substitute for

Senate BILL NO. 177

A bill to make appropriations for the department of licensing and regulatory affairs for the fiscal year ending September 30, 2026; 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 licensing and regulatory affairs for the fiscal year ending September 30, 2026, from the following funds:

DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS

 

 

 

APPROPRIATION SUMMARY

 

 

 

Full-time equated unclassified positions

30.0

 

 

Full-time equated classified positions

1,823.0

 

 


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GROSS APPROPRIATION

 

$

657,053,200

Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

30,192,600

ADJUSTED GROSS APPROPRIATION

 

$

626,860,600

Federal revenues:

 

 

 

DOE-OEERE, multiple grants

 

 

4,109,100

Total federal revenues

 

 

34,478,800

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

0

Corporations fees

 

 

3,391,800

Total other state restricted revenues

 

 

284,842,500

State general fund/general purpose

 

$

307,539,300

Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT

 

 

 

Full-time equated unclassified positions

30.0

 

 

Full-time equated classified positions

104.0

 

 

Unclassified salaries--FTEs

30.0

$

3,083,500

Administrative services--FTEs

70.0

 

8,070,700

Executive director programs--FTEs

23.0

 

3,454,400

Property management

 

 

6,924,200

Worker's compensation

 

 

72,000

Regulatory effectiveness office--FTEs

11.0

 

1,700,200

GROSS APPROPRIATION

 

$

23,305,000

Appropriated from:

 

 

 

Interdepartmental grant revenues:

 

 

 

IDG from MDIFS, accounting services

 

 

150,000


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Federal revenues:

 

 

 

EPA, underground storage tanks

 

 

30,700

HHS-Medicaid, certification of health care providers and suppliers

 

 

380,000

HHS-Medicare, certification of health care providers and suppliers

 

 

629,800

Special revenue funds:

 

 

 

Aboveground storage tank fees

 

 

90,300

Accountancy enforcement fund

 

 

54,900

Boiler inspection fund

 

 

284,000

Builder enforcement fund

 

 

102,700

Construction code fund

 

 

884,500

Corporation fees

 

 

4,506,300

Elevator fees

 

 

307,400

Fire alarm fees

 

 

7,100

Fire safety standard and enforcement fund

 

 

2,100

Fire service fees

 

 

348,900

Fireworks safety fund

 

 

57,600

Health professions regulatory fund

 

 

1,918,900

Health systems fees

 

 

213,400

Licensing and regulation fund

 

 

833,200

Liquor license revenue

 

 

292,400

Liquor purchase revolving fund

 

 

3,176,300

Marihuana registry fund

 

 

196,200

Marihuana regulation fund

 

 

1,565,700

Marihuana regulatory fund

 

 

640,500

Michigan unarmed combat fund

 

 

5,400

Mobile home code fund

 

 

257,200


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Nurse professional fund

 

 

38,700

PMECSEMA fund

 

 

45,900

Property development fees

 

 

7,300

Public utility assessments

 

 

3,365,000

Real estate appraiser education fund

 

 

2,600

Real estate education fund

 

 

11,000

Real estate enforcement fund

 

 

11,300

Refined petroleum fund

 

 

147,700

Securities fees

 

 

1,482,000

Securities investor education and training fund

 

 

9,200

Security business fund

 

 

6,700

Survey and remonumentation fund

 

 

96,600

Tax tribunal fund

 

 

822,300

Utility consumer representation fund

 

 

51,300

State general fund/general purpose

 

$

271,900

Sec. 103. PUBLIC SERVICE COMMISSION

 

 

 

Full-time equated classified positions

223.0

 

 

Michigan Saves

 

 

3,500,000

Public service commission--FTEs

223.0

 

41,910,800

GROSS APPROPRIATION

 

$

45,410,800

Appropriated from:

 

 

 

Federal revenues:

 

 

 

DOT, gas pipeline safety

 

 

2,671,500

Special revenue funds:

 

 

 

Public utility assessments

 

 

39,239,300

State general fund/general purpose

 

$

3,500,000

Sec. 104. LIQUOR CONTROL COMMISSION

 

 

 

Full-time equated classified positions

150.0

 

 


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Liquor licensing and enforcement--FTEs

119.0

 

18,176,300

Management support services--FTEs

31.0

 

4,984,900

GROSS APPROPRIATION

 

$

23,161,200

Appropriated from:

 

 

 

Special revenue funds:

 

 

 

Direct shipper enforcement revolving fund

 

 

317,900

Liquor control enforcement and license investigation revolving fund

 

 

175,000

Liquor license fee enhancement fund

 

 

76,400

Liquor license revenue

 

 

8,514,300

Liquor purchase revolving fund

 

 

14,077,600

State general fund/general purpose

 

$

0

Sec. 105. OCCUPATIONAL REGULATION

 

 

 

Full-time equated classified positions

942.0

 

 

Bureau of community and health systems--FTEs

167.0

 

27,403,400

Bureau of construction codes--FTEs

198.0

 

37,744,800

Bureau of fire services--FTEs

86.0

 

14,451,900

Bureau of professional licensing--FTEs

198.0

 

42,847,800

Bureau of survey and certification--FTEs

184.0

 

32,137,900

Corporations, securities, and commercial licensing bureau--FTEs

109.0

 

16,975,900

Urban search and rescue

 

 

1,000,000

GROSS APPROPRIATION

 

$

172,561,700

Appropriated from:

 

 

 

Interdepartmental grant revenues:

 

 

 

Federal revenues:

 

 

 

DHS, fire training systems

 

 

528,000

DOT, hazardous materials training and planning

 

 

20,000


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EPA, underground storage tanks

 

 

820,600

HHS-Medicaid, certification of health care providers and suppliers

 

 

9,201,600

HHS-Medicare, certification of health care providers and suppliers

 

 

14,808,100

DOE-OEERE, multiple grants

 

 

4,109,100

Special revenue funds:

 

 

 

Aboveground storage tank fees

 

 

343,700

Accountancy enforcement fund

 

 

1,216,000

Adult foster care facilities licenses fund

 

 

373,600

Boiler inspection fund

 

 

3,046,500

Builder enforcement fund

 

 

644,000

Construction code fund

 

 

13,763,000

Corporation fees

 

 

9,619,200

Division on deafness fund

 

 

73,400

Elevator fees

 

 

8,513,100

Fire alarm fees

 

 

138,400

Fire safety standard and enforcement fund

 

 

32,300

Fire service fees

 

 

3,160,900

Fireworks safety fund

 

 

1,259,100

Health professions regulatory fund

 

 

27,363,300

Health systems fees

 

 

4,204,300

Licensing and regulation fund

 

 

11,819,800

Liquor purchase revolving fund

 

 

159,500

Marihuana regulatory fund

 

 

500,000

Mobile home code fund

 

 

2,141,400

Nurse aide registration fund

 

 

1,692,400

Nurse professional fund

 

 

1,968,000


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PMECSEMA fund

 

 

2,585,000

Property development fees

 

 

192,600

Real estate appraiser education fund

 

 

6,200

Real estate education fund

 

 

604,000

Real estate enforcement fund

 

 

759,700

Refined petroleum fund

 

 

2,667,900

Securities fees

 

 

5,405,200

Securities investor education and training fund

 

 

503,900

Security business fund

 

 

182,700

Survey and remonumentation fund

 

 

910,600

State general fund/general purpose

 

$

37,224,600

Sec. 106.? CANNABIS REGULATORY AGENCY

 

 

 

Full-time equated classified positions

183.0

 

 

Cannabis regulatory agency--FTEs

183.0

$

33,842,500

GROSS APPROPRIATION

 

$

33,842,500

Appropriated from:

 

 

 

Special revenue funds:

 

 

 

Industrial hemp licensing and registration fund

 

 

296,200

Marihuana registry fund

 

 

2,256,300

Marihuana regulation fund

 

 

23,090,200

Marihuana regulatory fund

 

 

8,199,800

State general fund/general purpose

 

$

0

Sec. 107. MICHIGAN OFFICE OF ADMINISTRATIVE HEARINGS AND RULES

 

 

 

Full-time equated classified positions

176.0

 

 

Michigan office of administrative hearings and rules--FTEs

176.0

$

37,034,900

GROSS APPROPRIATION

 

$

37,034,900


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Appropriated from:

 

 

 

Interdepartmental grant revenues:

 

 

 

IDG revenues, administrative hearings and rules

 

 

28,594,000

Special revenue funds:

 

 

 

Construction code fund

 

 

27,400

Corporation fees

 

 

998,900

Health professions regulatory fund

 

 

881,800

Health systems fees

 

 

165,500

Licensing and regulation fund

 

 

914,300

Liquor purchase revolving fund

 

 

493,200

Marihuana regulation fund

 

 

253,500

Marihuana regulatory fund

 

 

98,900

Public utility assessments

 

 

2,970,600

Securities fees

 

 

1,048,600

State general fund/general purpose

 

$

588,200

Sec. 108. COMMISSIONS

 

 

 

Full-time equated classified positions

45.0

 

 

Michigan indigent defense commission--FTEs

25.0

$

3,947,900

Michigan unarmed combat commission

 

 

126,200

Michigan Tax Tribunal--FTEs

20.0

 

4,213,900

GROSS APPROPRIATION

 

$

8,288,000

Appropriated from:

 

 

 

Special revenue funds:

 

 

 

Michigan unarmed combat fund

 

 

126,200

Tax tribunal fund

 

 

822,100

Corporations fees

 

 

3,391,800

State general fund/general purpose

 

$

3,947,900

Sec. 109. DEPARTMENT GRANTS

 

 

 


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Firefighter training grants

 

$

2,300,000

Liquor law enforcement grants

 

 

9,900,000

Marihuana operation and oversight grants

 

 

3,000,000

Michigan indigent defense commission grants

 

 

258,345,300

Remonumentation grants

 

 

6,800,000

Utility consumer representation

 

 

2,100,000

GROSS APPROPRIATION

 

$

282,445,300

Appropriated from:

 

 

 

Special revenue funds:

 

 

 

Fireworks safety fund

 

 

2,300,000

Liquor license revenue

 

 

9,900,000

Local indigent defense reimbursement

 

 

300,000

Marihuana regulation fund

 

 

3,000,000

Survey and remonumentation fund

 

 

6,800,000

Utility consumer representation fund

 

 

2,100,000

State general fund/general purpose

 

$

258,045,300

Sec. 110. INFORMATION TECHNOLOGY

 

 

 

Information technology services and projects

 

$

27,803,800

GROSS APPROPRIATION

 

$

27,803,800

Appropriated from:

 

 

 

IDG revenues, administrative hearings and rules

 

 

1,448,600

Total interdepartmental grants and intradepartmental transfers

 

 

1,448,600

Federal revenues:

 

 

 

DOT, gas pipeline safety

 

 

152,600

EPA, underground storage tanks

 

 

99,900

HHS-Medicaid, certification of health care providers and suppliers

 

 

385,100


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HHS-Medicare, certification of health care providers and suppliers

 

 

641,800

Special revenue funds:

 

 

 

Aboveground storage tank fees

 

 

34,500

Accountancy enforcement fund

 

 

1,600

Boiler inspection fund

 

 

387,500

Construction code fund

 

 

1,331,900

Corporation fees

 

 

5,800,700

Elevator fees

 

 

505,400

Fire safety standard and enforcement fund

 

 

3,500

Fire service fees

 

 

542,700

Fireworks safety fund

 

 

74,800

Health professions regulatory fund

 

 

2,787,700

Health systems fees

 

 

366,200

Industrial hemp licensing and registration fund

 

 

4,000

Licensing and regulation fund

 

 

941,700

Licensing license revenue

 

 

235,400

Liquor purchase revolving fund

 

 

4,796,800

Marihuana registry fund

 

 

193,600

Marihuana regulation fund

 

 

1,231,500

Marihuana regulatory fund

 

 

553,000

Michigan unarmed combat fund

 

 

6,800

Mobile home code fund

 

 

205,000

Nurse aide registration fund

 

 

7,000

PMECSEMA fund

 

 

68,500

Public utility assessments

 

 

2,038,000

Real estate appraiser education fund

 

 

1,000

Real estate education fund

 

 

4,800


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Refined petroleum fund

 

 

235,200

Securities fees

 

 

465,600

Securities investor education and training fund

 

 

6,100

Survey and remonumentation fund

 

 

75,400

Tax tribunal fund

 

 

208,500

State general fund/general purpose

 

$

1,961,400

Sec. 111. ONE-TIME APPROPRIATIONS

 

 

 

Bureau of fire services - smoke detectors

 

$

1,000,000

Cannabis regulatory agency social equity program

 

 

1,000,000

Michigan saves

 

 

1,000,000

Real Estate Continuing Education

 

 

200,000

GROSS APPROPRIATION

 

$

3,200,000

Appropriated from:

 

 

 

Special revenue funds:

 

 

 

Marihuana regulation fund

 

 

1,000,000

Real estate education fund

 

 

200,000

State general fund/general purpose

 

$

2,000,000

 

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 from state sources under part 1 is $585,969,100.00 and state spending from state sources to be paid to local units of government is $280,345,300.00. The itemized statement below identifies appropriations from which spending to


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local units of government will occur:

DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS

 

 

 

Firefighter training grants

 

$

2,300,000

Liquor law enforcement grants

 

 

9,900,000

Marihuana operation and oversight grants

 

 

3,000,000

Michigan indigent defense commission grants

 

 

258,345,300

Remonumentation grants

 

 

6,800,000

TOTAL

 

$

280,345,300

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 licensing and regulatory affairs.

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

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

(d) "IDG" means interdepartmental grant.

(e) "Standard report recipients" means the senate and house of representatives subcommittees on the department, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.

Sec. 204. A department or agency 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:


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(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. 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 and the department is exercising its authority as provided 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 out-of-state travel expenses not later than January 1. The report must list all travel outside this state by classified and unclassified employees 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.


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(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. A principal executive department, state agency, or authority 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.

Sec. 209. Not later than December 15, the state budget office shall prepare and submit a report that provides for 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 the chairpersons of the senate and house of representatives appropriations committees.

Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $1,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this part 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 $25,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item


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in this part under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $200,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this part under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

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

Sec. 211. A department or agency 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 each department or agency:

(a) Fiscal-year-to-date expenditures by category.

(b) Fiscal-year-to-date expenditures by appropriation unit.

(c) Fiscal-year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.

(d) The number of active 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


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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. 214. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of each department or agency receiving appropriations under part 1 shall take all reasonable steps to ensure geographically disadvantaged business enterprises compete for and perform contracts to provide services or supplies, or both. Each director shall strongly encourage firms with which the department or agency 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. 215. 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 standard report recipients and the senate and house appropriations committees.

Sec. 218. 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


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copies of reports unless otherwise required by federal or state guidelines.

Sec. 219. 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, the senate and house appropriations committees, and the joint committee on administrative rules.

Sec. 221. (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. 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. (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 431, 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.


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

(c) A description of the functions of state government or services to residents that will be affected by the reduction.

Sec. 225. (1) Not later than December 31, the department shall submit a report that pertains to licensing and regulatory programs overseen by the following agencies:

(a) Liquor control commission.

(b) Bureau of fire services.

(c) Corporations, securities, and commercial licensing bureau.

(d) Bureau of professional licensing.

(2) The report under subsection (1) must be in a format that is consistent between the agencies listed in subsection (1) and must provide, but is not limited to, the following information for the previous fiscal year, as applicable, for each agency:

(a) Revenue generated by and expenditures disbursed for each regulatory product.

(b) Revenue generated, by regulatory product or regulated activity.

(c) The renewal cycle and amount of each fee charged.

(d) Number of initial applications.

(e) Number of initial applications denied.

(f) Number of license renewals.

(g) Average amount of time to approve or deny completed applications.

(h) Number of examinations proctored for initial applications.

(i) A description of the types of complaints received.

(j) A description of the process used to resolve complaints.

(k) Number of complaints received.


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(l) Number of complaints investigated.

(m) Number of complaints closed with no action.

(n) Number of complaints resulting in administrative actions or citations.

(o) Average amount of time to complete investigations.

(p) Number of enforcement actions, including license revocations, suspensions, and fines.

(q) A description of the types of enforcement actions taken against licensees.

(r) Number of administrative hearing adjudications.

(3) An agency listed in subsection (1)(a) or (b) shall report by regulated activity and an agency listed in subsection (1)(c) or (d) shall report by regulatory product or regulated activity, or both.

(4) As used in this section:

(a) "Regulated activity" means the particular activities, entities, facilities, and industries regulated by the agencies specified in subsection (1).

(b) "Regulatory product" means each occupation, profession, trade, or program, which includes licensure, certification, registration, inspection, review, permitting, approval, or any other regulatory service provided by the agencies specified in subsection (1) for each regulated activity.

Sec. 226. (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


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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 431, 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 431, 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,


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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


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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 identification and process for sponsorship of a grant described in subsection (1) are 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


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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


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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


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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.

(10) 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


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after an extension is granted.

(11) By March 1, 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.

(12) On request, beginning 75 days after the effective date of this act, the state budget office shall release information received for grant applications.

(13) 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.

(14) 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. 227. A department or agency required to submit a report under this part shall make each report readily accessible to the


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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. 228. 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. 229. (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


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subsection (1).

Sec. 230. 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. 250. (1) The department may charge registration fees to attendees of informational, training, or special events that are sponsored by the department and related to activities under the department's purview.

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

(3) Revenue generated by the registration fees is appropriated on receipt and may be expended by the department to cover the department's costs of sponsoring informational, training, or special events.

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


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(5) The amount appropriated under subsection (3) must not exceed $1,000,000.00.

Sec. 251. The department may provide to interested entities otherwise unavailable customized listings of nonconfidential information, such as the names and addresses of licensees, in the department's possession. The department may establish and collect a reasonable fee to provide this service. Revenue generated from this service is appropriated on receipt and must be used to offset the expenses of the service. Any balance of this revenue collected and unexpended at the end of the fiscal year lapses to the appropriate restricted fund.

Sec. 252. (1) The department shall sell documents at a price not to exceed the cost of production and distribution. Money received from the sale of these documents reverts to the department. In addition to the funds appropriated in part 1, funds received by the department under this subsection may be expended by the department upon receipt by the department of treasury. This subsection applies for only the following:

(a) Corporation and securities division documents, reports, and papers required or permitted by law in accordance with section 1060(6) of the business corporation act, 1972 PA 284, MCL 450.2060.

(b) The Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1101 to 436.2303.

(c) The mobile home commission act, 1987 PA 96, MCL 125.2301 to 125.2350; the business corporation act, 1972 PA 284, MCL 450.1101 to 450.2098; the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192; and the uniform securities act (2002), 2008 PA 551, MCL 451.2101 to 451.2703.

(d) Construction code manuals.


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(e) Copies of transcripts from administrative law hearings.

(2) In addition to the funds appropriated in part 1, funds appropriated for the department under sections 57, 58, and 59 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.257, 24.258, and 24.259, and section 203 of the legislative council act, 1986 PA 268, MCL 4.1203, are appropriated for all expenses necessary to provide for the cost of publication and distribution.

(3) Unexpended funds at the end of the fiscal year carry forward to the subsequent fiscal year and do not lapse to the general fund.

Sec. 253. Not later than March 30, the regulatory effectiveness office shall submit a report to the standard report recipients that includes the following information:

(a) Legislative recommendations for actions to take to improve the effectiveness of licensing and regulation, including ideas that make the licensing environment accessible to more consumers while maintaining consumer protection.

(b) A plan from the department detailing actions needed to improve licensing and regulatory effectiveness for consumers and departmental actions, as well as detailed actions they have already taken.

(c) The number of new licenses issued by category and number of those who applied in those categories.

(d) The average turnaround time, in days, for licenses approved by category.

Sec. 254. (1) Grants supported with private revenues received by the department are appropriated on receipt and may be expended by the department for the purposes specified within the grant agreement and as permitted under state and federal law.


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(2) Not later than 10 days after the receipt of a private grant appropriated in subsection (1), the department shall notify the chairpersons of the subcommittees, the senate and house fiscal agencies, and the state budget office 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 $4,000,000.00.

Sec. 255. Unless prohibited by law, the department may accept credit card or other electronic means of payment for licenses, fees, or permits.

Sec. 256. The department may carry into the succeeding fiscal year unexpended federal pass-through funds to local institutions and governments that do not require additional state matching funds. Federal pass-through funds to local institutions and governments that are received in amounts in addition to those included in part 1 and that do not require additional state matching funds are appropriated for the purposes intended for the federal pass-through funds. Not later than 14 days after the receipt of federal pass-through funds, the department shall notify the chairpersons of the subcommittees, the senate and house fiscal agencies, and the state budget office of pass-through funds appropriated under this section.

 

PUBLIC SERVICE COMMISSION

Sec. 301. (1) The public service commission administers the low-income energy assistance grant program on behalf of the Michigan department of health and human services via an interagency agreement. Funds supporting the grant program are appropriated to the department upon the awarding of grants and may be expended for


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grant payments and administrative-related expenses incurred in the operation of the grant program.

(2) No later than March 30, the public service commission shall submit a report to the standard report recipients based on the grants administered, including:

(a) Median annual household income for recipients of the grant.

(b) Number of grants administered in each county of this state.

Sec. 302. (1) From the funds appropriated in part 1, the Michigan public service commission shall conduct at least 1 public hearing in the Upper Peninsula, 1 public hearing in the northwest part of the Lower Peninsula, 1 public hearing in the northeast part of the Lower Peninsula, 1 public hearing in the southeast part of the Lower Peninsula, and 1 public hearing in the southwest part of the Lower Peninsula.

(2) Not later than September 30, the Michigan public service commission shall submit a report to the standard report recipients that details the outcomes of the public hearings required under this section and summarizes the public comments that were received during the public hearings.

Sec. 303. (1) From the funds appropriated in part 1 for the Michigan public service commission, the department shall designate 1 FTE to assist consumers with utility issues, utility disruption, or outages.

(2) Not later than September 30, the Michigan public service commission shall submit a report to the standard report recipients that details the energy utility rates, including the following information:


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(a) The average utility cost for residential, commercial, and industrial consumers in each county by type of utility.

(b) The average utility rates for residential, commercial, and industrial consumers by utility type in the state.

(c) The most and least expensive utility cost in this state by type.

(d) The number of utility companies that asked for a rate increase by company name and whether the rate was approved or not.

(e) The number of utility consumers assisted by the department for utility disruption, outages, and other utility issues.

(f) The number of complaints received per month in the previous year.

(g) The commission's plan for statewide affordability using the data collected in this subsection.

Sec. 304. From the funds appropriated in part 1 for Michigan Saves, the Michigan public service commission may award a $3,500,000.00 grant to a nonprofit green bank with experience in leveraging energy-efficiency and renewable energy improvements, for the purpose of making such loans more affordable for Michigan families, businesses, and public entities. Grant funds may be used to support a loan loss reserve fund or other comparable financial instrument to further leverage private investment in clean energy improvements.

 

LIQUOR CONTROL COMMISSION

Sec. 401. (1) From the funds appropriated in part 1 from the direct shipper enforcement revolving fund, the liquor control commission shall expend the funds as required under section 203(11) of the Michigan liquor control code of 1998, 1998 PA 58, MCL


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436.1203, to investigate and audit unlawful direct shipments of wine by unlicensed wineries and retailers, with priority directed toward unlicensed out-of-state retailers and third-party marketers. In addition to other investigative methods, the commission shall use shipping records available to the commission under section 203(21) of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1203, to assist with the effort to investigate and audit unlawful direct shipments of wine by unlicensed wineries and retailers. The liquor control commission shall refer all identified unlicensed out-of-state retailers and third-party marketers to the attorney general.

(2) Not later than February 1, the liquor control commission shall provide a report to the legislature and the standard report recipients that details the commission's activities to investigate and audit the illegal shipping of wine and the results of the activities. The report must include all of the following:

(a) Work hours spent, specific actions performed, and the number of full-time equated positions dedicated to identifying and stopping unlicensed out-of-state retailers, third-party marketers, and wineries that ship illegally in Michigan.

(b) General overview of expenditures associated with efforts to identify and stop unlicensed out-of-state retailers, third-party marketers, and wineries that ship illegally in this state.

(c) Number of out-of-state entities found to have illegally shipped wine into this state and total number of 750 ml bottles, number of cases with 750 ml bottles, number of liters, number of gallons, or weight of illegally shipped wine. These items must be itemized by total number of retailers and total number of wineries.

(d) Suggested areas of focus on how to address direct shipper


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enforcement and illegal importation in the future.

(e) Number of unlicensed out-of-state entities found to have illegally shipped wine into this state that were identified with the shipping records described in subsection (1).

(f) Number of notices sent under subsection (3).

(3) From the funds appropriated in part 1 from the direct shipper enforcement revolving fund, the liquor control commission shall send a notice to each unlicensed out-of-state entity found to have illegally shipped wine into this state. The notice must include all of the following statements:

(a) That shipping wine into this state by unlicensed out-of-state retailers and third-party marketers is illegal, and wineries shipping into this state must obtain a direct shipper license.

(b) That under section 909 of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1909, making unlawful shipments of wine into this state may be a felony punishable by imprisonment for not more than 4 years or a fine of not more than $5,000.00, or both.

(c) That the matter has been referred to the attorney general.

 

OCCUPATIONAL REGULATION

Sec. 501. The department shall not expend the funds appropriated under this part and part 1 for the bureau of fire services unless, in accordance with section 2c of the fire prevention code, 1941 PA 207, MCL 29.2c, inspection and plan review fees are charged according to the following fee schedule:

Operation and maintenance inspection fee

Facility type

Facility size

Fee

Hospitals

Any

$8.00 per bed


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Facility type

Facility size

Fee

Nursing Homes

Any

$5.00 per bed

Facility type

Facility size

Fee

Homes for the Aged

 

$5.00 per bed

Facility type

Facility size

Fee

Adult Foster Care

Greater than 6 residents

$5.00 per bed

Plan review and construction inspection fees for

hospitals and schools

Project cost range

Fee

$101,000.00 or less

minimum fee of $155.00

$101,001.00 to $1,500,000.00

$1.60 per $1,000.00

$1,500,001.00 to $10,000,000.00

$1.30 per $1,000.00

$10,000,001.00 or more

$1.10 per $1,000.00

 

or a maximum fee of $60,000.00.

Sec. 502. The funds collected by the department for licenses, permits, and other elevator regulation fees under the Michigan Administrative Code and as determined under section 8 of 1976 PA 333, MCL 338.2158, and section 16 of 1967 PA 227, MCL 408.816, that are unexpended at the end of the fiscal year carry forward to the subsequent fiscal year.

Sec. 503. Not later than February 15, the department shall submit a report to the standard report recipients that provides all of the following information:

(a) The number of veterans who were separated from service in the Armed Forces of the United States with an honorable character of service or under honorable conditions (general) character of service, individually or if the veteran holds a majority interest


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of a corporation or limited liability company, that were exempted from paying licensure, registration, filing, or any other fees collected under each licensure or regulatory program administered by the bureau of construction codes, the bureau of professional licensing, and the corporations, securities, and commercial licensing bureau during the previous fiscal year.

(b) The specific fees and total amount of revenue exempted under each licensure or regulatory program administered by the bureau of construction codes, the bureau of professional licensing, and the corporations, securities, and commercial licensing bureau during the previous fiscal year.

(c) The actual costs of providing licensing and other regulatory services to veterans exempted from paying licensure, registration, filing, or any other fees during the previous fiscal year and a description of how the actual costs were calculated.

(d) The estimated amount of revenue that will be exempted under each licensure or regulatory program administered by the bureau of construction codes, the bureau of professional licensing, and the corporations, securities, and commercial licensing bureau in both the current and subsequent fiscal years and a description of how the exempted revenue was estimated.

Sec. 504. Revenue collected by the department for the bureau of community and health systems from fees and collections that exceeds the amount appropriated in part 1 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. 505. (1) To defray the costs associated with responding to false final inspection appointments and to discourage the


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practice of calling for final inspections when a project is incomplete or noncompliant with a plan of correction previously provided by the bureau of fire services, the bureau of fire services may assess a fee of not more than $800.00 for responding to a second or subsequent confirmed false inspection appointment. Fees collected under this section must be deposited into the restricted account described in section 2c of the fire prevention code, 1941 PA 207, MCL 29.2c, and explicitly identified within the statewide integrated governmental management applications system.

(2) Not later than September 30, the department shall submit a report to the standard report recipients that provides all of the following:

(a) The amount of the fee assessed under subsection (1).

(b) The number of fees assessed and issued per region.

(c) The cost allocation for the work performed and reduced as a result of this section.

(d) Any recommendations for consideration by the legislature.

Sec. 506. Not later than November 30, the department shall submit a report to the standard report recipients on the Michigan automated prescription system. The report must include, but is not limited to, all of the following:

(a) The total number of licensed health professionals registered to the Michigan automated prescription system.

(b) The total number of dispensers registered to the Michigan automated prescription system.

(c) The total number of prescribers using the Michigan automated prescription system.

(d) The total number of dispensers using the Michigan automated prescription system.


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(e) The total number of cases related to overprescribing, overdispensing, and drug diversion where the department took administrative action because of information and data generated from the Michigan automated prescription system.

(f) The total number of hospitals, doctor's offices, pharmacies, and other health facilities that have integrated the Michigan automated prescription system into the facility's electronic health records systems.

(g) The total number of delegate users registered to the Michigan automated prescription system.

(h) The department's recommendations for electronic health integration and optimizing data interpretation for the purpose of advancing utilization practices and ease of consumer use and interpretation.

Sec. 507. (1) From the funds appropriated in part 1 for bureau of construction codes, not less than $900,000.00 must be allocated for additional inspections and enforcement activities related to the carnival-amusement safety act of 1966, 1966 PA 225, MCL 408.651 to 408.670, and the ski area safety act of 1962, 1962 PA 199, MCL 408.321 to 408.344.

(2) Not later than March 30, the department shall submit a report to the standard report recipients that details the allocation of funds under this section. The report must include an itemized listing of how the funds were used.

Sec. 508. (1) Funds remaining in the homeowner construction lien recovery fund are appropriated to the department for payment of court-ordered homeowner construction lien recovery fund judgments entered before August 23, 2010. Subject to available funds, the payment of final judgments must be made in the order in


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which the final judgments were entered and began accruing interest.

(2) No later than September 30, the department shall transmit a report to the standard report recipients that details the following:

(a) Expenditures from the fund.

(b) Revenue balance of the fund.

(c) Revenue sources for the fund.

(d) Where the expenditures are going.

Sec. 509. From the funds appropriated in part 1 for the bureau of fire services, in accordance with the requirements under section 21c of the fire prevention code, 1941 PA 207, MCL 29.21c, the bureau shall perform or work in cooperation with local units of government to perform inspections at places of public assembly that pose the highest risk to occupants for injury or fatality based on the size, density, or the nature of activities performed within the facility.

Sec. 510. From the funds appropriated in part 1 for bureau of survey and certification, the department shall submit a report pertaining to bureau activities, including surveys and investigations of nursing homes, hospitals, and acute continuing care providers to the standard report recipients not later than March 30.

Sec. 511. From the funds appropriated in part 1, the bureau of construction codes shall submit biannual reports not later than April 1 and September 30 to the standard report recipients that include all of the following information:

(a) A description of the specific changes that the bureau implemented to decrease the average length of time to process premanufactured unit plan submissions.


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(b) The average length of time to process a premanufactured unit plan submission in fiscal year 2023-2024.

(c) The average length of time to process a premanufactured unit plan submission in fiscal year 2024-2025.

(d) The total number of premanufactured unit plans submitted in fiscal year 2023-2024.

(e) The total number of premanufactured unit plans submitted in fiscal year 2024-2025.

(f) The total number of premanufactured unit plans submitted in fiscal year 2025-2026.

Sec. 512. (1) From the funds appropriated in part 1 for the bureau of construction codes, not less than $500,000.00 must be allocated to create a database of mobile home park or seasonal mobile home park owners that includes every owner's contact information, license number, and current licensing status and any violations they have. The department must establish a method in which the public can submit a reporting form regarding potentially unlicensed owners. This database must be established by March 30.

(2) At least 1.0 FTE must be allocated to assist with mobile home park resident complaints and issues. No later than September 30, the department must transmit to the standard boilerplate recipients a report that includes the number of complaints received and the number of complaints resolved.

 

Cannabis regulatory agency

Sec. 601. Not later than January 31, the department shall submit a comprehensive report to the standard report recipients for all marihuana programs administered by the cannabis regulatory agency. This report must include, but is not limited to, all of the


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following information for the previous fiscal year regarding the marihuana programs under the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26421 to 333.26430, the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, and the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967:

(a) The number of initial applications received, by license category.

(b) The number of initial applications approved and the number of initial applications denied, by license category.

(c) The average amount of time, from receipt to approval or denial, to process an initial application, by license category.

(d) The number of renewal applications approved, by license category and by county.

(e) The number of renewal applications received, by license category and by county, if applicable.

(f) The number of renewal applications denied, by license category and by county.

(g) The average amount of time, from receipt to approval or denial, to process a renewal application, by license category, if applicable.

(h) The percentage of initial applications not approved or denied within the time requirements established in the respective act, by license category, if applicable.

(i) The percentage of renewal applications not approved or denied within the time requirements established in the respective act, by license category, if applicable.

(j) The total amount collected from application fees or established regulatory assessment and the specific fund the amount


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is deposited into, by license category.

(k) The registered names and addresses of all facilities licensed under each act, by license category and by county.

(l) The number of complaints received pertaining to each act, by license type or regulatory activity.

(m) A description of the types of complaints received.

(n) A description of the process used to resolve complaints.

(o) The number of investigations opened pertaining to each license category.

(p) The number of investigations closed pertaining to each license category.

(q) The average amount of time to complete investigations pertaining to each license category.

(r) The number of enforcement actions pertaining to each license category.

(s) A description of the types of enforcement actions taken against licensees.

(t) The number of administrative-hearing adjudications pertaining to each license type.

(u) A list of the fees charged for license applications, license renewals, and registry cards.

(v) The number of license holders with multiple types of marihuana licenses, a list of the names of the licensees, and the status of each of the licenses.

Sec. 602. From the funds appropriated in part 1, the cannabis regulatory agency shall post on a publicly accessible website a list of all of the following:

(a) The number of investigative reports that identify violations of the Michigan Medical Marihuana Act, 2008 IL 1, MCL


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333.26421 to 333.26430, the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, or the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967, or violations of administrative rules promulgated under the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26421 to 333.26430, the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, or the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967.

(b) The number of investigative reports that identify suspected marihuana product that does not have the tracking numbers assigned by the statewide monitoring system affixed, tagged, or labeled as required by law.

(c) The number of complaints filed by the public with the agency that concern either of the following:

(i) Marihuana product that does not have the tracking numbers assigned by the statewide monitoring system affixed, tagged, or labeled as required by law.

(ii) Unlicensed commercial production or sale of delta-8 THC.

(d) The number and outcome of all agency disciplinary proceedings initiated against any licensee subject to the reports or complaints in subdivisions (a), (b), and (c).

(e) The number of reports the agency referred to the department of state police or other appropriate law enforcement agency.

(f) For any licensee subject to disciplinary proceedings initiated by the agency:

(i) Name of the licensee.

(ii) Description of the allegation.

(iii) Complaint type.


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(iv) Process used to resolve the allegation.

(v) Name of the law enforcement agency the allegation was referred to, including the date of the referral.

(vi) Current license status and whether or not the license was revoked.

(g) The number of licenses revoked.

Sec. 603. (1) Not later than January 31, the department shall submit a comprehensive report to the standard report recipients for all hemp programs administered by the cannabis regulatory agency. The report must include, but is not limited to, all of the following:

(a) The total amount of fees collected by the cannabis regulatory agency from regulatory and licensing activities related to hemp and hemp processor-handlers.

(b) The total cost of administering hemp regulatory and licensing programs.

(c) The total number of hemp processor-handlers and any other hemp licensees licensed in this state, by county.

(d) A list and description of any fees that the cannabis regulatory agency assesses on hemp licensees.

(2) Not later than January 31, the department shall submit a comprehensive report to the standard report recipients for all hemp programs administered by the cannabis regulatory agency. The report must include, but is not limited to, all of the following:

(a) The total amount of fees collected by the cannabis regulatory agency from regulatory and licensing activities related to hemp and hemp processor-handlers.

(b) The total cost of administering hemp regulatory and licensing programs.


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(c) The total number of hemp processor-handlers and any other hemp licensees licensed in this state, by county.

(d) A list and description of any fees that the cannabis regulatory agency assesses on hemp licensees.

(e) The number of inspections conducted per year and the result of each inspection.

(f) The number of hemp license applications and hemp license approvals per year.

(g) The number of times the agency is contacted to destroy hemp.

 

COMMISSIONS

Sec. 801. If Byrne formula grant funding is awarded to the Michigan indigent defense commission created under section 5 of the Michigan indigent defense commission act, 2013 PA 93, MCL 780.985, the Michigan indigent defense commission may receive and expend Byrne formula grant funds as an interdepartmental grant from the department of state police. The Michigan indigent defense commission may receive and expend federal grant funds from the United States Department of Justice.

Sec. 802. From the funds appropriated in part 1, not later than March 1, the Michigan indigent defense commission shall submit a report to the standard report recipients on all of the following information:

(a) The incremental costs associated with the standard development process, the compliance plan process, and the collection of data from all indigent defense systems and attorneys providing indigent defense. The Michigan indigent defense commission shall place particular emphasis on the costs that may be


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avoided after standards are developed and compliance plans are in place.

(b) A detailed explanation of the total cost calculation for each indigent defense standard and juvenile indigent defense standard for which grant recipients are receiving state grant funding. This explanation must include a comprehensive itemization of the types of costs included for each standard.

(c) An itemized listing of how much funding each grant recipient is receiving for each indigent defense standard and juvenile indigent defense standard.

(d) An explanation of the specific causal factors associated with any increase or decrease of Michigan indigent defense commission grant funding from the fiscal year 2023-2024 level.

Sec. 803. From the funds appropriated in part 1 for Michigan indigent defense commission grants, the Michigan indigent defense commission shall begin the statutory process of developing and implementing minimum standards for youth defense services. This process includes the planning and determining needs under the Michigan indigent defense commission act, 2013 PA 93, MCL 780.981 to 780.1003.

Sec. 804. From the funds appropriated in part 1, the Michigan indigent defense commission shall notify the standard report recipients not more than 60 days after the adoption of any new indigent defense standard. The notification must include an estimated cost projection to fund the adopted indigent defense standard for the initial and subsequent fiscal years.

 

GRANTS

Sec. 901. (1) From the funds appropriated in part 1 for


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marihuana operation and oversight grants, the department shall expend the funds for grants to counties for education and outreach programs that relate to the Michigan medical marihuana program and the adult-use marihuana program, in accordance with section 6(l) of the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26426, and section 14 of the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27964. The grant funds may be generated from application and license fees authorized under section 8(1)(b) of the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27958. The grants must be distributed proportionately based on the number of registry identification cards issued to or renewed for the residents of each county that applied for a grant under subsection (2). For the purposes of this subsection, operation and oversight grants are for education, communication, and outreach regarding the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26421 to 333.26430, and the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967. Grants provided under this section must not be used for law enforcement purposes.

(2) Not later than December 1, the department shall post a listing of potential grant funds available to each county on the department's website. In addition, the department shall work collaboratively with counties regarding the availability of the grant funds. A county that requests grant funds shall apply on a form developed by the department and available on the department's website. The form must contain the county's specific projected plan for use of the grant funds and its agreement to maintain all records and to submit documentation to the department to support the use of the grant funds.


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(3) To be eligible to receive a grant under subsection (1), a county shall apply not later than January 1 and submit a report to the department not later than September 15 on how the grant was expended. The department shall submit a report to the standard report recipients not later than October 15 of the subsequent fiscal year that details the grant amounts by recipient and the reported uses of the grants in the previous fiscal year and details the calculation for the amount for which each county was eligible.

Sec. 902. (1) The funds appropriated in part 1 for firefighter training grants must be expended only for payments to counties to reimburse organized fire departments for firefighter training and other activities required under the firefighters training council act, 1966 PA 291, MCL 29.361 to 29.377.

(2) If the funds appropriated in part 1 for firefighter training grants are expended by the firefighters training council created under section 3 of the firefighters training council act, 1966 PA 291, MCL 29.363, for payments to counties under section 14 of the firefighters training council act, 1966 PA 291, MCL 29.374, all of the following apply to the extent otherwise permissible by law:

(a) The funds appropriated in part 1 for firefighter training grants must be allocated in accordance with section 14(2) of the firefighters training council act, 1966 PA 291, MCL 29.374.

(b) If the funds allocated to any county under subdivision (a) are less than $5,000.00, the funds allocated to each county under subdivision (a) must be adjusted to provide for a minimum payment of $5,000.00 to each county.

(3) Not later than February 1, the department shall submit a financial report to the standard report recipients that identifies


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all of the following information for the previous fiscal year:

(a) The amount of the payments that would be made to each county if the distribution formula described in section 14(2) of the firefighters training council act, 1966 PA 291, MCL 29.374, would have been utilized to allocate the total amount appropriated in part 1 for firefighter training grants.

(b) The amount of the payments approved by the firefighters training council for allocation to each county.

(c) The amount of the payments actually expended or encumbered within each county.

(d) A description of any other payments or expenditures made under the authority of the firefighters training council.

(e) The amount of payments approved for allocations to counties that was not expended or encumbered and lapsed back to the fireworks safety fund.

 

ONE-TIME APPROPRIATIONS

Sec. 1001. (1) From the funds appropriated in part 1 for bureau of fire services ? smoke detectors, the bureau of fire services shall purchase and distribute sealed-battery smoke detectors to the residents of this state. The bureau of fire services may purchase smoke detectors with additional capabilities for individuals with physical or psychological conditions that require an accommodative technology.

(2) Not later than September 30, the department shall submit a report to the standard report recipients that contains all of the following information:

(a) The number of smoke detectors that the bureau of fire services purchased.


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(b) The per-unit price that the bureau paid for the smoke detectors.

(c) An itemized list of all cities, villages, or townships that received smoke detectors and the number of smoke detectors distributed to each city, village, or township.

Sec. 1002. (1) From the funds appropriated in part 1 for the cannabis regulatory agency social equity program, the cannabis regulatory agency shall further develop the program established under section 8(1)(j) of the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27958, with all of the following goals:

(a) To encourage and increase participation in the social equity program, with particular focus to promote and encourage participation in the marihuana industry by people from communities that have been disproportionately impacted by marihuana prohibition and enforcement.

(b) To establish a minimum number of licensees that are participating in the social equity program.

(c) To consider the area median income of a community in designating communities that have been disproportionately impacted by marihuana prohibition and enforcement.

(2) The cannabis regulatory agency shall post on a publicly accessible website a list of all of the following:

(a) The number of initial social equity program applications received, deemed eligible, and deemed ineligible by license category and reason the applicant was found ineligible.

(b) The number of social equity program initial applications approved and the number of initial applications denied, by license category.


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(c) The average amount of time, from receipt to approval or denial, to process an initial social equity program application, by license category.

(d) The number of social equity education and outreach sessions held per month.

(e) Social equity application assistance provided per month.

(f) Demographic information for social equity program participants that includes the following information:

(i) Gender.

(ii) Age.

(iii) How long participant has been a resident of this state.

(iv) Highest level of education.

(v) Total household income.

(vi) Ethnicity.

(vii) How the participant learned about the social equity program.

(g) A list of social equity program awardees.

Sec. 1003. From the funds appropriated in part 1 for Michigan Saves, the Michigan public service commission may award a $1,000,000.00 grant to Michigan Saves to conduct a grant program for clean energy improvement and on-site wastewater system replacement or repair. Michigan Saves should grant funds to individuals or small businesses within the state who have history having difficulty obtaining traditional capital or households with a combined income not exceeding 300% of the federal poverty level and where businesses indicate a state of financial need or vulnerability. The amount granted to a single individual or business must not exceed $100,000.00.

Sec. 1004. From the funds appropriated in part 1 for real


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estate continuing education, the bureau of professional licensing must expend the funds for grants to the Michigan Realtors Association to approve and track real estate continuing education in this state.