2013

Sec. 101. The amounts listed in this part are appropriated for the department of licensing and regulatory affairs, subject to the conditions set forth in this act, for the fiscal year ending September 30, 2013, from the funds identified in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS

APPROPRIATION SUMMARY

Full-time equated unclassified positions...........................................................................57.5

Full-time equated classified positions..........................................................................4,259.8

GROSS APPROPRIATION.......................................................................................................... $ 791,943,300

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers................................................... 13,496,900

ADJUSTED GROSS APPROPRIATION..................................................................................... $ 778,446,400

Federal revenues:

Total federal revenues................................................................................................................... 391,076,000

Special revenue funds:

Total local revenues...................................................................................................................... $ 7,159,900

Total private revenues................................................................................................................... 3,927,800

Total other state restricted revenues............................................................................................. 325,711,800

State general fund/general purpose.............................................................................................. $ 50,570,900

State general fund/general purpose schedule:

Ongoing state general fund/general purpose..........................................................50,393,400

One-time state general fund/general purpose..............................................................177,500

Sec. 102. DEPARTMENTAL ADMINISTRATION

Full-time equated unclassified positions...........................................................................57.5

Full-time equated classified positions.............................................................................128.0

Unclassified salaries—57.5 FTE positions................................................................................... $ 4,595,900

Executive director programs—33.0 FTE positions...................................................................... 5,678,300

Property management................................................................................................................... 12,495,200

Rent.............................................................................................................................................. 12,032,200

Worker’s compensation................................................................................................................. 713,200

Special project advances............................................................................................................... 200,000

Administrative services—91.0 FTE positions.............................................................................. 10,655,400

Office of regulatory reinvention—4.0 FTE positions................................................................... 415,800

GROSS APPROPRIATION.......................................................................................................... $ 46,786,000

Appropriated from:

Federal revenues:

DOE-OEERE, multiple grants...................................................................................................... 3,000

DED-OSERS, rehabilitation services, vocational rehabilitation of state grants........................... 4,219,600

DOL-ETA, unemployment insurance........................................................................................... 12,335,400

DOL, multiple grants for safety and health................................................................................. 797,600

Federal revenues........................................................................................................................... 453,100

Title XVIII Medicare.................................................................................................................... 423,100

Title XIX Medicaid...................................................................................................................... 21,700

Title XIX Medicaid, facility certification fees............................................................................. 265,800

Special revenue funds:

Private - special project advances................................................................................................ 200,000

Local revenues.............................................................................................................................. 130,900

Bank fees...................................................................................................................................... 381,700

Boiler fee revenue........................................................................................................................ 244,400

Construction code fund................................................................................................................ 1,239,300

Consumer finance fees................................................................................................................. 78,300

Contingent fund, penalty and interest account............................................................................. 39,900

Corporation fees........................................................................................................................... 4,442,000

Credit union fees.......................................................................................................................... 386,900

Deferred presentment service transaction fees............................................................................. 25,000

Elevator fees................................................................................................................................. 251,500

Fees and collections/asbestos....................................................................................................... 104,200

Fire service fees........................................................................................................................... 805,700

Health professions regulatory fund.............................................................................................. 1,667,900

Health systems fees...................................................................................................................... 285,000

Insurance licensing and regulation fees....................................................................................... 1,848,600

Insurance bureau fund.................................................................................................................. 589,600

Licensing and regulation fees....................................................................................................... 1,092,300

Liquor license revenue................................................................................................................. 34,500

Liquor purchase revolving fund................................................................................................... 5,020,600

MBLSLA fund.............................................................................................................................. 86,400

Mobile home code fund............................................................................................................... 253,400

Motor carrier fees......................................................................................................................... 238,100

Private occupational school license fees...................................................................................... $ 14,000

Public utility assessments............................................................................................................. 2,519,500

Radiological health fees............................................................................................................... 95,600

Safety education and training fund.............................................................................................. 798,900

Second injury fund....................................................................................................................... 255,500

Securities fees............................................................................................................................... 2,555,500

Self-insurers security fund............................................................................................................ 92,300

Silicosis and dust disease fund..................................................................................................... 113,900

Tax tribunal fund.......................................................................................................................... 192,600

Video franchise assessments......................................................................................................... 4,000

Workers’ compensation administrative revolving fund................................................................ 134,500

State general fund/general purpose.............................................................................................. $ 2,044,200

Sec. 103. OFFICE OF FINANCIAL AND INSURANCE REGULATION

Full-time equated classified positions.............................................................................374.0

Administration—45.0 FTE positions............................................................................................ $ 7,956,900

Financial evaluation—209.0 FTE positions................................................................................. 36,871,300

Regulatory compliance and consumer assistance—120.0 FTE positions..................................... 19,684,400

GROSS APPROPRIATION.......................................................................................................... $ 64,512,600

Appropriated from:

Federal revenues:

Federal revenues........................................................................................................................... 2,000,000

Special revenue funds:

Bank fees...................................................................................................................................... 8,801,900

Captive insurance regulatory and supervision fund..................................................................... 279,400

Consumer finance fees................................................................................................................. 4,673,700

Credit union fees.......................................................................................................................... 6,796,400

Deferred presentment service transaction fees............................................................................. 2,900,800

Insurance bureau fund.................................................................................................................. 22,012,300

Insurance continuing education fees............................................................................................ 1,097,400

Insurance licensing and regulation fees....................................................................................... 5,168,300

MBLSLA fund.............................................................................................................................. 4,629,600

Multiple employer welfare arrangement...................................................................................... 72,600

Securities fees............................................................................................................................... 5,080,200

Securities investor education and training fund........................................................................... 1,000,000

State general fund/general purpose.............................................................................................. $ 0

Sec. 104. PUBLIC SERVICE COMMISSION AND ENERGY SYSTEMS

Full-time equated classified positions.............................................................................193.0

Public service commission—190.0 FTE positions....................................................................... $ 29,265,100

METRO authority—3.0 FTE positions......................................................................................... 367,300

GROSS APPROPRIATION.......................................................................................................... $ 29,632,400

Appropriated from:

Federal revenues:

DOE-OEERE, multiple grants...................................................................................................... 9,000

DOT, gas pipeline safety.............................................................................................................. 950,000

Special revenue funds:

Children’s protection registry fund............................................................................................... 272,600

Motor carrier fees......................................................................................................................... 2,520,300

Public utility assessments............................................................................................................. 25,040,500

Restructuring mechanism assessments......................................................................................... 440,000

Video franchise assessments......................................................................................................... 400,000

State general fund/general purpose.............................................................................................. $ 0

Sec. 105. LIQUOR CONTROL COMMISSION

Full-time equated classified positions.............................................................................152.0

Management support services—28.0 FTE positions.................................................................... $ 4,185,100

Liquor licensing and enforcement—124.0 FTE positions............................................................ 14,523,800

GROSS APPROPRIATION.......................................................................................................... $ 18,708,900

Appropriated from:

Special revenue funds:

Direct shipper enforcement revolving fund.................................................................................. $ 120,000

Liquor license revenue................................................................................................................. 7,510,400

Liquor purchase revolving fund................................................................................................... 11,078,500

State general fund/general purpose.............................................................................................. $ 0

Sec. 106. OCCUPATIONAL REGULATION

Full-time equated classified positions.............................................................................795.3

Boiler inspection program—23.0 FTE positions.......................................................................... $ 3,172,900

Bureau of fire services—62.0 FTE positions............................................................................... 7,641,000

Bureau of construction codes—100.0 FTE positions................................................................... 14,731,600

Bureau of commercial services—155.0 FTE positions................................................................ 21,299,300

Elevator inspection program—30.0 FTE positions...................................................................... 3,545,600

Bureau of health professions—151.0 FTE positions.................................................................... 26,822,000

Medical marihuana program—9.0 FTE positions........................................................................ 4,200,000

Bureau of health systems—211.4 FTE positions......................................................................... 27,197,600

Radiological health administration—21.4 FTE positions............................................................. 3,345,400

Background check program—5.5 FTE positions......................................................................... 2,595,000

Manufactured housing and land resources program—18.0 FTE positions.................................. 2,874,700

Property development group—9.0 FTE positions........................................................................ 1,767,500

GROSS APPROPRIATION.......................................................................................................... $ 119,192,600

Appropriated from:

Interdepartmental grant revenues:

IDG from department of community health, inspection contract................................................ 100,000

Federal revenues:

Clinical lab improvement............................................................................................................. 386,700

DOT.............................................................................................................................................. 60,000

FEMA........................................................................................................................................... 28,000

Mammography quality standards................................................................................................. 744,500

Title XVIII Medicare.................................................................................................................... 10,946,600

Title XIX Medicaid...................................................................................................................... 968,900

Title XIX Medicaid, facility certification fees............................................................................. 7,483,600

Special revenue funds:

Private - civil monetary penalties................................................................................................. 200,000

Accountancy enforcement fund.................................................................................................... 404,800

Boiler fee revenue........................................................................................................................ 3,627,500

Builder enforcement fund............................................................................................................. 450,800

Construction code fund................................................................................................................ 13,853,400

Corporation fees........................................................................................................................... 6,728,000

Elevator fees................................................................................................................................. 3,969,200

Fire alarm fees.............................................................................................................................. 125,400

Fire safety standard and enforcement fund.................................................................................. 40,000

Fire service fees........................................................................................................................... 2,346,000

Fireworks safety fund................................................................................................................... 652,700

Health professions regulatory fund.............................................................................................. 27,624,900

Health systems fees...................................................................................................................... 2,555,700

Licensing and regulation fees....................................................................................................... 11,998,200

Liquor purchase revolving fund................................................................................................... 3,003,900

Mobile home code fund............................................................................................................... 2,874,700

Nurse professional fund................................................................................................................ 1,883,300

Pain management fees.................................................................................................................. 1,770,600

Private occupational school license fees...................................................................................... 832,200

Property development fees........................................................................................................... 298,900

Radiological health fees............................................................................................................... 2,600,900

Real estate appraiser continuing education fund.......................................................................... 47,000

Real estate education fund........................................................................................................... $ 338,100

Real estate enforcement fund....................................................................................................... 694,300

Survey and remonumentation fund............................................................................................... 809,700

Security business fund.................................................................................................................. 340,100

Unarmed combat fund.................................................................................................................. 124,700

State general fund/general purpose.............................................................................................. $ 8,279,300

Sec. 107. MICHIGAN OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION

Full-time equated classified positions.............................................................................250.0

Occupational safety and health—219.0 FTE positions................................................................ $ 30,623,000

Wage and hour division—31.0 FTE positions.............................................................................. 3,388,300

GROSS APPROPRIATION.......................................................................................................... $ 34,011,300

Appropriated from:

Federal revenues:

DOL, multiple grants for safety and health................................................................................. 14,371,900

Special revenue funds:

Corporation fees........................................................................................................................... 6,244,900

Fees and collections/asbestos....................................................................................................... 984,100

Safety education and training fund.............................................................................................. 9,039,600

Securities fees............................................................................................................................... 3,370,800

State general fund/general purpose.............................................................................................. $ 0

Sec. 108. EMPLOYMENT SERVICES

Full-time equated classified positions..........................................................................2,104.6

Worker’s compensation administration—69.6 FTE positions...................................................... $ 7,646,100

Insurance funds administration—25.0 FTE positions.................................................................. 5,138,900

Supplemental benefit fund............................................................................................................ 820,000

Unemployment insurance agency—1,262.7 FTE positions.......................................................... 152,814,400

Advocacy assistance program....................................................................................................... 1,500,000

Special audit and collections program—34.0 FTE positions....................................................... 3,301,300

Training program for agency staff—2.1 FTE positions............................................................... 1,849,500

Expanded fraud control program—33.2 FTE positions............................................................... 3,811,400

Commission for the blind—107.0 FTE positions......................................................................... 27,748,900

Michigan rehabilitation services—550.0 FTE positions.............................................................. 77,290,200

Employment and labor relations—21.0 FTE positions................................................................ 3,984,500

GROSS APPROPRIATION.......................................................................................................... $ 285,905,200

Appropriated from:

Federal revenues:

DED-OPSE, multiple grants......................................................................................................... 1,333,300

DED-OSERS, centers for independent living.............................................................................. 60,300

DED-OSERS, rehabilitation long-term training........................................................................... 328,400

DED-OSERS, rehabilitation services, vocational rehabilitation of state grants........................... 60,799,100

DED-OSERS, state grants for technical related assistance.......................................................... 67,700

DOL, employment and training administration............................................................................ 1,355,800

DOL-ETA, unemployment insurance........................................................................................... 156,606,100

Federal revenues........................................................................................................................... 21,034,900

HHS-SSA, supplemental security income.................................................................................... 4,079,400

Special revenue funds:

Private - gifts, bequests, and donations........................................................................................ 816,000

Private revenues............................................................................................................................ 111,800

Local revenues.............................................................................................................................. 529,000

Corporation fees........................................................................................................................... 1,892,000

Contingent fund, regular penalty and interest.............................................................................. 4,314,700

Michigan commission for the blind business enterprise program fund....................................... 562,000

Rehabilitation service fees............................................................................................................ 1,401,500

Second injury fund....................................................................................................................... 2,911,400

Securities fees............................................................................................................................... 4,394,500

Self-insurers security fund............................................................................................................ 1,308,200

Silicosis and dust disease fund..................................................................................................... $ 1,064,300

Special fraud control fund............................................................................................................ 1,000,000

Workers’ compensation administrative revolving fund................................................................ 2,383,000

State general fund/general purpose.............................................................................................. $ 17,551,800

Sec. 109. MICHIGAN ADMINISTRATIVE HEARING SYSTEM

Full-time equated classified positions.............................................................................260.9

Michigan administrative hearing system—231.4 FTE positions.................................................. $ 35,418,100

Michigan compensation appellate commission—29.5 FTE positions.......................................... 3,835,200

GROSS APPROPRIATION.......................................................................................................... $ 39,253,300

Appropriated from:

Interdepartmental grant revenues:

IDG - administrative hearings...................................................................................................... 13,233,400

Federal revenues:

DOL-ETA, unemployment insurance........................................................................................... 3,552,400

Federal revenue - administrative hearings and rules.................................................................... 8,531,000

Special revenue funds:

State restricted revenue - administrative hearings and rules........................................................ 12,641,000

Workers’ compensation administrative revolving fund................................................................ 282,800

State general fund/general purpose.............................................................................................. $ 1,012,700

Sec. 110. INFORMATION TECHNOLOGY

Information technology services and projects.............................................................................. $ 45,310,200

Liquor control commission IT upgrades...................................................................................... 2,000,000

GROSS APPROPRIATION.......................................................................................................... $ 47,310,200

Appropriated from:

Federal revenues:

DOL-ETA, unemployment insurance........................................................................................... 22,256,000

DOL, multiple grants for safety and health................................................................................. 273,700

Federal revenues........................................................................................................................... 3,584,100

Special revenue funds:

Bank fees...................................................................................................................................... 219,500

Boiler fee revenue........................................................................................................................ 280,500

Construction code fund................................................................................................................ 1,137,800

Consumer finance fees................................................................................................................. 95,100

Corporation fees........................................................................................................................... 5,343,600

Credit union fees.......................................................................................................................... 192,100

Deferred presentment service transaction fees............................................................................. 85,700

Elevator fees................................................................................................................................. 271,300

Fees and collections/asbestos....................................................................................................... 11,000

Fire service fees........................................................................................................................... 353,500

Health professions regulatory fund.............................................................................................. 873,900

Health systems fees...................................................................................................................... 186,400

Insurance continuing education fees............................................................................................ 11,700

Insurance bureau fund.................................................................................................................. 545,500

Insurance licensing and regulation fees....................................................................................... 315,000

Licensing and regulation fees....................................................................................................... 1,757,500

Liquor purchase revolving fund................................................................................................... 4,915,400

MBLSLA fund.............................................................................................................................. 104,100

Mobile home code fund............................................................................................................... 245,200

Motor carrier fees......................................................................................................................... 191,300

Pain management fees.................................................................................................................. 160,000

Public utility assessments............................................................................................................. 1,550,800

Radiological health fees............................................................................................................... 140,000

Safety education and training fund.............................................................................................. 667,100

Second injury fund....................................................................................................................... 143,600

Securities fees............................................................................................................................... 990,600

Self-insurers security fund............................................................................................................ 71,500

Silicosis and dust disease fund..................................................................................................... $ 61,500

Tax tribunal fund.......................................................................................................................... 210,000

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

Sec. 111. DEPARTMENT GRANTS

Personal assistance services......................................................................................................... $ 459,500

Vocational rehabilitation customer support.................................................................................. 57,328,400

Independent living........................................................................................................................ 4,488,600

Fire protection grants................................................................................................................... 9,273,900

Liquor law enforcement grants..................................................................................................... 6,600,000

Remonumentation grants.............................................................................................................. 5,300,000

Private grant programs................................................................................................................. 1,500,000

Subregional libraries state aid...................................................................................................... 451,800

Utility consumer representation................................................................................................... 950,000

Youth low-vision program............................................................................................................ 241,800

GROSS APPROPRIATION.......................................................................................................... $ 86,594,000

Appropriated from:

Federal revenues:

DED-OSERS, centers for independent living.............................................................................. 450,200

DED-OSERS, rehabilitation services, vocational rehabilitation of state grants........................... 37,056,700

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

DED-OSERS, supported employment.......................................................................................... 1,541,300

DED-OSERS, state grants for technical related assistance.......................................................... 2,240,800

HHS-SSA, supplemental security income.................................................................................... 4,368,400

Special revenue funds:

Private - gifts, bequests, and donations........................................................................................ 1,100,000

Private revenues............................................................................................................................ 1,500,000

Local vocational rehabilitation match.......................................................................................... 6,300,000

Local vocational rehabilitation facilities match........................................................................... 200,000

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

Fire protection fund...................................................................................................................... 8,500,000

Liquor purchase revolving fund................................................................................................... 773,900

Liquor license revenue................................................................................................................. 6,600,000

Survey and remonumentation fund............................................................................................... 5,300,000

Utility consumer representation fund........................................................................................... 950,000

State general fund/general purpose.............................................................................................. $ 6,440,200

Sec. 112. ONE-TIME BASIS ONLY APPROPRIATIONS

State employee lump-sum payments............................................................................................ $ 5,036,800

GROSS APPROPRIATION.......................................................................................................... $ 5,036,800

Appropriated from:

Interdepartmental grant revenues................................................................................................. 163,500

Federal revenues........................................................................................................................... 2,815,400

State restricted revenues............................................................................................................... 1,880,400

State general fund/general purpose.............................................................................................. $ 177,500

Sec. 113. AUTISM COVERAGE

Full-time equated classified positions.................................................................................2.0

Autism coverage reimbursement program—2.0 FTE positions................................................... $ 15,000,000

GROSS APPROPRIATION.......................................................................................................... $ 15,000,000

Appropriated from:

State general fund/general purpose.............................................................................................. $ 15,000,000

PART 2

PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2012-2013

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 2012-2013 is $376,282,700.00 and state spending from state resources to be paid to local units of government for fiscal year 2012-2013 is $21,625,700.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS

Fire protection grants................................................................................................................... $ 9,273,900

Liquor law enforcement............................................................................................................... 6,600,000

Remonumentation grants.............................................................................................................. 5,300,000

Subregional libraries state aid...................................................................................................... 451,800

Total department of licensing and regulatory affairs.................................................................... $ 21,625,700

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

Sec. 203. As used in this act:

(a) “Department” means the department of licensing and regulatory affairs.

(b) “Director” means the director of the department.

(c) “DOL” means the United States department of labor.

(d) “Fiscal agencies” means Michigan house fiscal agency and Michigan senate fiscal agency.

(e) “MAHS” means Michigan administrative hearing system.

(f) “MARVIN” means Michigan’s automated response voice interactive network.

(g) “Subcommittees” means all members of the subcommittees of the house and senate appropriations committees with jurisdiction over the budget for the department.

Sec. 208. Unless otherwise specified, the department shall use the Internet to fulfill the reporting requirements of this act. 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. (1) 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.

(2) The funds appropriated in part 1 for liquor control commission information technology are designated as work project appropriations and shall not lapse at the end of the fiscal year. Any unencumbered and unexpended funds shall continue to be available for expenditure until the project has been completed. Additional appropriations in future budgets are anticipated to complete the work project within an estimated 5 years.

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 or 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 departments 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. 216. 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. 217. (1) Due to the current budgetary problems in this state, out-of-state travel 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) 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 a 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.

(3) Not later than January 1, 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 senate and house of representatives standing committees on appropriations, the senate and house 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.

(c) The dates 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. 219. It is the intent of the legislature that all principal executive departments and agencies cooperate with the development and implementation of the department of technology, management, and budget statewide office space consolidation plan.

Sec. 220. The department may carry into the succeeding fiscal year unexpended federal pass-through funds to local institutions and governments that do not require additional state matching funds. Federal pass-through funds to local institutions and governments that are received in amounts in addition to those included in part 1 and that do not require additional state matching funds are appropriated for the purposes intended. Within 14 days after the receipt of federal pass-through funds, the department shall notify the house and senate chairpersons of the subcommittees, the fiscal agencies, and the state budget director of pass-through funds appropriated under this section.

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 outside services that the attorney general authorizes.

Sec. 223. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $45,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $31,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $8,000,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act 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 $600,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this act under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 225. Within 10 days after the receipt of a grant appropriated in the private grant funded projects line item in part 1, the department shall notify the house and senate chairpersons of the subcommittees, the fiscal agencies, and the state budget director of the receipt of the grant, including the funding source, purpose, and amount of the grant.

Sec. 227. (1) The department shall sell documents at a price not to exceed the cost of production and distribution. Money received from the sale of these documents shall revert to the department. In addition to the funds appropriated in part 1, these funds are available for expenditure when they are received by the department of treasury. This subsection applies only for the following documents:

(a) Corporation and securities division documents, reports, and papers required or permitted by law pursuant to section 1060(5) of the business corporation act, 1972 PA 284, MCL 450.2060.

(b) The subdivision control manual, the state boundary commission operations manual, and other local government assistance manuals.

(c) The Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1101 to 436.2303.

(d) The mobile home commission act, 1987 PA 96, MCL 125.2301 to 125.2349; the business corporation act, 1972 PA 284, MCL 450.1101 to 450.2098; the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192; and the uniform securities act (2002), 2008 PA 551, MCL 451.2101 to 451.2703.

(e) Worker’s compensation health care services rules.

(f) Construction code manuals.

(g) Copies of transcripts from administrative law hearings.

(2) In addition to the funds appropriated in part 1, funds collected by the department under sections 55, 57, 58, and 59 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.255, 24.257, 24.258, and 24.259, and section 203 of the legislative council act, 1986 PA 268, MCL 4.1203, are appropriated for all expenses necessary to provide for the cost of publication and distribution. The funds appropriated under this section are allotted for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 228. Unless prohibited by law, the department may accept credit card or other electronic means of payment for licenses, fees, or permits.

Sec. 230. By October 31, 2012, the department shall identify 10 principal measurable outcomes to be affected by expenditure of the funds appropriated in part 1 and submit a report to the house and senate appropriations committees, the house and senate fiscal agencies, and the state budget director that ranks the outcomes by level of importance and contains current data on those outcomes. Beginning on April 1, 2013, the department shall provide biannual updates to the house and senate appropriations committees on changes in those measurable outcomes and departmental efforts to improve the outcomes.

Sec. 231. The department shall work with the department of technology, management, and budget to 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.

Sec. 232. The department shall not develop or produce any television productions.

Sec. 234. 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 licensing and regulatory affairs, 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, 2012 and September 30, 2013.

Sec. 236. Within 14 days of making expenditures from the appropriations in part 1 for state employee lump-sum payments, the department shall submit to the state budget director, the subcommittees, and the fiscal agencies a report containing the name, payment amount, position, nonexclusively represented employee status, and bureau/agency of any employee receiving a lump-sum payment of more than $1,000.00.

REGULATORY

Sec. 301. (1) The appropriation in part 1 for fire protection grants shall be appropriated to cities, villages, and townships with state-owned facilities for fire services, instead of taxes, in accordance with 1977 PA 289, MCL 141.951 to 141.956.

(2) Cities, villages, and townships with state-owned facilities shall report to the department no later than January 1 on a form developed by the department in order to be eligible to receive funds appropriated in part 1 for fire protection grants. The report shall indicate all of the following:

(a) The ability to respond to state facilities in their service area.

(b) The cost for being prepared and able to respond to fire service situations during the most recent fiscal year.

(c) The fire-related activities of police and fire departments on state property.

(d) The costs of these activities.

(e) The expenditures from fire protection grants.

(3) The department shall prepare a summary of the local submissions and provide it to the subcommittees, fiscal agencies, and the state budget director by March 31.

Sec. 302. Money appropriated under this act for the bureau of fire services shall not be expended unless, in accordance with section 2c of the fire prevention code, 1941 PA 207, MCL 29.2c, inspection and plan review fees will be charged according to the following schedule:

Operation and maintenance inspection fee

Facility type Facility size Fee

Hospitals Any $8.00 per bed

Plan review and construction inspection fees for hospitals and schools

Project cost range FeeMMMM

$101,000.00 or less minimum fee of $155.00

$101,001.00 to $1,500,000.00 $1.60 per $1,000.00

$1,500,001.00 to $10,000,000.00 $1.30 per $1,000.00

$10,000,001.00 or more $1.10 per $1,000.00

or a maximum fee of $60,000.00.

Sec. 303. The funds collected by the department for licenses, permits, and other elevator regulation fees set forth in the Michigan administrative code and as determined under section 8 of 1976 PA 333, MCL 338.2158, and section 16 of 1967 PA 227, MCL 408.816, that are unexpended at the end of the fiscal year shall carry forward to the subsequent fiscal year.

Sec. 304. The department may make available to interested entities otherwise unavailable customized listings of nonconfidential information in its possession, such as names and addresses of licensees. The department may establish and collect a reasonable charge to provide this service. The revenue received from this service shall be used to offset expenses to provide the service. Any balance of this revenue collected and unexpended at the end of the fiscal year shall revert to the appropriate restricted fund.

Sec. 320. If the revenue collected by the department from licensing and regulation fees collected by the bureau of commercial services exceeds the amount expended from appropriations in part 1, the revenue may be carried forward into the subsequent fiscal year. The revenue carried forward under this section shall be used as the first source of funds in the subsequent fiscal year.

Sec. 330. Funds earned or authorized by the DOL in excess of the gross appropriation in part 1 for the unemployment insurance agency from the DOL are appropriated and may be expended for staffing and related expenses incurred in the operation of its programs. These funds may be spent after the department notifies the state budget director and the subcommittees of the purpose and amount of each grant award.

Sec. 332. The unemployment insurance agency shall provide the subcommittees, fiscal agencies, and state budget office with quarterly status reports on the development of the agency’s integrated system project. The quarterly status reports shall include, but not be limited to, a summary of the expenditures for the project, project budget information, a summary of the tasks completed and milestones reached to date, the percentage of the total project completed to date, and a summary of the tasks anticipated to be completed in the subsequent quarter.

Sec. 333. The department shall report quarterly to the members of the house and senate committees on appropriations, the fiscal agencies, and the state budget director on the percentage of unemployment claimants that meet the certification requirements for receiving benefits by using the Internet MARVIN system. The department shall implement improvements to the Internet MARVIN system that promote greater ease of access and security with a goal of reaching 50% of users certifying by using the Internet MARVIN system.

Sec. 340. MIOSHA shall provide an annual report by February 1 of each year to the state budget director, the fiscal agencies, and the subcommittees on the number of individuals killed and the number of individuals injured on the job within industries regulated by the bureau during the most recent year for which data are available.

Sec. 341. The department shall not promulgate or adopt a rule more stringent than the applicable federal standard unless specifically authorized by statute.

Sec. 342. From the funds appropriated in part 1 for Michigan occupational safety and health consultation education and training (CET) grants, not less than $80,000.00 shall be allocated to nonprofit organizations representing the mining industry in Michigan.

Sec. 368. No later than March 1, the department shall submit a report to the state budget office, the fiscal agencies, and the subcommittees, providing expenditure and revenue data and statistical data on licensing and regulatory activities of the bureau of commercial services and the bureau of construction codes during the previous fiscal year. To the extent possible, the data required shall be reported for each individual occupation, trade, or industry regulated.

Sec. 380. Funds remaining in the homeowner construction lien recovery fund are appropriated to the department for payment of court-ordered homeowner construction lien recovery fund judgments entered prior to August 23, 2010. Pursuant to available funds, the payment of final judgments shall be made in the order in which the final judgments were entered and began accruing interest.

Sec. 390. (1) The Michigan tax tribunal within the Michigan administrative hearing system shall submit a report containing all of the following for the previous fiscal year:

(a) The number of cases heard and the number of cases decided by MAHS hearings officers, contractual hearings officers, and tribunal members during the fiscal year.

(b) The number of case filings and dispositions and the number of active and pending cases before the small claims division and the entire tribunal.

(c) The average and maximum time elapsed, both tolled and untolled, between case filings and final dispositions.

(d) The amount and percentage of tax tribunal fees generated by motions to amend.

(2) The report required under subsection (1) shall be submitted to the subcommittees, fiscal agencies, and state budget office not later than November 1.

Sec. 391. In addition to the funds appropriated in part 1, the funds collected by the office of financial and insurance regulation in connection with a conservatorship pursuant to section 32 of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1682, and funds collected by the department from corporations being liquidated pursuant to the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302, shall be appropriated for all expenses necessary to provide for the required services. Funds are available for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

MICHIGAN REHABILITATION SERVICES AND MICHIGAN COMMISSION FOR THE BLIND

Sec. 603. The local match requirements for vocational rehabilitation facilities establishment grants shall not exceed 21.3% for the fiscal year ending September 30.

Sec. 604. All funds appropriated in part 1 for independent living shall be used for the support of centers for independent living in compliance with federal rules and regulations for such centers, by existing centers in serving underserved areas, and for projects to build capacity of centers to deliver independent living services. Applications for such funds shall be reviewed in accordance with criteria and procedures established by the department. Funds must be used in a manner consistent with the state plan for independent living.

Sec. 610. (1) The appropriation in part 1 for the Michigan commission for the blind includes funds for case services. These funds may be used for tuition payments for blind clients.

(2) Revenue collected by the Michigan commission for the blind and from private and local sources that is unexpended at the end of the fiscal year may carry forward to the subsequent fiscal year.

Sec. 611. The Michigan commission for the blind and the Michigan rehabilitation services shall work collaboratively with service organizations and government entities to identify qualified match dollars to maximize use of available federal vocational rehabilitation funds.

Sec. 613. (1) The funds appropriated in part 1 for a regional or subregional library shall not be released until a budget for that regional or subregional library has been approved by the department for expenditures for library services directly serving the blind and persons with disabilities.

(2) In order to receive subregional state aid as appropriated in part 1, a regional or subregional library’s fiscal agency shall agree to maintain local funding support at the same level in the current fiscal year as in the fiscal agency’s preceding fiscal year. If a reduction in expenditures equally affects all agencies in a local unit of government that is the regional or subregional library’s fiscal agency, that reduction shall not be interpreted as a reduction in local support and shall not disqualify a regional or subregional library from receiving state aid under part 1. If a reduction in income affects a library cooperative or district library that is a regional or subregional library’s fiscal agency or a reduction in expenditures for the regional or subregional library’s fiscal agency, a reduction in expenditures for the regional or subregional library shall not be interpreted as a reduction in local support and shall not disqualify a regional or subregional library from receiving state aid under part 1.

Sec. 615. The department may provide and enter into agreements to provide general services, training, meetings, information, special equipment, software, facility use, and technical consulting services to other principal executive departments, state agencies, local units of government, the judicial branch of government, other organizations, and patrons of department facilities. The department may charge fees for these services that are reasonably related to the cost of providing the services. In addition to the funds appropriated in part 1, funds collected by the department for these services are appropriated for all expenses necessary. The funds appropriated under this section are allotted for expenditure when they are received by the department of treasury.

HEALTH REGULATION

Sec. 714. (1) The department shall report by April 1 to the subcommittees, fiscal agencies, and state budget director on the timeliness of nursing facility complaint investigations and the numb