part 1

line-item appropriations

Sec. 101. There is appropriated for various state departments and agencies to supplement appropriations for the fiscal year ending September 30, 2021, from the following funds:

APPROPRIATION SUMMARY
GROSS APPROPRIATION	$	565,500,000
Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers		0
ADJUSTED GROSS APPROPRIATION	$	565,500,000
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	$	565,500,000
Sec. 102. DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION	$	150,000,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers		0
ADJUSTED GROSS APPROPRIATION	$	150,000,000
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	$	150,000,000
(2) ONE-TIME APPROPRIATIONS
Michigan unemployment compensation funds	$	150,000,000
GROSS APPROPRIATION	$	150,000,000

Appropriated from:
State general fund/general purpose	$	150,000,000
Sec. 103. DEPARTMENT OF TREASURY
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION	$	415,500,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers		0
ADJUSTED GROSS APPROPRIATION	$	415,500,000
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	$	415,500,000
(2) ONE-TIME APPROPRIATIONS
Afflicted business tax and fee relief	$	393,500,000
Property tax - delinquent tax penalty and interest waiver		22,000,000
GROSS APPROPRIATION	$	415,500,000
Appropriated from:
State general fund/general purpose	$	415,500,000

part 2

provisions concerning appropriations

general sections

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under

part 1 for the fiscal year ending September 30, 2021 is $565,500,000.00 and total state spending from state sources to be paid to local units of government is $0.00.

Sec. 202. The appropriations made and expenditures authorized under this part and part 1 and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1, are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 203. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under this act, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, inter-transfer funds within this act for the particular department, board, commission, office, or institution.

DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY

Sec. 301. After February 15, 2021, funds appropriated in part 1 for Michigan unemployment compensation funds shall be deposited into the unemployment compensation fund established under section 26 of the Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.26, for the purpose of offsetting expected exposure to state fraud and improper payment during the COVID-19 crisis.

DEPARTMENT OF TREASURY

Sec. 401. (1) From the funds appropriated in part 1 for afflicted business tax and fee relief, $300,000,000.00 shall be used by the department of treasury to create and operate a property tax relief program to provide grants for property tax relief to afflicted businesses in this state. The department of treasury

shall provide grants to afflicted businesses that have realized a significant financial hardship as a result of the COVID-19 emergency as defined in this section. Grant applications shall be accepted, reviewed, and approved by the department of treasury.

(2) Grants made available to afflicted businesses under the program must meet all of the following conditions:

(a) Must not exceed the amount calculated in subparagraph (i) or (ii).

(i) For an afflicted business that pays property taxes directly, an amount equal to the property taxes paid by the afflicted business for calendar year 2020.

(ii) For an afflicted business that is a lessee, an amount equal to 17% of the annual lease cost paid by the afflicted business for calendar year 2020.

(b) An afflicted business that was in operation on October 1, 2019, must be subject to the following grant schedule:

(i) Afflicted businesses that certify a gross receipts loss of 50% or more for a calendar quarter in 2020 when compared to the same calendar quarter in 2019 shall receive a grant equal to 100% of the amount calculated in subdivision (a).

(ii) Afflicted businesses that certify a gross receipts loss greater than or equal to 25%, but less than 50%, for a calendar quarter in 2020 when compared to the same calendar quarter in 2019 shall receive a grant equal to 75% of the amount calculated in subdivision (a).

(iii) Afflicted businesses that certify a gross receipts loss greater than or equal to 10%, but less than 25%, for a calendar quarter in 2020 when compared to the same calendar quarter in 2019 shall receive a grant equal to 50% of the amount calculated in

subdivision (a).

(iv) Afflicted businesses that certify a gross receipts loss greater than or equal to 5%, but less than 10%, for a calendar quarter in 2020 when compared to the same calendar quarter in 2019 shall receive a grant equal to 25% of the amount calculated in subdivision (a).

(c) An afflicted business that was not in operation on October 1, 2019, but started operations before June 1, 2020, shall receive a grant equal to 50% of the amount calculated in subdivision (a) if the afflicted business can certify that it was closed or partially closed due to an executive order or DHHS epidemic order.

(3) An afflicted business is considered to have qualified for a grant under this section if, and only if, the afflicted business has certified and attested, under penalty of perjury, to either of the following:

(a) If the business was in operation on October 1, 2019, and was either an eligible self-employed individual, independent contractor, or sole proprietorship with no employees, or had employees for which it paid salaries or wages and payroll taxes or paid independent contractors, the afflicted business was adversely impacted by the pandemic as indicated by a gross receipts loss of at least 5% for a calendar quarter in 2020 when compared to the same calendar quarter in 2019.

(b) If the business was not in operation on October 1, 2019, but started operations before June 1, 2020, and was either an eligible self-employed individual, independent contractor, or sole proprietorship with no employees, or had employees for which it paid salaries or wages and payroll taxes or paid independent contractors, the afflicted business was negatively impacted by the

COVID-19 pandemic through a closure or partial closure due to an executive order or DHHS epidemic order.

(4) Any afflicted business that falsifies certification under subsection (3) shall forfeit any payments under this section and sections 402 through 404 of this part and shall repay this state all payments it has received under this section and sections 402 through 404 of this part.

(5) If the amount appropriated under this section is not sufficient to fully pay grant awards under this section, payments shall be prorated on an equal basis among all afflicted businesses that qualified for a grant under this section. Any funds remaining after the disbursement of all grant awards shall revert to the general fund.

(6) The department of treasury must develop and post on the department website application, program operation, award, and reporting criteria for the program no later than April 1, 2021. Afflicted businesses shall have until May 1, 2021 to submit program grant applications. The department of treasury shall disburse grant awards by June 1, 2021.

(7) The department of treasury shall submit a monthly report to the senate and house appropriations committees, the senate and house fiscal agencies, and the state budget office that provides a listing of grants awarded in the previous month and the name of the recipient of each grant provided under the program. The department of treasury shall submit a summary of all grants awarded under the program, by industry, over the course of the current fiscal year by September 30, 2021.

(8) As used in this section:

(a) "Afflicted business" means any of the following:

(i) An entertainment venue.

(ii) An exercise facility.

(iii) A food service establishment.

(iv) A recreation facility or place of public amusement.

(b) "Entertainment venue" includes an auditorium, arena, banquet hall, cinema, concert hall, conference center, performance venue, sporting venue, stadium, or theater.

(c) "Exercise facility" means a facility in which individuals participate in individual or group physical activity, including a gymnasium, fitness center, or exercise studio.

(d) "Food service establishment" means that term as defined in section 1107 of the food law, 2000 PA 92, MCL 289.1107.

(e) "Gross receipts" means that term as defined in section 607 of the income tax act of 1967, 1967 PA 281, MCL 206.607.

(f) "Recreation facility or place of public amusement" includes an amusement park, arcade, bingo hall, bowling alley, casino, nightclub, skating rink, water park, or trampoline park.

Sec. 402. (1) From the funds appropriated in part 1 for afflicted business tax and fee relief, $55,000,000.00 shall be used by the department of treasury to create and operate an unemployment insurance tax relief program to provide grants for unemployment insurance tax relief to afflicted businesses in this state. The department of treasury shall provide grants to afflicted businesses as defined in this section. Grant applications shall be accepted, reviewed, and approved by the department of treasury.

(2) Grants made available to afflicted businesses under the program must meet all of the following conditions:

(a) Must equal the amount of unemployment insurance taxes paid by the afflicted business in the 2 most recently preceding

quarters.

(b) Must be used only for working capital to support payroll expenses, rent, mortgage payments, utility expenses, and costs related to reopening a business.

(a) Unemployment insurance taxes were paid and the afflicted business has documented the taxes paid for the 2 most recently preceding quarters to the department of treasury.

(b) The afflicted business was in operation on February 15, 2020, and was either an eligible self-employed individual, independent contractor, or sole proprietorship with no employees, or had employees for which it paid salaries or wages and payroll taxes or paid independent contractors.

(4) Any afflicted business that falsifies certification shall forfeit any payments under this section and sections 401, 403, and 404 of this part and shall repay this state all payments it has received under this section and sections 401, 403, and 404 of this part.

(6) The department of treasury must develop and post on the department website application, program operation, award, and

reporting criteria for the program no later than April 1, 2021. Afflicted businesses shall have until May 1, 2021 to submit program grant applications. The department of treasury shall disburse grant awards no later than June 1, 2021.

(8) As used in this section:

(a) "Afflicted business" means any of the following:

(i) An entertainment venue.

(ii) An exercise facility.

(iii) A food service establishment.

(iv) A recreation facility or place of public amusement.

(b) "Entertainment venue" includes an auditorium, arena, banquet hall, cinema, concert hall, conference center, performance venue, sporting venue, stadium, or theater.

(c) "Exercise facility" means a facility in which individuals participate in individual or group physical activity, including a gymnasium, fitness center, or exercise studio.

(d) "Food service establishment" means that term as defined in section 1107 of the food law, 2000 PA 92, MCL 289.1107.

(e) "Recreation facility or place of public amusement" includes an amusement park, arcade, bingo hall, bowling alley, casino, nightclub, skating rink, water park, or trampoline park.

Sec. 403. (1) From the funds appropriated in part 1 for afflicted business tax and fee relief, $16,500,000.00 shall be used by the department of treasury to create and operate a retail liquor license relief program to provide grants for retail liquor license relief to afflicted businesses in this state. The department of treasury shall provide grants to afflicted businesses as defined in this section. Grant applications shall be accepted, reviewed, and approved by the department of treasury.

(2) Grants made available to afflicted businesses under the program must meet all of the following conditions:

(a) Must equal the amount of retail liquor license fees paid by the afflicted business during calendar year 2020.

(b) Must be used only for working capital to support payroll expenses, rent, mortgage payments, utility expenses, and costs related to reopening a business.

(a) Retail liquor license fees were paid and the afflicted business has documented the fees paid for calendar year 2020 to the department of treasury.

(4) Any afflicted business that falsifies certification shall forfeit any payments under this section and sections 401, 402, and

404 of this part and shall repay this state all payments it has received under this section and sections 401, 402, and 404 of this part.

(8) As used in this section:

(a) "Afflicted business" means any of the following:

(i) An entertainment venue.

(ii) An exercise facility.

(iii) A food service establishment.

(iv) A recreation facility or place of public amusement.

(b) "Entertainment venue" includes an auditorium, arena, banquet hall, cinema, concert hall, conference center, performance venue, sporting venue, stadium, or theater.

(c) "Exercise facility" means a facility in which individuals participate in individual or group physical activity, including a gymnasium, fitness center, or exercise studio.

(d) "Food service establishment" means that term as defined in section 1107 of the food law, 2000 PA 92, MCL 289.1107.

(e) "Recreation facility or place of public amusement" includes an amusement park, arcade, bingo hall, bowling alley, casino, nightclub, skating rink, water park, or trampoline park.

Sec. 404. (1) From the funds appropriated in part 1 for afflicted business tax and fee relief, $22,000,000.00 shall be used by the department of treasury to create and operate a local health department food service fee relief program to provide grants for local health department food service fee relief to afflicted businesses in this state. The department of treasury shall provide grants to afflicted businesses as defined in this section. Grant applications shall be accepted, reviewed, and approved by the department of treasury.

(2) Grants made available to afflicted businesses under the program must meet all of the following conditions:

(a) Must equal the amount of local health department food service fees paid by the afflicted business during calendar year 2020.

(b) Must be used only for working capital to support payroll expenses, rent, mortgage payments, utility expenses, and costs related to reopening a business.

(3) An afflicted business is considered to have qualified for

a grant under this section if, and only if, the afflicted business has certified and attested, under penalty of perjury, to both of the following:

(a) Local health department food service fees were paid and the afflicted business has documented the fees paid for calendar year 2020 to the department of treasury.

(4) Any afflicted business that falsifies certification shall forfeit any payments under this section and sections 401, 402, and 403 of this part and shall repay this state all payments it has received under this section and sections 401, 402, and 403 of this part.

(7) The department of treasury shall submit a monthly report

to the senate and house appropriations committees, the senate and house fiscal agencies, and the state budget office that provides a listing of grants awarded in the previous month and the name of the recipient of each grant provided under the program. The department of treasury shall submit a summary of all grants awarded under the program, by industry, over the course of the current fiscal year by September 30, 2021.

(8) As used in this section:

(a) "Afflicted business" means any of the following:

(i) An entertainment venue.

(ii) An exercise facility.

(iii) A food service establishment.

(iv) A recreation facility or place of public amusement.

(b) "Entertainment venue" includes an auditorium, arena, banquet hall, cinema, concert hall, conference center, performance venue, sporting venue, stadium, or theater.

(c) "Exercise facility" means a facility in which individuals participate in individual or group physical activity, including a gymnasium, fitness center, or exercise studio.

(d) "Food service establishment" means that term as defined in section 1107 of the food law, 2000 PA 92, MCL 289.1107.

(e) "Recreation facility or place of public amusement" includes an amusement park, arcade, bingo hall, bowling alley, casino, nightclub, skating rink, water park, or trampoline park.

Sec. 405. For purposes of satisfying the application requirements under sections 401 through 404 of this part, the department of treasury shall develop a combined application separated into sections by program.

Sec. 406. (1) Funds appropriated in part 1 for property tax -

delinquent tax penalty and interest waiver shall not be expended unless an amendment to section 44a of the general property tax act, 1893 PA 206, MCL 211.44a, is enacted into law to provide for the waiver of interest and penalty on unpaid summer 2020 property taxes levied on designated property. Funds shall be used only for implementation of that bill.

(2) The unexpended funds appropriated for property tax - delinquent tax penalty and interest waiver are designated as work project appropriations. 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(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to provide for the waiver of interest and penalty on unpaid summer 2020 property taxes levied on designated property.

(b) The projects will be accomplished by utilizing state employees or contracts.

(d) The tentative completion date is September 30, 2025.