part 1

line-item appropriations

Sec. 101. There is appropriated for the department of labor and economic opportunity for the fiscal year ending September 30, 2026, from the following funds:

DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
APPROPRIATION SUMMARY
Full-time equated unclassified positions	34.5
Full-time equated classified positions	2,661.0

GROSS APPROPRIATION		$	2,112,782,300
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers			0
ADJUSTED GROSS APPROPRIATION		$	2,112,782,300
Federal revenues:
Total federal revenues			1,227,473,300
Special revenue funds:
Total local revenues			10,700,000
Total private revenues			12,588,200
Total other state restricted revenues			292,874,300
State general fund/general purpose		$	569,146,500
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions	34.5
Full-time equated classified positions	66.0
Unclassified salaries--FTE positions	34.5	$	4,882,100
Executive direction and operations--FTEs	66.0		10,913,800
Property management			6,642,200
GROSS APPROPRIATION		$	22,438,100
Appropriated from:
Federal revenues:
DED, vocational rehabilitation and independent living			3,469,700
DOL, federal funds			3,266,600
DOL-ETA, unemployment insurance			2,661,000
DOL, occupational safety and health			586,500
Federal funds			2,584,700

Special revenue funds:
Asbestos abatement fund			51,900
Corporation fees			1,951,400
Michigan state housing development authority fees and charges			670,000
Private occupational school license fees			55,900
Radiological health fees			294,800
Safety education and training fund			792,200
Second injury fund			277,600
Securities fees			2,171,100
Self-insurers security fund			151,600
Silicosis and dust disease fund			115,000
Worker's compensation administrative revolving fund			91,100
State general fund/general purpose		$	3,247,000
Sec. 103. WORKFORCE DEVELOPMENT
Full-time equated classified positions	234.0
Center for employment opportunity		$	1,000,000
Community and worker economic transition office--FTEs	10.0		2,523,700
Going pro			54,750,000
Helmets to hardhats			250,000
Michigan future force			9,950,000
Michigan office of rural prosperity--FTEs	2.0		2,299,400
MiSTEM advisory council--FTEs	3.0		673,700
Office of future mobility and electrification			2,000,000
Voluntary income tax assistance grants			2,000,000
Workforce development--FTEs	219.0		442,083,700

GROSS APPROPRIATION		$	517,530,500
Appropriated from:
Federal revenues:
DAG, employment and training			4,000,400
DED-OESE, GEAR-UP			5,500,000
DED-OVAE, adult education			20,000,000
DED-OVAE, basic grants to states			19,000,000
DOL, federal funds			106,336,100
DOL-ETA, workforce investment act			173,488,600
Federal funds			23,225,100
Social security act, temporary assistance to needy families			63,698,800
Special revenue funds:
Local revenues			300,000
Private funds			4,993,800
Contingent fund, penalty and interest			22,143,900
Defaulted loan collection			166,100
State general fund/general purpose		$	74,677,700
Sec. 104. REHABILITATION SERVICES
Full-time equated classified positions	671.0
Bureau of services for blind persons--FTEs	116.0	$	32,149,900
Centers for independent living			19,718,600
Michigan rehabilitation services--FTEs	555.0		194,706,800
Personal assistance services reimbursement for employment program			400,000
Subregional libraries state aid			451,800
GROSS APPROPRIATION		$	247,427,100
Appropriated from:

Federal revenues:
Federal funds			884,000
DED, vocational rehabilitation and independent living			185,573,000
Supplemental security income			8,588,600
Special revenue funds:
Local - blind services			100,000
Local - vocational rehabilitation match			5,300,000
Private - blind services, private			111,800
Private - gifts, bequests, and donations			531,500
Michigan business enterprise program fund			350,000
Rehabilitation service fees			151,200
Second injury fund			38,300
Yields, earnings, and savings			2,500,400
State general fund/general purpose		$	43,298,300
Sec. 105. EMPLOYMENT SERVICES
Full-time equated classified positions	444.0
Bureau of employment relations--FTEs	22.0	$	4,674,000
Compensation supplement fund			820,000
First responder presumed coverage claims			6,500,000
Insurance funds administration--FTEs	23.0		4,638,900
Michigan occupational safety and health administration--FTEs	217.0		38,972,300
Office of global Michigan--FTEs	16.0		44,111,500
Private and occupational distance learning--FTEs	3.0		879,100
Radiation safety section--FTEs	26.0		4,159,200
Wage and hour program--FTEs	67.0		14,182,200

Worker's compensation board of magistrates--FTEs	10.0		2,322,200
Worker's disability compensation agency--FTEs	56.0		10,104,000
Worker's disability compensation appeals commission--FTEs	4.0		359,200
GROSS APPROPRIATION		$	131,722,600
Appropriated from:
Federal revenues:
DOL, occupational safety and health			16,433,600
HHS, mammography quality standards			513,300
HHS, refugee assistance program fund			38,419,100
Special revenue funds:
Asbestos abatement fund			870,100
Corporation fees			12,303,600
Distance education fund			380,400
First responder presumed coverage fund			6,500,000
Prevailing wage fund			8,000,000
Private occupational school license fees			498,700
Radiological health fees			3,645,900
Safety education and training fund			11,739,000
Second injury fund			2,482,800
Securities fees			11,238,200
Self-insurers security fund			1,543,100
Silicosis and dust disease fund			613,000
Worker's compensation administrative revolving fund			3,398,500
State general fund/general purpose		$	13,143,300
Sec. 106. UNEMPLOYMENT INSURANCE AGENCY

Full-time equated classified positions	744.0
Unemployment insurance agency--FTEs	736.0	$	297,138,500
Unemployment insurance agency - advocacy assistance			1,500,000
Unemployment insurance appeals commission--FTEs	8.0		4,430,600
GROSS APPROPRIATION		$	303,069,100
Appropriated from:
Federal revenues:
DOL-ETA, unemployment insurance			280,315,100
Special revenue funds:
Contingent fund, penalty and interest			22,754,000
State general fund/general purpose		$	0
Sec. 107. COMMISSIONS
Full-time equated classified positions	25.0
Asian Pacific American affairs commission--FTE	1.0	$	224,500
Black leadership council--FTE	1.0		220,000
Commission on Middle Eastern American Affairs--FTE	1.0		215,100
Hispanic/Latino commission of Michigan--FTE	1.0		298,500
Michigan community service commission--FTEs	14.0		19,617,400
Michigan women's commission--FTEs	2.0		1,545,100
Prosperity bureau--FTEs	4.0		911,800
Tribal commission--FTE	1.0		220,000
GROSS APPROPRIATION		$	23,252,400
Federal revenues:
Federal funds			18,184,400
Special revenue funds:
Private funds			1,551,100

State general fund/general purpose	$	3,516,900
Sec. 108. INFORMATION TECHNOLOGY
Information technology services and projects	$	30,821,500
GROSS APPROPRIATION	$	30,821,500
Appropriated from:
Federal revenues:
DED, vocational rehabilitation and independent living		3,193,100
DOL-ETA, unemployment insurance		23,003,200
DOL, occupational safety and health		372,300
Federal funds		592,800
Special revenue funds:
Asbestos abatement fund		35,300
Corporation fees		484,400
Distance education fund		20,700
Private occupational school license fees		82,400
Radiological health fees		155,900
Safety education and training fund		403,300
Second injury fund		180,700
Securities fees		1,206,200
Self-insurers security fund		125,600
Silicosis and dust disease fund		45,000
State general fund/general purpose	$	920,600
Sec. 109. STRATEGIC OUTREACH AND ATTRACTION RESERVE
Critical industry program	$	100
Michigan strategic site readiness program		100
GROSS APPROPRIATION	$	200

Appropriated from:
Special revenue funds:
Strategic outreach and attraction reserve fund			200
State general fund/general purpose		$	0
Sec. 110. MICHIGAN STRATEGIC FUND
Full-time equated classified positions	150.0
Arts and cultural program		$	12,135,200
Business attraction and community revitalization			40,650,000
Community college skilled trades equipment program			4,600,000
Community development financial institutions			2,000,000
Facility for rare isotope beams			7,300,000
Global talent initiative			100,000
Job creation services--FTEs	150.0		35,308,200
Lighthouse preservation program			250,000
Michigan defense center program			5,000,000
Pure Michigan			21,000,000
Small business development initative			10,000,000
Talent partnership			40,000,000
GROSS APPROPRIATION		$	178,343,400
Appropriated from:
Federal revenues:
Federal funds			3,000,000
NFAH-NEA, promotion of the arts, partnership agreement			1,050,000
State historic preservation, national park service grants			1,900,000

Special revenue funds:
Local promotion fund			5,000,000
Private - Michigan council for the arts fund			200,000
Private - special project advances			200,000
Private promotion fund			5,000,000
Contingent fund, penalty and interest			4,600,000
Michigan lighthouse preservation fund			250,000
Michigan state housing development authority fees and charges			4,818,600
State brownfield redevelopment fund			7,004,400
State historic preservation office fees and charges			509,200
State general fund/general purpose		$	144,811,200
Sec. 111. MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY
Full-time equated classified positions	318.0
Community development block grants		$	47,000,000
Housing and rental assistance--FTEs	318.0		52,120,800
Michigan housing and community development program			50,000,000
MSHDA technology services and projects			3,760,900
Payments on behalf of tenants			166,860,000
Property management			3,519,200
GROSS APPROPRIATION		$	323,260,900
Appropriated from:
Federal revenues:
HUD, lower income housing assistance			166,860,000
HUD-CPD, community development block grant			49,773,300

Special revenue funds:
Michigan housing and community development fund			50,000,000
Michigan state housing development authority fees and charges			56,627,600
State general fund/general purpose		$	0
Sec. 112. STATE LAND BANK AUTHORITY
Full-time equated classified positions	9.0
Land bank stabilization grants		$	3,000,000
State land bank authority	9.0		8,912,400
GROSS APPROPRIATION		$	11,912,400
Appropriated from:
Federal revenues:
Federal revenues			1,000,000
Special revenue funds:
Land bank fast track fund			3,385,000
State general fund/general purpose		$	7,527,400
Sec. 113. ONE-TIME APPROPRIATIONS
ADA small business compliance		$	2,000,000
Arts and culture facility upgrades			2,000,000
Community health and services grants			1,200
Community infrastructure grants			1,400
Community public safety grants			900
Community workforce development grants			600
Economic stress test			500,000
Economic relief			100,000,000
Emergency housing			50,000,000
Emerging community grants			2,750,000
Fire station infrastructure grants			3,000,000

Housing relief fund		75,000,000
MiCAP		20,000,000
Michigan future force		15,000,000
Michigan veteran wraparound services		3,000,000
Michigan works!		1,000,000
My pay today pilot program		1,000,000
Re-emerging workforce		10,000,000
Short-term loan grants		2,500,000
Small business support hubs		30,000,000
Statewide apprenticeship expansion		5,000,000
Women in the workplace		250,000
GROSS APPROPRIATION	$	323,004,100
Appropriated from:
Federal revenues:
Special revenue funds:
Corporation fees		25,000,000
Yields, earnings, and savings		20,000,000
State general fund/general purpose	$	278,004,100

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 $862,020,800.00 and state spending under part 1 from state sources to be paid to local units of government is $71,443,700.00. The following itemized statement identifies appropriations from which

spending to local units of government will occur:

DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
Arts and cultural program	$	1,200,000
At-risk youth grants		5,700,000
Going pro		53,655,000
Michigan rehabilitation services		275,000
Workforce development programs		10,999,900
TOTAL	$	71,443,700

Sec. 202. The appropriations under this part and part 1 are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 203. As used in this part and part 1:

(a) "Department" means the department of labor and economic opportunity and entities contained within its organization, including, but not limited to, the fund.

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

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

(e) "MEDC" means the Michigan economic development corporation, which is the public body corporate created under section 28 of article VII of the state constitution of 1963 and the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by contractual interlocal agreement effective April 5, 1999, between local participating economic development corporations formed under the economic development corporations act, 1974 PA 338, MCL 125.1601 to 125.1636, and the fund.

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

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

authority.

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

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

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

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

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

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

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

(a) The funds must not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods or services, or both, are available.

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

(c) Preference must be given to goods or services, or both, that are manufactured or provided by Michigan businesses owned and operated by veterans, if they are competitively priced and of

comparable quality.

(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.

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

Sec. 209. Not later than December 15, the state budget office

shall prepare and submit a report that provides estimates of the total general fund/general purpose appropriation lapses at the close of the previous fiscal year. The report must summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The state budget office shall submit the report to the standard report recipients and the chairpersons of the senate and house appropriations committees.

Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $30,000,000.00 for federal contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

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

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

(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $11,000,000.00 for private contingency authorization. Amounts appropriated under this

subsection are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 211. The department shall cooperate with the department of technology, management, and budget to maintain a searchable website accessible by the public at no cost that includes, but is not limited to, all of the following for the department:

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

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

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

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

(e) Job specifications and wage rates.

Sec. 212. Not later than 14 days after the release of the executive budget recommendation, the department shall cooperate with the state budget office to provide an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the previous 2 fiscal years. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.

Sec. 213. (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. 214. To the extent permissible under the management and budget act, 1984 PA 451, 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. 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. 216. 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. 217. 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. 218. 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. 220. Requirements under this part applicable to the fund and the fund's activities apply regardless of whether the fund delegates its functions and authority to the MEDC.

Sec. 221. 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. 222. (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 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, 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 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 clawback 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.

(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 after an extension is granted.

(11) 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.

(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. 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.

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

Sec. 224. (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. 225. 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.

DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY

Sec. 301. General fund appropriations in part 1 must not be expended for items in cases where federal funding or private grant funding is available for the same expenditures.

Sec. 302. Federal pass-through funds to local institutions and governments that are received in amounts in addition to those included in part 1 and that do not require additional state matching funds are appropriated for the purposes intended. The department may carry forward into the succeeding fiscal year unexpended federal pass-through funds to local institutions and governments that do not require additional state matching funds. The department shall report the amount and source of the funds to the standard report recipients not later than 10 business days after receiving any additional pass-through funds.

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

Sec. 304. (1) Grants supported with private revenues received

by the department are appropriated upon receipt and are available for expenditure by the department for purposes specified within the grant agreement and as permitted under state and federal law.

(2) Not later than 10 days after the receipt of a private grant appropriated in subsection (1), the department shall notify the senate and house chairpersons of the subcommittees, the senate and house fiscal agencies, and the state budget director of the receipt of the grant, including the fund source, purpose, and amount of the grant.

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

(4) Not later than March 15, the department shall report to the standard report recipients on the amount of private revenue generated in the previous fiscal year and the amount carried forward into the current fiscal year.

Sec. 305. (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 that are under the department's purview.

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

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

(4) Revenue generated by registration fees under this section in excess of the department's costs of sponsoring informational, training, or special events must carry forward to the subsequent

fiscal year and not lapse to the general fund.

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

(6) Not later than March 15, the department shall report to the standard report recipients on the amount of registration fees generated in the previous fiscal year and the amount carried forward into the current fiscal year.

Sec. 306. (1) The department may sell documents at a price not to exceed the cost of production and distribution. Money received from the sale of these documents must revert to the department. In addition to the funds appropriated in part 1, these funds are available for expenditure when they are received by the department of treasury.

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

(3) Not later than March 15, the department shall report to the standard report recipients on the amount of revenue generated from the sale of documents produced and distributed by the department in the previous fiscal year and the amount carried forward into the current fiscal year.

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

Sec. 308. Funds appropriated in part 1 must not be used by a

department, authority, or agency to purchase an ownership interest in a casino.

Sec. 309. (1) The yields, earnings, and savings fund is created in the state treasury.

(2) The state treasurer shall make a quarterly transfer of any interest and earnings from all of the following to the yields, earnings, and savings fund:

(a) The strategic outreach and attraction reserve fund created under section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254, of the amount credited to the strategic outreach and attraction reserve fund in the previous quarter.

(b) The revitalization and placemaking fund created under section 696 of the income tax act of 1967, 1967 PA 281, MCL 206.696, of the amount credited to the revitalization and placemaking fund.

(c) The Michigan housing and community development fund created under section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a, of the amount credited to the fund from interest and earnings in the previous quarter.

(3) Funds may be spent from the yields, earnings, and savings fund only on appropriation, or legislative transfer pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) The state treasurer may receive money or other assets from any source for deposit in the yields, earnings, and savings fund. The state treasurer shall direct the investment of the yields, earnings, and savings fund. The state treasurer shall credit to the yields, earnings, and savings fund interest and earnings from the

yields, earnings, and savings fund.

(5) Any unexpended funds in the yields, earnings, and savings fund must be carried forward and are available for expenditure under this section.

(6) Funds in the yields, earnings, and savings fund at the close of the fiscal year remain in the yields, earnings, and savings fund and do not lapse to the general fund.

(7) Funds appropriated to the yields, earnings, and savings fund are available to support investments in the department budget.

Sec. 310. The funds appropriated in part 1 shall be appropriated with priority given, to the extent possible, to support initiatives for underserved communities, or those individuals who have been adversely affected by federal executive orders related to these topics issued on or after January 21, 2025 or the revocation of federal Executive Order No. 13985.

STRATEGIC OUTREACH AND ATTRACTION RESERVE

Sec. 351. Funds held in the strategic outreach and attraction reserve fund must be used to support activities under section 88s or 88t of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088s and 125.2088t, after they have been transferred to another line item under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393. Pursuant to section 4(2) of the Michigan trust fund act, 2000 PA 489, MCL 12.254, funds appropriated under this section that are not restricted, obligated, or committed at the close of the fiscal year ending September 30, 2026 must lapse to the state general fund.

Sec. 352. The legislature finds and declares that appropriations for the critical industry program and the Michigan

strategic site readiness program are for a public purpose and serve the health, safety, and general welfare of the residents of this state.

Sec. 353. (1) It is the intent of the legislature that the funds appropriated in part 1 for the critical industry program and the Michigan strategic site readiness program are expended in a manner that will maximize job creation, grow wages, support existing business in this state, attract new business development to this state, and include community support and equity.

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

(a) Clawback provisions in a written agreement between the fund and a qualified business relating to the creation or retention of jobs must be structured to ensure that those jobs are retained for not less than 5 years.

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

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

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

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

(i) Child care services.

(ii) Transportation supports.

(iii) Postsecondary educational institutions.

(iv) Customized assistance programs for employees.

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

(vi) Credential requirements pipeline programs.

(vii) Workforce talent investment programming.

(viii) Tuition debt forgiveness or repayment supports.

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

(x) On-site training and support centers.

(3) As used in this section:

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

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

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY

Sec. 401. (1) Not later than March 15, MSHDA shall present an annual report to the standard report recipients on the status of the authority's housing production goals under all financing programs established or administered by the authority. The report

must give special attention to efforts to raise affordable multifamily, and single-family housing production goals.

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

(3) MSHDA shall report on production goals to the standard report recipients not later than March 15. The report must include information on efforts to raise affordable multifamily and single-family housing goals and a summary of each program, the status of goal progress, and an explanation of how each program in MSHDA related to the current production goals and are utilized by citizens of this state.

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

Sec. 403. (1) From the funds appropriated in part 1 for housing and rental assistance, not less than 2.0 FTE positions must work to the extent permissible with the department of health and human services on transition and supportive housing to support the transition to permanent housing with MSHDA.

(2) From the funds appropriated in part 1 for housing and rental assistance, not less than 1.0 FTE position must work to the extent permissible with the Michigan strategic fund for mixed-use housing projects.

(3) The department shall report to the standard report recipients not later than March 15 on the work that MSHDA has undertaken with the department, the fund, and department of health

and human services.

Sec. 404. MSHDA may support the activities of payments on behalf of tenants in the event of federal funding reductions in the same manner and purpose as required under the federal program.

Sec. 405. (1) It is the intent of the legislature that the state budget director use the state budget director's authority under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a, to lapse a total of $14,000,000.00 appropriated under 2022 PA 166, for work project number TW3235023.

(2) If the state budget director lapses work project number W3235023, the lapsed funds shall be appropriated in addition to the fund appropriated in part 1 for grants to local land banks for blight removal or redevelopment projects. The department shall notify the standard report recipients if funds are appropriated under this subsection.

state LAND BANK AUTHORITY

Sec. 451. (1) In addition to the amounts appropriated in part 1, the state land bank authority may expend revenues received under the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774, for the purposes authorized by the act, including, but not limited to, the acquisition, lease, management, demolition, maintenance, or rehabilitation of real or personal property, payment of debt service for notes or bonds issued by the authority, and other expenses to clear or quiet title property held by the authority. The state land bank authority may establish partnerships with local land bank authorities.

(2) Not later than March 15, the state land bank authority shall submit a report to the standard report recipients on the

number of real properties acquired, leased, managed, demolished, maintained, or rehabilitated in the previous fiscal year and list any partnerships that the state land bank authority has with any local land bank authorities.

Sec. 452. The funds appropriated in part 1 for land bank stabilization grants shall be allocated for grants to local land banks to support property management and redevelopment. Grants must be prioritized to local land banks with the largest inventory of properties.

MICHIGAN STRATEGIC FUND

Sec. 501. The report required under section 9 of the Michigan strategic fund act, 1984 PA 270, MCL 125.2009, must be transmitted not later than March 15.

Sec. 502. In addition to the appropriations in part 1, Travel Michigan may receive and expend private revenue related to the use of "Pure Michigan" and all other copyrighted slogans and images. This revenue may come from the direct licensing of the name and image or from the royalty payments from various merchandise sales. Revenue collected is appropriated for the marketing of this state as a travel destination. The funds are available for expenditure when they are received by the department of treasury. If the fund receives revenues from the use of "Pure Michigan", the fund shall provide a report that lists the revenues by source received from the use of "Pure Michigan" and all other copyrighted slogans and images. The report must provide a detailed list of expenditures of revenues received under this section. The report must be provided to the standard report recipients not later than March 15.

Sec. 503. (1) Funds appropriated in part 1 for Pure Michigan

must be used for the following purposes:

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

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

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

(d) Not more than 1.0% of the appropriation for administration of the program.

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

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

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

(4) The department shall provide an annual report to the standard report recipients not later than March 15 on the utilization of funds for eligible activities in subsection (1), including a breakdown by eligible use, efforts taken to broaden the scope of marketing activities to diverse populations, a breakdown of funds spent within this state and outside of this state, how much was expended for market research, and targeted marketing to encourage residents from other states to move to this state.

(5) As prescribed by the legislature, funds appropriated to Pure Michigan must be used for this state to market itself as a

travel and tourist destination with the sole purpose of attracting new visitors and retaining former visitors. All of the following apply to marketing under this subsection:

(a) Promotion may be made by print, television, radio, and social media.

(b) The purpose of the advertisements under subdivision (a) must be to attract tourism and leisure travelers to this state.

(6) Each local visitor bureaus can only receive dollars appropriated to Pure Michigan once per fiscal year.

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

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

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

(4) The department shall provide a report to the standard report recipients not later than March 15 on any funds that have been generated by local units of government and how those funds have been expended.

Sec. 505. (1) A private promotion fund is created in the department. The fund may receive funds from private entities and deposit these funds into the private promotion fund. Funds received are available for expenditure for use in Pure Michigan promotion campaigns. The fund may maintain individual accounts for private entities that deposit funds into the private promotion fund upon request from a private entity.

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

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

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

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

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

number of committed jobs.

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

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

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

(2) In addition to being posted online, the report must be distributed to the standard report recipients not later than March 15.

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

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

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

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

(e) A description of all subprograms funded with the business attraction and community revitalization line item.

(2) Information received by the fund under this section must be posted online and distributed to the standard report recipients not later than March 15.

Sec. 508. As a condition of receiving funds under part 1, any interlocal agreement entered into by the fund must include language

that states that if a local unit of government has a contract or memorandum of understanding with a private economic development agency, the MEDC will work cooperatively with that private organization in that local area.

Sec. 509. (1) From the funds appropriated in part 1, the department shall notify the standard report recipients no later than 45 days after the purchase of land or options on land and include in the notification the location of the land, information on the entity that sold the land, and the purchase price of the land or option on land.

(2) If land or options on land are purchased under subsection (1), the fund shall provide a report that provides a list of all properties purchased, all options on land purchased, the location of the land purchased, and the purchase price if the fund purchases options on land or land. The report must be submitted to the standard report recipients not later than March 15.

Sec. 510. As a condition for receiving funds in part 1, not later than March 15, the fund shall provide a report for the previous fiscal year on the jobs for Michigan investment fund, created in section 88h of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088h. The report must include, but is not limited to, all of the following:

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

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

investment fund.

Sec. 511. (1) From the appropriations in part 1 to the fund and granted or transferred to the MEDC, any unexpended or unencumbered balance must be disposed of in accordance with the requirements in the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, unless carryforward authorization has been otherwise provided for.

(2) Any encumbered funds, including encumbered funds subsequently unobligated, must be used for the same purposes for which funding was originally appropriated in this part and part 1.

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

Sec. 512. (1) As a condition of receiving funds under part 1, the fund must ensure that the MEDC and the fund comply with all of the following:

(a) The freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

(b) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

(d) All reports required by law to be submitted to the legislature.

(2) If the MEDC is unable for any reason to perform duties under this part, the fund may exercise those duties.

Sec. 513. As a condition for receiving the appropriations in part 1, the department shall provide a report to the standard

report recipients due no later than March 15 that lists any staff of the MEDC involved in private fund-raising activities and if those individuals were party to any decisions regarding the awarding of grants, incentives, or tax abatements from the fund, the critical industry program, the Michigan strategic site readiness program, the MEDC, or the MEGA.

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

Sec. 515. (1) The fund shall report to the standard report recipients on the status of the film incentives at the same time as it submits the annual report required under section 455 of the Michigan business tax act, 2007 PA 36, MCL 208.1455. The department of treasury shall provide the fund with the data necessary to prepare the report. Incentives included in the report shall include all of the following:

(a) The tax credit provided under section 455 of the Michigan business tax act, 2007 PA 36, MCL 208.1455.

(b) The tax credit provided under section 457 of the Michigan business tax act, 2007 PA 36, MCL 208.1457.

(d) The amount of any tax credit claimed under former section 367 of the income tax act of 1967, 1967 PA 281.

(e) Any tax credits provided for film and digital media production under the Michigan economic growth authority act, 1995

PA 24, MCL 207.801 to 207.810.

(f) Loans to an eligible production company or film and digital media private equity fund authorized under section 88d(3), (4), and (5) of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088d.

(2) The report must include all of the following information:

(a) For each tax credit, the number of contracts signed, the projected expenditures qualifying for the credit, and the estimated value of the credits. For loans, the number of loans made under each section, the interest rate of those loans, the loan amount, the percent of the projected budget of each production financed by those loans, and the estimated interest earnings from the loan.

(b) For credits authorized under section 455 of the Michigan business tax act, 2007 PA 36, MCL 208.1455, for productions completed by December 31, the expenditures of each production eligible for the credit that has filed a request for certificate of completion with the film office, broken down into expenditures for goods, services, or salaries and wages and showing separately expenditures in each local unit of government, including expenditures for personnel, whether or not they were made to a Michigan entity, and whether or not they were taxable under the laws of this state.

(c) For loans, the report must include the number of loans that have been fully repaid, with principal and interest shown separately, and the number of loans that are delinquent or in default, and the amount of principal that is delinquent or is in default.

(d) For each of the tax credit incentives and loan incentives listed in subsection (1), a breakdown for each project or

production showing each of the following:

(i) The number of temporary jobs created.

(ii) The number of permanent jobs created.

(iii) The number of persons employed in Michigan as a result of the incentive, on a full-time equated basis.

(3) For any information not included in the report due to the provisions of section 455(6), 457(6), or 459(6) of the Michigan business tax act, 2007 PA 36, MCL 208.1455, 208.1457, and 208.1459, the report shall do all of the following:

(a) Indicate how the information would describe the commercial and financial operations or intellectual property of the company.

(b) Attest that the information has not been publicly disseminated at any time.

(4) Any information not disclosed due to the provisions of section 455(6), 457(6), or 459(6) of the Michigan business tax act, 2007 PA 36, MCL 208.1455, 208.1457, and 208.1459, must be presented at the lowest level of aggregation that would no longer describe the commercial and financial operations or intellectual property of the company.

(5) As a condition of receiving funds in part 1, not later than March 15, the fund shall provide a report on the activities of the Michigan film and digital media office for the previous fiscal year to the standard report recipients. The report must include, but is not limited to, a listing of all projects the Michigan film and digital media office provided assistance on, a listing of the services provided for each project, and an estimate of investment leveraged.

Sec. 516. As a condition of receiving an award from the fund, each business incubator or accelerator that received an award from the fund must maintain and update a dashboard of indicators to measure the effectiveness of the business incubator and accelerator programs. Indicators must include the direct jobs created, new companies launched as a direct result of business incubator or accelerator involvement, businesses expanded as a direct result of business incubator or accelerator involvement, direct investment in client companies, private equity financing obtained by client companies, grant funding obtained by client companies, and other measures developed by the recipient business incubators and accelerators in conjunction with the MEDC. Dashboard indicators must be reported for the previous fiscal year and cumulatively, if available. Each recipient shall submit a copy of their dashboard indicators to the fund by March 1. The fund shall transmit the local reports not later than March 15.

Sec. 517. (1) From the appropriations in part 1, the Michigan arts and culture council shall administer an arts and cultural grant program that maintains an equitable geographic distribution of funding and utilizes past arts and cultural grant programs as a guideline for administering this program. The council shall do all of the following:

(a) Not later than October 1, publish proposed application criteria, instructions, and forms for use by eligible applicants. The council shall provide at least a 2-week period for public comment before finalizing the application criteria, instructions, and forms.

(b) Assess a nonrefundable application fee that may be applied for each application. Application fees must be deposited in the

council for the arts fund and are appropriated for expenses necessary to administer the programs. These funds are available for expenditure when they are received and may be carried forward to the subsequent fiscal year.

(d) Not later than 1 business day after the award announcements, provide to each member of the legislature and the fiscal agencies a list of all grant recipients and the total award given to each recipient, sorted by county.

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

(2) Up to 1.0% of the funds appropriated in part 1 for arts and cultural program may be expended for the administration of the grant program.

(3) From the funds appropriated in part 1 for arts and cultural program, $1,000,000.00 must be awarded to a cultural exchange network to support a music and arts festival that is free to the public.

Sec. 518. (1) The general fund/general purpose funds appropriated in part 1 to the fund for business attraction and community revitalization must be transferred to the 21st century jobs trust fund per section 90b(3) of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090b.

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

125.2001 to 125.2094.

Sec. 519. For the funds appropriated in part 1 for business attraction and community revitalization, the fund shall report quarterly to the standard report recipients on the amount of funds considered appropriated, pre-encumbered, encumbered, and expended by current fiscal year appropriation and each work project for any previous fiscal years. The report must also include a listing of all previous appropriations for business attraction and community revitalization, or a predecessor, that were considered appropriated, pre-encumbered, encumbered, or expended that have lapsed back to the fund for any purpose. The report must be submitted to the standard report recipients.

Sec. 520. (1) The fund, in conjunction with the department of treasury, shall report not later than November 1 on the annual cost of the MEGA tax credits. The report must include for each year the board-approved credit amount, adjusted for credit amendments where applicable, and the actual and projected value of tax credits for each year from 1995 to the expiration of the credit program. For years for which credit claims are complete, the report must include the total of actual certificated credit amounts. For years that claims are still pending or not yet submitted, the report must include a combination of actual credits where available and projected credits. Credit projections must be based on updated estimates of employees, wages, and benefits for eligible companies.

(2) In addition to the report under subsection (1), the fund, in conjunction with the department of treasury, shall report to the standard report recipients not later than November 1 on the annual cost of all other certificated credits by program, for each year until the credits expire or can no longer be collected. The report

must include estimates on the brownfield redevelopment credit, film credits, MEGA photovoltaic technology credit, MEGA polycrystalline silicon manufacturing credit, MEGA vehicle battery credit, and other certificated credits.

Sec. 521. As a condition of receiving appropriations in part 1, prior to authorizing the transfer of any previously authorized tax credit that would increase the liability to this state, the fund, on behalf of the fund's board, must notify the standard report recipients of the transfer of any previously authorized tax credit that would increase the liability to this state not fewer than 30 days prior to the authorization of the tax credit transfer.

Sec. 522. (1) From the funds appropriated in part 1 for business attraction and community revitalization, the fund shall identify specific outcomes and performance measures, including, but not limited to, the following:

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

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

(c) Amount of private and public square footage created and reactivated through the community revitalization program during the previous fiscal year.

(2) The fund shall submit a report to the standard report recipients not later than March 15. The report must describe the specific outcomes and measures required in subsection (1) and provide the results and data related to these outcomes and measures for the previous fiscal year if related information is available for the previous fiscal year. The report must also contain a

summary of any metrics used to evaluate the outcomes and performance of any programs.

Sec. 523. In addition to the funds appropriated in part 1, the funds collected by state historic preservation programs for document reproduction and services and application fees are appropriated for all expenses necessary to provide the required services. These funds are available for expenditure when they are received and may be carried forward into the succeeding fiscal year.

Sec. 524. Tax capture revenues collected in accordance with written agreements under the good jobs for Michigan program and transferred from the general fund for deposit into the good jobs for Michigan fund, and for both calculated payments from the good jobs for Michigan fund to authorized businesses and distributions to the fund for administrative expenses, are appropriated under the provisions of chapter 8D of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090g to 125.2090j.

Sec. 525. The department shall provide a report to the standard report recipients on March 15 that includes, but is not limited to, fiscal year-to-date expenditures by division and program unit within the job creation services line item. The report must contain detailed information on expenditures and programs within the state historic preservation office, including a list of any entities that receive financial support from the state historic preservation office.

Sec. 526. (1) The funds appropriated in part 1 for the Michigan defense center program shall be used by the Michigan strategic fund to protect and grow the defense and homeland security industry in this state by protecting this state's current

department of defense missions, infrastructure, and industry, including securing new missions and increasing defense and homeland security spending in this state. These funds may be used for, but are not limited to, the following activities:

(a) Helping businesses in this state identify federal defense contract opportunities.

(b) Providing technical assistance for bid responses to federal defense contracts.

(2) Not later than February 1, the Michigan defense center shall provide an annual report to the standard report recipients. The report must include, but is not limited to, all of the following:

(a) A strategic plan for the organization.

(b) An overview of the defense industry in this state, including identification of recent accomplishments and services provided to businesses in this state in the most recent year.

(c) A list of expenditures used to fund memberships in organizations and costs associated with attending conferences and expositions in the most recent year.

(d) The most recent annual figures on direct domestic defense-related contracts and grants awarded to Michigan-based entities.

(e) A summary of contracts or defense industry business with international clients.

(f) An analysis of the economic impacts to the defense industry of this state as a result of tariffs and federal policy shifts toward ongoing conflicts in Europe.

Sec. 528. The department shall provide updates on March 15 and

September 30 to the standard report recipients on the implementation of the revitalization and placemaking program for which funds were appropriated under section 528 of article 9 of 2024 PA 121, that includes, but is not limited to, all of the following:

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

(b) As applicable, identify the activities undertaken by agency workgroup participants to communicate the implementation of local talent concentration plans to each of their respective agencies and identification of any existing programs or resources that may be used to support the implementation of a local talent concentration plan.

Sec. 529. (1) The funds appropriated in part 1 for Michigan talent partnership shall be used to administer a grant program and support implementation of transformational community development initiatives.

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

(a) The transition of roadway usage from cars to alternative

transportation spaces, including, but not limited to, walking, biking, and transit.

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

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

(i) Support greater density.

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

(iii) Improve direct access to multimodal transportation.

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

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

(4) The department may do any of the following to implement the grant program:

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

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

(c) Review existing best practices for similar programs and consult with third-party experts, including academic and research

institutions based in this state.

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

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

(6) Eligible applicants for a grant must be a consortium of entities that may include local governments, local economic development organizations, the nonprofit community, and the business community. Consortium applicants must appoint a lead applicant, which may be 1 of the consortium's entities or a nonprofit organization, to serve as fiduciary and project manager for the consortium. An eligible applicant may partner with other government agencies, consortiums, authorities, and community anchor or nonprofit entities to submit and implement an approved local talent plan to the department. Notwithstanding local talent plan revisions or subsequent funding rounds, an eligible applicant shall not submit more than 1 local talent plan. Only grant applicants that provide a minimum of 50% local or private match funds may be considered for a grant under this section.

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

(a) Planning, engineering, permitting review, and other local

assessments to support implementation of a local talent plan.

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

(i) Neighborhood associations.

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

(iii) Economic development organizations or local businesses or business organizations.

(iv) Local anchor institutions.

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

(vi) Regional planning organizations or consortiums.

(vii) Public transit organizations.

(viii) Faith-based organizations.

(ix) Tribal governments.

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

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

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

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

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

private resources.

(8) In addition to the eligible activities under subsection (7), approved local talent plans must include all of the following:

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

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

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

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

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

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

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

(9) To leverage existing programs and resources to support talent concentration, the department may establish a state agency workgroup to support the implementation of this section, including from agencies that oversee any programs related to housing, home repairs, blight elimination, business supports, community

development, transportation or mobility, arts, and outdoor recreation.

(10) The department may retain up to 3% of funds under this section for implementation costs. In addition, the department may retain up to an additional 2% of funds under this section to reimburse other state agencies' activities that are in support of a Michigan talent partnership project. The department may contract with at least 1 consultant that is a nonprofit research organization or public education institution based in this state with experience in at least placemaking research to support this section.

(11) The department shall post online the guidelines for local talent plans and identify available research or resources that may be used to support the development of a talent plan.

(12) In evaluating each application, subject to subsection (13), the department shall use objective criteria, including, but not limited to, the comprehensive nature of the plan, the local support identified, long-term sustainability, and the likelihood to achieve the goals of the Michigan talent partnership program. The department must consider, but is not limited to, all of the following when selecting grant recipients:

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

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

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

(d) The extent to which the proposed plan supports facilities

and walkways that house or present cultural arts programs, performances, and exhibitions.

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

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

(13) The department shall award funds consistent with the following:

(a) Grants shall be awarded in a geographically diverse manner.

(b) Subject to the department's approval, permits grant awards to continue implementation of existing talent plans.

(c) Individual grants shall not exceed $5,000,000.00 per applicant. Consistent with subsection (12), the department may establish objective criteria to determine the amount of each grant awarded under this section.

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

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

(16) The department shall provide an annual report by September 30 to the standard report recipients on the implementation of this program, including, but not limited to:

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

(17) The unexpended portion of grants under this section are designated as a work project appropriation in accordance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a. Unencumbered or unallotted funds must not lapse at the end of the fiscal year and must be available for grant awards or other expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

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

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

and grant agreements between the department and grant recipients.

(d) The tentative completion date for the work project is September 30, 2030.

Sec. 530. (1) From the funds appropriated in part 1, in addition to other reporting requirements, the department shall work with the Michigan strategic fund to develop and maintain a searchable database that includes detailed information on all economic assistance agreements funded in whole or in part with state appropriations.

(2) The database should be easily accessible and provide the ability to search and filter economic assistance by program, county, and entity receiving assistance. The department shall ensure that the database includes a listing of all past economic assistance for the same entity receiving new economic assistance. This includes the going pro talent program, business development program, community revitalization program, all tax credit programs, small business support, capital assistance, the critical industry program, and the Michigan strategic site readiness program.

(3) The searchable database must include, but not be limited to, all of the following information on all economic assistance funded in whole or in part with state appropriations:

(a) The program or economic assistance that the entity received.

(b) The location of the entity receiving assistance.

(c) If the entity is a subsidiary or owned by another entity, the identity of the owners and the locale where the owner is based.

(d) The fiscal year the fund source comes from.

(e) The type of incentive such as a grant, loan, tax credit,

tax capture, or a reimbursement payment.

(f) The project type, including expansion, retention, relation, or new.

(g) The amount of incentive awarded and the status of disbursement.

(h) The status of the project.

(i) The industry of the entity.

(j) Any type of training provided, including if the training is to comply with state or federal requirements.

(k) The number of employees receiving and completing training.

(l) The median hourly wage of employees being trained and the median hourly wage of the county.

(m) The status of hourly wages 6 months after training is completed.

(n) The number of new employees hired by the entity.

(o) The written agreement between the department or the fund and the entity, including any amendments to those agreements.

Sec. 531. (1) From the funds appropriated in part 1 for small business development initiative, the department shall utilize funds to make awards for economic assistance to qualified businesses or business organizations that provide services to qualified small businesses.

(2) The department shall prioritize awards for the development and expansion of small businesses from underserved groups and distressed communities in this state. Funds shall be awarded in a geographically diverse manner.

(3) The department shall award funds under this section in a competitive manner and develop objective criteria to evaluate applications.

(4) The department shall ensure any direct business grants have clear metrics to grow small business or to create jobs.

(5) The department shall submit a report to the standard report recipients and post the report on the department's website not later than September 30, until the funds have been expended. At a minimum, the report must provide all of the following information:

(a) The number of awards granted.

(b) The amount of each award.

(6) The unexpended funds appropriated in part 1 for small business development initiative are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to award funds for economic assistance to small businesses.

(b) The project will be accomplished by utilizing state employees, the Michigan economic development corporation, or contracts.

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

(7) As used in this section:

(a) "Business organizations" means registered 501(c)(6) or 501(c)(3) nonprofits including economic development organizations, chambers of commerce, industry associations, or tribal

organizations.

(b) "Economic assistance" includes, but is not limited to, technical assistance, grants, incubation, access to capital, or other financing opportunities.

(c) "Qualified business" means a business owned and operated by individuals from an underrepresented group or distressed community based on criteria published by the department.

Sec. 532. (1) The funds appropriated in part 1 for community development financial institutions fund grants are transferred to the Michigan community development financial institutions fund created under this section. The Michigan community development financial institutions fund is created in the state treasury. All funds in the Michigan community development financial institutions fund, including funds unallocated from prior years, are appropriated for grants to eligible community development financial institutions under this section and related expenditures permitted under this section. The legislature finds and declares that the appropriation described in this section is for a public purpose, including promoting community economic revitalization and community development through community development financial institutions.

(2) Not later than October 31, 2025, the Michigan strategic fund shall develop a grant application consistent with this section that is published and available on its publicly accessible website.

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

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

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

Michigan CDFI or a multistate CDFI.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(d) Up to $887,000.00 if the community development financial institution made qualifying commitments in an amount that averaged from $6,000,000.00 to $9,999,999.00 per applicant fiscal year during the 3 fiscal years preceding the fiscal year in which an application for a grant is submitted.

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

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

(7) The Michigan strategic fund shall accept applications for a grant under this section until November 30, 2025. The Michigan strategic fund shall approve or deny a grant application within 49 days after the receipt of an administratively complete application as determined by the Michigan strategic fund. If the application complies with the requirements of this section, the Michigan strategic fund shall approve the award of the grant in the amount requested by the applicant. The Michigan strategic fund may deny a grant application submitted under this section only for the following reasons:

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

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

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

(8) If the Michigan strategic fund denies an application under subsection (7), the applicant may provide additional information to the Michigan strategic fund within 7 days after the notice of denial. The Michigan strategic fund shall review and reconsider the application and additional information within 28 days after the applicant provides additional information.

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

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

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

(b) A restriction that no more than 10% of the grant award be

used for technical assistance activities described in 12 CFR 1805.303.

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

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

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

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

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

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

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

(11) A grant agreement may provide for the community development financial institution that is the recipient of a grant

award to serve as an intermediary lender to another community development financial institution consistent with the purposes of this section if not prohibited by federal law applicable to the expenditure of any federal grant money.

(12) If not prohibited by federal law applicable to the expenditure of any federal grant money, a grant agreement must permit a grant award recipient to assign the award to an affiliate and for the affiliate to assume the obligations of the grant award recipient if the affiliate satisfies all of the following:

(a) Is a community development financial institution.

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

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

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

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

(a) A copy of the recipient's most recent confirmation of recertification as a community development financial institution

issued by the community development financial institutions fund under 12 CFR 1805.201, which may include the list of community development financial institutions in good standing maintained and published by the federal fund.

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

(i) The name of each transaction.

(ii) A transition tracking number for each transaction.

(iii) The date of each transaction.

(iv) The amount of each transaction.

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

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

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

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

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

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

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

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

(ii) Professional fees and expenses incurred.

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

(14) A grant award recipient is not required to provide a report under this section for any applicant fiscal year in which it did not loan or otherwise commit or disburse grant award money. The Michigan strategic fund shall not include information in the report required under subsection (13) if information that otherwise would be included in a report under subsection (13) is either of the following:

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

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

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

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

(17) Unexpended funds appropriated for community development financial institutions fund grants are designated as a work project appropriation. Unencumbered or unallotted funds must not lapse at the end of the fiscal year and must be available for grant awards

or other expenditures until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to provide grants to eligible community development financial institutions under this section.

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

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

(18) As used in this section:

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

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

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

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

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

(iv) Employs 2 or more individuals at a physical office within this state, including employees of an affiliate of the community development financial institution that provides services to the community development financial institution.

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

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

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

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

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

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

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

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

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

(h) "Michigan CDFI" means a community development financial

institution that satisfies all of the following:

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

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

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

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

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

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

(i) Financial products or financial services committed under the Riegle community development and regulatory improvement act of

1994, Public Law 103-325, 12 USC 4701 to 4719.

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

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

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

Sec. 533. The funds appropriated in part 1 for global talent initiative shall be awarded to a nonprofit organization in a city with a population greater than 600,000 according to the most recent federal decennial census focused on equitable local, regional, and statewide economic growth through immigrant inclusion, for programs including, but not limited to, marketing and attracting, licensing, credentialing, placing, training, and accessing education to international entrepreneurs, companies and startups, professionals, and students.

EMPLOYMENT SERVICES

Sec. 601. From the funds appropriated in part 1 for wage and hour program, the department shall continue to engage with employers and employees to enhance education and outreach, in accordance with the youth employment standards act 1978 PA 90, MCL 409.101 to 409.124, 1978 PA 390, MCL 408.471 to 408.490, the improved workforce opportunity wage act, 2018 PA 337, MCL 408.931 to 408.945, the earned sick time act, 2018 PA 338, MCL 408.961 to 408.974, the human trafficking notification act, 2016 PA 62, MCL 752.1031 to 752.1040, and 2023 PA 10, MCL 408.1101 to 408.1126, and

private right of action.

Sec. 601a. From the funds appropriated in part 1 for wage and hour, there is appropriated 24.0 FTE positions and $8,000,000.00 in prevailing wage funds to implement and administer 2024 PA 110.

Sec. 602. (1) In addition to the funds appropriated in part 1, all funds necessary to pay approved claims and administrative costs incurred during this fiscal year, as allowed in the Christopher R. Slezak first responder presumed coverage fund, created in section 405 of the worker's disability compensation act of 1969, 1969 PA 317, MCL 418.405, are appropriated for the purposes authorized under section 405 of the worker's disability compensation act of 1969, 1969 PA 317, MCL 418.405.

(2) The department shall provide a year end report to the Michigan gaming control board, the department of treasury, and the state budget office that includes, but is not limited to, the total of all approved claims and administrative costs incurred as of September 30 of the current fiscal year.

WORKFORCE DEVELOPMENT

Sec. 700. From the funds appropriated in part 1, the department shall make available, in person or by telephone, a program specialist or local employment representative to Michigan works service centers, as resources permit, during hours of operations, and shall continue to make the appropriate placement of and provide resources to individuals with disabilities and those served by Michigan rehabilitation services or centers for independent living.

Sec. 701. The department shall administer the PATH training program in accordance with the requirements of section 407(d) of

title IV of the social security act, 42 USC 607, the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, and all other applicable laws and regulations.

Sec. 702. (1) From the funds appropriated in part 1 for workforce development, the department may allocate funding for grants to nonprofit organizations that offer programs under the workforce innovation and opportunity act, 29 USC 3101 to 3361, for eligible youth that focus on apprenticeship readiness, pre-apprenticeship and apprenticeship activities, entrepreneurship, work-readiness skills, job shadowing, or financial literacy. Organizations eligible for funding under this section must have the capacity to provide similar programs in urban areas, as determined by the United States Census Bureau according to the most recent federal decennial census. Additionally, programs eligible for funding under this section must include the participation of local business partners. The department shall develop other appropriate eligibility requirements to ensure compliance with applicable federal rules and regulations.

(2) The department shall report no later than March 15 on at least all of the following:

(a) Total grants expended under this section in the previous fiscal year.

(b) The total number of students served from the grants appropriated under this section.

(c) A list of all organizations and the amount each organization received from the funding appropriated under this section.

Sec. 703. From the funds appropriated in part 1, the department shall make available, in person or by telephone, 1

disabled veterans outreach program specialist or local veterans employment representative to Michigan works service centers, as resources permit, during hours of operation, and shall continue to make the appropriate placement of veterans, including veterans laid off from the federal government, and disabled veterans a priority.

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

(2) The department shall report to the standard report recipients not later than February 15 on the amount, by fiscal year, of funds allocated under the federal workforce innovation and opportunity act, 29 USC 3101 to 3361, appropriated under this section.

Sec. 705. (1) The department shall publish data and reports on March 15 and September 30 on the department website concerning the status of going pro funded in part 1. The report must include the following:

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

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

(d) The training models established by each awardee.

(e) The number of individuals enrolled in classroom training, on-the-job training, or new USDOL registered apprentices.

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

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

(h) The number of individuals hired and trained, the number of incumbent workers trained, and the number of USDOL registered apprentices.

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

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

Sec. 706. To the extent consistent with sections 7 and 9 of the going pro talent fund act, 2018 PA 260, MCL 408.157 and 408.159, the department shall administer the program as follows:

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

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

individual skill enhancement and to address in-demand talent needs in Michigan and prioritize training for cross industry projects and industries negatively affected by tariffs.

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

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

(ii) Post the program goals and detailed guidance on the department's website and distribute the program goals and detailed guidance to workforce development partners, including local Michigan works agencies, not later than October 1.

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

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

(v) Add scoring criteria that incentivize awards to new and diverse program applicants.

(e) The department shall use not more than 2% of the total going pro appropriation for administration of the program.

(f) Not less than 5% of available funding must be reserved for businesses in talent fund priority industry sectors that submit competitive applications, including training plans exclusively focused on research and development or the operation, implementation, and development of emerging technologies.

(g) The department may utilize the MiSTEM advisory council to assist in the processing of grant applications.

Sec. 707. The funds appropriated in part 1 for MiSTEM advisory council must be used to support the staff for the MiSTEM network, and for administrative, training, and travel costs related to the MiSTEM council. The staff for the MiSTEM network shall do all of

the following:

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

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

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

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

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

(f) Coordinate major grant application efforts with the MiSTEM council to assist regional staff with grant applications on a local

level. The MiSTEM council shall leverage private and nonprofit relationships to coordinate and align private funds in addition to funds appropriated under this section.

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

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

Sec. 708. (1) From the funds appropriated in part 1 for workforce development, the department shall provide a report on the status of workforce development not later than March 15 to the standard report recipients. The report must include the following:

(a) The amount of funding allocated to each Michigan works agency and the total funding allocated to the workforce training programs statewide by fund source.

(b) The number of participants enrolled in education or training programs by each Michigan works agency.

(d) The number of participants enrolled in remedial education programs and the number of participants enrolled in literacy programs.

(e) The number of participants enrolled in programs at 2-year institutions.

(f) The number of participants enrolled in programs at 4-year institutions.

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

(h) The number of participants that have completed education

or training programs.

(i) The number of participants who secured employment in Michigan within 1 year of completing a training program.

(j) The number of participants who completed a training program and secured employment in a field related to their training.

(k) The average wage earned by participants who completed a training program and secured employment within 1 year.

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

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

Sec. 709. (1) From the funds appropriated in part 1 for helmets to hardhats, funds must be awarded to a national nonprofit program that connects national guard, reserve, retired, and transitioning active-duty military service members with skilled training and quality career opportunities in the construction industry. Grant funding must be used to recruit and assist veterans to transition into apprenticeship programs in this state, which may include wraparound services.

(2) The awardee under subsection (1) shall ensure that there is an online application process to the program.

Sec. 710. (1) For the funds appropriated in part 1 for Michigan future force, $3,000,000.00 shall be appropriated to the 23+ high school diploma program must be awarded for a program to assist adults over 23 years of age in obtaining high school diplomas and placement in career training programs. The funding shall be expended in the following manner:

(a) For purposes of this subsection, an eligible program

provider may be a public, nonprofit, or private accredited diploma-granting institution, but must have at least 2 years of experience providing dropout recovery services in this state.

(b) The department shall issue a request for qualifications for eligible program providers to participate in the pilot program. To be considered a qualified program provider, the institution must offer all of the following:

(i) Dropout reengagement services.

(ii) Academic intake assessments.

(iii) An integrated learning plan.

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

(v) Remediation coursework.

(vi) Academic resilience assessment and intervention.

(vii) Employability skills development.

(viii) Industry recognized credentials.

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

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

(xi) WorkKeys preparation.

(c) The department shall announce qualified program providers not later than January 1 of the current fiscal year. Qualified program providers must start providing programming by February 1 of the current fiscal year.

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

to a qualified program provider for the completion of the following by a pupil:

(i) $500.00 for the completion of an employability skills certification program equal to at least 1 unit of high school credit obtained through classroom or online instruction.

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

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

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

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

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

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

(2) For the funds appropriated in part 1 for Michigan future force, $5,700,000.00 shall be appropriated for at-risk youth grants and must be awarded to the Michigan franchise holder of the national Jobs for America's Graduates program for the administration of the Jobs for Michigan's Graduates program.

(3) For the funds appropriated in part 1 for Michigan future force, $250,000.00 shall be appropriated the high school equivalency-to-school program must be used to fund the cost of high school equivalency testing and certification under this section. The department shall administer a Michigan high school equivalency-to-school program that covers the cost of providing the high school equivalency test free of charge to individuals who meet all of the following requirements:

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

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

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

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

(i) Instructional and tutorial assistances.

(ii) High school equivalency test practice.

(iii) Required attendance at program instructional sessions.

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

(v) Information on potential postsecondary and career pathways.

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

(vii) Personal and job readiness skills development.

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

(ix) College and career assessments.

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

(d) The department shall post online an announcement of the Michigan high school equivalency-to-school program, minimum

standards for high school equivalency preparation program approval, and approval procedures.

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

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

(ii) Provide program information for educators and students on the department website, including explanations of the procedures developed under this subsection, and contact information for questions about the program.

(iii) Provide an estimate of the full-year cost of the program to the standard report recipients.

(f) Not later than September 30, the department shall report on utilization of the high school equivalency incentive program to the standard report recipients, including numbers of high school equivalency certifications issued by location, year-to-date expenditures, and numbers of participants qualifying under subsection (3)(b)(i) or (ii), or both.

(4) From the funds appropriated in part 1 for Michigan future force, $1,000,000.00 must be awarded to a schools to tools program that will provide students, parents, teachers, and school counselors with information, training, and hands-on experiences they need to make informed career decisions. Grant funding must be used to support programming and education.

Sec. 713. (1) The department shall provide reporting regarding the interagency agreement with the department of health and human services, which concerns TANF funding to provide job readiness and welfare-to-work programming. The reporting must include specific outcome and performance reporting requirements, as described in

this section. TANF funding provided to the department in the current fiscal year is contingent on compliance with the data and reporting requirements described in this section. The department shall provide all of the following items for the previous year not later than January 1 of the current fiscal year:

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

(i) Direct services to clients.

(ii) Administrative expenditures.

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

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

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

(iii) Average TANF spending per client.

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

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

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

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

(d) The cost per participant case.

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

Sec. 714. (1) The office of rural prosperity shall encourage and enable appropriate community advancements and improvements, including, but not limited to, all of the following:

(a) Housing.

(b) Infrastructure.

(d) Workforce development.

(e) Other activities that address needs uniquely present in rural areas of this state and assist in expansion of rural development.

(2) Not later than March 15, the office of rural prosperity shall submit a report to the standard report recipients that outlines the office's activities, programs, and accomplishments in the previous fiscal year.

Sec. 715. (1) From the funds appropriated in part 1 for community and worker economic transition office, the department may hire employees and deploy capabilities to evaluate and address the impacts of economic transitions on workers, communities, and employers in sectors that include, but are not limited to, the auto, utility, manufacturing, and building trades sectors. Activities of the office may include developing transition mitigation strategies, conducting data analysis, coordinating across state and federal agencies, engaging stakeholders, and providing resource navigation support. The department shall develop and submit to the governor and the legislature a community and

worker economic transition plan not later than December 31, 2025, as required under sections 7(3)(f) and 9(2) of the community and worker economic transition act, 2023 PA 232, MCL 408.917 and 408.919. No later than March 15, the department shall also submit an annual report on office activities and progress made on the transition plan to the standard report recipients and to the legislature, as required under section 7(5) of the community and worker economic transition act, 2023 PA 232, MCL 408.917. The department shall also include a transition plan for Michigan residents laid off from the federal government, lost federal contracts, or impacted by tariffs.

(2) In the annual report submitted under subsection (1), the department shall include information on the mission statement, goals, metrics, and recommendations of the community and worker economic transition office.

Sec. 716. (1) From the funds appropriated in part 1 for volunteer income tax assistance grants, the department shall allocate funds to a nonprofit trade association to provide all of the following:

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

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

(2) Administration costs to provide the services listed in subsection (1) must not exceed 5% of the appropriated amount.

Sec. 717. The department's office of rural prosperity shall collaborate with the department of agriculture and rural

development on the rural development fund grant program as part of this state's coordinated strategy for achieving rural prosperity across this state.

Sec. 718. The funds appropriated in part 1 for center for employment opportunity shall be awarded to a nonprofit that operates a program that satisfies all of the following conditions:

(a) The program provides services to parolees and probationers assessed by the department of corrections as moderate or high risk to recidivate.

(b) The program provides job readiness training, transitional employment, job coaching and placement, and postplacement retention services. As part of the transitional employment program phase, the nonprofit program shall provide low-skill, crew-based services to other state agencies.

(d) The program demonstrates an ability to serve multiple jurisdictions across this state.

Sec. 719. From the funds appropriated in part 1 for workforce development, no less than $3,000,000.00 shall be used to provide supportive services to at-risk individuals to address and remove barriers preventing them from receiving job training or attaining a job or staying in a job if they are currently employed. At-risk individuals include, but are not limited to, Michigan residents who are low-income, poor, working poor, and individuals laid off by the federal government since January 2025. Services provided may address a wide range of barriers including, but not limited to, transportation, childcare, clothing needs, tools for work, legal services, and other barriers that may prevent at-risk individuals

from receiving job training or a job. Priority shall be given to veterans or individuals with disabilities.

UNEMPLOYMENT

Sec. 801. The unemployment insurance agency shall provide a report updated at least quarterly that includes, but is not limited to, fiscal year-to-date expenditures by division and program unit. The unemployment insurance agency shall transmit each quarterly report no later than 60 days after the end of each quarter.

Sec. 802. (1) From the funds appropriated in part 1, the department, on behalf of the unemployment insurance agency, shall provide a quarterly report to the standard report recipients not later than 60 days after the end of each quarter that includes, but is not limited to, the following:

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

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

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

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

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

(2) The department shall include the same information required in subsection (1) for the previous 12 months. The department shall include the most recent quarterly report on the department's webpage.

Sec. 803. From the funds appropriated in part 1, the

department shall provide a quarterly report not later than 60 days after the end of each quarter that includes, but is not limited to, the following:

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

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

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

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

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

(2) The department shall provide a biannual report to the standard report recipients not later than March 15 and September 30 that includes all of the following:

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

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

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

only if the unemployment insurance agency provides full-time, in-person services at existing unemployment insurance local offices.

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

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

(a) Unemployment benefit fund balance.

(b) Process improvement - fiscal integrity.

(d) Process improvement - determination quality.

Sec. 807. Funds earned or authorized by the USDOL in addition to the appropriation in part 1 for the unemployment insurance agency are appropriated and may be expended for staffing and related expenses incurred in the operation of its programs. These funds may be spent after the department notifies the standard report recipients of the purpose and amount of each grant award.

REHABILITATION SERVICES

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

Sec. 902. From the funds appropriated in part 1, the department shall provide an annual report on efforts taken to improve the Michigan rehabilitation services not later than

February 1 to the standard report recipients. The report must include all of the following line items:

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

(b) Service delivery plans and implementation steps achieved.

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

(e) Quarterly expenditures by major spending category.

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

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

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

(2) Not later than March 1, the department shall report to the standard report recipients on the total number of clients served and the total amount of federal matching funds obtained throughout the duration of the program.

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

Sec. 905. (1) Funds appropriated in part 1 for independent

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

(2) Not later than March 1 and in partnership with service providers, the department shall provide a report to the standard report recipients on direct customer and system outcomes and performance measures.

(3) Unexpended general fund/general purpose funds appropriated in part 1 for centers for independent living are designated as a work project appropriation. Unencumbered or unallotted funds must not lapse at the end of the fiscal year and must be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to support the state plan for independent living.

(b) The project will be accomplished by utilizing the same formula that is used for the initial distribution of funding.

(d) The tentative completion date is September 30, 2027.

Sec. 906. From the funds appropriated in part 1 for personal assistance services reimbursement for employment program, the department shall allocate funding to support the administration of the personal assistance services reimbursement for employment program. Michigan rehabilitation services may work collaboratively with service organizations to administer the program. An annual report must be submitted to the standard report recipients not later than March 15 providing information on how many recipients receive services, obtain goals, and exit the program.

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

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

Sec. 908. The bureau of services for blind persons may provide and enter into agreements to provide general services, training, meetings, information, special equipment, software, facility use, and technical consulting services to other principal executive departments, state agencies, local units of government, the judicial branch of government, other organizations, and patrons of department facilities. The department may charge fees for these

services that are reasonably related to the cost of providing the services. In addition to the funds appropriated in part 1, funds collected by the department for these services are appropriated for all expenses necessary. The funds appropriated under this section are allotted for expenditure when they are received by the department of treasury.

Sec. 909. (1) The funds appropriated in part 1 for a regional or subregional library must not be released until a budget for that regional or subregional library has been approved by the department for expenditures for library services directly serving the blind and persons with disabilities.

(2) To receive subregional state aid appropriated in part 1, a regional or subregional library's fiscal agency must agree to maintain local funding support at the same level in the current fiscal year as in the fiscal agency's preceding fiscal year. If a reduction in expenditures equally affects all agencies in a local unit of government that includes the regional or subregional library's fiscal agency, the reduction must not be interpreted as a reduction in local support and must not disqualify a regional or subregional library from receiving state aid under part 1. If a reduction in income affects a library cooperative or district library that includes a regional or subregional library's fiscal agency or a reduction in expenditures for the regional or subregional library's fiscal agency, a reduction in expenditures for the regional or subregional library must not be interpreted as a reduction in local support and must not disqualify a regional or subregional library from receiving state aid under part 1.

COMMISSIONS

Sec. 951. From the funds appropriated in part 1, the office of global Michigan is to coordinate with any affiliated commissions established in statute or by executive order to produce a report by January 31. The report must be submitted to the standard report recipients and must include, but is not limited to, the following:

(a) A description of the activities that the commissions initiated to promote cooperation between the commissions.

(b) A list of all grant recipients.

(d) The programmatic costs of each commission.

Sec. 952. From the funds appropriated in part 1 for office of global Michigan, at least $150,000.00 and 1.0 FTE position shall be appropriated for activities that assist and support residents of this state who have been impacted by federal immigration action or changes occurring after January 1, 2025. The activities include, but are not limited to, the following:

(a) Referral of legal aid services.

(b) Assistance with housing opportunities.

Sec. 953. The office of global Michigan must submit a report to the standard report recipients not later than January 31. The report must include all of the following information:

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

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

refugees.

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

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

Sec. 954. (1) From the funds appropriated in part 1 for black leadership council, the department shall create 1.0 FTE position that shall do, but is not limited to, all of the following:

(a) Develop, review, and recommend policies and actions designed to eradicate and prevent discrimination and racial inequity in this state, including in areas of health care, housing, education, employment, economic opportunity, public accommodation, and procurement.

(b) Identify state laws, or gaps in state law, that create or perpetuate inequalities.

(c) Serve as a resource for community groups on issues, programs, sources of funding, and compliance requirements in state government.

(d) Promote the culture and arts in the black community.

(e) Submit an annual report to the standard report recipients on the activities undertaken by this position.

(2) If a black leadership advisory council is created by a public act or executive order, the appropriation and FTE position in this section will serve as staff and support to the black leadership advisory council.

Sec. 955. (1) From the funds appropriated in part 1 for tribal commission, the department shall create 1.0 FTE position that shall do, but is not limited to, all of the following:

(a) Develop, review, and recommend policies and actions designed to eradicate and prevent discrimination and inequalities for tribal members in this state, including in areas of health care, housing, education, employment, economic opportunity, public accommodation, and procurement.

(b) Identify state laws, or gaps in state law, that create or perpetuate tribal member inequalities.

(c) Serve as a resource for community groups on issues, programs, sources of funding, and compliance requirements in state government.

(d) Promote the culture and arts in tribal communities.

(e) Submit an annual report to the standard report recipients on the activities undertaken by this position.

(2) If a tribal commission is created by a public act or executive order, the appropriation and FTE position in this section will serve as staff and support the tribal commission.

ONE-TIME APPROPRIATIONS

Sec. 1000. (1) From the funds appropriated in part 1 for ADA small business compliance, funds must be allocated for a program that distributes need-based grants to small businesses to support small businesses to be ADA compliant. Grants shall be used to support physical upgrades to the location where patrons traffic or have an online presence. Grants shall be capped at not more than $50,000.00.

(2) As used in this section:

(a) "ADA compliant" means being in compliance with title III for public accommodations of the Americans with Disabilities Act of 1990, 42 USC 12181 to 12189.

(b) "Small business" means a business that employs not more than 50 employees.

Sec. 1001. From the funds appropriated in part 1 for arts and culture facility upgrades, funds must be allocated for a program that distributes need-based grants to art facilities, cultural centers, or museums in this state that have demonstrated need. Grants shall be used for facility upgrades. Grants must be matched with at least equal funding from either a local unit of government, nonprofit, or private match. Grants must be not greater than $250,000.00.

Sec. 1002. (1) From the funds appropriated in part 1 for community health and services grants, $100.00 shall be awarded to a nonprofit park civic association in a city with a population greater than 600,000 according to the most recent federal decennial census to support improvements to the community house space that include elevator installation, playground improvements, fire suppression, outdoor sports facilities, and multiuse programming space.

(2) From the funds appropriated in part 1 for community health and services grants, $100.00 shall be awarded to an early childhood education service provider with locations in a city with a population greater than 600,000 according to the most recent federal decennial census to provide high-quality services and to support facility infrastructure improvements.

(3) From the funds appropriated in part 1 for community health and services grants, $100.00 shall be awarded to a city with a population between 81,000 and 81,500 in a county with a population between 405,000 and 410,000 according to the most recent federal decennial census to support the costs to reopen a community center

facility.

(4) From the funds appropriated in part 1 for community health and services grants, $100.00 shall be awarded to a multiservice community development organization advancing health equity located in a city with a population greater than 600,000 according to the most recent federal decennial census for facility purchase and upgrades.

(5) From the funds appropriated in part 1 for community health and services grants, $100.00 shall be awarded to a youth activity and athletic facility located in a county with a population between 68,000 and 69,000 according to the most recent federal decennial census to support renovations to the facility, become ADA compliant, and construct 4 licensed child care rooms.

(6) From the funds appropriated in part 1 for community health and services grants, $100.00 shall be awarded to a nonprofit organization that supports a food pantry located in a city with a population greater than 600,000 according to the most recent federal decennial census to support the supply and operations of the food pantry.

(7) From the funds appropriated in part 1 for community health and services grants, $100.00 shall be awarded to a health network located in a county with a population between 1,200,000 and 1,300,000 according to the most recent federal decennial census for infrastructure upgrades at a resource and crisis center.

(8) From the funds appropriated in part 1 for community health and services grants, $100.00 shall be awarded to a food bank located in a city with a population greater than 600,000 according to the most recent federal decennial census to support the creation of a more stable food security network through the metro Detroit

area.

(9) From the funds appropriated in part 1 for community health and services grants, $100.00 shall be awarded to a community organization focused on alleviating poverty located in a city with a population between 61,600 and 61,700 in a county with a population between 1,200,000 and 1,300,000 according to the most recent federal decennial census to support programming and operations.

(10) From the funds appropriated in part 1 for community health and services grants, $100.00 shall be awarded to a community association to address social, recreational, and cultural needs of the community and headquartered in a city with a population greater than 73,000 in a county with a population between 261,000 and 262,000 according to the most recent federal decennial census to support accessibility upgrades.

(11) From the funds appropriated in part 1 for community health and services grants, $100.00 shall be awarded to a youth engagement and adult reengagement nonprofit center in a city with a population greater than 600,000 according to the most recent federal decennial census for expansion of the center.

(12) From the funds appropriated in part 1 for community health and services grants, $100.00 shall be awarded to a nonprofit organization headquartered in a city with a population greater than 600,000 according to the most recent federal decennial census that operates a community center in a city with a population between 8,500 and 9,000 in a county with a population greater than 1,500,000 according to the most recent federal decennial census for structural improvements to a nonprofit community center.

Sec. 1003. (1) From the funds appropriated in part 1 for

community infrastructure grants, $100.00 shall be awarded to a city with a population between 3,000 and 4,000 in a county with a population greater than 1,500,000 according to the most recent federal decennial census for the purchase of a fire engine.

(2) From the funds appropriated in part 1 for community infrastructure grants, $100.00 shall be awarded to a city with a population between 6,000 and 7,000 in a county with a population between 1,200,000 and 1,300,000 according to the most recent federal decennial census for replacement of the heating, ventilation, and air conditioning system at the city hall.

(3) From the funds appropriated in part 1 for community infrastructure grants, $100.00 shall be awarded to a city with a population between 139,000 and 140,000 in a county with a population between 800,000 and 900,000 according to the most recent federal decennial census for repair and restoration of the red run drain.

(4) From the funds appropriated in part 1 for community infrastructure grants, $100.00 shall be awarded to a charter township with a population between 49,000 and 50,000 in a county with a population greater than 1,600,000 according to the most recent federal decennial census to construct a combined sewer overflow basin.

(5) From the funds appropriated in part 1 for community infrastructure grants, $100.00 shall be awarded to a city with a population between 40,000 and 41,000 in a county with a population greater than 1,500,000 according to the most recent federal decennial census for upgrades of the water metering system.

(6) From the funds appropriated in part 1 for community infrastructure grants, $100.00 shall be awarded to a county with a

population between 1,200,000 and 1,300,000 according to the most recent federal decennial census to provide grants for management organizations for placemaking and small business support.

(7) From the funds appropriated in part 1 for community infrastructure grants, $100.00 shall be awarded to a city with a population between 28,500 and 29,000 in a county with a population greater than 1,600,000 according to the most recent federal decennial census to purchase a generator for a community center.

(8) From the funds appropriated in part 1 for community infrastructure grants, $100.00 shall be awarded to a city with a population between 4,100 and 5,000 in a county with a population between 160,000 and 161,000 according to the most recent federal decennial census to support the engineering costs for boardwalk revitalization and improvements.

(9) From the funds appropriated in part 1 for community infrastructure grants, $100.00 shall be awarded to a city with a population between 58,500 and 59,000 in a county with a population between 850,000 and 900,000 according to the most recent federal decennial census for enhancements of the nautical miles.

(10) From the funds appropriated in part 1 for community infrastructure grants, $100.00 shall be awarded to a city with a population between 11,500 and 12,000 in a county with a population greater than 1,500,000 according to the most recent federal decennial census for water main replacement.

(11) From the funds appropriated in part 1 for community infrastructure grants, $100.00 shall be awarded to a county with a population between 800,000 and 900,000 according to the most recent federal decennial census to conduct a muck removal feasibility study.

(12) From the funds appropriated in part 1 for community infrastructure grants, $100.00 shall be awarded to a city with a population between 95,000 and 96,000 in a county with a population greater than 1,500,000 according to the most recent federal decennial census for construction of a bike and walk trail.

(13) From the funds appropriated in part 1 for community infrastructure grants, $100.00 shall be awarded to a treeline conservancy located in a city with a population between 120,000 and 125,000 according to the most recent federal decennial census to support trail expansion.

(14) From the funds appropriated in part 1 for community infrastructure grants, $100.00 shall be awarded to a charter township with a population between 33,000 and 35,000 in a county with a population between 105,000 and 110,000 according to the most recent federal decennial census for water treatment facility improvements mandated by state regulations.

Sec. 1004. (1) From the funds appropriated in part 1 for community public safety grants, $100.00 shall be awarded to a charter township with a population between 49,000 and 50,000 in a county with a population greater than 1,600,000 according to the most recent federal decennial census to purchase radios for the police department.

(2) From the funds appropriated in part 1 for community public safety grants, $100.00 shall be awarded to a city with a population between 10,500 and 11,000 in a county with a population greater than 1,500,000 according to the most recent federal decennial census for the purchase of a fire engine.

(3) From the funds appropriated in part 1 for community public safety grants, $100.00 shall be awarded to a city with a population

greater than 73,000 in a county with a population between 261,000 and 262,000 according to the most recent federal decennial census for purchasing firefighter turnout gear.

(4) From the funds appropriated in part 1 for community public safety grants, $100.00 shall be awarded to a city with a population between 134,300 and 134,400 in a county with a population between 880,000 and 885,000 according to the most recent federal decennial census for construction of a police training center.

(5) From the funds appropriated in part 1 for community public safety grants, $100.00 shall be awarded to a city with a population between 28,500 and 29,000 in a county with a population greater than 1,600,000 according to the most recent federal decennial census for the purchase of a fire truck.

(6) From the funds appropriated in part 1 for community public safety grants, $100.00 shall be awarded to a charter township with a population between 70,500 and 70,600 in a county with a population between 1,200,000 and 1,300,000 according to the most recent federal decennial census for construction of a fire station.

(7) From the funds appropriated in part 1 for community public safety grants, $100.00 shall be awarded to a city with a population between 34,000 and 35,000 in a county with a population between 880,000 and 885,000 according to the most recent federal decennial census for police station and district courthouse infrastructure improvements.

(8) From the funds appropriated in part 1 for community public safety grants, $100.00 shall be awarded to a county with a population between 105,000 and 110,000 according to the most recent federal decennial census for municipal fire department infrastructure and equipment needs.

(9) From the funds appropriated in part 1 for community public safety grants, $100.00 shall be awarded to a county with a population of between 283,000 and 288,000 according to the most recent decennial census for municipal fire department infrastructure and equipment needs.

Sec. 1005. (1) From the funds appropriated in part 1 for community workforce development grants, $100.00 shall be awarded to a community college located in a city with a population between 95,000 and 96,000 in a county with a population greater than 1,500,000 according to the most recent federal decennial census to support expansion of a masonry trades center.

(2) From the funds appropriated in part 1 for community workforce development grants, $100.00 shall be awarded to a 501(c)(3) nonprofit organization that provides support to individuals with disabilities and their families located in a charter township with a population between 31,000 and 32,000 in a county with a population greater than 1,500,000 according to the most recent federal decennial census to support the operations of the center.

(3) From the funds appropriated in part 1 for community workforce development grants, $100.00 shall be awarded to a nonprofit organization that helps women consider careers in and connect with technology industries, to support programs aimed at connecting women in K-12 through postuniversity with careers in technology.

(4) From the funds appropriated in part 1 for community workforce development grants, $100.00 shall be awarded to an association that provides education for the care at home industry located in a charter township with a population between 43,000 and

44,000 in a county with a population between 284,000 and 285,000 according to the most recent federal decennial census to support education programs providing onboarding safety training.

(5) From the funds appropriated in part 1 for community workforce development grants, $100.00 shall be awarded to a 501(c)(3) nonprofit organization formed in 1983 whose mission is to engage in partnerships, provide member support, and advocate for lifelong learning, leading to employment and self-sufficient families and that is located in a township with a population between 30,000 and 34,000 in a county with a population between 109,000 and 110,000 according to the most recent federal decennial census to support programming and operations.

(6) From the funds appropriated in part 1 for community workforce development grants, $100.00 shall be awarded to a county with a population between 1,200,000 and 1,300,000 according to the most recent federal decennial census to establish an automation alley project to support a robust, distributed manufacturing network benefiting local economies.

Sec. 1006. (1) From the funds appropriated in part 1 for economic stress test, the department shall conduct an economic stress test to assess the potential impact of tariffs and reduction of federal funding, including eliminated federal contracts and funding to state agencies, local units of government, institutions of higher education, and businesses with a significant economic presence in this state. The economic stress test shall evaluate the impact of such federal actions on this state's economic stability, state revenues, public services, and workforce development.

(2) The economic stress test shall analyze potential revenue shortfalls, program cuts, cost increases, and workforce

displacement as a result of tariffs and federal funding reductions, and shall consider how these cuts may affect state functions, local governments, businesses, and key industries in this state.

(3) The department may work in coordination with the department of technology, management, and budget and other relevant agencies to include impacts to state functions and services and a focus on displaced workers and their retaining needs.

(4) The department may use funds for any of the following purposes:

(a) To survey businesses, industry organizations, employee and worker organizations, other state agencies, local units of government, or academic researchers on the impact of tariffs or federal funding reductions.

(b) Department activities, including the review of existing programs and how they may be impacted or adjusted to support individuals, local units of government, and businesses harmed by tariffs or federal funding reductions.

(5) Not later than March 1, the department shall provide a report to the standard report recipients that includes, but is not limited to, all of the following:

(a) The activities undertaken to monitor and respond to the economic impact of tariffs and federal funding reductions.

(b) Any recommendations to support affected business and residents in this state.

(c) Any recommendation on fiscal strategies for addressing potential revenue shortfalls or increased demand on state services.

Sec. 1007. From the funds appropriated in part 1 for economic

relief, the funds shall be appropriated in the following manner:

(a) $20,000,000.00 shall be allocated to provide grants or loans to businesses impacted by tariffs, with priority given to the businesses that experience the most negative financial impact.

(b) $20,000,000.00 shall be allocated to provide economic relief and emergency preparedness grants to nonprofit organizations that provide community supports.

(c) $30,000,000.00 shall be allocated to provide grants that support worker trainings and retooling initiatives, with priority given to workers in industries most impacted by tariffs.

(d) $10,000,000.00 shall be allocated to provide grants to food banks to prioritize the purchase of locally grown food.

(e) $1,000,000.00 shall be awarded to a request for information proposal to develop in-state manufacturing of public safety vehicles with a priority on fire trucks. Remaining dollars may be used for incentives to manufacture fire trucks in this state.

(f) $9,000,000.00 shall be allocated to provide grants or incentives to reshoring supply chains in Michigan.

(g) $10,000,000.00 shall be allocated to provide grants to apprenticeships and adult education programs, with priority given to apprenticeship programs for industries most in demand of workers.

Sec. 1008. (1) From the funds appropriated in part 1 for emergency housing, $30,000,000.00 shall be appropriated for affordable housing projects that is allocated in the following manner:

(a) $2,500,000.00 shall be allocated to provide grants to nationally recognized tribes in this state to support housing

projects either on tribal land or where a majority of tribal members will reside.

(b) $2,000,000.00 shall be allocated to provide grants to homeowners or business owners to make accessibility improvements to homes or businesses to align with the requirements of title III for public accommodations of the Americans with Disabilities Act of 1990, 42 USC 12181 to 12189. Grants shall be not greater than $50,000.00 for homeowners and $200,000.00 for business owners. Not less than 50% of the funds must go to homeowners that need accessibility upgrades to their homes.

(c) $15,000,000.00 shall be allocated to provide grants for home repairs and weatherization to homes with a household income not greater than 250% of the federal poverty level guidelines. Priority shall be given to communities with the greatest housing and density stock.

(d) $1,000,000.00 shall be awarded to a statewide nonprofit specializing in eliminating poverty housing and advocating for safe and affordable housing located in a charter township with a population of between 33,000 and 33,500 in a county with a population of between 109,000 and 110,000 according to the most recent federal decennial census for statewide construction of affordable housing.

(e) All remaining dollars in this subsection shall be allocated to provide housing affordability grants to support housing development projects that have at least 50% of the housing units designated for affordable housing for individuals making not more than 120% of the community's average median income.

(f) $100.00 shall be awarded to an Indian tribe located in a county with a population between 36,700 and 36,800 according to the

most recent federal decennial census to support housing and care for tribal homeless members.

(2) From the funds appropriated in part 1 for emergency housing, $20,000,000.00 shall be appropriated for housing programming that is allocated in the following manner:

(a) $4,500,000.00 shall be allocated for eviction diversion assistance in the following manner:

(i) $3,000,000.00 shall be awarded to an association located in a city with a population between 198,000 and 199,000 according to the most recent federal decennial census that provides civil legal aid to maintaining housing stability to provide legal aid services to tenants facing eviction from non-subsidized housing.

(ii) $1,500,000.00 shall be awarded to a city that has established a tenant right to counsel program to implement a right to counsel program for city tenants in eviction proceedings.

(b) $2,000,000.00 shall be allocated to the landlord incentive fund operated by MSHDA.

(d) $4,000,000.00 shall be allocated to a statewide pay as you stay program. The program would support households with an income not greater than 250% of the federal poverty level guidelines with a unpaid delinquent tax balance greater than 10% of home's taxable value. The program would pay off the total balance of property taxes, interest, fees, and penalties, once the homeowner pays back the unpaid taxes that equate to 10% of the value of the home over no more than 3 years.

(e) $2,500,000.00 shall be allocated to provide emergency housing solution grants.

(f) $2,500,000.00 shall be allocated to the shelter diversion program operated by MSHDA.

(g) $100.00 shall be awarded to an empowerment plan operated by a city with a population greater than 600,000 according to the most recent federal decennial census.

(h) All remaining dollars in this subsection shall be allocated to combat homelessness, housing insecurity, eviction diversion, or legal housing assistance.

Sec. 1009. For the funds appropriated in part 1 for emerging community grants, the funds must be allocated to provide grants to nonprofit organizations and community organizations that are dedicated to supporting emerging populations within this state. Grants may be used to support facility acquisitions, facility upgrades, economic development activities that support the organization's community, and programming to support the organization's community.

Sec. 1010. For the funds appropriated in part 1 for fire station infrastructure grants, funds must be allocated to provide grants to support facility upgrades to fire stations as well as firefighter uniforms and gear. Funds shall be available to fire departments and departments of public safety. Grants shall be prioritized to a community with an average median income less than 300% of the federal poverty level.

Sec. 1011. (1) For the funds appropriated in part 1 for housing relief fund, MSHDA shall support the following housing programs:

(a) Down payment assistance.

(b) Missing middle.

(d) Foreclosure prevention.

(e) Rental assistance.

(f) Grants for conversion of commercial space to workforce housing in downtown corridors.

(g) Streamline housing application through MSHDA.

(h) Permanent supportive housing.

(i) Faith-based housing grants.

(2) MSHDA shall appropriate not less than $2,500,000.00 for faith-based housing grants.

(3) MSHDA shall appropriate not greater than 10% of the total appropriations for the missing middle program.

Sec. 1012. (1) The Michigan capital access fund is created in the state treasury.

(2) Funds appropriated in part 1 for MiCAP must be deposited into the Michigan capital access fund and are available to support the Michigan capital access program.

(3) The state treasurer may receive money or other assets from any source for deposit in the Michigan capital access fund. The state treasurer shall direct the investment of the Michigan capital access fund. The state treasurer shall credit to the Michigan capital access fund interest and earnings from the community infrastructure fund. The state treasurer may use up to the amount credited on the interest and earnings of the fund for administration of this section.

(4) Any unexpended funds in the Michigan capital access fund must be carried forward and are available for expenditure under this section.

(5) Funds in the Michigan capital access fund at the close of the fiscal year remain in the Michigan capital access fund and do

not lapse to the general fund.

(6) The Michigan capital access fund shall be appropriated to the Michigan capital access program to provide reduced interest loans to small businesses. Loans shall be administered by approved lenders that meet the requirements of this section as approved by the state treasurer. The state treasurer shall develop a process for approving lenders and allocating funds for small business loans. The treasurer shall monitor and may audit lenders to ensure compliance with the program. If the treasurer determines that a lender is no longer in compliance with this section or determines the lender has a default rate that is significantly higher than the market average, the treasurer can disqualify the approved lender and seek collections from the lender on the amount of outstanding loans remaining that are not in default.

(7) Loans paid back by the small businesses and 1/2 of the earning on the interest of the loan shall be deposited to the Michigan capital access fund and be available for additional loans as allowed under this section.

(8) Approved lenders shall prioritize small businesses located in low-income or economically disadvantaged communities and businesses owned by individuals in emerging populations or owned by individuals with disabilities or who are veterans.

(9) The treasurer shall quarterly report not later than 45 days after each quarter to the standard report recipients on at least the following information:

(a) The list of approved lenders.

(b) The number and amount of loans issued by each lender.

(d) The number of loans in default by each lender.

(e) The amount of funds available in the Michigan capital access fund.

(f) The list of lenders that are no longer approved under this section.

(10) As used in this section, "approved lender" means a lender that is either a bank, credit union, or community development financial institution. The lender must have experience providing loans to small businesses and offer counseling to potential lenders that includes coaching, mentoring, financial literacy, and accounting training. The lender must agree to all reporting requirements and provide the state treasurer with all necessary information on loans issued under the program and retain the information for not less than 3 years after the loan is repaid. The lender shall offer loans with an interest under market level that is not greater than 5%. The lender shall not issue any erroneous fees. The lender shall provide pre-loan counseling to all loan applicants.

Sec. 1013. (1) From the funds appropriated in part 1 for Michigan future force, $15,000,000.00 shall be allocated to provide grants for youth workforce development. Grants are eligible to organizations that provide career exploration services, youth apprenticeships and preapprenticeship programs, youth after-school or out-of-school-time programming, youth workforce development, youth mentorship, and civic education programs. Funds must be used for programming any education services of the organization.

(2) From the funds appropriated in part 1 for Michigan future force, $100.00 shall be awarded to a free after-school writing program for students to explore writing in southeast Michigan to expand services to additional students.

(3) From the funds appropriated in part 1 for Michigan future force, $100.00 shall be awarded to a center for educational excellence located in city with a population between 81,000 and 81,500 in a county with a population between 405,000 and 410,000 according to the most recent federal decennial census to support education and workforce infrastructure access.

(4) From the funds appropriated in part 1 for Michigan future force, $100.00 shall be awarded to a 501(c)(3) nonprofit organization with a mission to create and support 1-on-1 youth mentoring relationships to support the expansion of services statewide.

(5) From the funds appropriated in part 1 for Michigan future force, $100.00 shall be awarded to a women's mentoring and scholarship program that is headquartered in a county with a population between 1,000,000 and 1,500,000 according to the most recent federal decennial census for programming.

(6) From the funds appropriated in part 1 for Michigan future force, $100.00 shall be awarded to a 501(c)(3) nonprofit serving the metro Detroit area that works to empower youth between the ages of 14 and 24 with the confidence, skills, knowledge, and onramps to opportunities to achieve their goals and build their futures.

(7) From the funds appropriated in part 1 for Michigan future force, $100.00 shall be awarded to a nonprofit youth development program that provides academic support, coaching in the sport of squash, and character-building activities located in a city with a population greater than 600,000 according to the most recent federal decennial census to support programming and operations.

Sec. 1014. The funds appropriated in part 1 for Michigan veteran wraparound services shall be allocated to provide financial

assistance to veterans in Michigan. The program shall prioritize veterans who lost federal employment because of actions taken by the federal government after January 21, 2025. Funds would provide up to $250.00 or the veteran's biweekly wage, whichever is less. Funds may be allocated every 2 weeks for not more than 2 months or until the veteran attains new employment, whichever is sooner.

Sec. 1015. (1) From the funds appropriated in part 1 for Michigan Works!, $500,000.00 shall be allocated to Michigan works agencies to provide assistance to individuals with disabilities who lost employment because of actions taken by the federal government after January 21, 2025 in obtaining new employment. Funds may be used for staff, outreach, and program services focused on individuals with disabilities.

(2) From the funds appropriated in part 1 for Michigan Works!, $500,000.00 shall be allocated to Michigan works agencies to provide assistance to veterans who lost employment because of actions taken by the federal government after January 21, 2025 in obtaining new employment. Funds may be used for staff, outreach, and program services focused on veterans.

Sec. 1016. (1) The funds appropriated in part 1 for my pay today pilot program shall be awarded to an alternative payday loan program located in a county with a population between 1,200,000 and 1,300,000 according to the most recent federal decennial census. Funds shall be used to provide loans up to $2,000.00 to households living at or below 200% of the federal poverty level, with loan repayment plans of not more than 12 months, and an interest rate of not greater than 5%. Loans repaid to the program may be used only for the same purpose as allowed under this section.

(2) The organization shall provide an annual report due March

15 that includes at least the following:

(a) The number of households that received a loan.

(b) The average amount of loans provided.

(d) The number of loans that have defaulted.

(e) The amount of funds outstanding.

(f) The amount of funds remaining in the program.

Sec. 1017. The funds appropriated in part 1 for re-emerging workforce shall be allocated to provide grants to organizations that support programs or other services to help adults reenter the workforce. The grants are eligible to organizations that provide workforce training, financial literacy education, prepare and help individuals navigate reentering the workforce, and apprenticeship programs for adults. Grants shall be used for the programming or educational purpose of the organization. Grants shall be prioritized to organizations and programs that provide assistance to adults entering careers in sectors of the economy that are most in need of employees.

Sec. 1018. (1) The funds appropriated in part 1 for short-term loan grants must be used by the department to operate a grant program for short-term lenders that meet the requirements of this section to provide lending to residents of this state.

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

(3) The department shall award grants to organizations licensed under section 12 of the deferred presentment service transactions act, 2005 PA 244, MCL 487.2132, or organizations that

are a bank, credit union, community development financial institution, or nonprofit organization licensed and regulated under state or federal law. The lender must have at least 1 physical location in this state and serve residents of this state.

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

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

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

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

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

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

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

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

(8) After the first year of the program, the department is

required to submit only an annual report by March 15 that includes the information required in subsection (7).

(9) The unexpended funds appropriated in part 1 for short-term grants are designated as a work project appropriation, and any unencumbered or unallotted funds must not lapse at the end of the fiscal year and must be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

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

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

(d) The tentative completion date is September 30, 2030.

Sec. 1019. Funds appropriated in part 1 for community support hubs shall be used to award grants to hubs that provide community or small business support. Grants must be needs-based and are eligible to small businesses, workforce development, local economic development organizations, incubators, accelerators, network and mentorship programs, and community resource hubs aimed at increasing the economic and community development of small business that promotes innovation and entrepreneurship in the state. Grants may be used to support programming, training, wraparound services, capital support, and community resources. Grants shall be prioritized to hubs located in economically distressed communities. Grants awarded to hubs located in a community with an average median income greater than 500% of the average federal income poverty level require a 50% match requirement.

Sec. 1020. (1) Funds appropriated in part 1 for statewide apprenticeship expansion shall be used for expanding available apprenticeship opportunities for occupations critical to this state's economy, assisting citizens with obtaining industry credentials recognized by the United States Department of Labor, and supporting registered apprenticeship program expansion efforts across this state. Up to 3% of the funds appropriated for this section may be retained by the department for administration.

(2) Not later than September 30, the department shall provide a report to the standard report recipients on the number of active, new, and completed registered apprentices served under the program.

Sec. 1021. The department shall develop recommendations for employers on best practices to support, attract, and retain women in the workforce. The department may partner with any additional stakeholders the department deems necessary for completing the recommendations, including the Michigan department of civil rights, the Michigan department of health and human services, and the Michigan Women's Commission. The recommendations must be published on the department's website not later than January 1, 2026. The recommendations must include guidance on all of the following:

(a) Postpartum care, including, but not limited to, flexible scheduling, reasonable accommodations, lactation policies, and mental health resources.

(b) Menstruation and menopause support, including, but not limited to, counseling or medical resources, symptoms training, and insurance coverage.

(c) Fair and transparent pay practices, including, but not limited to, salary disclosures, clear criteria for raises, and employer tools to assess compensation and address wage disparities.