Substitute For

SENATE BILL NO. 766

A bill to make appropriations for the department of labor and economic opportunity for the fiscal year ending September 30, 2025; and to provide for the expenditure of the appropriations.

the people of the state of michigan enact:


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part 1

line-item appropriations

Sec. 101. There is appropriated for the department of labor and economic opportunity for the fiscal year ending September 30, 2025 from the following funds:

DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY

 

 

 

APPROPRIATION SUMMARY

 

 

 

Full-time equated unclassified positions

34.5

 

 

Full-time equated classified positions

2,633.0

 

 


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GROSS APPROPRIATION

 

$

2,199,732,900

Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATIONS

 

$

2,199,732,900

Federal revenues:

 

 

 

Total federal revenues

 

 

1,177,165,800

Special revenue funds:

 

 

 

Total local revenues

 

 

10,700,000

Total private revenues

 

 

12,584,600

Total other state restricted revenues

 

 

439,024,800

State general fund/general purpose

 

$

560,257,700

Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT

 

 

 

Full-time equated unclassified positions

34.5

 

 

Full-time equated classified positions

66.0

 

 

Unclassified salaries--FTE positions

34.5

$

4,739,900

Executive direction and operations--FTEs

66.0

 

10,852,200

Property management

 

 

6,353,600

GROSS APPROPRIATION

 

$

21,945,700

Appropriated from:

 

 

 

Federal revenues:

 

 

 

DED, vocational rehabilitation and independent living

 

 

3,355,000

DOL, federal funds

 

 

3,257,200

DOL-ETA, unemployment insurance

 

 

2,619,000

DOL, occupational safety and health

 

 

517,300

Federal funds

 

 

2,550,500


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Special revenue funds:

 

 

 

Asbestos abatement fund

 

 

52,200

Corporation fees

 

 

1,881,500

Michigan state housing development authority fees and charges

 

 

658,500

Private occupational school license fees

 

 

55,700

Radiological health fees

 

 

293,200

Safety education and training fund

 

 

784,700

Second injury fund

 

 

276,200

Securities fees

 

 

2,092,700

Self-insurers security fund

 

 

151,000

Silicosis and dust disease fund

 

 

114,200

Worker's compensation administrative revolving fund

 

 

91,300

State general fund/general purpose

 

$

3,195,500

Sec. 103. WORKFORCE DEVELOPMENT

 

 

 

Full-time equated classified positions

233.0

 

 

23+ high school diploma program

 

$

3,000,000

At-risk youth grants

 

 

5,700,000

Community and worker economic transition office--FTEs

10.0

 

2,500,000

Going pro

 

 

55,000,000

Helmets to hardhats

 

 

250,000

High school equivalency-to-school program

 

 

250,000

Michigan office of rural prosperity--FTE

1.0

 

697,400

MiSTEM advisory council--FTEs

3.0

 

665,300

Office of future mobility and electrification

 

 

2,000,000

Veterans property tax exemption payments

 

 

100


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Voluntary income tax assistance grants

 

 

2,000,000

Workforce development--FTEs

219.0

 

439,502,800

GROSS APPROPRIATION

 

$

511,565,600

Appropriated from:

 

 

 

Federal revenues:

 

 

 

DAG, employment and training

 

 

4,000,400

DED-OESE, GEAR-UP

 

 

5,500,000

DED-OVAE, adult education

 

 

20,000,000

DED-OVAE, basic grants to states

 

 

19,000,000

DOL, federal funds

 

 

106,345,500

DOL-ETA, workforce investment act

 

 

173,488,600

Federal funds

 

 

21,759,300

Social security act, temporary assistance to needy families

 

 

63,698,800

Special revenue funds:

 

 

 

Local revenues

 

 

300,000

Private funds

 

 

5,291,300

Contingent fund, penalty and interest

 

 

22,134,400

Defaulted loan collection

 

 

181,100

State general fund/general purpose

 

$

69,866,200

Sec. 104. REHABILITATION SERVICES

 

 

 

Full-time equated classified positions

671.0

 

 

Bureau of services for blind persons--FTEs

116.0

$

29,736,700

Centers for independent living

 

 

19,718,600

Michigan rehabilitation services--FTEs

555.0

 

145,412,200

Subregional libraries state aid

 

 

451,800

GROSS APPROPRIATION

 

$

195,319,300

Appropriated from:

 

 

 


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Federal revenues:

 

 

 

Federal funds

 

 

1,461,000

DED, vocational rehabilitation and independent living

 

 

137,598,800

Supplemental security income

 

 

8,588,600

Special revenue funds:

 

 

 

Local - blind services

 

 

100,000

Local - vocational rehabilitation match

 

 

5,300,000

Private - blind services, private

 

 

111,800

Private - gifts, bequests, and donations

 

 

531,500

Michigan business enterprise program fund

 

 

350,000

Rehabilitation service fees

 

 

150,300

Second injury fund

 

 

38,300

State general fund/general purpose

 

$

41,089,000

Sec. 105. EMPLOYMENT SERVICES

 

 

 

Full-time equated classified positions

409.0

 

 

Bureau of employment relations--FTEs

22.0

$

4,605,900

Compensation supplement fund

 

 

820,000

First responder presumed coverage claims

 

 

4,000,000

Insurance funds administration--FTEs

23.0

 

4,817,500

Michigan occupational safety and health administration--FTEs

217.0

 

37,474,600

Office of global Michigan--FTEs

15.0

 

44,949,800

Private and occupational distance learning--FTEs

3.0

 

872,400

Radiation safety section--FTEs

26.0

 

4,106,100

Wage and hour program--FTEs

33.0

 

4,555,000


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Worker's compensation board of magistrates--FTEs

10.0

 

2,302,400

Worker's disability compensation agency--FTEs

56.0

 

9,982,500

Worker's disability compensation appeals commission--FTEs

4.0

 

355,100

GROSS APPROPRIATION

 

$

118,841,300

Appropriated from:

 

 

 

Federal revenues:

 

 

 

DOL, occupational safety and health

 

 

15,784,200

HHS, mammography quality standards

 

 

513,300

HHS, refugee assistance program fund

 

 

38,419,100

Special revenue funds:

 

 

 

Asbestos abatement fund

 

 

959,200

Corporation fees

 

 

11,533,100

Distance education fund

 

 

376,500

First responder presumed coverage fund

 

 

4,000,000

Private occupational school license fees

 

 

495,900

Radiological health fees

 

 

3,842,800

Safety education and training fund

 

 

11,499,800

Second injury fund

 

 

2,454,900

Securities fees

 

 

11,054,400

Self-insurers security fund

 

 

1,647,600

Silicosis and dust disease fund

 

 

715,000

Worker's compensation administrative revolving fund

 

 

4,396,900

State general fund/general purpose

 

$

11,148,600

Sec. 106. UNEMPLOYMENT INSURANCE AGENCY

 

 

 

Full-time equated classified positions

744.0

 

 


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Unemployment insurance agency--FTEs

736.0

$

297,186,400

Unemployment insurance agency - advocacy assistance

 

 

1,500,000

Unemployment insurance appeals commission--FTEs

8.0

 

4,430,600

GROSS APPROPRIATION

 

$

303,117,000

Appropriated from:

 

 

 

Federal revenues:

 

 

 

DOL-ETA, unemployment insurance

 

 

280,357,100

Special revenue funds:

 

 

 

Contingent fund, penalty and interest

 

 

22,759,900

State general fund/general purpose

 

$

0

Sec. 107. COMMISSIONS

 

 

 

Full-time equated classified positions

19.0

 

 

Asian Pacific American affairs commission--FTE

1.0

$

223,600

Black leadership council--FTEs

0.0

 

100

Commission on Middle Eastern American Affairs--FTE

1.0

 

214,000

Hispanic/Latino commission of Michigan--FTE

1.0

 

296,200

Michigan community service commission--FTEs

14.0

 

19,614,300

Michigan women's commission--FTEs

2.0

 

1,540,400

GROSS APPROPRIATION

 

$

21,888,600

Federal revenues:

 

 

 

Federal funds

 

 

18,200,200

Special revenue funds:

 

 

 

Private funds

 

 

1,250,000

State general fund/general purpose

 

$

2,438,400

Sec. 108. INFORMATION TECHNOLOGY

 

 

 

Information technology services and projects

 

$

29,785,900


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GROSS APPROPRIATION

 

$

29,785,900

Appropriated from:

 

 

 

Federal revenues:

 

 

 

DED, vocational rehabilitation and independent living

 

 

3,193,100

DOL-ETA, unemployment insurance

 

 

23,003,200

DOL, occupational safety and health

 

 

372,300

Special revenue funds:

 

 

 

Asbestos abatement fund

 

 

35,300

Corporation fees

 

 

343,400

Distance education fund

 

 

20,700

Private occupational school license fees

 

 

82,400

Radiological health fees

 

 

155,900

Safety education and training fund

 

 

403,300

Second injury fund

 

 

180,700

Securities fees

 

 

1,064,900

Self-insurers security fund

 

 

125,600

Silicosis and dust disease fund

 

 

45,000

State general fund/general purpose

 

$

760,100

Sec. 109. STRATEGIC OUTREACH AND ATTRACTION RESERVE

 

 

 

Critical industry program

 

$

100

Michigan strategic site readiness program

 

 

100

360 program

 

 

100

GROSS APPROPRIATION

 

$

300

Appropriated from:

 

 

 

Special revenue funds:

 

 

 

Strategic outreach and attraction reserve fund

 

 

300


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State general fund/general purpose

 

$

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Sec. 110. MICHIGAN STRATEGIC FUND

 

 

 

Full-time equated classified positions

164.0

 

 

Arts and cultural program

 

$

11,879,200

Business attraction and community revitalization

 

 

100,000,000

Community college skilled trades equipment program

 

 

4,600,000

Entrepreneurship ecosystem

 

 

12,650,000

Facility for rare isotope beams

 

 

7,300,000

Job creation services--FTEs

164.0

 

31,570,100

Lighthouse preservation program

 

 

307,500

Michigan community development financial institution fund grants

 

 

10,000,000

Pure Michigan

 

 

25,000,000

Revitalization and placemaking program

 

 

50,000,000

GROSS APPROPRIATION

 

$

253,306,800

Appropriated from:

 

 

 

Federal revenues:

 

 

 

Federal funds

 

 

3,000,000

NFAH-NEA, promotion of the arts, partnership agreement

 

 

1,050,000

State historic preservation, national park service grants

 

 

1,900,000

Special revenue funds:

 

 

 

Local promotion fund

 

 

5,000,000

Private - Michigan council for the arts fund

 

 

200,000

Private - special project advances

 

 

200,000


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Private promotion fund

 

 

5,000,000

21st century jobs trust fund

 

 

75,000,000

Contingent fund, penalty and interest

 

 

4,600,000

Michigan lighthouse preservation fund

 

 

307,500

Michigan state housing development authority fees and charges

 

 

4,811,300

Revitalization and placemaking fund

 

 

50,000,000

State brownfield redevelopment fund

 

 

3,002,100

State historic preservation office fees and charges

 

 

503,500

State general fund/general purpose

 

$

98,732,400

Sec. 111. MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY

 

 

 

Full-time equated classified positions

318.0

 

 

Community development block grants

 

$

47,000,000

Housing and rental assistance--FTEs

318.0

 

51,448,200

Michigan housing and community development program

 

 

50,000,000

MSHDA technology services and projects

 

 

3,749,700

Payments on behalf of tenants

 

 

166,860,000

Property management

 

 

3,506,500

GROSS APPROPRIATION

 

$

322,564,400

Appropriated from:

 

 

 

Federal revenues:

 

 

 

HUD, lower income housing assistance

 

 

166,860,000

HUD-CPD, community development block grant

 

 

49,773,300

Special revenue funds:

 

 

 

Michigan housing and community development fund

 

 

50,000,000


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Michigan state housing development authority fees and charges

 

 

55,931,100

State general fund/general purpose

 

$

0

Sec. 112. STATE LAND BANK AUTHORITY

 

 

 

Full-time equated classified positions

9.0

 

 

State land bank authority

 

$

6,397,900

GROSS APPROPRIATION

 

$

6,397,900

Appropriated from:

 

 

 

Federal revenues:

 

 

 

Federal revenues

 

 

1,000,000

Special revenue funds:

 

 

 

Land bank fast track fund

 

 

3,370,500

State general fund/general purpose

 

$

2,027,400

Sec. 113. ONE-TIME APPROPRIATIONS

 

 

 

ARISE Michigan

 

$

5,000,000

Behavioral/mental health worker scholarship

 

 

1,500,000

Business attraction and workforce development

 

 

22,000,000

Community center grants

 

 

20,000,000

Community development grants

 

 

50,000,000

Community revitalization and municipal support

 

 

15,500,000

CTE equipment and training grants

 

 

5,000,000

Cultural vibrancy grants

 

 

11,000,000

Tech innovation hubs

 

 

100

Focus: hope

 

 

1,000,000

Housing affordability match

 

 

50,000,000

Housing affordability programs

 

 

100,000,000

Language access

 

 

500,000

Michigan innovation fund

 

 

60,000,000


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Michigan minority owned business

 

 

10,000,000

Michigan office of rural prosperity

 

 

2,500,000

Parks and recreation grants

 

 

5,500,000

Short-term loan grants

 

 

2,500,000

Public health and safety grants

 

 

10,000,000

Critical infrastructure grants

 

 

23,000,000

Talent attraction and youth development grants

 

 

18,000,000

Tree safety grants

 

 

2,000,000

GROSS APPROPRIATION

 

$

415,000,100

Appropriated from:

 

 

 

Federal revenues:

 

 

 

Special revenue funds:

 

 

 

Corporation fees

 

 

24,000,000

Other state restricted revenue

 

 

60,000,000

State general fund/general purpose

 

$

331,000,100

 

part 2

provisions concerning appropriations

for fiscal year 2024-2025

general sections

Sec. 201. In accordance with section 30 of article IX of the state constitution of 1963, for the fiscal year ending September 30, 2025, total state spending under part 1 from state sources is $999,282,500.00 and state spending under part 1 from state sources to be paid to local units of government is $111,224,900.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY

 

 

 


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At-risk youth grants

 

$

5,700,000

Community revitalization and municipal support

 

 

15,500,000

Critical infrastructure grants

 

 

23,000,000

Going pro

 

 

54,750,000

Workforce development programs

 

 

10,999,900

Michigan rehabilitation services

 

 

275,000

Arts and cultural program

 

 

1,000,000

TOTAL

 

$

111,224,900

Sec. 202. The appropriations 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. As used in this part and part 1:

(a) "Department" means the department of labor and economic opportunity.

(b) "Director" means the director of the department.

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

(d) "Fund", unless the context clearly implies a different meaning, means the Michigan strategic fund.

(e) "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.

(f) "MEGA" means the Michigan economic growth authority.

(g) "MSHDA" means the Michigan state housing development authority.


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(h) "MiSTEM" means Michigan science, technology, engineering, and mathematics.

(i) "PATH" means Partnership. Accountability. Training. Hope.

(j) "Standard report recipients" means the senate and house appropriations subcommittees on labor and economic opportunity, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.

(k) "STEM" means science, technology, engineering, and mathematics.

(l) "USDOL" means the United States Department of Labor.

Sec. 204. The department shall use the internet to fulfill the reporting requirements of this part. This requirement includes transmitting reports to the standard report recipients and any other required recipients by email and posting the reports on an internet site.

Sec. 205. To the extent permissible under section 261 of the management and budget act, 1984 PA 431, MCL 18.1261, all of the following apply to the expenditure of funds appropriated in part 1:

(a) The funds must 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.

(b) Preference must be given to goods or services, or both, manufactured or provided by Michigan businesses, if they are competitively priced and of comparable quality.

(c) Preference must 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.


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Sec. 206. The department shall not take disciplinary action against an employee of the department for communicating with a member of the legislature or legislative staff, unless the communication is prohibited by law.

Sec. 207. Consistent with section 217 of the management and budget act, 1984 PA 431, MCL 18.1217, the department shall prepare a report on outofstate travel expenses not later than January 1. The report must list all travel by classified and unclassified employees outside this state in the previous fiscal year that was funded in whole or in part with funds appropriated in the department's budget. The department shall submit the report to the standard report recipients and to the senate and house appropriations committees. The report must include all of the following information:

(a) The dates of each travel occurrence.

(b) The total transportation and related expenses of each travel occurrence and the proportions funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, and other revenues.

Sec. 208. (1) The department shall not use funds appropriated in part 1 to hire a person to provide legal services that are the responsibility of the attorney general. This section does not apply to legal services for bonding activities or to outside legal services that the attorney general authorizes.

(2) The department shall make timely reimbursement to the department of the attorney general for legal services provided by the department of the attorney general to the department. If the department fails to make timely reimbursement, the department of the attorney general may increase the amount billed to include a


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penalty for late reimbursement. As used in this section, "timely reimbursement" means reimbursement not later than 60 days after the department receives a bill for the legal services from the department of the attorney general.

Sec. 209. Not later than December 15, the state budget office shall prepare and submit a report that provides estimates of the total general fund/general purpose appropriation lapses at the close of the previous fiscal year. The report must summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The state budget office shall submit the report to the chairpersons of the senate and house appropriations committees.

Sec. 211. The department shall cooperate 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 for the department:

(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. 212. Not later than 14 days after the release of the executive budget recommendation, the department shall cooperate with the state budget office to provide an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the


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previous 2 fiscal years. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.

Sec. 213. The department shall maintain, on a publicly accessible website, information that identifies, tracks, and regularly updates key metrics that are used to monitor and improve the department's performance.

Sec. 214. (1) Funds appropriated in part 1 must not be used to restrict or impede a marginalized community's access to government resources, programs, or facilities.

(2) From the funds appropriated in part 1, local governments shall report any action or policy that attempts to restrict or interfere with the duties of a local health officer.

Sec. 215. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director shall take all reasonable steps to ensure geographically disadvantaged business enterprises compete for and perform contracts to provide services or supplies, or both. The director shall strongly encourage firms with which the department contracts to subcontract with certified geographically disadvantaged business enterprises for services, supplies, or both. As used in this section, "geographically disadvantaged business enterprises" means that term as defined in Executive Directive No. 2019-08.

Sec. 216. On a quarterly basis, the department shall report on the number of full-time equated positions in pay status by civil service classification, including a comparison by line item of the number of full-time equated positions authorized from funds appropriated in part 1 to the actual number of full-time equated positions employed by the department at the end of the reporting


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period. The report must be submitted to the senate and house appropriations committees and to the standard report recipients.

Sec. 217. It is the intent of the legislature that the department maximize the efficiency of the state workforce and, if possible, prioritize in-person work and post its in-person, remote, or hybrid work policy on its website.

Sec. 218. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under this part or part 1, 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 part or part 1 for the particular department, board, commission, officer, or institution.

Sec. 219. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state guidelines for short-term and long-term retention of records. The department may electronically retain copies of reports unless otherwise required by federal and state guidelines.

Sec. 220. Not later than April 1, the department shall report on each specific policy change made to implement a public act affecting the department that took effect during the previous calendar year. The department shall submit the report to the standard report recipients, to the senate and house appropriations committees, and to the joint committee on administrative rules.

Sec. 221. (1) From the funds appropriated in part 1, the department shall do all of the following:

(a) Report any amounts of severance pay for a department director, deputy director, or other high-ranking department


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official not later than 14 days after a severance agreement with the director or official is signed. The name of the director or official and the amount of severance pay must be included in the report required by this subdivision.

(b) Not later than February 1, report on the total amount of severance pay remitted to former department employees during the fiscal year and the total number of former department employees that were remitted severance pay during the previous fiscal year.

(2) Reports required by this section must be submitted to the standard report recipients and to the senate and house appropriations committees.

(3) As used in this section, "severance pay" means compensation that is both payable or paid upon the termination of employment and in addition to either wages or benefits earned during the course of employment or generally applicable retirement benefits.

Sec. 222. To the extent possible, the department shall not expend appropriations under part 1 until all existing authorized work project funds available for the same purposes are exhausted.

Sec. 223. General fund appropriations in part 1 must not be expended for items in cases where federal funding or private grant funding is available for the same expenditures.

Sec. 224. (1) For any grant program or project funded in part 1 intended for a single recipient organization or unit of local government, the grant program or project is for a public purpose and the department shall follow procurement statutes of this state, including any bidding requirements, unless the department can fully validate, through information detailed in this part or public supporting documents, both of the following:


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(a) The specific organization or unit of local government that will receive or administer the funds.

(b) How the funds will be administered and expended.

(2) Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall perform at least all of the following activities to administer the grants described in subsection (1):

(a) Develop a standard application process, grantee reporting requirements, and any other necessary documentation, including sponsorship information as specified under subsection (3).

(b) Establish a process to review, complete, and execute a grant agreement with a grant recipient. The department shall not execute a grant agreement unless all necessary documentation has been submitted and reviewed.

(c) Verify to the extent possible that a grant recipient will use funds for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.

(d) Review and verify all necessary information to ensure the grant recipient is reasonably able to execute the grant agreement, perform its fiduciary duty, and comply with all applicable state and federal statutes. The department may deduct the cost of background checks performed as part of this verification from the amount of the designated grant award.

(e) Establish a standard timeline to review all documents submitted by grant recipients and provide a response within 45 business days stating whether submitted documents by a grant recipient are sufficient or in need of additional information.

(3) A sponsor of a grant described in subsection (1) must be a legislator or the department. A legislative sponsor must be


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identified through a letter submitted by that legislator's office to the department and state budget director containing the name of the grant recipient, the intended amount of the grant, a certification from that legislator that the grant is for a public purpose, and specific citation of the section and subsection of the public act that authorizes the grant, as applicable. If a legislative sponsor is not identified before January 15, 2025, the department shall do 1 of the following:

(a) Identify the department as the sponsor.

(b) Decline to execute the grant agreement.

(4) An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:

(a) All necessary identifying information for the grant recipient, including any tax and financial information for the department to administer funds under this section.

(b) A description of the project for which the grant funds will be expended, including tentative timelines and the estimated budget. The department shall not reimburse expenditures that are outside of the project purpose, as stated in the executed grant agreement, from appropriations in part 1.

(c) Unless otherwise specified in department policy, a requirement that funds appropriated for the grants described in subsection (1) may be used only for expenditures that occur on or after the effective date of this act.

(d) At the discretion of the department, a provision for an initial disbursement of 50% to the grant recipient on execution of the grant agreement consistent with part II, chapter 10, section 200 of the Financial Management Guide.


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(e) A requirement that after an initial 50% disbursement under subdivision (d), additional funds will be disbursed only after verification that the initial payment has been fully expended in accordance with the project purpose. The department shall disburse the remaining funds after the grantee has provided sufficient documentation, as determined by the department, to verify that all expenditures were made in accordance with the project purpose.

(f) A requirement for reporting by the grant recipient to the department that provides the status of the project and an accounting of all funds expended by the grant recipient, as determined by the department.

(g) A claw-back provision that allows the department of treasury to recoup or otherwise collect any funds that are declined, unspent, or otherwise misused.

(5) If appropriate to improve the administration or oversight of a grant described in subsection (1), the department may adopt a memorandum of understanding with another state department to perform the required duties under this section.

(6) A grant recipient shall respond to all reasonable information requests from the department related to grant expenditures and retain grant records for not less than 7 years, and the grant may be subject to monitoring, site visits, and audits as determined by the department. The grant agreement required under this section must include signed assurance by the chief executive officer or other executive officer of the grant recipient that the requirements of this subsection will be met.

(7) The grant recipient shall expend all funds awarded and complete all projects not later than September 30, 2029. If at that time any unexpended funds remain, the grant recipient shall return


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those funds to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2025, the department shall return funds associated with the grant to the state treasury.

(8) The state budget director may, on a case-by-case basis, extend the deadline in subsection (7) on request by a grant recipient. The state budget director shall notify the chairs of the house and senate appropriations committees not later than 5 days after an extension is granted.

(9) Subject to subsection (10), the department shall post a report in a publicly accessible location on its website not later than March 15, 2025. The report must list the grant recipient, project purpose, and location of the project for each grant described in subsection (1), the status of funds allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The department shall update the report not later than June 15, 2025 and again not later than September 15, 2025, and post the updated reports. At each posting of the report, the department shall include the most comprehensive information it has available at the time of posting for grants awarded.

(10) If the state budget office determines that it is more efficient for the state budget office to compile the information required under subsection (9) for all of the affected departments and post a report of the compiled information by the date required under subsection (9) than for the individual departments to comply with subsection (9), the state budget office may compile that information and post that report.

(11) As applicable, the legislative sponsor of a grant described in subsection (1) shall comply with all applicable laws


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concerning conflicts of interest in seeking a direct grant. A legislative sponsor shall not seek a grant for a recipient if a conflict of interest exists.

(12) If the department reasonably determines that the funds allocated for an executed grant agreement under this section were misused or that use of the funds was misrepresented by the grant recipient, the department shall not award any additional funds under the executed grant agreement and shall refer the grant for review following internal audit protocols.

 

DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY

Sec. 301. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $30,000,000.00 for federal contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 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 $560,000,000.00 for state restricted contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 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 $11,000,000.00 for private contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.


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(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $2,000,000.00 for local contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 302. 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 department 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 department shall report the amount and source of the funds to the standard report recipients no later than 10 business days after receiving any additional pass-through funds.

Sec. 303. As a condition of receiving funds in part 1, the department must utilize SIGMA as an appropriation and expenditure reporting system to track all financial transactions with individual vendors, contractual partners, grantees, recipients of business incentives, and recipients of other economic assistance. Encumbrances and expenditures must be reported in a timely manner.

Sec. 304. (1) Grants supported with private revenues received by the department are appropriated upon receipt and are available for expenditure by the department for purposes specified within the grant agreement and as permitted under state and federal law.

(2) No later than 10 days after the receipt of a private grant appropriated in subsection (1), the department shall notify the house and senate chairpersons of the subcommittees, the senate and


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house fiscal agencies, and the state budget director of the receipt of the grant, including the fund source, purpose, and amount of the grant.

(3) The amount appropriated under subsection (1) must not exceed $1,500,000.00.

Sec. 305. (1) The department may charge registration fees to attendees of informational, training, or special events sponsored by the department, and related to activities that are under the department's purview.

(2) The fees under subsection (1) must reflect the costs for the department to sponsor the informational, training, or special events.

(3) Revenue generated by the registration fees under subsection (1) is appropriated upon receipt and available for expenditure to cover the department's costs of sponsoring informational, training, or special events.

(4) Revenue generated by registration fees under this section in excess of the department's costs of sponsoring informational, training, or special events must carry forward to the subsequent fiscal year and not lapse to the general fund.

(5) The amount appropriated under subsection (3) must not exceed $500,000.00.

Sec. 306. (1) The department may sell documents at a price not to exceed the cost of production and distribution. Money received from the sale of these documents must 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 to R 418.10101 to R 418.101504 of the Michigan Administrative Code.


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(2) Unexpended funds at the end of the fiscal year must carry forward to the subsequent fiscal year and not lapse to the general fund. The revenue carried forward under this section must be used as the first source of funds in the subsequent fiscal year.

Sec. 307. If the revenue collected by the department for radiological health administration and projects from fees and collections exceeds the amount appropriated in part 1, the revenue must be carried forward into the subsequent fiscal year. The revenue carried forward under this section must be used as the first source of funds in the subsequent fiscal year.

Sec. 308. Funds appropriated in part 1 must not be used by a department, authority, or agency to purchase an ownership interest in a casino.

Sec. 309. Funds appropriated under part 1 or this part must not be used for construction, repair, or remodeling of a building or structure owned or leased by this state unless the construction, repair, or remodeling is performed by individuals who have completed or are enrolled in a registered apprenticeship program, as that term is defined in 29 USC 50c, that is certified as approved by the United States Secretary of Labor as described in 29 USC 50c.

 

STRATEGIC OUTREACH AND ATTRACTION RESERVE

Sec. 350. In addition to the funds appropriated in part 1, up to $500,000,000.00 from the strategic outreach and attraction reserve fund is appropriated to the strategic outreach and attraction reserve fund established in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254. Funds appropriated in this section must be used to support activities under section 88s or 88t


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of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088s and 125.2088t, after they have been transferred to another line item under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393. Under section 4(2) of the Michigan trust fund act, 2000 PA 489, MCL 12.254, funds appropriated under this section that are not restricted, obligated, or committed at the close of the fiscal year ending September 30, 2025 must lapse to the state general fund. If Senate Bill Nos. 559 and 562 of the 102nd Legislature are enacted into law, the department shall expend funds under all requirements of Senate Bill Nos. 559 and 562 of the 102nd Legislature.

Sec. 351. The legislature finds and declares that appropriations for the critical industry program, the Michigan strategic site readiness program, and the 360 program are for a public purpose and serve the health, safety, and general welfare of the residents of this state.

Sec. 352. (1) It is the intent of the legislature that the funds in part 1 for the critical industry program and the Michigan strategic site readiness program are expended in a manner that will maximize job creation, grow wages, support existing business in this state, attract new business development to this state, and include community support and equity.

(2) It is the intent of the legislature that the Michigan strategic fund prioritize the adoption of conditions related to the expense of funds in part 1 that include, but are not limited to, the following:

(a) Claw-back provisions in a written agreement between the fund and a qualified business relating to the creation or retention of jobs must be structured to ensure that those jobs are retained


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for not less than 5 years.

(b) Projects must be located in a qualified census tract, as defined by the United States Department of Housing and Urban Development, or in communities with an unemployment rate in excess of the state average.

(c) A written agreement between the fund and a qualified business or eligible applicant that must include a first-source hiring provision between the qualified business or eligible applicant and an entity or entities recommended by the workforce development agency serving the area where the project is located.

(d) A written agreement between the fund and a qualified business or eligible applicant that must include a community benefits agreement as determined by the fund.

(e) A written agreement between the fund and a qualified business or eligible applicant that must require the qualified business or eligible applicant to offer employee services may include, but not be limited to:

(i) Child care services.

(ii) Transportation supports.

(iii) Postsecondary educational institutions.

(iv) Customized assistance programs for employees.

(v) Customized job training programs, job readiness programs, or extension programs.

(vi) Credential requirements pipeline programs.

(vii) Workforce talent investment programming.

(viii) Tuition debt forgiveness or repayment supports.

(ix) Outreach, screening, preapplication support, and interviewing services.

(x) On-site training and support centers.


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(3) As used in this section:

(a) "Eligible applicant" means that term as defined under section 88t of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088t.

(b) "Qualified business" means that term as defined under section 88s of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088s.

(4) It is the intent of the legislature that the department shall expend dollars with all requirements of Senate Bill Nos. 559 and 562 of the 102nd Legislature, if Senate Bill Nos. 559 and 562 of the 102nd Legislature is enacted into law.

 

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY

Sec. 401. (1) MSHDA shall annually present a report to the standard report recipients on the status of the authority's housing production goals under all financing programs established or administered by the authority. The report must give special attention to efforts to raise affordable multifamily and single- family housing production goals.

(2) MSHDA shall not restrict eligibility in any financing program for housing units without a permanent foundation unless this restriction is required by the funding source.

(3) MSHDA shall report semiannually on production goals. The first report is due March 15 of the current fiscal year and must include efforts to raise affordable multifamily and single-family housing goals. The second report is due September 30 of the current fiscal year and must include a summary of each program, the status of goal progress, and how the programs are utilized by citizens of this state.


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Sec. 402. The funds appropriated in part 1 for the Michigan housing and community development program must be expended for projects as described in sections 58b and 58c of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458b and 125.1458c.

Sec. 403. In addition to the funds appropriated in part 1, federal HUD-CPD community development block grant funding is appropriated to complete all program activities from prior program years ending with the 2023 program allocation per Executive Reorganization Order 2023-1. These funds may be expended for the community development block grant program and administration of the program.

Sec. 404. From the funds appropriated in part 1 for housing and rental assistance, no less than 2.0 FTE positions must work to the extent permissible with the department of health and human services on transition and supportive housing to support the transition to permanent housing with MSHDA.

Sec. 405. From the funds appropriated in part 1 for Michigan housing and community development program, no less than $7,500,000.00 must be allocated to provide homeless supportive housing with municipalities and nonprofits that provide supportive housing to the homeless. Applicants are required to provide no less than a 50% match of funds. Awardees shall receive no less than 20% of the funding in this subsection. The department shall prioritize applicants that support homeless veterans.

 

state LAND BANK AUTHORITY

Sec. 451. (1) In addition to the amounts appropriated in part 1, the state land bank authority may expend revenues received under


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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. The state land bank authority may establish partnerships with local land bank authorities.

(2) Not later than March 15, the state land bank authority shall submit a report to the standard report recipients on the number of real properties acquired, leased, managed, demolished, maintained, or rehabilitated in the immediately preceding fiscal year and list any partnerships that the state land bank authority has with any local land bank authorities. The report must be submitted to the chairpersons of the relevant senate and house of representatives appropriations subcommittees, the senate and house fiscal agencies, and the state budget director.

 

MICHIGAN STRATEGIC FUND

Sec. 501. The report required under section 9 of the Michigan strategic fund act, 1984 PA 270, MCL 125.2009, must be transmitted by March 15.

Sec. 502. 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 this state as a travel destination. The funds are available for expenditure


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when they are received by the department of treasury. If the fund receives revenues from the use of "Pure Michigan", the fund shall provide a report that lists the revenues by source received from the use of "Pure Michigan" and all other copyrighted slogans and images. The report must provide a detailed list of expenditures of revenues received under this section. The report must be provided to the standard report recipients by March 15.

Sec. 503. (1) From the funds appropriated in part 1 for Pure Michigan, general fund dollars must be appropriated for the following purposes:

(a) Conduction of market research regionally, nationally, and internationally for use in market campaigns.

(b) Production of advertisements for the promotion of Michigan as a place to live, learn, build, work, play, and succeed.

(c) Placement of advertisements that have a diverse representation in regional, national, and international market campaigns to promote Michigan as a state that welcomes all individuals and families.

(d) Other activities that promote Michigan as a place to live, learn, build, work, play, and succeed.

(e) Matching marketing campaigns funded from the local promotion fund or private promotion fund.

(2) The fund may contract any of the activities under subsection (1).

(3) The fund may work in cooperation with local units of government, nonprofit entities, and private entities on Pure Michigan promotion campaigns. The fund shall include agreements prior to undertaking cooperative marketing campaigns.

(4) The department shall provide an annual report no later


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than March 15, on the utilization of funds for eligible activities in subsection (1), including a breakdown by eligible use, efforts taken to broaden the scope of marketing activities to diverse populations, a breakdown of money spent within this state and outside of this state, and targeted marketing to encourage residents from other states to move to this state.

Sec. 504. (1) A local promotion fund is created in the department of labor and economic opportunity. The fund may receive funds from local units of government and nonprofit entities and deposit these funds into the local promotion fund. Funds received are available for expenditure for use in Pure Michigan promotion campaigns. The fund may maintain individual accounts for local units of government and nonprofit entities that deposit funds into the local promotion fund upon request from a local unit of government. As used in this subsection, "local unit of government" includes cities, villages, townships, counties, and regional councils of government.

(2) Local promotion funds appropriated in part 1 may be used for media production and placements, national and international marketing campaigns, and for other activities that promote Michigan as a place to live, work, and play.

(3) Any unexpended or unencumbered balance must be disposed of in accordance with the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, unless carryforward authorization has been otherwise provided for.

(4) The department shall provide an annual report no later than March 15 on any funds that have been generated by local units of government and how those funds have been expended.

Sec. 505. (1) A private promotion fund is created in the


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department of labor and economic opportunity. The fund may receive funds from private entities and deposit these funds into the private promotion fund. Funds received are available for expenditure for use in Pure Michigan promotion campaigns. The fund may maintain individual accounts for private entities that deposit funds into the private promotion fund upon request from a private entity.

(2) Private promotion funds appropriated in part 1 may be used for media production and placements, national and international marketing campaigns, and for other activities that promote Michigan as a place to live, work, and play.

(3) Any unexpended or unencumbered balance shall be disposed of in accordance with the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, unless carryforward authorization has been otherwise provided for.

Sec. 506. (1) As a condition of receiving funds appropriated in part 1, the fund must provide a report of all approved amendments to projects for the immediately preceding year under sections 88r and 90b of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088r and 125.2090b. The report must provide a description of each amendment, by award, that includes, but is not limited to, the following:

(a) The amended award amount relative to the prior award amount.

(b) The amended number of committed jobs relative to the prior number of committed jobs.

(c) The amended amount of qualified investment committed relative to the prior amount of qualified investment committed.

(d) A description of any change in scope of the project.


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(e) A description of any change in project benchmarks, deadlines, or completion dates.

(f) The reason or justification for the amendment approval.

(g) All subprograms funded with the business attraction and community revitalization line item.

(2) In addition to being posted online, the report must be distributed by March 15.

Sec. 507. (1) As a condition of receiving funds appropriated in part 1, the fund must request the following information from the MEDC:

(a) Approved budget from the MEDC executive committee for the current fiscal year and actual budget expenditures for the preceding fiscal years.

(b) Expenditures and revenues as part of the current and preceding year budgets, including the available fund balance for the current and preceding fiscal years.

(c) The total number of FTEs, by state and corporate status.

(d) A reporting of activities, programs, and grants consistent with the preceding fiscal year budget.

(2) Information received by the fund under this section must be posted online and distributed by March 15.

Sec. 508. As a condition of receiving funds under part 1, any interlocal agreement entered into by the fund must include language that states that if a local unit of government has a contract or memorandum of understanding with a private economic development agency, the MEDC will work cooperatively with that private organization in that local area.

Sec. 509. (1) Of the funds appropriated to the fund or through grants to the MEDC, funds must not be expended for the purchase of


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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.

(c) The land is obtained from the state land bank authority or a local land bank authority.

(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.

(4) If land or options on land are purchased under subsection (1), the fund shall provide a report to the standard report recipients that provides a list of all properties purchased, all options on land purchased, the location of the land purchased, and the purchase price if the fund purchases options on land or land. The report must be submitted before March 15.

Sec. 510. As a condition for receiving funds in part 1, not later than March 15, the fund must provide a report for the immediately preceding fiscal year on the jobs for Michigan


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investment fund, created in section 88h of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088h. The report must include, but is not limited to, all of the following:

(a) A detailed listing of revenues, by fund source, to the jobs for Michigan investment fund. The listing must include the manner and reason for which the funds were appropriated to the jobs for Michigan investment fund.

(b) A detailed listing of expenditures, by project, from the jobs for Michigan investment fund.

(c) A fiscal year-end balance of the jobs for Michigan investment fund.

Sec. 511. (1) From the appropriations in part 1 to the fund and granted or transferred to the MEDC, any unexpended or unencumbered balance must 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, including encumbered funds subsequently unobligated, must be used for the same purposes for which funding was originally appropriated in this part and part 1.

(3) For funds appropriated in part 1 to the fund, any carryforward authorization subsequently created through a work project must be preserved until a cash or accrued expenditure has been executed or the allowable work project time period has expired.

Sec. 512. (1) As a condition of receiving funds under part 1, the fund must 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


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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 the auditor general's 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 part, the fund may exercise those duties.

Sec. 513. As a condition for receiving the appropriations in part 1, any staff of the MEDC involved in private fund-raising activities must not be party to any decisions regarding the awarding of grants, incentives, or tax abatements from the fund, the critical industry program, the Michigan strategic site readiness program, the 360 program, the MEDC, or the Michigan economic growth authority.

Sec. 514. From the funds appropriated in part 1 for business attraction and community revitalization, not less than 20% must be granted by the fund board for brownfield redevelopment and historic preservation projects under the community revitalization program authorized by chapter 8C of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090 to 125.2090d.

Sec. 520. (1) The fund shall report to the standard report recipients 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 shall provide the fund 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


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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, 1984 PA 270, MCL 125.2088d.

(2) The report under subsection (1) must 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.

(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


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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.

(c) For loans, the report must 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.

(d) For each of the tax credit incentives and loan 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.

(e) A listing of all projects the Michigan film and digital media office provided assistance on, a listing of the services provided for each project, and an estimate of investment leveraged.

(3) For any information not included in the report due to the provisions of section 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


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section 455(6), 457(6), or 459(6) of the Michigan business tax act, 2007 PA 36, MCL 208.1455, 208.1457, and 208.1459, must be presented at the lowest level of aggregation that would no longer describe the commercial and financial operations or intellectual property of the company.

(5) The fund shall report no later than March 15 to the standard report recipients on the activities of the Michigan film and digital media office for the immediately preceding fiscal year. The report must include, but not be limited to, a listing of all projects the Michigan film and digital media office provided assistance on, a listing of the services provided for each project, and an estimate of investment leveraged.

Sec. 522. As a condition of receiving an award from the fund, each business incubator or accelerator that received an award from the fund must maintain and update a dashboard of indicators to measure the effectiveness of the business incubator and accelerator programs. Indicators must 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 MEDC. Dashboard indicators must be reported for the previous fiscal year and cumulatively, if available. Each recipient shall submit a copy of their dashboard indicators to the fund by March 1. The fund shall transmit the local reports by March 15 to the standard report recipients.

Sec. 523. (1) From the appropriations in part 1, the Michigan


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arts and culture council 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, publish proposed application criteria, instructions, and forms for use by eligible applicants. The council shall provide at least a 2-week period for public comment before finalizing the application criteria, instructions, and forms.

(b) Assess a nonrefundable application fee that may be applied for each application. Application fees must 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) Issue grants to public and private arts and cultural entities.

(d) Within 1 business day after the award announcements, 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.

(e) In addition to the information in subdivision (d), report to the standard report recipients on the number of applications received, number of grants awarded, total amount requested from applications received, and total amount of grants awarded.

(2) The appropriation in part 1 for arts and cultural program shall not be used for the administration of the grant program under this section.


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Sec. 524. (1) The general fund/general purpose funds appropriated in part 1 to the fund for business attraction and community revitalization must be transferred to the 21st century jobs trust fund per section 90b(3) of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090b.

(2) Funds transferred to the 21st century jobs trust fund under subsection (1) are appropriated and available for allocation as authorized in the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to 125.2094.

Sec. 525. For the funds appropriated in part 1 for business attraction and community revitalization, the fund shall report quarterly to the standard report recipients on the amount of funds considered appropriated, pre-encumbered, encumbered, and expended by current fiscal year appropriation and each work project for any previous fiscal years. The report must also include a listing of all previous appropriations for business attraction and community revitalization, or a predecessor, that were considered appropriated, pre-encumbered, encumbered, or expended that have lapsed back to the fund for any purpose.

Sec. 526. (1) The fund, in conjunction with the department of treasury, shall report by November 1 to the standard report recipients on the annual cost of the MEGA tax credits. The report must include for each year the board-approved credit amount, adjusted for credit amendments where applicable, and the actual and projected value of tax credits for each year from 1995 to the expiration of the credit program. For years for which credit claims are complete, the report must include the total of actual certificated credit amounts. For years that claims are still pending or not yet submitted, the report must include a combination


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of actual credits where available and projected credits. Credit projections must be based on updated estimates of employees, wages, and benefits for eligible companies.

(2) In addition to the report under subsection (1), the fund, in conjunction with the department of treasury, shall report to the standard report recipients by November 1 on the annual cost of all other certificated credits by program, for each year until the credits expire or can no longer be collected. The report must include estimates on the brownfield redevelopment credit, film credits, MEGA photovoltaic technology credit, MEGA polycrystalline silicon manufacturing credit, MEGA vehicle battery credit, and other certificated credits.

Sec. 527. As a condition of receiving appropriations in part 1, prior to authorizing the transfer of any previously authorized tax credit that would increase the liability to this state, the fund, on behalf of the fund's board, must notify the standard report recipients of the transfer of any previously authorized tax credit that would increase the liability to this state not fewer than 30 days prior to the authorization of the tax credit transfer.

Sec. 528. (1) From the funds appropriated in part 1 for business attraction and community revitalization, the fund shall identify specific outcomes and performance measures, including, but not limited to, the following:

(a) Total verified jobs created by the business attraction program during the previous fiscal year.

(b) Total private investment obtained through the business attraction and community revitalization programs during the previous fiscal year.

(c) Amount of private and public square footage created and


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reactivated through the community revitalization program during the previous fiscal year.

(d) A summary of any metrics used to evaluate the outcomes and performance of the programs.

(2) The fund shall submit a report to the standard report recipients by March 15. The report must describe the specific outcomes and measures required in subsection (1) and provide the results and data related to these outcomes and measures for the previous fiscal year if related information is available for the previous fiscal year.

Sec. 529. 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.

Sec. 530. Tax capture revenues collected in accordance with written agreements under the good jobs for Michigan program and transferred from the general fund for deposit into the good jobs for Michigan fund, and for both calculated payments from the good jobs for Michigan fund to authorized businesses and distributions to the Michigan strategic fund for administrative expenses, are appropriated pursuant to the provisions of chapter 8D of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090g to 125.2090j.

Sec. 531. (1) If Senate Bill Nos. 579, 580, and 581 of the 102nd Legislature are enacted into law, money deposited in the H.I.R.E. Michigan fund under section 51f of the income tax act of


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1967, 1967 PA 281, MCL 206.51f, is appropriated and available for expenditure for the purposes described in section 90w of the Michigan strategic fund act, 1984 PA 270, MCL 205.90w.

(2) As used in this section, "H.I.R.E. Michigan fund" means that term as defined in section 90t of the Michigan strategic fund act, 1984 PA 270, MCL 205.90t.

Sec. 532. The department shall provide a report to the standard report recipients on March 15 that includes, but is not limited to, fiscal year-to-date expenditures by division and program unit within the job creation services line item.

Sec. 533. (1) From the funds appropriated in part 1 for revitalization and placemaking program, $25,000,000.00 must be used by the department to administer the revitalization and placemaking program and perform activities necessary to implement this section.

(2) The program under this section shall support transformational public space development projects in central city neighborhoods or concentrated districts and leverage interdepartmental and cross-sector coordination through local talent plans that are designed to increase this state's population of young talent by creating high-density, high-amenity, walkable, vibrant street life neighborhoods or districts, and to create business ownership opportunities for local residents. Qualified plan proposals must include all of the following:

(a) The transition of roadway usage from cars to alternative transportation spaces, including, but not limited to, walking, biking, and transit.

(b) Commercial corridor activation, including innovations to fill vacant retail space with locally owned businesses.

(c) Mixed-use development that contributes to dense, walkable


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areas.

(d) A plan to do all of the following:

(i) Support greater density.

(ii) Increase access to affordable or middle-income housing.

(iii) Improve direct access to multi-modal transportation.

(iv) Improve quality of life through increased parks, green spaces, outdoor recreation, and arts and cultural amenities.

(3) The legislature finds and declares that the appropriation described in this section is for a public purpose and serves the health, safety, and general welfare of the residents of this state.

(4) The department shall do at least all of the following to implement the program:

(a) Develop guidelines to accept and review local plans from eligible applicants and award funding for approved local plans to increase this state's population of young talent by creating high-density, high-amenity, walkable, vibrant street life neighborhoods or districts, and to create business ownership opportunities for local residents.

(b) Consult with local stakeholders, provide education and consultation to the public during the application process, and regularly monitor implementation progress of approved local plans.

(c) Review existing best practices for similar programs and consult with third-party experts, including academic and research institutions based in this state.

(d) Lead a multi-agency coordination effort to leverage all available resources that will maximize the effectiveness of the initiative. As necessary, the department may establish memorandums of understanding with other state agencies or establish a committee of state agency representatives to support the initiative.


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(5) The department shall allocate funding for the program through the development and submission of local talent plans from eligible applicants that use a blend of layered, multifaceted activities in subsection (7) to meet the goals of this section.

(6) Eligible applicants for a grant must be a consortium of entities that includes local governments, local economic development organizations, the nonprofit community, and the business community. Consortium applicants must appoint a nonprofit organization as the lead applicant to serve as fiduciary and project manager for the consortium. An eligible applicant may partner with other government agencies, consortiums, authorities, and community anchor or nonprofit entities, to submit and implement an approved local plan. Notwithstanding local plan revisions or subsequent funding rounds, an eligible applicant shall not submit more than one local plan. Only grant applicants that provide a minimum of 50% local or private match funds may be considered for a grant under this section.

(7) Approved talent plans shall include at least 1 of the following eligible activities to meet the objectives of the program:

(a) Planning, engineering, permitting review, and other local assessments to support implementation of a local talent plan.

(b) Demonstrated community engagement, stakeholder support, or commitment to the local talent plan. As applicable, stakeholders may include, but not be limited to:

(i) Neighborhood associations.

(ii) City councils, planning committees, or other local government agencies, including public safety agencies.

(iii) Economic development organizations or local businesses or


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business organizations.

(iv) Local anchor institutions.

(v) Local nonprofits, foundations, or community organizations.

(vi) Regional planning organizations or consortiums.

(vii) Public transit organizations.

(viii) Faith-based organizations.

(ix) Tribal governments.

(c) Plans for the redevelopment of existing housing stock.

(d) Plans to improve utilization of mixed-use and commercial property, including, but not limited to, the conversion of commercial space for affordable housing.

(e) Road repairs and other surface improvements that will increase walkability, access to green space, dedicated nonmotorized transportation, and access to rapid transit or high-speed rail.

(f) Supports for small businesses and emerging entrepreneurs, including access to credit and professional development.

(g) Plans to enhance parks, green space, community recreation, promotion of local artists or art installations, and outdoor social spaces.

(h) Activities to pursue other sources of funding to directly support a local plan, including other governmental funds or private resources.

(8) In addition to the eligible activities in subsection (7), approved local plans must include the following:

(a) A defined area such as a neighborhood, district, or corridor in which a local talent plan will be implemented. Unless identified as a supporting part of an approved talent plan, funds allocated to approved plans must only be used within the plan's defined area.


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(b) A description of how local plan activities directly support the objectives in subsection (2).

(c) A description of how funds appropriated from part 1 will be used and any other funds or resources that will be provided to ensure a plan meets all the objectives of subsection (2).

(d) Identification of stakeholders that were engaged in the development and committed to the implementation of an approved plan.

(e) In addition to any state or federal resources, identification of local or private match funds or resources that will be committed.

(f) A proposed implementation timeline and demonstration of a plan's sustainability after any state or federal funds are exhausted.

(g) Identifiable goals and measurable outcomes to be used to monitor progress.

(9) The department shall establish a state agency workgroup to support the implementation of this section and contract with at least one consultant that is a nonprofit research organization or public education institution based in this state with experience in at least placemaking research to support this section. The MSHDA shall participate in the workgroup and shall provide funding from the housing and community development fund to support implementation of the affordable or middle-income housing components of approved grants. The MEDC shall participate in the workgroup to support implementation of the commercial corridor activation, including innovations to fill vacant retail space with locally owned businesses.

(10) The department may retain up to 3% of funds under this


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section for implementation costs, including support costs for the operation of the agency workgroup, and contracts with third-party consultants. The department may reimburse state agencies for costs associated with participation in a workgroup under this section.

(11) Not later than 60 days after the effective date of this section, the department shall solicit interest from state agencies to participate in the workgroup established in subsection (8). The department shall solicit participation in the workgroup from agencies that oversee, deploy resources for, or coordinate state activities related to any of the following:

(a) Housing services, including access to lending, credit, vouchers, home repair resources, existing housing stock, or blight elimination.

(b) Economic development, community development or revitalization, or business supports.

(c) Transportation and mobility.

(d) Arts and cultural funding and organizations.

(e) Parks, outdoor recreation, trails, greenways, and open space funding and organizations.

(12) The state agency workgroup shall serve as a conduit to coordinate state resources or programs that can be used to support approved local talent plans. Subject to participation, the state agency workgroup may be used to evaluate applications and support implementation and oversight of approved plans.

(13) The department shall establish methods to receive public feedback during the development and implementation of this section, post online the guidelines for local plans, and identify available research or resources that may be used to support the development of a talent plan.


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(14) In evaluating each application and subject to subsection (15), the department shall use objective criteria, including but not limited to, comprehensive nature of the plan, local support identified, long-term sustainability, and likelihood to achieve the goals of the Michigan Talent Concentration Partnership Initiative. The department must consider all of the following when selecting grant recipients:

(a) The extent to which a proposed plan will support the creation and ongoing success of locally owned businesses.

(b) The extent to which a proposed plan will create dense, walkable, vibrant spaces.

(c) The extent to which zoning and code restrictions have been, or will need to be, modified to support high-density residential development.

(d) The extent to which the proposed plan supports facilities and walkways that house or present cultural arts programs, performances, and exhibitions.

(e) The extent to which the proposed plan provides mixed-income housing.

(f) The likelihood of successful implementation of a proposed plan and its sustainability.

(15) The department shall award funding to the following:

(a) $15,000,000.00 to one project in each of the following cities:

(i) A city with a population greater than 500,000 according to the most recent federal decennial census.

(ii) A city with a population between 198,000 and 199,000 according to the most recent federal decennial census.

(iii) A city with a population between 107,000 and 108,000


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according to the most recent federal decennial census.

(iv) A city with a population between 123,000 and 124,000 according to the most recent federal decennial census.

(b) $10,000,000.00 to projects in all regional prosperity zones that meet the requirements of this section. Except as otherwise provided in this subdivision, no regional property zone may receive more than 1 grant under this subdivision. The grants allocated in subsection (15)(a) are excluded when determining the limit under this subdivision.

(16) The department shall publish approved local plans and funding allocations from part 1. The department may approve subsequent rounds of funding for local plans if either funds become available or there are remaining funds from part 1. Remaining funds must be awarded in the same manner consistent with this section and, as necessary, prorated based on availability of funds.

(17) The department shall ensure grant agreements with applicants include regular progress reports and claw-back provisions verify that all expenditures are made in accordance with an approved local plan. Applicants receiving funds under this section shall respond to all reasonable information requests from the department related to the funds received under this section.

(18) The department shall provide biannual updates on March 15 and September 30 to the standard report recipients on the implementation of this program, including, but not limited to:

(a) The utilization of funds allocated from part 1, including the amount and status of any funds allocated for approved local plans and the amount retained by the department or state agencies to support implementation of this section.

(b) Identify the activities undertaken by agency workgroup


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participants to communicate the implementation of local talent concentration plans to each of their respective agencies, and identification of any existing programs or resources that may be used to support the implementation of a local talent concentration plan.

(c) For the first and second reports required after the effective date of this act, identification of state agencies that were solicited to participate in the state agency workgroup, and those agencies that have appointed an individual to participate in the state agency work group.

(19) The unexpended portion of grants under this section are designated as a work project appropriation in accordance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a. Any unencumbered or unallocated money shall not lapse at the end of the fiscal year and shall be available for grant awards or other expenditures under this section for the project until the project has been completed. The following apply to the work project:

(a) The purpose of the project is to support transformational investments and leverage intergovernmental coordination to increase this state's population of young talent by creating high-density, high-amenity, walkable, and vibrant street life neighborhoods or districts, and to create business ownership opportunities for local residents.

(b) All grants must be distributed in accordance with this section and the grant guidelines as part of the application process and grant agreements between the department and grant recipients.

(c) The estimated cost of the work project is $25,000,000.00.

(d) The tentative completion date for the work project is


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September 30, 2029.

Sec. 534. (1) The funds appropriated in part 1 for Michigan community development financial institutions fund grants are transferred to the Michigan community development financial institutions fund, which is created under this section. All funds in the Michigan community development financial institutions fund, including funds unallocated from prior years, are appropriated for grants to eligible community development financial institutions under this section and related expenditures permitted under this section. The legislature finds and declares that the appropriation described in this section is for a public purpose, including promoting community economic revitalization and community development through community development financial institutions.

(2) No later than October 31, 2024, the Michigan strategic fund shall develop a grant application consistent with this section that is published and available on its publicly accessible website.

(3) The application required under subsection (2) must include all of the following:

(a) The name of the community development financial institution applying for a grant from the CDFI fund.

(b) The location of the principal office of the applicant.

(c) Documentation indicating whether the applicant is a Michigan CDFI or a multistate CDFI.

(d) An indication of whether the applicant is or is not a depository institution.

(e) The amount of the grant sought, not exceeding the maximum eligible amount of the grant under subsections (4) to (6).

(f) If the community development financial institution is a depository institution, the net assets of the depository


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institution.

(g) If the community development financial institution is not a depository institution, the amount of qualifying commitments made by the community development financial institution during the 3 applicant fiscal years preceding the fiscal year in which the application is submitted.

(h) A description of the amount an applicant is eligible to apply for under subsections (4) to (6).

(i) A description of the proposed use of the grant award by the applicant for eligible activities consistent with the requirements of this chapter, the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4701 to 4719, and any other requirements applicable under federal law.

(j) Documentation of the applicant's certification as a community development financial institution that meets the eligibility requirements under 12 CFR 1805.201 by the community development financial institutions fund established under section 104 of the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4703. The documentation required by this subdivision may include the list of community development financial institutions in good standing maintained and published by the federal fund.

(k) A statement that the applicant is in compliance with all requirements applicable to the applicant under the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4701 to 4719.

(4) A community development financial institution that is a depository institution is eligible for a grant award in the following amount:


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(a) Up to $253,000.00 if the depository institution has total net assets of less than $500,000,000.00.

(b) Up to $380,000.00 if the depository institution has total net assets of $500,000,000.00 to $999,999,999.99.

(c) Up to $507,000.00 if the depository institution has total net assets of $1,000,000,000.00 to $1,999,999,999.99.

(d) Up to $633,000.00 if the depository institution has total net assets of $2,000,000,000.00 or more.

(5) Except as otherwise provided in subsection (6), a community development financial institution that is not a depository institution is eligible for a grant award in the following amount:

(a) Up to $127,000.00 if the community development financial institution made qualifying commitments in an amount that averaged less than $1,000,000.00 per applicant fiscal year during the 3 fiscal years preceding the fiscal year in which an application for a grant is submitted.

(b) Up to $380,000.00 if the community development financial institution made qualifying commitments in an amount that averaged from $1,000,000.00 to $3,999,999.99 per applicant fiscal year during the 3 fiscal years preceding the fiscal year in which an application for a grant is submitted.

(c) Up to $633,000.00 if the community development financial institution made qualifying commitments in an amount that averaged from $4,000,000.00 to $5,999,999.99 per applicant fiscal year during the 3 fiscal years preceding the fiscal year in which an application for a grant is submitted.

(d) Up to $887,000.00 if the community development financial institution made qualifying commitments in an amount that averaged


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from $6,000,000.00 to $9,999,999.00 per applicant fiscal year during the 3 fiscal years preceding the fiscal year in which an application for a grant is submitted.

(e) Up to $1,013,333.00 if the community development financial institution made qualifying commitments in an amount that averaged at least $10,000,000.00 per applicant fiscal year during the 3 fiscal years preceding the fiscal year in which an application for a grant is submitted.

(6) A grant to a multistate CDFI that is not a depository institution under subsection (5) must not exceed $633,000.00.

(7) The Michigan strategic fund shall accept applications for a grant under this section until November 30, 2024. The Michigan strategic fund shall approve or deny a grant application within 49 days after the receipt of an administratively complete application as determined by the Michigan strategic fund. If the application complies with the requirements of this section, the Michigan strategic fund shall approve the award of the grant in the amount requested by the applicant. The Michigan strategic fund may deny a grant application submitted under this section only for the following reasons:

(a) The applicant does not satisfy all of the requirements under this section.

(b) Subject to subsection (9), there is insufficient money in the CDFI fund to pay the grant amount requested.

(c) The applicant is not in compliance with applicable requirements under the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4701 to 4719.

(8) If the Michigan strategic fund denies an application under subsection (7), the applicant may provide additional information to


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the Michigan strategic fund within 7 days after the notice of denial. The Michigan strategic fund shall review and reconsider the application and additional information within 28 days after the applicant provides additional information.

(9) If there is an insufficient amount of money in the CDFI fund to pay the grants approved, the amount of each grant shall be reduced proportionately by the Michigan strategic fund based upon the amount of money available in the CDFI fund. If the amount of money available to pay grants approved for a round of grant applications exceeds the amount needed to pay the grant awards, the Michigan strategic fund may increase each grant awarded in that round in an amount proportionate to the total of all grant awards for that round.

(10) Upon approval of an application, the Michigan strategic fund and the applicant shall sign a written grant agreement providing the terms of the grant agreement. A grant agreement must include all of the following:

(a) A requirement that at least 80% of the grant award be used for financial products and financial services or expenditures of money or commitments to expend money to reduce the interest rate otherwise applicable under a loan agreement or funding agreement.

(b) A restriction that no more than 10% of the grant award be used for technical assistance activities described in 12 CFR 1805.303.

(c) A restriction that no more than 10% of the grant award be used for administration and operations.

(d) A requirement that a grant award be committed under a loan agreement or funding agreement or disbursed by the recipient within 3 years after the date that the recipient receives the grant award.


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(e) A requirement that the entire amount of the grant award be expended within this state.

(f) A requirement that the grant award recipient maintain its certification as a community development financial institution under 12 CFR 1805.201 while the grant agreement is in effect.

(g) A requirement that the grant award recipient comply with all requirements applicable under the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4701 to 4719, while the agreement is in effect.

(h) Provisions authorizing the Michigan strategic fund to enforce the terms of the grant agreement, including a requirement that a noncompliant recipient of a grant award may be required to repay the portion of the award not committed by the recipient pursuant to a permitted loan, program, or agreement. Money repaid under this subdivision must be deposited in the CDFI fund.

(i) A requirement for the grant award recipient to report on activities consistent with the requirements of subsection (14).

(j) If the grant agreement includes a grant of federal money, the grant agreement must require the recipient to comply with any requirements applicable to the use of the federal money.

(11) A grant agreement may provide for the community development financial institution that is the recipient of a grant award to serve as an intermediary lender to another community development financial institution consistent with the purposes of this section if not prohibited by federal law applicable to the expenditure of any federal grant money.

(12) If not prohibited by federal law applicable to the expenditure of any federal grant money, a grant agreement must permit a grant award recipient to assign the award to an affiliate


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and for the affiliate to assume the obligations of the grant award recipient if the affiliate satisfies all of the following:

(a) Is a community development financial institution.

(b) Is organized in the same manner as the grant award recipient.

(c) Is controlled by the grant award recipient in 1 or both of the following ways:

(i) The grant award recipient owns a majority of the stock of the affiliate.

(ii) A majority of the members of the board of the affiliate also are members of the board of the grant award recipient.

(13) Except as otherwise provided in subsection (14), the Michigan strategic fund shall require the recipient of a grant award under this chapter to report annually to the Michigan strategic fund regarding its activities under this section beginning on the May 1 following the applicant fiscal year in which the grant award was received by the recipient. The Michigan strategic fund shall publish on its website a standard form for the report. Except as otherwise provided in subsection (14), the report must include all of the following information:

(a) A copy of the recipient's most recent confirmation of recertification as a community development financial institution issued by the community development financial institutions fund under 12 CFR 1805.201, which may include the list of community development financial institutions in good standing maintained and published by the federal fund.

(b) A list of financial products and services provided during the prior applicant fiscal year that includes all of the following:

(i) The name of each transaction.


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(ii) A transition tracking number for each transaction.

(iii) The date of each transaction.

(iv) The amount of each transaction.

(v) The total project cost for each transaction if other funding was involved.

(vi) The physical address of the borrower or customer for each transaction.

(vii) The census tract of the borrower or customer for each transaction.

(viii) An indication of whether the census tract in which the transaction is located is an eligible investment area.

(ix) A description of the projected economic impact of the transaction.

(x) A description of any financial products or financial services provided.

(c) A description of technical assistance provided during the prior applicant fiscal year.

(d) A summary of expenditures for administration and operations provided during the prior applicant fiscal year that includes all of the following:

(i) A description of administration and operations costs incurred.

(ii) Professional fees and expenses incurred.

(iii) A summary of any other eligible expenses for administration and operation.

(14) A grant award recipient is not required to provide a report under this section for any applicant fiscal year in which it did not loan or otherwise commit or disburse grant award money. The


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Michigan strategic fund shall not include information in the report required under subsection (13) if information that otherwise would be included in a report under subsection (13) is either of the following:

(a) Exempt from disclosure or confidential as proprietary business or financial information under the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4701 to 4719.

(b) Exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

(15) The Michigan strategic fund shall make all reasonable efforts to ensure that at least 10% of the funds appropriated under this section support businesses operated by underrepresented entrepreneurs or are allocated to community development financial institutions that primarily support underrepresented entrepreneurs.

(16) Except as otherwise provided in subsection (3), the Michigan strategic fund may expend up to 4% of the appropriation provided from the CDFI fund for the costs it incurs in administering the programs and activities in this section.

(17) The unexpended portion of money for the Michigan community development financial institution fund grants is designated as a work project appropriation in accordance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a. Any unencumbered or unallotted money must not lapse at the end of the fiscal year and must be available for grant awards or other expenditures under this section for the project until the project has been completed. The following apply to the work project:

(a) The purpose of the project is to provide grants to


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eligible community development financial institutions under this section.

(b) All grants will be distributed in accordance with this section and the grant guidelines as part of the application process and grant agreements between the Michigan strategic fund and grant recipients.

(c) The estimated cost of the work project is up to $10,000,000.00.

(d) The tentative completion date for the work project is September 30, 2029.

(18) As used in this section:

(a) "CDFI fund" means the Michigan community development financial institutions fund created in subsection (1).

(b) "Community development financial institution" means that term as defined in section 103 of the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4702, but is limited to a community development financial institution that satisfies all of the following:

(i) Is an entity that meets the eligibility requirements described in 12 CFR 1805.200.

(ii) Is certified as a community development financial institution that meets the eligibility requirements under 12 CFR 1805.201 by the community development financial institutions fund established under section 104 of the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4703.

(iii) Maintains 1 or more physical offices within this state.

(iv) Employs 2 or more individuals at a physical office within this state, including employees of an affiliate of the community


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development financial institution that provides services to the community development financial institution.

(v) Is a Michigan CDFI or a multistate CDFI.

(c) "Depository institution" means any of the following:

(i) A bank as that term is defined in section 3(a) of the federal deposit insurance act, 12 USC 1813(a).

(ii) A savings association as that term is defined in section 3(b) of the federal deposit insurance act, 12 USC 1813(b).

(iii) A credit union as that term is defined in section 102 of the credit union act, 2003 PA 215, MCL 490.102.

(iv) A depository institution holding company as that term is defined in 12 CFR 1805.104.

(d) "Eligible activities" means activities described in 12 CFR 1805.301, and includes credit enhancements, loan loss reserves, equity investments, expenditures of money or commitments to expend money to reduce the interest rate otherwise applicable under a loan agreement or funding agreement, and grants related to these activities.

(e) "Federal fund" means the federal community development financial institutions fund within the United States Department of Treasury.

(f) "Financial products" means that term as defined in 12 CFR 1805.104.

(g) "Financial services" means that term as defined in 12 CFR 1805.104.

(h) "Michigan CDFI" means a community development financial institution that satisfies all of the following:

(i) Is certified as a community development financial institution that meets the eligibility requirements under 12 CFR


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1805.201 by the community development financial institutions fund established under section 104 of the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4703.

(ii) Is headquartered at an address in this state, as recognized by the federal fund.

(iii) Has a target market that includes this state, as recognized by the federal fund.

(iv) Serves 1 or more targeted populations located within this state.

(i) "Multistate CDFI" means a community development financial institution that is not a Michigan CDFI but is a community development financial institution that committed under a loan agreement or other funding agreement at least $10,000,000.00 in financial products and financial services to a target market within this state under the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4701 to 4719, during the 5 applicant fiscal years preceding the applicant fiscal year in which an application for a grant is submitted.

(j) "Qualifying commitment" means funding committed by a community development financial institution under a loan agreement or other funding agreement in target markets or targeted populations in this state that is either of the following:

(i) Financial products or financial services committed under the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4701 to 4719.

(ii) An additional credit enhancement, loan loss reserve, or equity investment committed by the community development financial institution or an affiliate of the community development financial


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institution.

(k) "Target market" means that term as defined in 12 CFR 1805.104.

(l) "Targeted population" means that term as defined in 12 CFR 1805.104.

 

EMPLOYMENT SERVICES

Sec. 601. From the funds appropriated in part 1 for wage and hour program, the department shall conduct investigations of child labor violations and wage theft from workers.

 

WORKFORCE DEVELOPMENT

Sec. 702. The department shall administer the PATH training program in accordance with the requirements of the state social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, and all other applicable laws and regulations.

Sec. 703. From the funds appropriated in part 1 for workforce development, the department may allocate funding for grants to nonprofit organizations that offer programs under the workforce innovation and opportunity act, 29 USC 3101 to 3361, for eligible youth that focus on apprenticeship readiness, pre-apprenticeship and apprenticeship activities, entrepreneurship, work-readiness skills, job shadowing, or 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 Census Bureau 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 department shall develop other appropriate


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eligibility requirements to ensure compliance with applicable federal rules and regulations.

Sec. 704. From the funds appropriated in part 1, the department 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. 705. (1) In addition to the funds appropriated in part 1, any unencumbered and unrestricted funds allocated under the federal workforce innovation and opportunity act, 29 USC 3101 to 3361, or trade adjustment assistance funds available from prior fiscal years are appropriated for the purposes originally intended.

(2) The department shall report by February 15 on the amount by fiscal year of funds allocated under the federal workforce innovation and opportunity act, 29 USC 3101 to 3361, appropriated under this section.

Sec. 707. (1) The department shall publish data and reports on March 15 and September 30 on the department website concerning the status of going pro funded in part 1. The report must include the following:

(a) The number of awardees participating in the program and the names of those awardees organized by major industry group.

(b) The amount of funding received by each awardee under the program.

(c) The amount of funding leveraged from each awardee.

(d) The training models established by each awardee.

(e) The number of individuals enrolled in classroom training,


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on-the-job training, or new USDOL registered apprentices.

(f) The number of qualified employees who completed the approved training.

(g) The number of applications received and the number of grants awarded for each region.

(h) The number of individuals hired and trained.

(i) Going pro expenditures, by program or grant type, for the previous fiscal year and projected expenditures, by program or grant type, for the current fiscal year.

(j) The number of individuals who still work for the awardee 1 year after completing an approved training.

(2) The department shall expand workforce training and reemployment services to better connect workers to in-demand jobs and identify specific outcomes with performance metrics for this initiative, including, but not limited to, new apprenticeships, individuals to be hired and trained, current employees trained, training completed, and employment retention rate at 6 months, and hourly wage at 6 months.

Sec. 708. To the extent consistent with sections 7 and 9 of the going pro talent fund act, 2018 PA 260, MCL 408.157 and 408.159, the department shall administer the program as follows:

(a) The department shall work cooperatively with grantees to maximize the amount of funds from part 1 that are available for direct training.

(b) The department, workforce development partners, including regional Michigan works agencies, and employers shall collaborate and work cooperatively to prioritize and streamline the expenditure of the funds appropriated in part 1. The department shall ensure that going pro provides a collaborative statewide network of


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workforce and employee skill development partners that addresses the employee talent needs throughout this state.

(c) The department shall ensure that grants are utilized for individual skill enhancement and to address in-demand talent needs in Michigan.

(d) The department shall do all of the following:

(i) Develop program goals and detailed guidance for prospective participants to follow to qualify under the program.

(ii) Post the program goals and detailed guidance on the department website and distribute the program goals and detailed guidance to workforce development partners, including local Michigan works agencies, by October 1.

(iii) Conduct periodic assessments of employer and employee needs that are evaluated on a regional basis.

(iv) Identify solutions and goals to be implemented to satisfy employer and employee needs.

(v) Not allow a business to receive more than 1 grant in a single fiscal year or receive a grant that is more than $500,000.00.

(e) The department shall use no more than 1% of total going pro appropriation for administration of the program.

(f) Not less than 5% of total grants awarded must go to each of the following industries:

(i) Research and development

(ii) New technologies.

(iii) Advancing technologies.

Sec. 709. The funds appropriated in part 1 for MiSTEM advisory council must be used to support the staff for the MiSTEM network, and for administrative, training, and travel costs related to the


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MiSTEM council. The staff for the MiSTEM network shall do all of the following:

(a) Serve as a liaison among and between the department, the department of education, the MiSTEM council, the governor's workforce development board, the MiSTEM regions, the department of lifelong education, advancement, and potential, and any other relevant organization or entity in a manner that creates a robust statewide STEM culture, that empowers STEM teachers, that integrates business and education into the STEM network, and that ensures high-quality STEM experiences for pupils.

(b) Coordinate the implementation of a marketing campaign, including, but not limited to, a website that includes dashboards of outcomes, to build STEM awareness and communicate STEM needs and opportunities to pupils, parents, educators, and the business community.

(c) Work with the department of education and the MiSTEM council to coordinate, award, and monitor MiSTEM state and federal grants to the MiSTEM network regions and conduct reviews of grant recipients, including, but not limited to, pupil experience and feedback.

(d) Report to the governor, the legislature, and the MiSTEM council annually on the activities and performance of the MiSTEM network regions.

(e) Coordinate recurring discussions and work with regional staff to ensure that a network or loop of feedback and best practices are shared, including funding, programming, professional learning opportunities, discussion of MiSTEM strategic vision, and regional objectives.

(f) Coordinate major grant application efforts with the MiSTEM


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council to assist regional staff with grant applications on a local level. The MiSTEM council shall leverage private and nonprofit relationships to coordinate and align private funds in addition to funds appropriated under this section.

(g) Train state and regional staff in the STEMworks rating system, in collaboration with the MiSTEM council and the department of education.

(h) Hire MiSTEM network region staff in collaboration with the network region fiscal agent.

Sec. 710. (1) Of the funds appropriated in part 1 for workforce development, the department shall provide a report to the standard report recipients on the status of workforce development by March 15. The report must 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 programs at 4-year institutions.

(g) The number of participants enrolled in proprietary schools or other technical training programs.


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(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.

(l) The actual revenues received by the fund source and fund appropriated for each discrete workforce development program area.

(2) Data collection for the report must be for the previous state fiscal year.

Sec. 711. From the funds appropriated in part 1 for helmets to hardhats, funds must be awarded to a national nonprofit program that connects national guard, reserve, retired, and transitioning active-duty military service members with skilled training and quality career opportunities in the construction industry. Grant funding must be used to recruit and assist veterans to transition into apprenticeship programs in this state.

Sec. 712. (1) The funds appropriated in part 1 for the 23+ high school diploma program must be awarded for a program to assist adults over 23 years of age in obtaining high school diplomas and placement in career training programs.

(2) For purposes of this section, an eligible program provider may be a public, nonprofit, or private accredited diploma-granting institution, but must have at least 2 years of experience providing dropout recovery services in this state.

(3) The department shall issue a request for qualifications


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for eligible program providers to participate in the pilot program. To be considered a qualified program provider, the institution must offer all of the following:

(a) Dropout reengagement services.

(b) Academic intake assessments.

(c) An integrated learning plan.

(d) A course catalog that includes all graduation requirements.

(e) Remediation coursework.

(f) Academic resilience assessment and intervention.

(g) Employability skills development.

(h) Industry recognized credentials.

(i) Credit for on-the-job training.

(j) A robust support framework, including technology, social support, and academic support accredited by a recognized accrediting body.

(k) WorkKeys preparation.

(4) The department shall announce qualified program providers no later than January 1 of the current fiscal year. Qualified program providers must start providing programming by February 1 of the current fiscal year.

(5) The department shall reimburse qualified program providers for each month of satisfactory monthly progress as described in section 23a of the state school aid act of 1979, 1979 PA 94, MCL 388.1623a, at a rate of $500.00 per month. A payment shall be made to a qualified program provider for the completion of the following by a pupil:

(a) $500.00 for the completion of an employability skills certification program equal to at least 1 unit of high school


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credit obtained through classroom or online instruction.

(b) $250.00 for the attainment of an industry-recognized credential requiring up to 50 hours of training.

(c) $500.00 for the attainment of an industry-recognized credential requiring 50 to 100 hours of training.

(d) $750.00 for the attainment of an industry-recognized credential requiring more than 100 hours of training.

(e) $1,000.00 for attainment of a high school diploma.

(f) $2,500.00 for placement in a job in an in-demand career pathway.

(6) The department shall develop policies and guidelines to implement this section.

Sec. 713. The funds appropriated in part 1 for at-risk youth grants must be awarded to the Michigan franchise holder of the national Jobs for America's Graduates program for the administration of the Jobs for Michigan's Graduates program.

Sec. 714. (1) The funds appropriated in part 1 for the high school equivalency-to-school program must be used to fund the cost of high school equivalency testing and certification under this section. The department shall administer a Michigan high school equivalency-to-school program that covers the cost of providing the high school equivalency test free of charge to individuals who meet all of the following requirements:

(a) The individual has not previously been administered a high school equivalency test free of charge under this section.

(b) The individual meets at least 1 of the following requirements:

(i) Prior to taking the high school equivalency test, the individual successfully completed a department-approved high school


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equivalency preparation program.

(ii) Prior to taking the high school equivalency test, the individual completed the official high school equivalency practice test and the individual's score indicated that the individual is likely to pass.

(2) A department-approved high school equivalency preparation program must include all of the following:

(a) Instructional and tutorial assistances.

(b) High school equivalency test practice.

(c) Required attendance at program instructional sessions.

(d) A curriculum that prepares students for opportunities in postsecondary education and the job market.

(e) Information on potential postsecondary and career pathways.

(f) Counseling on preparing for and applying to college.

(g) Personal and job readiness skills development.

(h) Comprehensive information on college costs and financial aid.

(i) College and career assessments.

(j) Computer-based instruction, practice, or remediation.

(3) The department shall post online an announcement of the Michigan high school equivalency-to-school program, minimum standards for high school equivalency preparation program approval, and approval procedures.

(4) The department shall do all of the following:

(a) Develop procedures consistent with this section under which individuals can take the high school equivalency test without charge.

(b) Provide program information for educators and students on


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the department website, including explanations of the procedures developed under this subsection, and contact information for questions about the program.

(c) Provide an estimate of the full-year cost of the program to the senate and house appropriations subcommittees on labor and economic opportunity, the senate and house fiscal agencies, and the state budget director.

(5) By September 30, the department shall report to the standard report recipients on utilization of the high school equivalency incentive program, including numbers of high school equivalency certifications issued by location, year-to-date expenditures, and numbers of participants qualifying under subsection (1)(b)(i) or (ii), or both.

Sec. 715. (1) The department shall provide reporting regarding the interagency agreement with the department of health and human services, which concerns TANF funding to provide job readiness and welfare-to-work programming. The reporting must include specific outcome and performance reporting requirements as described in this section. TANF funding provided to the department in the current fiscal year is contingent on compliance with the data and reporting requirements described in this section. The department shall provide all of the following items for the previous year by January 1 of the current fiscal year:

(a) An itemized spending report on TANF funding, including all of the following:

(i) Direct services to clients.

(ii) Administrative expenditures.

(b) The number of family independence program clients served through the TANF funding, including all of the following:


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(i) The number and percentage who obtained employment through Michigan Works!

(ii) The number and percentage who fulfilled their TANF work requirement through other job readiness programming.

(iii) Average TANF spending per client.

(iv) The number and percentage of clients who were referred to Michigan Works! But did not receive a job or job readiness placement and the reasons why.

(2) Not later than March 15 of the current fiscal year, the department shall provide to the senate and house appropriations subcommittees on health and human services and the standard report recipients an annual report on the following matters itemized by Michigan works agency:

(a) The number of referrals to Michigan works job readiness programs.

(b) The number of referrals to Michigan works job readiness programs who became a participant in the Michigan works job readiness programs.

(c) The number of participants who obtained employment.

(d) The cost per participant case.

(3) As used in this section, "TANF" means temporary assistance for needy families as described in 42 USC 601 to 619.

Sec. 716. The office of rural prosperity shall act to encourage and enable appropriate community advancements and improvements, including, but not limited to, housing, infrastructure, education, workforce development, and other needs uniquely present in rural areas of this state that will assist in expansion of rural development.

Sec. 717. (1) From the funds appropriated in part 1 for the


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community and worker economic transition office, the department may hire employees and deploy capabilities to evaluate and address the impacts of economic transitions in sectors such as, but not limited to, the auto, utility, manufacturing, and building trades, on workers, communities, and employers. Activities of the community and worker economic transition office may include developing transition mitigation strategies, conducting data analysis, coordinating across state and federal agencies, engaging stakeholders, and providing resource navigation support. The department shall develop and submit to the governor and legislature a community and worker economic transition plan by December 31, 2025, as required under sections 7(3)(f) and 9 of the community and worker economic transition act, 2023 PA 232, MCL 408.917 and 408.919. Beginning February 13, 2025, the department shall also submit an annual report on office activities and progress made on the transition plan to the legislature as required under section 7(5) of the community and worker economic transition act, 2023 PA 232, MCL 408.917.

(2) The department shall provide an annual activity report to the standard report recipients not later than March 15 of the current fiscal year on the mission statement, goals, metrics, and recommendations of the community and worker economic transition office.

Sec. 718. (1) From the ongoing funds appropriated in part 1 for voluntary income tax assistance grants, the department shall allocate funds to a nonprofit trade association to provide all of the following:

(a) Free tax preparation services for tax filers in this state.


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(b) Expanded statewide access to free tax preparation services.

(c) Expanded local capacity to provide free tax preparation services.

(2) Administration costs to provide the services listed in subsections (1)(a) to (c) must not exceed $200,000.00.

 

UNEMPLOYMENT

Sec. 801. The unemployment insurance agency shall provide an annual report to the standard report recipients by March 15 of the current fiscal year that includes, but is not limited to, fiscal year-to-date expenditures by division and program unit.

Sec. 802. (1) From the funds appropriated in part 1, the department on behalf of the unemployment insurance agency shall provide a quarterly report to the standard report recipients within 45 days after the end of each quarter that includes, but is not limited to, the following:

(a) The average number of unique claimants for the quarter.

(b) The average number of eligible claimants with certification for the quarter.

(c) The average number of claims paid for the quarter.

(d) The total amount of standard unemployment insurance payments paid for the quarter.

(e) The total amount of unemployment insurance tax generated for the quarter.

(f) The balance of the Michigan unemployment trust fund at the end of the quarter.

(2) The department shall include the same information required in subsection (1) for the previous 12 months. The department shall


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include the most recent quarterly report on the department's webpage.

Sec. 803. From the funds appropriated in part 1, the department shall provide a quarterly report to the standard report recipients within 45 days after the end of each quarter that includes, but is not limited to, the following:

(a) The number of new fraudulent and noncompliant cases that have been identified or issued by the unemployment insurance agency, classified by employer or claimant, during the quarter.

(b) The total amount of penalties and interest issued on fraudulent and noncompliant cases during the quarter.

(c) The total amount of penalties and interest dollars received during the quarter by employer or claimant.

(d) The total amount of collectible penalties and interest still owed to this state by employer or claimant.

(e) The number of fraudulent and noncompliant cases that have been appealed by an employer or claimant during the quarter.

Sec. 804. (1) The funds appropriated in part 1 for unemployment insurance agency must be used to staff unemployment insurance agency branch offices for in-person appointments for unemployment insurance agency claimant services.

(2) The department shall provide a semiannual report due March 15 and September 30 of the current fiscal year that includes all of the following:

(a) The number and location of in-person offices.

(b) The average number of staff at each location over the previous 6 months.

(c) The volume of in-person claimants served at each location in the previous 6 months.


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(d) The volume of calls served at each location in the previous 6 months.

(e) The average wait time at each location for claimants served in the previous 6 months.

Sec. 805. Funds appropriated in part 1 for the unemployment insurance agency may be used by the unemployment insurance agency to increase capacity by an estimated 500 limited-term employees.

Sec. 806. (1) From the funds appropriated in part 1 for the unemployment insurance agency, the department shall maintain customer service standards for employers and claimants making use of the various means by which they can access the system.

(2) The department shall identify specific outcomes and performance metrics for this initiative, including, but not limited to, the following:

(a) Unemployment benefit fund balance.

(b) Process improvement - fiscal integrity.

(c) Process improvement - determination timeliness.

(d) Process improvement - determination quality.

Sec. 807. Funds earned or authorized by the USDOL in addition to the appropriation in part 1 for the unemployment insurance agency 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 standard report recipients of the purpose and amount of each grant award.

 

REHABILITATION SERVICES

Sec. 901. The Michigan rehabilitation services and bureau of services for blind persons shall work collaboratively with service organizations and government entities to identify allowable match


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dollars to secure available federal vocational rehabilitation funds.

Sec. 902. From the funds appropriated in part 1, the department shall provide an annual report to the standard report recipients on efforts taken to improve the Michigan rehabilitation services by February 1. The report must include all of the following line items:

(a) Reductions and changes in administration costs and staffing.

(b) Service delivery plans and implementation steps achieved.

(c) Reorganization plans and implementation steps achieved.

(d) Plans to integrate Michigan rehabilitation services programs into other services provided by the department.

(e) Quarterly expenditures by major spending category.

(f) Employment and job retention rates from both Michigan rehabilitation services and its nonprofit partners.

(g) Success rate of each district in achieving the program goals.

Sec. 903. (1) From the funds appropriated in part 1 for Michigan rehabilitation services, the department shall allocate funding along with available federal match to support the provision of vocational rehabilitation services to eligible agricultural workers with disabilities. Authorized services shall assist agricultural workers with disabilities in acquiring or maintaining quality employment and independence.

(2) By March 1 of the current fiscal year, the department shall report to the standard report recipients on the total number of clients served and the total amount of federal matching funds obtained throughout the duration of the program.


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Sec. 904. If the department is at risk of entering into an order of selection for services, the department shall notify the standard report recipients within 2 weeks of receiving notification.

Sec. 905. From the funds appropriated in part 1 for Michigan rehabilitation services, the department shall allocate funding to support the administration of the personal assistance services reimbursement for employment program. Michigan rehabilitation services may work collaboratively with service organizations to administer the program.

Sec. 906. (1) Funds appropriated in part 1 for independent living must be used to support the general operations of centers for independent living in delivering mandated independent living services in compliance with federal rules and regulations, including 45 CFR Part 1329, for the centers, by existing centers for independent living to serve underserved areas, and for projects to build the capacity of centers for independent living to deliver independent living services. Applications for the funds must 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. Services provided should assist people with disabilities to move toward self-sufficiency, including, but not limited to, support for accessing transportation and health care, obtaining employment, community living, nursing home transition, information and referral services, education, youth transition services, veterans, and stigma reduction activities and community education. This includes the independent living guide services that specifically focus on economic self-sufficiency.


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(2) In partnership with service providers, the department shall provide a report to the standard report recipients by March 1 of the current fiscal year on direct customer and system outcomes and performance measures.

(3) The unexpended funds appropriated in part 1 for centers for independent living are designated as a work project appropriation, and any unencumbered or unallotted funds must not lapse at the end of the fiscal year and must be available for expenditures 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 project is to support the state plan for independent living.

(b) The project will be accomplished by utilizing centers for independent living.

(c) The total estimated cost of the project is $20,218,600.00.

(d) The tentative completion date is September 30, 2026.

Sec. 907. (1) The appropriation in part 1 for the bureau of services for blind persons includes funds for case services. These funds may be used for tuition payments for blind clients.

(2) Revenue collected by the bureau of services for blind persons and from private and local sources that is unexpended at the end of the fiscal year must carry forward to the subsequent fiscal year.

Sec. 908. The bureau of services for blind persons 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


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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.

Sec. 909. (1) The funds appropriated in part 1 for a regional or subregional library must 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) To receive subregional state aid as appropriated in part 1, a regional or subregional library's fiscal agency must 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 includes the regional or subregional library's fiscal agency, the reduction must not be interpreted as a reduction in local support and must 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 includes 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 must not be interpreted as a reduction in local support and must not disqualify a regional or subregional library from receiving state aid under part 1.


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COMMISSIONS

Sec. 951. From the funds appropriated in part 1, the office of global Michigan is to coordinate with the Asian Pacific American affairs commission, the Commission on Middle Eastern American affairs, and the Hispanic/Latino commission of Michigan to produce a report by January 31 to the standard report recipients. The report must include, but is not limited to, the following:

(a) Total number of people with whom each commission directly interacts through programming.

(b) Total number of public events that each commission conducted.

(c) Description of the activities that the commissions initiated to promote cooperation between the commissions.

(d) A list of any other commissions that interact with the office of global Michigan.

(e) Programmatic costs of each commission.

Sec. 952. An expenditure of funds appropriated in part 1 by the Asian Pacific American affairs commission, the commission on Middle Eastern American affairs, the Hispanic/Latino commission of Michigan, or any other commission within the department for a commission event must be directly related to the mission statement of that commission.

Sec. 953. The office of global Michigan must produce a report by January 31 to the standard report recipients. The report may include other information, but it must include all of the following:

(a) The number of individuals served through each major program and activity.


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(b) The number of refugee arrivals, the job placement rate of those refugees actively receiving services under the global Michigan grants, and the average wage and initial job placements for those refugees.

(c) A list of the activities that the office has conducted to attract and retain international, advanced degree, and entrepreneurial talent.

(d) A list of goals for the office and the metric used to determine if each goal is achieved.

 

ONE-TIME APPROPRIATIONS

Sec. 1000. (1) From the funds appropriated in part 1 for ARISE Michigan, the department shall award grant to nonpartisan community groups for 1 or more of the following purposes:

(a) Community events.

(b) Giveaways.

(c) Community resources.

(d) Community beautification.

(e) Meeting location funding.

(f) Municipal library improvements.

(2) All grants must be awarded on a competitive basis with priority given to applicants in distressed communities. An awardee must not receive more than 1 grant under this section. The department shall not award more than 1% of the total appropriation under this section to a single grant recipient.

(3) The department shall not use any of the funds appropriated under this section for administration.

Sec. 1001. From the funds appropriated in part 1 for behavioral/mental health worker scholarship, the department shall


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allocate funds to support a scholarship program for behavioral or mental health students or existing workers seeking advanced degrees or certifications in this state. The department shall develop application guidelines and require necessary documentation to administer this section. The department may partner with other departments or nonprofit organizations to assist in administering scholarships.

Sec. 1002. (1) From the funds appropriated in part 1 for business attraction and workforce development, the department shall award grants for the following purposes:

(a) Workforce training focused on new technologies.

(b) Infrastructure improvements.

(c) Marketplace and business corridor development.

(d) Innovation center support.

(e) Business resource center support.

(f) Small business corridor development.

(g) Business district investment.

(2) Except for the grants awarded under subsections (4) to (7) all grants must be awarded on a competitive basis with priority given to applicants in distressed communities. An awardee must not receive more than 1 grant under this section. The department shall not award more than 10% of the total appropriation under this section to a single grant recipient.

(3) The department shall not use any of the funds appropriated under this section for administration.

(4) From the funds appropriated in part 1 for business attraction and workforce development, $100.00 must be awarded to an alliance of interprofessional partners, organizations, and health centers to increase recruitment, training, and retention of health


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professionals to increase access to primary care. Funds must be used to increase the clinical placements for health professional students in rural and underserved areas, strengthen interdisciplinary scholars programming, conduct a state-wide clinical training capacity survey, and expand pipeline programs throughout the state in the rural and underserved areas.

(5) From the funds appropriated in part 1 for business attraction and workforce development, $100.00 must be allocated to Michigan Works! to support youth career exploration initiatives with a focus on healthcare.

(6) From the funds appropriated in part 1 for business attraction and workforce development, $100.00 must be allocated to a statewide nonprofit foundation to support a scholarship program for nursing students or existing nurses seeking advanced degrees or certifications in this state.

(7) From the funds appropriated in part 1 for business attraction and workforce development, $100.00 must be awarded to a statewide business network to support employment-centric social enterprises with direct grant, technical assistance, and programming.

Sec. 1003. Funds appropriated in part 1 for community center grants must be awarded to community centers that applied for community center grants under section 501 of 2023 PA 321, but did not receive a grant under that program.

Sec. 1004. (1) From the funds appropriated in part 1 for community revitalization and municipal supports, the department shall award grants for the following purposes:

(a) Downtown development authority or downtown improvements.

(b) The creation or update of, or investment in municipal


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master plans.

(c) Municipal facility improvements.

(d) Municipal infrastructure renovations or improvements.

(e) Court or jail rehabilitation.

(f) Municipal library improvements.

(g) Distressed community facade improvements.

(2) All grants must be awarded on a competitive basis with priority given to applicants in distressed communities. An awardee must not receive more than 1 grant under this section. The department shall not award more than 10% of the total appropriation under this section to a single grant recipient.

(3) The department shall not use any of the funds appropriated under this section for administration.

Sec 1005. (1) Funds appropriated in part 1 for CTE equipment and training grants must be allocated to career and technical education programs to purchase new equipment for training programs. The department may work with the department of education to administer grants. Except for the grants awarded under subsections (2) and (3), all grants must be awarded on a competitive basis with priority given to applicants in distressed communities. An awardee must not receive more than 1 grant under this section. The department shall not award more than 10% of the total appropriation under this section to a single grant recipient.

(2) From the funds appropriated in part 1 for CTE equipment and training grants, $100.00 must be allocated for training in the construction and energy industries.

(3) From the funds appropriated in part 1 for CTE equipment and training grants, $100.00 must be allocated to support specialized training for lead service line replacement, expand


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pilot career and technical education programs, and build capacity for pre-apprenticeship and apprenticeship programs.

Sec. 1006. (1) From the funds appropriated in part 1 for cultural vibrancy grants, the department shall award grants for the following purposes:

(a) Cultural downtown improvements.

(b) Cultural programming.

(c) Cultural center support.

(d) Mural or art promotion.

(e) Improvements to operas, theaters, symphonies, or performing hall or grounds.

(f) Improvements to museums, zoos, aquariums, galleries, or science centers.

(g) Infrastructure improvements.

(2) All grants must be awarded on a competitive basis with priority given to applicants in distressed communities. An awardee must not receive more than 1 grant under this section. The department shall not award more than 10% of the total appropriation under this section to a single grant recipient.

(3) The department shall not use any of the funds appropriated under this section for administration.

Sec. 1007. From the funds appropriated in part 1 for tech innovation hubs, $100.00 must be allocated to technical innovation centers to support matching available federal dollars to transform them into globally competitive innovation centers for the next decade.

Sec. 1008. From the funds appropriated in part 1 for Focus: HOPE, $1,000,000.00 must be awarded to Focus: HOPE for 1 or more of the following purposes:


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(a) Education and workforce development programming.

(b) Early childhood education.

(c) Youth development.

(d) Food assistance.

(e) Community empowerment and advocacy.

Sec. 1009. (1) Subject to subsection (3), from the funds appropriated in part 1 for housing affordability match, the department may use up to $50,000,000.00 to leverage nonstate matching funds and supplement housing affordability programs under section 1009.

(2) The department shall solicit nonstate funding opportunities from community partners, private foundations, faith-based organizations, or other governmental entities to maximize the funds appropriated in part 1 for housing affordability.

(3) The department shall prioritize the following match recipients:

(a) Veterans.

(b) Senior citizens.

(c) Human trafficking victims.

(d) Low-income individuals.

(e) Workforce development participants.

(f) Individuals who are aging out of foster care.

(g) Adult foster care facilities.

(h) Single-parent households with minor children.

(i) Mixed-income developments.

(4) The department shall not use or obligate funds appropriated in part 1 for housing affordability match unless all of the following conditions have been met:

(a) The department has secured 1 to 1 fund matching with


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nonstate funding sources to match the funds from part 1 for housing affordability match. If a nonstate match is secured, the department shall notify the state budget director.

(b) Not later than 10 days after receiving notice from the department under subdivision (a), the state budget director shall notify the chairs of the house and senate appropriations committees and include all of the following information in the notice:

(i) The amount and sources of nonstate funds secured to match the funds appropriated in part 1 for housing affordability match.

(ii) A description of how nonstate funds will be allocated and how the allocation of the funds will support the housing goals of this state and the programs created under section 1009.

(iii) The planned allocation of housing affordability match funds and how the allocation of the funds will supplement programs created under section 1009.

(c) The department may begin allocating housing affordability match funds not less than 30 days after the chairs of the house and senate appropriations committee have been notified by the state budget director under subdivision (b) of the match secured.

(d) The department shall only use from part 1 an equal amount of nonstate funds secured for housing affordability programs that support this state's housing goals.

(5) Nonstate funds secured by the department may be in the form of a grant to the department, a cooperative agreement, or a memorandum of understanding to demonstrate a financial commitment towards supporting this state's housing goals. Nonstate funds used to match funds in this section may be administered by another entity if the department and state budget director satisfactorily meet the requirements of subsection (3).


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(6) If the department is notified that the conditions of a nonstate funding committed are not fully completed, the department shall notify the state budget director and chairs of house and senate Appropriations committees within 3 business days.

(7) The department shall submit quarterly reports to the standard report recipients that provide all of the following information:

(a) Partners providing nonstate match, including the amount and form of the match and any requirements of the partner with respect to the matching funds.

(b) Partners involved and meetings held in the previous quarter.

(c) Outcomes from meetings held in the previous quarter.

(d) Actionable plans determined at meetings and progress made on implementing those plans.

(e) Applications made available to eligible grantees.

(f) Applicants seeking grants under this section and the status of those grant applications.

(g) Details on people and communities assisted.

(h) Applicants awarded grants under this section, including the date, location, and the amount of the approved match.

(8) The unexpended funds appropriated in part 1 for housing affordability match are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures 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 project is to assist with housing


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affordability.

(b) The project will be accomplished by utilizing state employees, contracts, or grants.

(c) The estimated cost of the project is $50,000,000.00.

(d) The tentative completion date is September 30, 2029.

Sec. 1010. (1) From the funds appropriated in part 1 for housing affordability programs, the department shall administer 1 or more programs that provide grants, loans, or other incentives in accordance with state law to persons for the purpose of increasing access to affordable housing, supplementing existing housing programs, and leveraging external resources to support housing goals in this state.

(2) Funds awarded to a person under this section must be used for 1 or more of the following:

(a) To support closing the gap between the price of affordable homeownership and costs to develop or rehabilitate housing stock.

(b) To increase affordable low-income and middle-income housing stock, which may include missing middle and workforce housing.

(c) To increase homeownership rates and grow middle class generational wealth through home ownership.

(d) To coordinate and leverage funds to support broader community revitalization, talent, or placemaking initiatives.

(e) To reverse the impact of redlining.

(f) To support first generation homeownership, which may include assistance with down payments, closing costs, and costs to reduce interest rates on mortgage payments.

(3) In the development of program guidelines, the department shall consult with housing stakeholders, including, but not limited


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to, the following:

(a) Other governmental entities.

(b) Housing advocates and nonprofit organizations that support affordable housing access for residents.

(c) Construction and building trade organizations.

(d) Academic professionals with expertise in housing best practices.

(4) The department shall ensure that each housing region of this state is represented in the award of funds under this section. In awarding funds under this section, the department shall prioritize allocations to communities or census tracts that will revitalize existing neighborhoods and corridors or support a broader community revitalization, talent, or placemaking initiatives.

(5) The department may retain not more than 2% from funds appropriated in part 1 for housing affordability programs to support costs to administer this section.

(6) From the funds appropriated in part 1 for housing affordability programs, the department shall use at least $45,000,000.00 to establish a grant program to provide down payment assistance or other direct financing supports for eligible residents. The department shall establish guidelines for the administration of the grant program under this subsection, which must do all of the following:

(a) Establish regional or subregional income thresholds for qualifying residents based on the area median income.

(b) Require a grantee to repay the full amount of the grant if the home is sold or used primarily as a rental within 5 years of the closing date.


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(c) Require a grantee to complete a homebuyer education class approved by the department that covers issues related to homeownership, including, but not limited to, any of the following:

(i) How to avoid loan and scams.

(ii) Basic financial literacy and budget counseling.

(iii) Financial assistance in emergencies.

(iv) Repair programs available.

(v) Property tax overview, what to expect, and how to plan.

(d) Require a grantee to be a first-time home buyer or an individual who has not bought a home in the 20 years immediately preceding the grant application.

(e) Require the home subject to the financial assistance to be the grantee's primary residence.

(f) Provide that the grant may be used by the grantee to buy down an interest rate, decrease the amount the grantee owes, or a combination thereof.

(g) Prohibit the award of grants to individuals who own other property.

(h) Require the grant to be restricted to the amount needed to reasonably address the value gap.

(i) Establish construction or rehabilitation criteria for homes supported by the grants.

(7) From the funds appropriated in part 1 for housing affordability programs, the department shall allocate at least $2,000,000.00 for weatherization training grants. Grants must be allocated to nonprofit organizations, labor organizations, job training centers or educational institutions that train workers for weatherization and retrofit careers. The department shall award grants through a competitive process that prioritizes grant


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recipients servicing minority, marginalized, and low-income residents of this state. The department may not award more than 1 grant to a single nonprofit organization, labor organization, training center, or educational institution. The department must award grants to at least 4 applicants.

(8) From the funds appropriated in part 1 for housing affordability programs, the department shall allocate at least $30,000,000.00 to establish a grant program for housing stabilization activities. The department shall award grants to counties, state or local land banks, public housing agencies, nonprofit organizations that support affordable or attainable housing access for residents, community action agencies, or to municipalities that currently have, or enter into, a partnership with nonprofits that support affordable housing or legal assistance for eviction prevention or property tax appeal. A person awarded a grant must use the funds for 1 of more of the following:

(a) Blight elimination activities, including, any of the following under subparagraphs (i), (ii), and (iii), and subject to subparagraph (iv):

(i) Demolition of vacant residential, commercial, or industrial structures, including reasonable and necessary costs directly related to demolition.

(ii) Stabilization of vacant residential, commercial, or industrial structures identified for future rehabilitation.

(iii) Rehabilitation or development of vacant publicly-owned structures, which must prioritize rehabilitation to historically designated structures, including, but not limited to, buildings, schools, and residential homes.

(iv) The department shall coordinate the award of grants for


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blight elimination activities with the state and local land bank authorities.

(b) Foreclosure prevention programs that mitigate tax foreclosures and provide financial counseling services to eligible residents who are at risk of foreclosure and forfeiture, if the program is approved by the department and all of the following apply:

(i) The program has financial counseling requirements for receiving foreclosure assistance.

(ii) The program demonstrates that eligible residents are informed about existing homeowner credits and exemptions, including the poverty and principal residence exemptions.

(iii) The relief amounts available to each qualified homeowner under the program are based on the amount of property taxes in arrears and length of delinquency.

(iv) The department shall require demonstration of a local match to receive a foreclosure prevention grant.

(v) Demonstration by grantees that eligible residents are informed about existing state and local programs and policies which homeowners may use to avoid tax foreclosure with payment plans and other intervention actions.

(vi) If the grantee is a nonprofit, funded organizations should have the capacity to determine legal challenges to tax foreclosure and advise and represent or be able to timely refer to appropriate, free legal services.

(c) Public and supportive housing activities for low-income residents, including:

(i) Eviction prevention assistance, counseling, or emergency rental assistance.


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(ii) Expansion of public housing, site-based section 8, section 8 vouchers, or permanent supportive housing for eligible individuals.

(iii) Code enforcement activities.

(iv) Costs to transition eligible residents out of public housing that has been identified as hazardous or not meeting local building or public health standards.

(d) No more than 10% of the total appropriation under this subsection may go to 1 awardee.

(9) From the funds appropriated in part 1 for housing affordability programs, the department shall use at least $20,000,000.00 for homeowner repair programs. The department shall issue grants to other governmental entities or nonprofit organizations that currently provide weatherization, preweatherization, or retrofitting home services to a majority of low-income, underserviced, minority populations or implement a state program in regions in which a local partner does not exist to administer a homeowner repair program that is consistent with the following:

(a) The department shall prioritize allocations that allow for whole home retrofits by using funds to complete home repair projects that are required before initiating other whole-home retrofit or weatherization projects. The intent of the prioritization is for funds under this subsection to expand services and address deferred homes that would otherwise be denied under the current federal and state limitations for weatherization or other whole-home retrofit or weatherization projects.

(b) The department shall coordinate the allocation of homeowner repairs funds with similar home repair, weatherization,


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and environmental hazard mitigation programs administered by state agencies to seek a streamlined approach and single access point for homeowners and the public.

(c) The department shall require a local match component equal to at least 50% of the grant provided to a grantee under this subsection.

(d) The department shall establish a working group with at least representatives from the departments of Health and Human Services and the department of Environment, Great Lakes, and Energy to maximize the value of funds administered by each department for home repairs, weatherization, and environmental hazard mitigation.

(e) The department shall require a local match component equal to at least 30% of the grant provided to a grantee under this subsection.

(f) Recipients of funds shall use homeowner repair program funding on their primary residence.

(g) No more than 10% of the total appropriation under this subsection can go to 1 awardee.

(10) From the funds appropriated in part 1 for housing affordability programs, the department shall use at least $3,000,000.00 for innovative housing proposals. Grants awarded under this subsection must align with existing state housing plans. Individual grant awards under this subsection must not exceed $1,000,000.00. The department shall develop and administer a grant program for governmental entities or nonprofit organizations to seek grants for affordable housing initiatives that support front line workers, including, but not limited to, any of the following:

(a) Healthcare workers.

(b) Teachers.


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(c) Senior citizens.

(d) Adult foster care providers.

(e) Individuals aging out of foster care.

(f) Veterans in this state.

(11) The department shall submit quarterly reports to the standard report recipients that provide all of the following information:

(a) Partners involved and meetings held in the previous quarter.

(b) Outcomes from meetings held in the previous quarter.

(c) Actionable plans determined at meetings and progress made on implementing those plans.

(d) Applications made available to eligible grantees.

(e) Applicants seeking grants under this section and the status of those grant applications.

(f) Details on people and communities assisted.

(g) Where applicable, applicants awarded grants under this section, the amount awarded, and the location or service area of the grantees, and the number of individuals serviced.

(12) The unexpended funds appropriated in part 1 for housing affordability programs are designated as a work project appropriation, and any unencumbered or unallotted funds must not lapse at the end of the fiscal year and must be available for expenditures 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 project is to assist with equitable housing affordability and accessibility.

(b) The project will be accomplished by utilizing state


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employees, contracts, or grants.

(c) The estimated cost of the project is $100,000,000.00.

(d) The tentative completion date is September 30, 2029.

Sec. 1011. (1) The funds appropriated in part 1 for the Michigan innovation fund must be expended for activities as described in the Michigan early stage venture investment act of 2003, 2003 PA 296, MCL 125.2231 to 125.2263.

(2) The Michigan strategic fund shall develop program guidelines and eligibility criteria for the program and shall post the information on its publicly accessible website. No less than $6,000,000.00 of the appropriated funds must be used to support underrepresented entrepreneurs as defined by the Michigan strategic fund.

(3) The Michigan strategic fund shall make awards to universities, economic development organizations, nonprofit organizations, and other investment vehicles or entities, as determined by the Michigan strategic fund, in the creation and administration of the program.

Sec. 1012. From the 1-time funds appropriated in part 1 for the Michigan office of rural prosperity grants, the department shall operate a grant program to support community activities, including, but not limited to, enhancing or elevating broadband, housing, infrastructure, education, workforce development, and addressing other needs uniquely experienced in rural areas of this state.

Sec. 1013. (1) From the funds appropriated in part 1 for minority owned business support, the department shall award grants to minority-owned businesses or nonprofit business organizations to implement small business development initiatives for minority-owned


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businesses in this state.

(2) Funds awarded to nonprofit business organizations may be used for activities that support or develop small businesses, including, but not limited to, technical assistance, grants, incubation, access to capital, or other financing opportunities.

(3) Subject to any existing regulations, the department may award direct grants to eligible small businesses in this state. The department shall ensure any direct business grants have clear metrics to grow small business or job creation.

(4) The department shall seek opportunities to award funds in a geographically diverse manner for any eligible activities under this section.

(5) The department shall issue a report to the house and senate appropriations committees and post on their website not later than September 30 of each year, until funds have been expended. At a minimum, the report must contain all of the following information:

(a) The number of awards granted under this section.

(b) The amount of each award.

(c) The recipient and purpose of each award.

(d) Any recommendations to improve the future distribution of funds to eligible entities under this section.

(6) The department may not retain more than 2% of the total appropriation under this section to administer this section or to promote the availability of funds.

(7) The unexpended funds appropriated in part 1 for statewide minority business and entrepreneurial support initiatives are designated as a work project appropriation, and any unencumbered or unallotted funds must not lapse at the end of the fiscal year and


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must be available for expenditures 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 project is to implement statewide minority business and entrepreneurial support initiatives.

(b) The project will be accomplished by utilizing state employees, the MEDC, or contracts.

(c) The total estimated cost of the project is $10,000,000.00.

(d) The tentative completion date is September 30, 2029.

Sec. 1014. (1) From the funds appropriated in part 1 for parks and recreational grants, the department shall award grants for the following purposes:

(a) Trail development.

(b) Nature center improvements.

(c) Park improvements.

(d) Foot bridge construction or development.

(e) Wi-Fi accessibility.

(f) Park and greenway infrastructure development.

(g) Recreation improvements.

(h) Community gardens.

(2) All grants must be awarded on a competitive basis with priority given to applicants in distressed communities. An awardee must not receive more than 1 grant under this section. The department shall not award more than 10% of the total appropriation under this section to a single grant recipient.

(3) The department shall not use any of the funds appropriated under this section for administration.

Sec. 1015. (1) The funds appropriated in part 1 for short-term


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loan grants must be used by the department to operate a grant program for short-term lenders that meet the requirements of this section to provide lending to residents of this state.

(2) The department shall develop program guidelines, eligible criteria, and an application process for organizations to provide lending to individuals with a demonstrated financial hardship or need.

(3) The department shall award grants to organizations that have a license under section 12 of the deferred presentment service transactions act, 2005 PA 244, MCL 487.2132 or are a bank, credit union, community development financial institution, or nonprofit organization licensed and regulated under state or federal law. The lender must have at least 1 physical location in this state and serve residents of this state.

(4) Lenders must use grants to provide short-term loans of not more than $1,200.00 to individuals with a demonstrated financial hardship or need. The annual percentage rate on the loan must not be more than 36%. Lenders that receive grants under this program may use the interest generated off of the loans from the grants received to issue additional loans under the requirements of this section.

(5) If an organization no longer complies with this program then the lender must return the grant amount to the department.

(6) The department may not use more than 2% of the total appropriation under this section for administration of the program and may not use more than 5% of the total appropriation under this section for marketing and outreach.

(7) The department shall submit quarterly reports to the standard report recipients that provide all of the following


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information:

(a) Grants issued to each grant recipient that received a grant under this program.

(b) The number individuals serviced by each grant recipient.

(c) The percentage of loans paid back to each grant recipient.

(d) Any grant recipients that have returned grants to the department and are no long participating in the program.

(e) Any feedback from grant recipients on the program.

(8) After the first year of the program, the department is required to submit only an annual report by March 15 that includes the information required in subsection (7).

(9) The unexpended funds appropriated in part 1 for short-term loan grants are designated as a work project appropriation, and any unencumbered or unallotted funds must not lapse at the end of the fiscal year and must be available for expenditures 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 project is to provide grants to eligible applicants.

(b) The project will be accomplished by using state employees, contracts, or grants.

(c) The estimated cost of the project is $2,500,000.00.

(d) The tentative completion date is September 30, 2029.

Sec. 1016. (1) From the funds appropriated in part 1 for public health and safety grants, the department shall award grants for the following purposes:

(a) Disaster preparedness and repair.

(b) Systems or software upgrades.


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(c) Emergency or dispatch upgrades.

(d) Response vehicle purchase.

(e) Programming.

(f) Emergency equipment.

(g) Station improvements or relocation.

(h) Operation center upgrades.

(i) De-escalation or implicit bias training.

(2) All awards must be awarded on a competitive basis with priority given to applicants in distressed communities. An awardee must not receive more than 1 grant under this section. The department shall not award more than 10% of the total appropriation under this section to a single grant recipient.

(3) The department shall not use any of the funds appropriated under this section for administration.

Sec. 1017. (1) From the funds appropriated in part 1 for critical infrastructure grants the department shall award grants for the following purposes:

(a) Bridge reconstruction or improvements.

(b) Parking lot improvements.

(c) Road sewage repair.

(d) Road reconstruction or improvements.

(e) Grade separation or rail improvements.

(f) Traffic signals.

(g) Drain repair or replacement.

(2) All grants must be awarded on a competitive basis with priority given to applicants in distressed communities. An awardee must not receive more than 1 grant under this section. The department shall not award more than 10% of the total appropriation under this section to a single grant recipient.


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(3) The department shall not use any of the funds appropriated under this section for administration.

Sec. 1018. (1) From the funds appropriated in part 1 for talent attraction and youth development grants, the department shall award grants for the following purposes:

(a) STEM women and minority groups.

(b) Youth innovation centers.

(c) Programming training programs.

(d) Mixed-use housing or economic development small business accelerator support.

(e) Before and after school programs.

(2) Except for the grant awarded under subsection (4), all grants must be awarded on a competitive basis with priority given to applicants in distressed communities. An awardee must not receive more than 1 grant under this section. The department shall not award more than 10% of the total appropriation under this section to a single grant recipient.

(3) The department shall not use any of the funds appropriated under this section for administration.

(4) From the funds appropriated in part 1 for talent attraction and youth development grants, $100.00 must be awarded to an automotive, mobility, and technology cluster association to attract and retain high-tech talent to support the automotive and mobility industry in this state.

Sec. 1019. The funds appropriated in part 1 for tree safety grants must be allocated by the department to municipalities that have a tree safety program or have had a tree safety program within the previous 5 years to support tree safety initiatives. The department shall give priority to municipalities that have


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previously applied for funding in previous years, but have not been awarded funds for tree safety programs. An awardee must not receive more than 1 grant under this section. The department shall not award more than 10% of the total appropriation under this section to a single grant recipient.