part 1

line-item appropriations

Sec. 101. There is appropriated for the department of natural resources for the fiscal year ending September 30, 2026, from the following funds:

DEPARTMENT OF NATURAL RESOURCES
APPROPRIATION SUMMARY
Full-time equated unclassified positions	6.0
Full-time equated classified positions	2,569.2

GROSS APPROPRIATION		$	636,327,000
Appropriated from:
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers			208,100
ADJUSTED GROSS APPROPRIATION		$	636,118,900
Federal revenues:
Total federal revenues			100,214,800
Special revenue funds:
Total local revenues			0
Total private revenues			7,609,200
Total other state restricted revenues			446,485,300
State general fund/general purpose		$	81,809,600
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions	6.0
Full-time equated classified positions	152.1
Unclassified salaries--FTEs	6.0	$	993,600
Accounting service center			1,729,700
Executive direction--FTEs	11.6		2,409,400
Finance and operations--FTEs	113.5		19,796,800
Gifts and pass-through transactions			5,003,600
Legal services--FTEs	4.0		720,000
Minerals Management--FTEs	19.0		2,962,900
Natural resources commission			77,100
Office of public lands--FTEs	4.0		1,481,800
Property management			3,573,500
GROSS APPROPRIATION		$	38,748,400

Appropriated from:
Interdepartmental grant revenues:
IDG, land acquisition services-to-work orders			208,100
Federal revenues:
Federal funds			833,600
Special revenue funds:
Private funds			5,003,600
Deer habitat reserve			168,800
Forest development fund			4,736,200
Forest land user charges			8,100
Forest recreation account			55,300
Game and fish protection account			8,615,000
Land exchange facilitation and management fund			4,560,500
Local public recreation facilities fund			229,200
Marine safety fund			901,400
Michigan natural resources trust fund			1,696,400
Michigan state parks endowment fund			4,403,400
Nongame wildlife fund			14,100
Off-road vehicle safety education fund			700
Off-road vehicle trail improvement fund			323,900
Public use and replacement deed fees			30,600
Recreation improvement account			89,200
Snowmobile registration fee revenue			51,200
Snowmobile trail improvement fund			133,400
Sportsmen against hunger fund			500
State park improvement account			2,237,200
Turkey permit fees			81,200
Waterfowl fees			3,400

Waterways account			1,017,800
Wildlife resource protection fund			44,800
State general fund/general purpose		$	3,300,800
Sec. 103. DEPARTMENT INITIATIVES
Full-time equated classified positions	21.0
Great Lakes restoration initiative		$	2,904,500
Hunters feeding Michigan			1,400,000
Hunting and fishing recruitment, education, and safety			2,800,000
Invasive species prevention and control--FTEs	21.0		7,143,800
GROSS APPROPRIATION		$	14,248,300
Appropriated from:
Federal revenues:
Federal funds			2,904,500
Game and fish protection account			4,200,000
State general fund/general purpose		$	7,143,800
Sec. 104. COMMUNICATION AND CUSTOMER SERVICES
Full-time equated classified positions	142.8
Cultural resource management--FTEs	5.5	$	1,022,600
Marketing and outreach--FTEs	95.3		20,745,900
Michigan historical center--FTEs	42.0		6,838,300
Michigan wildlife council			2,600,000
GROSS APPROPRIATION		$	31,206,800
Appropriated from:
Federal revenues:
Federal funds			3,369,200
State park improvement, federal			322,200
Special revenue funds:

Forest development fund			176,100
Forest recreation account			18,800
Game and fish protection account			11,902,800
Land exchange facilitation and management fund			52,200
Marine safety fund			40,400
Michigan historical center operations fund			1,219,800
Michigan state parks endowment fund			121,800
Nongame wildlife fund			12,200
Off-road vehicle trail improvement fund			120,200
Recreation passport fees			839,800
Snowmobile registration fee revenue			21,500
Snowmobile trail improvement fund			106,700
Sportsmen against hunger fund			250,000
State park improvement account			4,362,500
Waterways account			166,400
Wildlife management public education fund			2,600,000
Youth hunting and fishing education and outreach fund			45,200
State general fund/general purpose		$	5,459,000
Sec. 105. WILDLIFE MANAGEMENT
Full-time equated classified positions	235.5
Natural resources heritage--FTEs	9.0	$	661,800
Wildlife management--FTEs	226.5		55,870,000
GROSS APPROPRIATION		$	56,531,800
Appropriated from:
Federal revenues:
Federal funds			26,642,700
Special revenue funds:

Private funds			315,700
Cervidae licensing and inspection fees			85,100
Deer habitat reserve			1,824,600
Forest development fund			280,800
Game and fish protection account			20,452,600
Nongame wildlife fund			483,300
Pheasant hunting license fees			200,000
Turkey permit fees			1,407,900
Waterfowl fees			155,000
State general fund/general purpose		$	4,684,100
Sec. 106. FISHERIES MANAGEMENT
Full-time equated classified positions	239.5
Aquatic resource mitigation--FTEs	2.0	$	737,200
Cold water management			2,222,100
Fish production--FTEs	65.0		12,944,300
Fisheries resource management--FTEs	172.5		31,043,200
GROSS APPROPRIATION		$	46,946,800
Appropriated from:
Federal revenues:
Federal funds			12,315,800
Special revenue funds:
Private funds			136,700
Fisheries settlement			737,100
Game and fish protection account			32,528,700
Invasive species fund			100
State general fund/general purpose		$	1,228,400
Sec. 107. LAW ENFORCEMENT
Full-time equated classified positions	299.0

Body cameras for conservation officers--FTEs	5.0	$	860,700
General law enforcement--FTEs	294.0		57,311,100
GROSS APPROPRIATION		$	58,171,800
Appropriated from:
Federal revenues:
Federal funds			7,065,800
Special revenue funds:
Cervidae licensing and inspection fees			53,400
Forest development fund			45,400
Forest recreation account			72,800
Game and fish protection account			21,815,700
Marine safety fund			3,034,300
Michigan state parks endowment fund			71,400
Off-road vehicle safety education fund			175,400
Off-road vehicle trail improvement fund			3,837,200
Snowmobile registration fee revenue			726,800
State park improvement account			72,800
Waterways Account			21,700
Wildlife resource protection fund			1,176,700
State general fund/general purpose		$	20,002,400
Sec. 108. PARKS AND RECREATION DIVISION
Full-time equated classified positions	1,105.8
Forest recreation and trails--FTEs	87.0	$	14,560,000
MacMullan Conference Center--FTEs	15.0		1,267,800
Michigan conservation corps			935,100
Nature awaits--FTEs	13.8		2,257,100
Recreational boating--FTEs	182.0		24,547,600
State parks--FTEs	808.0		115,672,600

GROSS APPROPRIATION		$	159,240,200
Appropriated from:
Federal revenues:
Federal funds			144,200
Michigan state waterways fund, federal			2,129,600
Special revenue funds:
Private funds			428,300
Forest recreation account			9,075,900
Game and fish protection account			0
MacMullan Conference Center account			1,267,800
Michigan state parks endowment fund			11,496,300
Off-road vehicle safety education fund			8,000
Off-road vehicle trail improvement fund			2,255,300
Pure Michigan trails fund			100
Recreation improvement account			590,700
Recreation passport fees			7,125,500
Snowmobile registration fee revenue			17,200
Snowmobile trail improvement fund			2,050,000
State park improvement account			92,569,500
State park improvement account - Belle Isle subaccount			875,000
Waterways Account			22,444,600
State general fund/general purpose		$	6,762,200
Sec. 109. MACKINAC ISLAND STATE PARK COMMISSION
Full-time equated classified positions	17.0
Historical facilities system--FTEs	13.0	$	1,937,300
Mackinac Island State Park operations--FTEs	4.0		343,700
GROSS APPROPRIATION		$	2,281,000

Appropriated from:
Special revenue funds:
Mackinac Island State Park fund			1,715,700
Mackinac Island State Park operation fund			137,800
State general fund/general purpose		$	427,500
Sec. 110. FOREST RESOURCES DIVISION
Full-time equated classified positions	356.5
Forest management and timber market development--FTEs	219.5	$	50,616,400
Wildfire protection--FTEs	137.0		23,222,200
GROSS APPROPRIATION		$	73,838,600
Appropriated from:
Federal revenues:
Federal funds			6,101,100
Federal national forest timber fund			9,114,700
Special revenue funds:
Private funds			1,624,900
Commercial forest fund			26,000
Fire equipment fund			668,700
Forest development fund			42,679,300
Forest land user charges			247,500
Game and fish protection account			842,300
Waterways account			55,000
State general fund/general purpose		$	12,479,100
Sec. 111. GRANTS
Dam management grant program		$	350,000
Deer habitat improvement partnership initiative			200,000
Federal - clean vessel act grants			400,000

Federal - forest stewardship grants		2,000,000
Federal - rural community fire protection		1,050,000
Federal - urban forestry grants		900,000
Fisheries habitat improvement grants		3,472,100
Grants to communities - federal oil, gas, and timber payments		3,450,000
Grants to counties - marine safety		4,724,700
National recreational trails		3,911,600
Nonmotorized trail development and maintenance grants		200,000
Off-road vehicle safety training grants		60,000
Off-road vehicle trail improvement grants		6,340,500
Recreation improvement fund grants		916,800
Recreation passport local grants		7,832,400
Snowmobile law enforcement grants		380,100
Snowmobile local grants program		7,090,400
Trail easements		700,000
Wildlife habitat improvement grants		1,502,500
GROSS APPROPRIATION	$	45,481,100
Appropriated from:
Federal revenues:
Federal funds		13,279,000
Special revenue funds:
Private funds		100,000
Deer habitat reserve		200,000
Game and fish protection account		4,974,600
Local public recreation facilities fund		7,832,400
Marine safety fund		3,057,300

Off-road vehicle safety education fund		60,000
Off-road vehicle trail improvement fund		6,340,500
Permanent snowmobile trail easement fund		700,000
Recreation improvement account		916,800
Snowmobile registration fee revenue		380,100
Snowmobile trail improvement fund		7,090,400
State general fund/general purpose	$	550,000
Sec. 112. INFORMATION TECHNOLOGY
Information technology services and projects	$	10,827,700
GROSS APPROPRIATION	$	10,827,700
Appropriated from:
Federal revenues:
Special revenue funds:
Commercial forest fund		2,100
Deer habitat reserve		61,600
Forest development fund		1,567,700
Forest land user charges		23,900
Forest recreation account		43,900
Game and fish protection account		3,953,800
Land exchange facilitation and management fund		30,600
Marine safety fund		168,600
Michigan natural resources trust fund		24,600
Michigan state parks endowment fund		1,357,600
Nongame wildlife fund		30,500
Off-road vehicle safety education fund		10,400
Off-road vehicle trail improvement fund		38,400
Pure Michigan trails fund		100
Recreation improvement account		49,200

Snowmobile registration fee revenue		11,600
Snowmobile trail improvement fund		75,500
Sportsmen against hunger fund		600
State park improvement account		1,516,200
Turkey permit fees		33,800
Waterfowl fees		3,300
Waterways account		507,500
Wildlife resource protection fund		42,100
Youth hunting and fishing education and outreach fund		2,000
State general fund/general purpose	$	1,272,100
Sec. 113. CAPITAL OUTLAY? (1) RECREATIONAL LANDS AND INFRASTRUCTURE
Federal - land and water conservation fund payments	$	12,900,000
Fisheries infrastructure		1,300,000
Local water trail grants		2,101,500
Off-road vehicle trail development and maintenance		3,000,000
Snowmobile trail development and maintenance		1,000,000
State game and wildlife area infrastructure		4,530,000
State parks repair and maintenance		41,505,400
Wetland restoration, enhancement, and acquisition		2,500,000
GROSS APPROPRIATION	$	68,836,900
Appropriated from:
Federal revenues:
Federal funds		14,025,000

Special revenue funds:
Private funds
Game and fish protection account		4,975,000
Michigan state parks endowment fund		4,600,000
Off-road vehicle trail improvement fund		3,000,000
Recreation passport fees		37,506,900
Snowmobile trail improvement fund		1,000,000
Waterfowl hunt stamp		230,000
State general fund/general purpose	$	3,500,000
(2) WATERWAYS BOATING PROGRAM
Local boating infrastructure maintenance and improvements	$	4,450,000
State boating infrastructure maintenance		10,517,400
GROSS APPROPRIATION	$	14,967,400
Appropriated from:
Federal revenues:
Federal funds		1,667,400
Michigan state waterways fund, federal		300,000
Special revenue funds:
Waterways account		13,000,000
State general fund/general purpose	$	0
Sec. 114. ONE-TIME APPROPRIATIONS
Dam safety and management	$	15,000,000
Elberta Waterfront Community Conservation Project		100
Extreme weather forestry restoration activities		100
GROSS APPROPRIATION	$	15,000,200
Appropriated from:

Special revenue funds:
Private funds		0
State general fund/general purpose	$	15,000,200

part 2

provisions concerning appropriations

for fiscal year 2025-2026

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, 2026, total state spending under part 1 from state sources is $528,294,900.00 and state spending under part 1 from state sources to be paid to local units of government is $23,160,200.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF NATURAL RESOURCES
Dam management grant program			175,000
Fisheries habitat improvement grants			347,200
Grants to counties ? marine safety			3,057,300
Invasive species prevention and control			2,385,200
Local boating infrastructure maintenance and improvements			4,450,000
Local water trails			2,101,500
Nonmotorized trail development and maintenance grants			100,000
Off-road vehicle safety training grants			60,000
Off-road vehicle trail improvement grants			1,204,400
Recreation improvement fund grants			916,800

Recreation passport local grants		7,832,400
Snowmobile law enforcement grants		380,100
Wildlife habitat improvement grants		150,300
TOTAL	$	23,160,200

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 natural resources.

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

(d) "IDG" means interdepartmental grant.

(e) "Standard report recipients" means the senate appropriations subcommittee on agriculture and natural resources, the house appropriations subcommittee on agriculture and rural development and natural resources, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.

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. 206. 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.

(d) Preference must be given to goods or services, or both, that are manufactured in facilities that employ union members.

Sec. 207. 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 and the department is exercising its authority as provided by law.

Sec. 208. Consistent with section 217 of the management and budget act, 1984 PA 431, MCL 18.1217, the department shall prepare a report on out-of-state 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. 209. 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 services that the attorney general authorizes.

Sec. 210. 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 standard report recipients and to the chairpersons of the senate and house appropriations committees.

Sec. 211. In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $5,000,000.00 for state restricted contingency authorization. Amounts appropriated under this section 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. 212. 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.

payment description.

(d) The number of active department employees by job classification.

(e) Job specifications and wage rates.

Sec. 213. 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 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. 216. 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. 2023-1.

Sec. 217. 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 period. The report must be submitted to the senate and house

appropriations committees and to the standard report recipients.

Sec. 220. A department or agency required to submit a report under this part shall make each report readily accessible to the public and conspicuously post each required report on the department's or agency's Michigan.gov website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the department or agency's website, the department or agency shall maintain on its website all reports placed on the website from previous fiscal years.

Sec. 221. 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. 222. 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. 223. (1) General fund appropriations in part 1 shall not be expended for items if federal funding or private grant funding is available for the same expenditures.

(2) If the department is required to make a reduction in expenditures under section 395(1) or (2) of the management and budget act, 1984 PA 451, MCL 18.1395, for any appropriation under this part or part 1, the department must notify the standard report

recipients not later than 10 days after the reduction. The notification must include, but not be limited to, the following:

(a) A description of the fund source that is insufficient to support the expenditures being reduced and the amount of the reduction.

(b) A description of the cause for the reduction, if any such cause is known.

Sec. 224. 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 225. (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 the local health officer.

Sec. 226. (1) In addition to the money appropriated in part 1, there is appropriated, from the following state restricted funds and accounts of the Michigan conservation and recreation legacy fund, the following amounts to the following departments and officers:

(a) Department of technology, management, and budget:

Game and fish protection account	$	659,600
Waterways account		177,200
State park improvement account		158,300
Forest development fund		354,600

(b) Department of attorney general:

Game and fish protection account		$	387,600
Waterways account			153,600

Game and fish protection account		$	38,000
Waterways account			13,700

(d) Department of treasury:

Game and fish protection account	$	3,621,700
Waterways account		486,800
Michigan natural resources trust fund		3,289,700

(2) In addition to the money appropriated in part 1, there is appropriated from the following state restricted funds to the civil service commission the amount calculated for each fund pursuant to section 5 of article XI of the state constitution of 1963:

(a) Michigan conservation and recreation legacy fund.

(b) Forest development fund.

(d) Michigan state parks endowment fund.

(e) Michigan nongame fish and wildlife trust fund.

Sec. 227. Pursuant to section 43703(3) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.43703, there is appropriated from the Michigan game and fish protection trust fund to the game and fish protection account of the Michigan conservation and recreation legacy fund, $6,000,000.00 for the fiscal year ending September 30, 2026.

Sec. 228. The department may contract with or provide grants to local units of government, institutions of higher education, or nonprofit organizations to support activities authorized by appropriations in part 1. As used in this section, contracts and grants include, but are not limited to, contracts and grants for

research, wildlife and fisheries management, forest management, invasive species monitoring and control, and natural resource-related programs.

Sec. 229. To the extent permissible under section 261 of the management and budget act, 1984 PA 431, MCL 18.1261, preference must be given to goods or services, or both, that are energy efficient and minimize noise pollution, if they are competitively priced and of comparable quality.

Sec. 230. (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:

(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) To be eligible to receive a grant described in subsection (1), both of the following must occur:

(a) A recipient must submit the application under subsection (3) not later than 60 days after the effective date of this act.

(b) A recipient must be 1 of the following:

(i) A unit of local government, as that term is defined in section 115 of the management and budget act, 1984 PA 451, MCL 18.1115.

(ii) An institution of higher education.

(iii) A state agency, as that term is defined in section 115 of the management and budget act, 1984 PA 451, MCL 18.1115.

(iv) An entity registered with the department of licensing and regulatory affairs or the department of attorney general that has been in existence for at least the 12 months preceding the effective date of this act.

(v) Another entity that can demonstrate, through state or federal tax filings or other state or federal government records, that it has been in existence for at least the 12 months preceding the effective date of this act.

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

(a) Develop a standard application process using the electronic submission portal developed by the state budget office, grantee reporting requirements, and any other necessary documentation, including sponsorship information as specified under subsection (4). If the electronic submission portal identified in this subdivision is not fully functional by 60 days after the effective date of this act, the state budget office shall ensure that the standard application process and form are available promptly and paper submission is acceptable. The state budget office shall promptly submit application material received to the department for departmental review.

(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 and any other efforts 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. If additional information is needed, the 60-day deadline in subsection (2) is considered to have been met if a sponsor has been identified for that grant. If a grant recipient does not provide information sufficient to execute a grant agreement not later than 60 days after being notified by the department of grant approval, the department shall return funds associated with the grant to the state treasury.

(f) Make an initial disbursement of up to 50% of the grant to the grant recipient not later than 60 days after a grant agreement has been executed. Disbursements must be consistent with part II, chapter 10, section 200 of the Financial Management Guide.

(g) Disburse the funds remaining after the initial disbursement under subdivision (f) per the grant disbursement schedule in the executed grant agreement on a reimbursement basis after the grantee has provided sufficient documentation, as determined by the department, to verify that expenditures were made in accordance with the project purpose.

(4) The process for the identification and sponsorship of a

grant described in subsection (1) is as follows:

(a) Not later than the effective date of this act, the state budget office shall provide an initial list of grants that require legislative sponsorship to the legislature and shall make public an initial list of grants that likely will be sponsored by the department or by the state budget office.

(b) A sponsor of a grant described in subsection (1) must be a legislator, the department, or the state budget office.

(c) A legislative sponsor must be 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.

(d) Within 10 business days after the effective date of this act, the senate and house of representatives shall compile an initial list of legislative grant sponsors for their respective chambers and submit those compiled lists to the state budget office and the department, and the state budget office shall identify department or state budget office-sponsored grants. The state budget director may grant an extension of this deadline of not more than 30 days on a case-by-case basis. The state budget office shall make the compiled lists public within 14 business days after the effective date of this act.

(e) Not later than 60 days after the effective date of this act, the state budget office shall publish a final list of grants requiring sponsorship. If a legislative sponsor is not identified within 60 days after the effective date of this act, the department

shall do 1 of the following:

(i) Identify the department or the state budget office as the sponsor.

(ii) Decline to execute the grant agreement and lapse the associated funds at the end of the fiscal year.

(f) At any point during the fiscal year, legislative grant sponsors may be added to a grant request.

(5) 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. The grantee shall return to the treasury any interest in excess of $1,000.00 earned on the grant funds while unexpended and in possession of the grantee.

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

(e) A claw-back provision that allows the department of

treasury to recoup or otherwise collect any funds that are declined, unspent, or otherwise misused.

(f) The signed legislative sponsorship letter required under subsection (4), incorporated into the grant agreement and included as an appendix or attachment.

(g) If a grant recipient has provided information sufficient to execute a grant agreement, the state budget office shall promptly transmit that information to the department for the department's review of the grant application. If a grant recipient has provided information sufficient to execute a grant agreement within 60 days after the effective date of this act, but the grant application needs technical fixes or additional legislative action, as identified by the state budget office, the 60-day deadline in this subdivision is considered to have been met, if a sponsor has been identified for that grant. If a grant recipient does not provide information sufficient to execute a grant agreement not later than 60 days after being notified by the department of grant approval, the department shall return funds associated with the grant to the state treasury.

(6) 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.

(7) 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.

(8) The grant recipient shall expend all funds awarded and complete all projects not later than September 30, 2030. If at that time any unexpended funds remain, the grant recipient shall return those funds to the state treasury. (9) Any funds that are granted to a state department are appropriated in that department for the purpose of the intended grant.

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

(10) By March 1 of the current fiscal year, the state budget office shall post a report in a publicly accessible location on its website. 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. After March 1, the state budget office shall update the report monthly and shall post the updated report each month. The state budget office shall include in the report the most comprehensive information the office has available at the time of posting for grants awarded. The state budget office may compile the information required in this report across all departments. The department shall assist the state budget office with the compilation of the report required under this subsection.

(11) On request, beginning 75 days after the effective date of

this act, the state budget office shall release information received for grant applications.

(12) As applicable, the legislative sponsor of a grant described in subsection (1) shall not sponsor a grant, or ask another legislator to sponsor a grant, if there is a conflict of interest related to the grant recipient.

(13) 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.

Sec. 231. (1) The department may accept monetary and nonmonetary gifts, bequests, donations, contributions, or grants from any private or public source to support, in whole or in part, a departmental function or program. The department shall expend or use such gifts, bequests, donations, contributions, or grants for the purposes designated by the private or public source, if the purpose is specified.

(2) Amounts remaining from revenue collected by the department under this section that are unexpended and unencumbered must not lapse to the general fund but must be carried forward to the subsequent fiscal year.

Sec. 232. The state budget director shall take steps to ensure that all state fiscal recovery funds allocated to this state under the American rescue plan act of 2021, Public Law 117-2, are expended by December 31, 2026, as required by law. A department or agency receiving an appropriation under this part or part 1 must notify the standard report recipients if an appropriation of funds

described under this section is projected to lapse.

Sec. 233. (1) Within 10 days after the effective date of this act, the department must provide a report to the standard report recipients containing the following information:

(a) A list of any sections in this act that the department determines to be unenforceable, with a detailed legal rationale for those determinations, as applicable.

(b) If a determination under subdivision (a) would affect the operations of a program or programs within the department, the department must report the estimated difference in cost between the policy outlined in the section determined to be unenforceable and the policy the department intends to pursue.

(2) The department may coordinate with the executive office of the governor or other state departments or agencies to compile a statewide report for any departments or agencies required to submit a report substantially similar to the report described under subsection (1).

Sec. 234. The department must provide a quarterly report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:

(a) Affect the operations of the department.

(b) Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.

(c) Affect regulations that currently protect the public to the extent that the regulations affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.

(d) Create a regulatory gap that could negatively impact the

public.

Sec. 235. For the fiscal year ending September 30, 2026, $10,000,000.00 of one-time funding is appropriated to the game and fish protection account from the state general fund.

COMMUNICATION AND CUSTOMER SERVICES

Sec. 240. (1) In addition to supporting the existing archeological responsibilities of the department within the Michigan History Center, the funds appropriated in part 1 for cultural resource management and cultural resource management one-time shall be utilized to establish an ongoing process of increased consultation with known lineal descendants and officials of Native American tribes on whose aboriginal lands a planned archeological activity will occur or an inadvertent discovery has been made. The consultation shall address the identification, treatment, and disposition of Native American cultural items.

(2) The department is encouraged to, whenever possible, repatriate or transfer from its collections Native American cultural items, including human remains, funerary objects, sacred objects, and objects of cultural patrimony, to the lineal descendants and to Native American tribes described in subsection (1).

DEPARTMENT INITIATIVES

Sec. 251. From the amounts appropriated in part 1 for invasive species prevention and control, the department shall allocate not less than $3,600,000.00 for grants for the prevention, detection, eradication, and control of invasive species.

Sec. 252. (1) In addition to the funds appropriated in part 1,

revenue deposited in the invasive species fund created in section 41311 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.41311, is appropriated and may be expended for invasive species immediate response efforts.

(2) The department shall annually notify the house and senate appropriations subcommittees on natural resources and the house and senate fiscal agencies of any expenditure of funds appropriated under subsection (1).

DEPARTMENT SUPPORT SERVICES

Sec. 302. The department may charge land acquisition projects appropriated for the fiscal year ending September 30, 2026, and for prior fiscal years, a standard percentage fee to recover actual costs, and may use the revenue derived to fund the land acquisition service charges provided for in part 1.

Sec. 303. As appropriated in part 1, the department may charge both application fees and transaction fees related to the exchange or sale of state-owned land or rights in land authorized by part 21 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.2101 to 324.2165. To the extent consistent with part 21, fees shall be set by the director at a rate that allows the department to recover its costs for providing these services.

Sec. 304. In addition to the funds appropriated in part 1, the department may receive and expend money from state restricted sources to pay vendor costs associated with administering sales of carbon offset credits.

COMMUNICATION AND CUSTOMER SERVICES

Sec. 408. By December 1, the department shall submit to the

senate and house appropriations subcommittees on natural resources a report on all land transactions approved by the natural resources commission in the prior fiscal year. For each land transaction, the report shall include the size of the parcel, the county and municipality in which the parcel is located, the dollar amount of the transaction, the fund source affected by the transaction, and whether the transaction is by purchase, public auction, transfer, exchange, or conveyance.

FOREST RESOURCES DIVISION

Sec. 802. From the funds appropriated in part 1, the department shall, by January 1, prepare and submit to the senate appropriations subcommittee on agriculture and natural resources, the house appropriations subcommittee on agriculture and rural development and natural resources, and the standing committees of the senate and house with primary responsibility for natural resources issues a report on all of the following:

(a) The number of acres of state forestland prepared for timber harvesting in the prior fiscal year.

(b) The number of acres of state forestland timber sold in the prior fiscal year.

Sec. 803. In addition to the money appropriated in part 1, the department may receive and expend money from federal sources to provide response to wildfires and hazard incidents as required by a compact with the federal government. If additional expenditure authorization is required, the department shall so notify the state budget office. The department shall notify the senate

appropriations subcommittee on agriculture and natural resources, the house appropriations subcommittee on agriculture and rural development and natural resources, and the house and senate fiscal agencies by November 15 of the expenditures under this section during the prior fiscal year.

Sec. 807. (1) In addition to the funds appropriated in part 1, there is appropriated from the disaster and emergency contingency fund up to $800,000.00 to cover department costs related to any disaster as defined in section 2 of the emergency management act, 1976 PA 390, MCL 30.402.

(2) Funds appropriated under subsection (1) shall not be expended unless the state budget director recommends the expenditure and the department notifies the house and senate committees on appropriations. By December 1 each year, the department shall provide a report to the senate and house fiscal agencies and the state budget office on the use of the disaster and emergency contingency fund during the prior fiscal year.

(3) If Federal Emergency Management Agency (FEMA) reimbursement is approved for costs paid from the disaster and emergency contingency fund, the federal revenue shall be deposited into the disaster and emergency contingency fund.

GRANTS

Sec. 1001. Federal pass-through funds to local institutions and governments that are received in amounts in addition to those included in part 1 for grants to communities - federal oil, gas, and timber payments and that do not require additional state matching funds are appropriated for the purposes intended. By November 30, the department shall report to the senate

appropriations subcommittee on agriculture and natural resources, the house appropriations subcommittee on agriculture and rural development and natural resources, the senate and house fiscal agencies, and the state budget director on all amounts appropriated under this section during the prior fiscal year.

CAPITAL OUTLAY

Sec. 1103. The appropriations in part 1 for capital outlay shall be carried forward at the end of the fiscal year consistent with section 248 of the management and budget act, 1984 PA 431, MCL 18.1248.