No. 69
STATE OF MICHIGAN
Journal of the Senate
92nd Legislature
REGULAR SESSION OF 2003
Senate Chamber, Lansing, Wednesday, July 16, 2003.
10:00 a.m.
The Senate was called to order by the Assistant President pro tempore, Senator Alan Sanborn.
The roll was called by the Secretary of the Senate, who announced that a quorum was present.
Allen--present | Emerson--present | Olshove--present |
Barcia--present | Garcia--present | Patterson--present |
Basham--present | George--present | Prusi--present |
Bernero--present | Gilbert--present | Sanborn--present |
Birkholz--present | Goschka--present | Schauer--present |
Bishop--present | Hammerstrom--present | Scott--present |
Brater--present | Hardiman--present | Sikkema--present |
Brown--present | Jacobs--present | Stamas--present |
Cassis--present | Jelinek--present | Switalski--present |
Cherry--present | Johnson--present | Thomas--present |
Clark-Coleman--present | Kuipers--present | Toy--present |
Clarke--present | Leland--present | Van Woerkom--present |
Cropsey--present McManus--present
Reverend Robert E. Nickerson of Grace Tabernacle Baptist Church of Lansing offered the following invocation:
O Lord, we ask that You would grant us Your invocation and that Your presence would abide with us here today. Give these men and women wisdom in decision-making. Help them to be compassionate to the constituency they represent. Give this esteemed, august body good health and strength and sound mind that they would do those things that will impact this great state in which we live. These things we ask of You. Amen.
The Assistant President pro tempore, Senator Sanborn, led the members of the Senate in recital of the Pledge of Allegiance.
Motions and Communications
Senator Sikkema asked and was granted unanimous consent to make a statement and moved that the statement be printed in the Journal.
The motion prevailed.
Senator Sikkema's statement is as follows:
Many of you probably know the young lady standing next to me; some of you maybe don't. It's Pam Sedwick. Pam has been the Finance Manager for us here in the Michigan Senate for six years. The reason she is standing with me this morning, and on behalf of Democratic Leader Bob Emerson and myself, we are giving her a tribute because Pam and her children are going to be moving to Arizona to join her husband Clinton, who just recently moved there to become president of a small university in Phoenix. We are very sorry to see Pam leave, but we understand that sometimes job duties and professional duties require that.
Just a couple of notes that I want to make about Pam and her work with us here in the Senate. She is the person who has managed the day-to-day financial operations of the Senate in the area of budgets, accounting, and purchasing. She has done that with a high degree of professionalism, with impeccable integrity and honesty. I am sure that has not been an easy job in times of budgets rising and falling, but she has worked tirelessly to provide what I would call very consumer-friendly service. She has committed a high degree of professionalism and excellent service in the staff she has managed. She has done a lot of things that a lot of us really don't know about because it is behind the scenes, but she is one of the reasons that the Michigan Senate really, in spite of the Majority Leaders, past and present, has been a very efficiently-run body over many, many years.
Pam, we are sorry to see you go. We understand. We are incredibly in your debt for the service you have rendered us. On behalf of Bob Emerson, myself, and Carol Viventi, the Secretary of the Senate, I'd ask the members to rise and give this lady the applause she has earned.
Senators Emerson, Thomas, Stamas, Goschka and Switalski entered the Senate Chamber.
Senator Hammerstrom moved that Senators Brown and Jelinek be temporarily excused from today's session.
The motion prevailed.
Senators Jelinek and Brown entered the Senate Chamber.
Senator Schauer moved that Senators Leland and Olshove be temporarily excused from today's session.
The motion prevailed.
Senator Olshove entered the Senate Chamber.
The following communication was received:
Department of Community Health
July 10, 2003
Attached please find a copy of the 2003 Asset Forfeiture Report for the State of Michigan, This report, compiled by the Office of Drug Control Policy, is required to be completed annually under Public Act 1978, No. 368.
If you have additional questions or concerns, please feel free to call Jim Rapp at 517.241.2916.
Sincerely,
Jan Christensen
Interim Policy and Legislative Liaison
Policy and Legal Affairs Administration
The communication was referred to the Secretary for record.
The Secretary announced that the following House bill was received in the Senate and filed on Tuesday, July 15:
House Bill No. 4945
The Secretary announced that the following bills were available at the legislative Web site on Wednesday, July 16:
House Bill Nos. 4950 4951 4952 4953 4954 4955 4956 4957 4958 4959 4960
Messages from the Governor
The following messages from the Governor were received:
Date: July 15, 2003
Time: 11:10 a.m.
To the President of the Senate:
Sir--I have this day approved and signed
Enrolled Senate Bill No. 238 (Public Act No. 60), being
An act to amend 1980 PA 350, entitled "An act to provide for the incorporation of nonprofit health care corporations; to provide their rights, powers, and immunities; to prescribe the powers and duties of certain state officers relative to the exercise of those rights, powers, and immunities; to prescribe certain conditions for the transaction of business by those corporations in this state; to define the relationship of health care providers to nonprofit health care corporations and to specify their rights, powers, and immunities with respect thereto; to provide for a Michigan caring program; to provide for the regulation and supervision of nonprofit health care corporations by the commissioner of insurance; to prescribe powers and duties of certain other state officers with respect to the regulation and supervision of nonprofit health care corporations; to provide for the imposition of a regulatory fee; to regulate the merger or consolidation of certain corporations; to prescribe an expeditious and effective procedure for the maintenance and conduct of certain administrative appeals relative to provider class plans; to provide for certain administrative hearings relative to rates for health care benefits; to provide for certain causes of action; to prescribe penalties and to provide civil fines for violations of this act; and to repeal certain acts and parts of acts," by amending section 501 (MCL 550.1501).
(Filed with the Secretary of State on July 15, 2003, at 11:54 a.m.)
Date: July 15, 2003
Time: 11:20 a.m.
To the President of the Senate:
Sir--I have this day approved and signed
Enrolled Senate Bill No. 234 (Public Act No. 59), being
An act to amend 1980 PA 350, entitled "An act to provide for the incorporation of nonprofit health care corporations; to provide their rights, powers, and immunities; to prescribe the powers and duties of certain state officers relative to the exercise of those rights, powers, and immunities; to prescribe certain conditions for the transaction of business by those corporations in this state; to define the relationship of health care providers to nonprofit health care corporations and to specify their rights, powers, and immunities with respect thereto; to provide for a Michigan caring program; to provide for the regulation and supervision of nonprofit health care corporations by the commissioner of insurance; to prescribe powers and duties of certain other state officers with respect to the regulation and supervision of nonprofit health care corporations; to provide for the imposition of a regulatory fee; to regulate the merger or consolidation of certain corporations; to prescribe an expeditious and effective procedure for the maintenance and conduct of certain administrative appeals relative to provider class plans; to provide for certain administrative hearings relative to rates for health care benefits; to provide for certain causes of action; to prescribe penalties and to provide civil fines for violations of this act; and to repeal certain acts and parts of acts," by amending sections 204, 206, 207, 211, 401, 502, 602, 606, and 609 (MCL 550.1204, 550.1206, 550.1207, 550.1211, 550.1401, 550.1502, 550.1602, 550.1606, and 550.1609), section 207 as amended by 1999 PA 210, section 211 as amended by 1993 PA 127, section 401 as amended by 2000 PA 26, section 502 as amended by 1998 PA 446, and section 609 as amended by 1991 PA 61, and by adding sections 204a, 205a, 219, 401j, 403b, and 422c; and to repeal acts and parts of acts.
(Filed with the Secretary of State on July 15, 2003, at 11:52 a.m.)
Respectfully,
Jennifer M. Granholm
Governor
By unanimous consent the Senate proceeded to the order of
General Orders
Senator Hammerstrom moved that the Senate resolve itself into the Committee of the Whole for consideration of the General Orders calendar.
The motion prevailed, and the Assistant President pro tempore, Senator Sanborn, designated Senator Switalski as Chairperson.
After some time spent therein, the Committee arose; and, the Assistant President pro tempore, Senator Sanborn, having resumed the Chair, the Committee reported back to the Senate, favorably and without amendment, the following bill:
House Bill No. 4218, entitled
A bill to amend 1976 PA 451, entitled "The revised school code," by amending section 1303 (MCL 380.1303), as amended by 1995 PA 289.
The bill was placed on the order of Third Reading of Bills.
The Committee of the Whole reported back to the Senate, favorably and with a substitute therefor, the following bill:
Senate Bill No. 99, entitled
A bill to authorize the administration of an organ donor leave time program for certain persons employed by this state; to provide for implementation and operation; and to prescribe powers and duties of certain state officers and agencies.
Substitute (S-3).
The Senate agreed to the substitute recommended by the Committee of the Whole, and the bill as substituted was placed on the order of Third Reading of Bills.
Recess
Senator Hammerstrom moved that the Senate recess subject to the call of the Chair.
The motion prevailed, the time being 10:16 a.m.
10:23 a.m.
The Senate was called to order by the Assistant President pro tempore, Senator Sanborn.
During the recess, Senator Leland entered the Senate Chamber.
Senator Hammerstrom moved that rule 2.106 be suspended to allow committees to meet during Senate session.
The motion prevailed, a majority of the members serving voting therefor.
Recess
Senator Hammerstrom moved that the Senate recess until 11:30 a.m.
The motion prevailed, the time being 10:25 a.m.
The Senate reconvened at the expiration of the recess and was called to order by the Assistant President pro tempore, Senator Sanborn.
By unanimous consent the Senate returned to the order of
Messages from the House
Senate Bill No. 391, entitled
An act to amend 1964 PA 265, entitled "An act to enact the uniform securities act relating to the issuance, offer, sale, or purchase of securities; to prohibit fraudulent practices in relation to securities; to establish civil and criminal sanctions for violations of the act and civil sanctions for violation of the rules promulgated pursuant to the act; to require the registration of broker-dealers, agents, investment advisers, and securities; to make uniform the law with reference to securities; and to repeal acts and parts of acts," by amending section 202 (MCL 451.602), as amended by 2000 PA 494.
The House of Representatives has substituted (H-1) the bill.
The House of Representatives has passed the bill as substituted (H-1).
Pending the order that, under rule 3.202, the bill be laid over one day,
Senator Hammerstrom moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on concurring in the substitute made to the bill by the House,
The substitute was concurred in, a majority of the members serving voting therefor, as follows:
Roll Call No. 378 Yeas--32
Allen | Cherry | Jacobs | Schauer |
Barcia | Clark-Coleman | Jelinek | Scott |
Basham | Cropsey | Johnson | Sikkema |
Birkholz | George | Kuipers | Stamas |
Bishop | Gilbert | McManus | Switalski |
Brater | Goschka | Olshove | Thomas |
Brown | Hammerstrom | Patterson | Toy |
Cassis | Hardiman | Prusi | Van Woerkom |
Nays--1
Sanborn
Excused--0
Not Voting--5
Bernero Emerson Garcia Leland
Clarke
In The Chair: Sanborn
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
Senator Schauer moved that Senators Clarke, Leland and Emerson be temporarily excused from the balance of today's session.
The motion prevailed.
Senator Hammerstrom moved that Senator Garcia be temporarily excused from the balance of today's session.
The motion prevailed.
Conference Reports
Senators Clarke, Leland, Emerson and Garcia entered the Senate Chamber.
Senator George submitted the following:
FIRST CONFERENCE REPORT
The Committee of Conference on the matters of difference between the two Houses concerning
Senate Bill No. 279, entitled
A bill to make appropriations for the department of history, arts, and libraries for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to provide for the disposition of fees and other income received by the state agencies; to provide for the disbursement of certain grants; to provide for reports; to prescribe powers and duties of certain state departments and certain state and local agencies and officers; and to repeal acts and parts of acts.
Recommends:
First: That the Senate and House agree to the Substitute of the House as passed by the House, amended to read as follows:
A bill to make appropriations for the department of history, arts, and libraries for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to provide for the disposition of fees and other income received by the state agencies; to provide for the disbursement of certain grants; to provide for reports; to prescribe powers and duties of certain state departments and certain state and local agencies and officers; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for the department of history, arts, and libraries for the fiscal year ending September 30, 2004, from the funds indicated in this part. The following is a summary of the appropriations in this part:
DEPARTMENT OF HISTORY, ARTS, AND LIBRARIES
APPROPRIATION SUMMARY:
Full-time equated unclassified positions 6.0
Full-time equated classified positions 248.5
GROSS APPROPRIATION $ 57,131,100
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers 137,500
ADJUSTED GROSS APPROPRIATION $ 56,993,600
Federal revenues:
Total federal revenues 9,322,600
Special revenue funds:
Total local revenues 0
Total private revenues 577,400
Total other state restricted revenues 2,308,800
State general fund/general purpose $ 44,784,800
Sec. 102. DEPARTMENT OPERATIONS
Full-time equated unclassified positions 6.0
Full-time equated classified positions 24.5
Unclassified salaries--6.0 FTE positions $ 219,300
Management services--23.5 FTE positions 1,819,700
Building occupancy charges and rent 2,884,000
Worker's compensation 37,900
Office of film and television services--1.0 FTE position | 129,900 | |
GROSS APPROPRIATION | $ | 5,090,800 |
Appropriated from:
State general fund/general purpose $ 5,090,800
Sec. 103. INFORMATION TECHNOLOGY
Information technology services and projects | $ | 1,036,500 |
GROSS APPROPRIATION | $ | 1,036,500 |
Appropriated from:
Interdepartmental grant revenues:
IDG-MDOT, comprehensive transportation fund 200
IDG-MDOT, state aeronautics fund 100
IDG-MDOT, state trunkline fund 3,000
Special revenue funds:
Game and fish protection fund 100
Mackinac Island state park fund $ 40,000
Special revenue, internal service and pension trust 2,700
State lottery fund 900
State general fund/general purpose $ 989,500
Sec. 104. MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS
Full-time equated classified positions 10.0
Administration--10.0 FTE positions $ 694,400
Arts and cultural grants 11,771,300
GROSS APPROPRIATION $ 12,465,700
Appropriated from:
Federal revenues:
NFAH-NEA, promotion of the arts, partnership agreements 700,000
Special revenue funds:
State general fund/general purpose $ 11,765,700
Sec. 105. MACKINAC ISLAND STATE PARK COMMISSION
Full-time equated classified positions 46.8
Mackinac Island park operation--21.8 FTE positions $ 1,288,300
Historical facilities system--25.0 FTE positions 1,577,100
GROSS APPROPRIATION $ 2,865,400
Appropriated from:
Special revenue funds:
Airport and park operation fees 106,400
Mackinac Island state park fund 1,272,600
State general fund/general purpose $ 1,486,400
Sec. 106. MICHIGAN HISTORICAL PROGRAM
Full-time equated classified positions 86.2
Federal programs--14.9 FTE positions $ 1,853,900
Heritage publications 700,000
Historical administration and services--71.3 FTE positions 5,074,400
Private grants and gifts 502,400
Thunder Bay national marine sanctuary and underwater preserve 187,400
GROSS APPROPRIATION $ 8,318,100
Appropriated from:
Interdepartmental grant revenues:
IDG-MDOT, comprehensive transportation fund 5,700
IDG-MDOT, state aeronautics fund 3,400
IDG-MDOT, state trunkline fund 125,100
Federal revenues:
DOI-NPS, historic preservation grants-in-aid 1,348,000
Federal funds 505,900
Special revenue funds:
Game and fish protection fund 3,600
Heritage publication fund 700,000
Marine safety fund 500
Private - grants and gifts 400,000
Private - Mann house trust fund 102,400
Special revenue, internal service and pension trust 70,000
State lottery fund 24,300
Waterways fund 800
State general fund/general purpose $ 5,028,400
Sec. 107. LIBRARY OF MICHIGAN
Full-time equated classified positions 81.0
Book distribution centers $ 307,500
Collected gifts and fees 161,900
Grand Rapids public library 125,000
Grant to the Detroit public library 1,000,000
Library of Michigan operations--81.0 FTE positions $ 6,239,600
Library services and technology act 5,557,400
State aid to libraries 13,327,100
Subregional state aid 505,000
Wayne County library for the blind and physically handicapped 44,800
Federal aid to libraries 86,300
GROSS APPROPRIATION $ 27,354,600
Appropriated from:
Federal revenues:
Federal section 903(d), SSA funds 1,211,300
Library services and technology act 5,557,400
Special revenue funds:
Private - gifts and bequests revenues 75,000
User fees 86,900
State general fund/general purpose $ 20,424,000
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2003-2004 is $47,093,600.00 and state spending from state resources to be paid to local units of government for fiscal year 2003-2004 is $17,530,400.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:
DEPARTMENT OF HISTORY, ARTS, AND LIBRARIES
Arts and cultural grants $ 3,653,500
State aid to libraries 13,327,100
Subregional state aid 505,000
Wayne County library for the blind and physically handicapped 44,800
Total department of history, arts, and libraries $ 17,530,400
Sec. 202. The appropriations authorized under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 203. As used in this appropriation act:
(a) "Department" means the department of history, arts, and libraries.
(b) "Director" means the director of the department of history, arts, and libraries.
(c) "DOI-NPS" means the United States department of interior, national park service.
(d) "Fiscal agencies" means the house fiscal agency and the senate fiscal agency.
(e) "FTE" means full-time equated.
(f) "IDG" means interdepartmental grant.
(g) "NEA" means the national endowment for the arts.
(h) "NFAH" means the national foundation of the arts and the humanities.
(i) "SSA" means social security administration.
(j) "Subcommittees" means all members of the appropriate subcommittees of the house and senate appropriations committees.
Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.
Sec. 205. (1) A hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department.
(2) The state budget director shall grant exceptions to this hiring freeze when the state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services, cause a loss of revenue to the state, result in the inability of the state to receive federal funds, or would necessitate additional expenditures that exceed any savings from maintaining a vacancy. The state budget director shall report quarterly to the chairpersons of the senate and house standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous quarter and the reasons to justify the exception.
Sec. 207. At least 60 days before beginning any effort to privatize, the department shall submit a complete project plan to the subcommittees and the fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the fiscal agencies and to the subcommittees within 30 months.
Sec. 208. Unless otherwise specified, departments and agencies receiving appropriations in part 1 shall use the Internet to fulfill the reporting requirements of this act. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on the Internet or Intranet site.
Sec. 209. Funds appropriated in part 1 shall 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.
Sec. 210. The director shall take all reasonable steps to ensure businesses in deprived and depressed communities 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 businesses in depressed and deprived communities for services, supplies, or both.
Sec. 211. The department shall establish and maintain affirmative action programs based on guidelines developed by the state equal opportunity workforce planning council which was created by Executive Order No. 1996-13 in order to receive general fund/general purpose dollars.
Sec. 212. In addition to the funds appropriated in part 1, the department may accept contributions, gifts, bequests, devises, user fees, grants, donations, and payments to rent the department's traveling museum exhibits. Funds accepted by the department are appropriated and allotted when received and may be expended immediately upon receipt or at any later time. Those funds that are not expended in the current fiscal year shall not lapse at the close of the fiscal year and may be carried over by the department for expenditure in the following fiscal years.
Sec. 213. From the funds appropriated in part 1 for information technology, the departments and agencies shall pay user fees to the department of information technology for technology related services and projects. These user fees are subject to provisions of an interagency agreement between the departments and agencies and the department of information technology.
Sec. 214. Amounts appropriated in part 1 for information technology may be designated as work projects and carried forward to support department of history, arts, and libraries technology projects under the direction of the department of information technology. Funds designated in this manner are not available for expenditure until approved as work projects under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a.
Sec. 215. The department may provide and enter into agreements to provide general services, training, meetings, information, special equipment, software, and 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. Fees for services shall be reasonably related to the cost of providing the services and shall be used to offset the costs of the services. The department may receive and expend funds in addition to those authorized in part 1 for:
(a) Supplying census-related information and technical services, publications, statistical studies, population projections and estimates, and other demographic products.
(b) Microfilming and other document and data imaging services, media, storage, and copies.
(c) Patron copier and document reproduction services and copies.
(d) Conferences, training classes, and workshops conducted as part of the department's mission.
(e) Use of specialized equipment, facilities, and software that permit distance learning and meetings, and group decision making. Funds not expended at year-end may be carried forward and expended for the same purposes for which they were originally received.
MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS
Sec. 401. (1) The Michigan council for arts and cultural affairs in the department shall administer the arts and cultural grants appropriated in part 1. The council shall provide for fair and independent decisions on arts and cultural grant requests based upon published criteria to evaluate program quality. These criteria shall include a prohibition of art projects that include displays of human wastes on religious symbols, displays of sex acts, and depictions of flag desecration. The council shall seek to award grants on an equitable geographic basis to the extent possible given the quality of grant applications received. Priority shall be given to projects that serve multiple counties and that leverage significant additional public and private investment. Counties, cities, villages, townships, community foundations, and organizations, including science museums/centers, may apply for the following categories of grants:
(a) Anchor organization program for organizations that serve regional and statewide audiences. Anchor organizations shall demonstrate a commitment to education, to mentoring smaller organizations, and to reaching underserved audiences.
(b) Arts projects program.
(c) Arts and learning program.
(d) Artists in residence for education program.
(e) Arts organization development program.
(f) Capital improvement projects.
(g) Local arts agencies services program.
(h) Regional regranting program.
(i) Partnership program.
(j) Discretionary grants program.
(k) Rural arts and cultural projects.
(l) Cultural projects program.
(m) Historical projects program.
(2) The appropriation for arts and cultural grants in part 1 and disbursed under this section shall, at a minimum, be matched on an equal dollar-for-dollar basis from local and private contributions paid and received by each awardee receiving grants under this section. The dollar-for-dollar match may include the reasonable value of services, materials, and equipment as allowed under the federal internal revenue code for charitable contributions subject also to the preapproval of such a match by the Michigan council for arts and cultural affairs. The council shall receive proof of the entire amount of the matching funds, services, materials, or equipment by the end of the award period.
(3) Before any amount appropriated for arts and cultural grants in part 1 may be expended for a grant to eligible applicants for the purposes in this section, the department shall execute a grant agreement with each grantee. The grant agreement shall specify the criteria included in this section with which the application complies. The grant agreement shall include a list of the projects funded.
(4) Counties, cities, villages, townships, community foundations, and organizations receiving funds under this section shall provide the Michigan council for arts and cultural affairs with the following:
(a) A final report covering the grant period within 30 days after the end of the grant period indicating at least the following:
(i) Project revenues and expenditures indicating grant matching fund amounts.
(ii) Number of patrons attracted or benefiting during the grant period.
(iii) A narrative summary of each project and its outcome.
(b) Awardees receiving grants greater than $100,000.00 shall also submit a report as identified in subdivision (a) on an interim basis by April 7 of the grant year.
(5) The applicants for arts and cultural grants funds shall be charged a nonrefundable application fee of $300.00 or 3% of the grant, whichever is less. The application fee may be used by the department to recover direct and indirect costs as appropriated in part 1.
(6) It is the intent of the legislature that the Michigan council for arts and cultural affairs continue to take appropriate steps to ensure that all organizations receiving state arts anchor organization grants have combined grant awards, as defined in subsection (8), of no more than 15.0% of operating revenue for the fiscal year ending September 30, 2005 and beyond. As used in this subsection, "operating revenue" is defined in the same manner as it was defined during the fiscal year 2000 state arts anchor organization application process.
(7) The council shall continue and expand its efforts to encourage and support nonprofit arts and cultural organizations transitioning from solely volunteer-based organizations to professional directed operations. This includes the provision of funds and services from the arts organization development, partnership, arts projects, anchor organization, and regional regranting programs as well as the rural arts and culture initiative to support professional development within these organizations. Criteria for support include the requirement of collaboration between these organizations and other community organizations.
(8) Any organizations receiving grants within the anchor organization program category in excess of 10.0% of their operating revenue, as defined in subsection (6), for the fiscal year ending September 30, 2003, shall not receive a combined grant award from all grant categories, except the partnership program, that is greater than the combined grant award from these categories that the organization received for the fiscal year ending September 30, 2003.
(9) The council shall provide for fair, equitable, and efficient distribution of funds granted through the regional regranting program. The council shall provide for an annual assessment of grant management and distribution of mini-grant awards by designated regional regranting agencies and review the methodology employed.
(10) The council shall make every effort to provide total grant awards in the anchor organization program at a level not to exceed 70% of the total amount appropriated for arts and cultural grants.
(11) The department shall submit 2 annual reports to the appropriations subcommittees, the state budget office, and the fiscal agencies as follows:
(a) The first report is due 30 days after the council makes the annual grant awards. The report shall contain the following:
(i) A listing of each applicant.
(ii) The county of residence of an applicant.
(iii) The amount awarded.
(iv) The amount requested.
(v) The grant category under which an applicant applied.
(vi) A summary of projects funded for each awardee.
(vii) The expected number of patrons for an applicant during the grant period.
(viii) The amount of matching funds proposed by an applicant.
(ix) The review score for each application.
(x) A listing containing the information in subparagraphs (i) to (iii) for any regranted funds in the preceding fiscal year.
(b) The second report is due when materials are first distributed by the council seeking grant applications for the subsequent fiscal year. The report shall contain the following:
(i) The guidelines by which the council awards grants.
(ii) A summary of any changes in the program guidelines from the previous fiscal year.
(iii) A summary of any initiatives the council is taking to improve public access to the arts and culture, including, but not limited to, the use of technology applications.
(12) Within 1 day following the final council vote, the department shall notify each legislator electronically regarding the website location of the list of grant awardees by county receiving a grant from arts and cultural grant funds appropriated in part 1.
MICHIGAN HISTORICAL PROGRAM
Sec. 501. The federal funds appropriated in part 1 for the historic site preservation grants are for work projects and shall not lapse at the end of the fiscal year but shall continue to be available for expenditure until the projects for which the funds were reserved have been completed or are terminated. The purpose of these work projects is the identification, designation, and preservation of historic resources. The method used will be to solicit applications from eligible recipients, score applications based upon established criteria, and award the contracts and subgrants. The total cost is $1,348,000.00 and the tentative completion date is September 30, 2004.
Sec. 502. Funds collected by the department under sections 3, 6, 7, and 7a of 1913 PA 271, MCL 399.3, 399.6, 399.7, and 399.7a, are appropriated to the department for the purpose for which they were received and shall not lapse to the general fund at the end of the fiscal year.
Sec. 503. For purposes of administering the museum store as provided in section 7a of 1913 PA 271, MCL 399.7a, the department is exempt from section 261 of the management and budget act, 1984 PA 431, MCL 18.1261.
Sec. 504. (1) From the state funds appropriated in part 1, the department may award discretionary historical grants to preserve Michigan lighthouses. The department may award up to $140,000.00 in grants for this purpose and may use a portion of those funds to assist in the transfer of lighthouses from federal ownership. A portion of the funds may also be dedicated to program administration and project coordination.
(2) The department shall allocate grant funds under this section pursuant to eligibility and scoring requirements established by the department. The method used will be to solicit applications from eligible recipients, score applications based on the established criteria, and award grants through executed contracts.
(3) Grants under this section may be awarded for purposes of stabilization, rehabilitation, or other preservation work on a Michigan lighthouse, but shall not be awarded for operational purposes. The department shall not allocate a grant under this section that exceeds $40,000.00.
(4) The funds appropriated in part 1 and allocated by this section are for work projects. The funds shall not lapse to the general fund at the end of the fiscal year but shall remain available in subsequent fiscal years, until funds have been expended, the projects for which the funds were reserved have been completed, or the projects are terminated, whichever occurs first. The tentative date for completion is September 30, 2004.
Sec. 505. From the funds appropriated in part 1 for historical administration and services, $74,700.00 shall be allocated to support the operations of the Michigan freedom trail commission as specified in section 4 of the Michigan freedom trail commission act, 1998 PA 409, MCL 399.84. These funds shall be used to reimburse commission members, to pay for necessary contractual services of the commission, and to hire not more than 1.0 FTE position in the department's Michigan historical center to support commission operations.
Sec. 506. Proceeds in excess of costs incurred in the conduct of auctions, sales, or transfers of artifacts no longer considered suitable for the collections of the state historical museum are appropriated to the department and may be expended upon receipt for additional material for the collection. The department shall notify the chairpersons, vice chairpersons, and minority vice chairpersons of the senate and house appropriations subcommittees on history, arts, and libraries 1 week prior to any auctions or sales.
Sec. 507. Unless prohibited by law, the department shall make available to the historical society of Michigan the use of the Michigan history magazine subscriber list, or a portion of the Michigan history magazine subscriber list, at a cost not to exceed the actual expense incurred for providing a single mailing.
Sec. 508. From the funds appropriated in part 1 in the historical administration and services line item, $100,000.00 shall be used to fund a competitive grant program for all state and local historical societies. Awards shall be made for projects that can leverage additional public and private investment and may involve, but are not limited to, capital improvements projects, restorations, research, educational programs, and publications.
LIBRARY OF MICHIGAN
Sec. 601. In order to receive subregional state aid as appropriated in part 1 to the library of Michigan, a 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 is the subregional library's fiscal agency, that reduction shall not be interpreted as a reduction in local support and shall not disqualify a subregional library from receiving state aid under part 1. If a reduction in income affects a library cooperative or district library that is a subregional library's fiscal agency or a reduction in expenditures for the subregional library's fiscal agency, a reduction in expenditures for the subregional library shall not be interpreted as a reduction in local support and shall not disqualify a subregional library from receiving state aid under part 1.
Sec. 602. The funds appropriated in part 1 for a subregional library shall not be released until a budget for that subregional library has been approved by the department for expenditures for library services directly serving the blind and persons with disabilities. Subregional state aid shall be used only for providing services to the blind and to persons with disabilities.
Sec. 603. Of the funds appropriated in part 1 for the operation of the library of Michigan, a portion may be used for statewide database access such as making computerized databases, searches of those databases, and the products of those searches available through the libraries of Michigan. Only those libraries that qualify under the federal library services and technology act, subtitle B of title II of the museum and library services act, title II of the arts, humanities, and cultural affairs act of 1976, Public Law 94-462, 110 Stat. 3009-295, are eligible to participate in these activities.
Sec. 604. The funds appropriated in section 107 of part 1 for the federal aid to libraries shall be awarded on a competitive basis to all eligible libraries for the purpose of providing libraries with computers and to train library staff to assist claimants in accessing unemployment agency websites.
Sec. 605. (1) Instead of the purposes described in former section 520 of 2002 PA 530, the work project account created in that section, account no. 2316, shall be used as a work project account to award grants to all eligible libraries for the purpose of providing libraries with computers and to train library staff to assist claimants in accessing unemployment agency websites. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the work project is to provide libraries with computers and train library staff to assist claimants in accessing unemployment agency websites. The work project shall target libraries in high unemployment areas and provide them with high speed Internet connections and methodologies for sustainability.
(b) The work project will be accomplished through the use of grants.
(c) The total estimated completion cost of the work project is $4,000,000.00.
(d) The tentative completion date is September 30, 2004.
(2) Funding appropriated in part 1 to the Grand Rapids public library and the grant to the Detroit public library will not be available after September 30, 2004.
Sec. 606. The department shall conduct a comprehensive study on special collections at public libraries across the state and shall report to the legislature no later than September 30, 2004 on recommendations for funding and recognizing the distinct nature of the respective collections.
Sec. 607. Of the funds appropriated in part 1 for book distribution centers, the public enrichment foundation shall receive $158,700.00 and the Michigan friends of education shall receive $148,800.00.
REPEALERS
Sec. 701. Section 520 of 2002 PA 530 is repealed.
Second: That the Senate and House agree to the title of the bill to read as follows:
A bill to make appropriations for the department of history, arts, and libraries for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to provide for the disposition of fees and other income received by the state agencies; to provide for the disbursement of certain grants; to provide for reports; to prescribe powers and duties of certain state departments and certain state and local agencies and officers; and to repeal acts and parts of acts.
Thomas M. George
Michelle McManus
Conferees for the Senate
Fran Amos
John Moolenaar
Conferees for the House
Pending the order that, under joint rule 9, the conference report be laid over one day,
Senator Hammerstrom moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on the adoption of the conference report,
The first conference report was adopted, a majority of the members serving voting therefor, as follows:
Roll Call No. 379 Yeas--30
Allen | Cassis | Jacobs | Sanborn |
Barcia | Cherry | Jelinek | Schauer |
Basham | Garcia | Kuipers | Sikkema |
Bernero | George | McManus | Stamas |
Birkholz | Gilbert | Olshove | Switalski |
Bishop | Goschka | Patterson | Toy |
Brater | Hammerstrom | Prusi | Van Woerkom |
Brown | Hardiman |
Nays--7
Clark-Coleman Emerson Leland Thomas
Cropsey Johnson Scott
Excused--0
Not Voting--1
Clarke
In The Chair: Sanborn
The question being on concurring in the committee recommendation to give the bill immediate effect,
The recommendation was concurred in, 2/3 of the members serving voting therefor.
Senator Clarke asked and was granted unanimous consent to make statements and moved that the statements be printed in the Journal.
The motion prevailed.
Senator Clarke's first statement is as follows:
There were two issues on this bill that were important to me. One was the Detroit Institute of Arts, and the other was the Detroit Public Library. I want to commend the Legislature for lifting the cap on the Detroit Institute of Arts so that it wouldn't take a multi-million dollar cut. The Detroit Public Library will be funded with $1 million of federal Reed Act money. That's $1 million more than the Senate had in place. So I should be very happy, but I'm not.
I represent the city of Detroit. I live down the street from the Detroit Public Library and the Detroit Institute of Arts, so it makes sense that if those institutions are going to get cut even further than what the Governor recommended, I would stand up and fight for them because I'm their Senator. All of us want to make sure that our institutions get more money or at least aren't disproportionately cut. But I'm not happy with this budget because money, believe it or not, is not my primary concern.
Now to add a little levity in this discussion, I'll use an analogy. Think about marriages, or a relationship, that allegedly fall apart over money. You know what, money is not the issue. It's something underlying that's not working. So when I ask the Legislature to maintain the funding for the Detroit Public Library, I'm not asking just for money to go to the library from the state. I'm asking the state to make a commitment to the Detroit Public Library, recognizing that library's commitment to the state's residents and the state's libraries. There is no commitment in this budget to the Detroit Public Library. This is a million dollars of federal money that will vanish quicker than any term-limited legislator. It's here today, and it's gone tomorrow.
Now I'll tell you this, if you had had half of that money--$500,000--and it was from the General Fund, to actually demonstrate and acknowledge that the Detroit Public Library is the cornerstone of the state library system; to recognize the Detroit Public Library provides services to people who live outside the city of Detroit without charging them; that one-third of the Detroit Public Library's borrowers don't live in Detroit; and to recognize that the Detroit Public Library has some of the greatest collections in the world on genealogy and automotive history and that people from all over the state and all over the country come to use it. That commitment of the General Fund would recognize and in a partial way support the Detroit Public Library's services to the state of Michigan, but there is no commitment here. Guess what, it's only money, and money in this case isn't good enough.
Now we spend multi-billions of dollars in our school system to make sure that kids have a great opportunity. We're talking about $3 million going to the Detroit Public Library that would keep the doors open on an institution that could actually save the lives of kids who need that culture and education in their lives. This $3 million out of a $38 billion budget is the best investment because of what you can leverage with it. You can keep an institution open that serves everybody around the state and serves 50 percent of the students in the city of Detroit who go to schools that have no library. For 50 percent of the kids in the city of Detroit, their library is the Detroit Public Library. Money is not enough.
Saying all of that, I will personally not vote to support this budget because it does not reflect the state's commitment to the Detroit Public Library and recognize its contribution to all of us throughout the state. The reason why I made these remarks is not to influence this vote--obviously, it's a done deal--but to hopefully make a difference as we proceed in fiscal year '05 and onward. Look, this is the best investment we can make.
Senator Clarke's second statement is as follows:
For me--to get to the point on why the Detroit Institute of Arts and the Detroit Public Library are treated differently in this budget. The Detroit Public Library doesn't have effective advocates who can speak on its behalf. The people who use the library can't afford $50 to go to Barnes and Noble, buy cappuccino and a book.
The Detroit Institute of Arts and other institutions have effective advocates. I am urging to consider an investment in the Detroit Public Library in the upcoming fiscal years, and because of my reservations of the treatment of this library, I will not support this budget.
One thing I do want to say is the subcommittee chairman, who has been very active in trying to eliminate all the funding for the Detroit Library, has always been straight-up on his intentions. He has not blind-sided me. He has treated me and this process with respect. I do appreciate the support to the Detroit Institute of Arts, and because of that, I will not vote "no." I will pass on this budget.
Third Reading of Bills
The following bill was announced:
House Bill No. 4146, entitled
A bill to amend 2000 PA 321, entitled "Recreational authorities act," by amending sections 3 and 5 (MCL 123.1133 and 123.1135).
(This bill was read a third time on July 15 and consideration postponed. See Senate Journal No. 68, p. 1236.)
The question being on the passage of the bill,
Senator Allen offered the following amendments:
1. Amend page 2, following line 24, by inserting:
"(j) "Public historic farm" means a parcel of public land and its buildings that are accessible to the public, and provides, but is not limited to, agricultural and historical programs, farming activities and animal husbandry, community recreation activities and events, programs held in common areas, meeting rooms, and community gardens, and access to surrounding parkland." and relettering the remaining subdivisions.
2. Amend page 4, following line 4, by inserting:
"(vi) A public museum.
(vii) A public historic farm.".
The amendments were adopted, a majority of the members serving voting therefor.
Senator Toy offered the following amendments:
1. Amend page 4, line 8, after "authority" by inserting "or to join in the original formation of an authority".
2. Amend page 4, line 9, after "authority" by inserting "or to join in the original formation of an authority".
The amendments were adopted, a majority of the members serving voting therefor.
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows:
Roll Call No. 380 Yeas--38
Allen | Clark-Coleman | Jacobs | Sanborn |
Barcia | Clarke | Jelinek | Schauer |
Basham | Cropsey | Johnson | Scott |
Bernero | Emerson | Kuipers | Sikkema |
Birkholz | Garcia | Leland | Stamas |
Bishop | George | McManus | Switalski |
Brater | Gilbert | Olshove | Thomas |
Brown | Goschka | Patterson | Toy |
Cassis | Hammerstrom | Prusi | Van Woerkom |
Cherry | Hardiman |
Nays--0
Excused--0
Not Voting--0
In The Chair: Sanborn
The question being on concurring in the committee recommendation to give the bill immediate effect,
The recommendation was concurred in, 2/3 of the members serving voting therefor.
Pursuant to Joint Rule 20, the full title of the act shall be inserted to read as follows:
"An act to provide for the establishment of recreational authorities; to provide powers and duties of an authority; to authorize the assessment of a fee, the levy of a property tax, and the issuance of bonds and notes by an authority; and to provide for the powers and duties of certain government officials,".
The Senate agreed to the full title.
By unanimous consent the Senate returned to the order of
General Orders
Senator Hammerstrom moved that the Senate resolve itself into the Committee of the Whole for consideration of the General Orders calendar.
The motion prevailed, and the Assistant President pro tempore, Senator Sanborn, designated Senator Switalski as Chairperson.
After some time spent therein, the Committee arose; and, the Assistant President pro tempore, Senator Sanborn, having resumed the Chair, the Committee reported back to the Senate, favorably and without amendment, the following bill:
House Bill No. 4866, entitled
A bill to amend 1961 PA 112, entitled "An act to authorize and provide for the issuance, sale, and refunding of bonds, notes, or commercial paper of the state; to provide funds for making loans to school districts for payment of principal and interest on certain school bonds; to provide for use of moneys repaid to the state by school districts; and to make an appropriation," by amending section 3 (MCL 388.983), as amended by 1991 PA 64.
The bill was placed on the order of Third Reading of Bills.
Resolutions
Senators Van Woerkom, Hammerstrom, Garcia and Cropsey offered the following resolution:
Senate Resolution No. 133.
A resolution to encourage the judicious use of antibiotics.
Whereas, Antibiotics have saved lives for more than 50 years; and
Whereas, Antibiotics are an important weapon against infectious bacterial diseases that harm children, senior citizens, and people of all ages and walks of life; and
Whereas, Antibiotics overuse has led to antibiotic resistance that is destroying antibiotic effectiveness, and these bacteria represent a significant threat to the health of individuals whom they infect; and
Whereas, Infections with resistant bacteria increase the cost and complexity of treating infections that previously were easily treated; and
Whereas, In 2002, the first appearance of a Staphylococcus aureus bacterium that is resistant to Vancomycin often considered the best and, at times, the last defense against such infections occurred in Michigan; and
Whereas, The American Society of Microbiology (ASM) presented in the Findings and Conclusions of the Report of the ASM Task Force on Antibiotic Resistance that treating antibiotic resistance in people costs Americans more than $4 billion annually; and
Whereas, The federal Centers for Disease Control and Prevention (CDC), the American Academy of Pediatrics, and the Annals of Internal Medicine have published recommendations for health care professionals regarding best practices for the judicious use of antibiotics. The Michigan Department of Community Health and the Michigan Antibiotic Resistance Reduction (MARR) Coalition are engaged in an effort to track antibiotic resistance and encourage appropriate antibiotic use; now, therefore, be it
Resolved by the Senate, That we urge health care professionals in Michigan to follow the recommendations of the Centers for Disease Control and Prevention regarding the best use of antibiotics in their practices and formularies; urge the people of Michigan to talk with their health care practitioners about wise antibiotic use; and encourage the Michigan Department of Community Health and the MARR Coalition to increase their efforts to educate Michigan citizens and health care providers about the appropriate use of antibiotics; and be it further
Resolved, That copies of this resolution be transmitted to the Michigan Department of Community Health and the Michigan Antibiotic Resistance Reduction Coalition.
Pending the order that, under rule 3.204, the resolution be referred to the Committee on Government Operations,
Senator Hammerstrom moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on the adoption of the resolution,
Senator Hammerstrom moved that the resolution be referred to the Committee on Health Policy.
The motion prevailed.
Senator Patterson offered the following resolution:
Senate Resolution No. 134.
A resolution to memorialize the United States Congress to address the issue of traffic stoppages at railroad crossings.
Whereas, Local communities have long tried to address the issue of minimizing traffic stoppages caused by trains traveling within their municipal borders. Slow trains moving through a community bring traffic to a standstill. Even worse, trains may sometimes stop completely, bringing an entire city to a halt and backing up road traffic for blocks in all directions. Commuters, shoppers, and even emergency vehicles can be trapped on one side of a railroad track, unable to reach the other side for long periods of time; and
Whereas, The State Legislature provided local governments with the means to regulate the length of time that trains may permissibly halt vehicle traffic. The authority to levy fines on train companies that block traffic for too long held the promise of compelling railroad companies to work with local governments to minimize the disruption to lives and commerce that had become routine. Unfortunately, the courts have struck down this state law, arguing that only the federal government may regulate the speed and length of trains operating in interstate commerce; and
Whereas, With local and state options to resolve this local problem foreclosed, it is imperative that the United States Congress exercise its authority to compel a reasonable solution at the federal level; now, therefore, be it
Resolved by the Senate, That we memorialize the United States Congress to address the issue of traffic stoppages at railroad crossings; and be it further
Resolved, That copies of this resolution be transmitted to the President of the United States Senate, the Speaker of the United States House of Representatives, and the members of the Michigan congressional delegation.
Pending the order that, under rule 3.204, the resolution be referred to the Committee on Government Operations,
Senator Hammerstrom moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on the adoption of the resolution,
Senator Hammerstrom moved that the resolution be referred to the Committee on Transportation.
The motion prevailed.
Senator Patterson offered the following concurrent resolution:
Senate Concurrent Resolution No. 29.
A concurrent resolution to memorialize the United States Congress to address the issue of traffic stoppages at railroad crossings.
Whereas, Local communities have long tried to address the issue of minimizing traffic stoppages caused by trains traveling within their municipal borders. Slow trains moving through a community bring traffic to a standstill. Even worse, trains may sometimes stop completely, bringing an entire city to a halt and backing up road traffic for blocks in all directions. Commuters, shoppers, and even emergency vehicles can be trapped on one side of a railroad track, unable to reach the other side for long periods of time; and
Whereas, The State Legislature provided local governments with the means to regulate the length of time that trains may permissibly halt vehicle traffic. The authority to levy fines on train companies that block traffic for too long held the promise of compelling railroad companies to work with local governments to minimize the disruption to lives and commerce that had become routine. Unfortunately, the courts have struck down this state law, arguing that only the federal government may regulate the speed and length of trains operating in interstate commerce; and
Whereas, With local and state options to resolve this local problem foreclosed, it is imperative that the United States Congress exercise its authority to compel a reasonable solution at the federal level; now, therefore, be it
Resolved by the Senate (the House of Representatives concurring), That we memorialize the United States Congress to address the issue of traffic stoppages at railroad crossings; and be it further
Resolved, That copies of this resolution be transmitted to the President of the United States Senate, the Speaker of the United States House of Representatives, and the members of the Michigan congressional delegation.
Pending the order that, under rule 3.204, the concurrent resolution be referred to the Committee on Government Operations,
Senator Hammerstrom moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on the adoption of the concurrent resolution,
Senator Hammerstrom moved that the concurrent resolution be referred to the Committee on Transportation.
The motion prevailed.
Introduction and Referral of Bills
Senators Switalski, Jacobs, Schauer, Olshove, Prusi, Cherry, Barcia, Jelinek and Toy introduced
Senate Bill No. 619, entitled
A bill to amend 1976 PA 451, entitled "The revised school code," (MCL 380.1 to 380.1852) by adding section 1259.
The bill was read a first and second time by title and referred to the Committee on Education.
Senators Barcia and Kuipers introduced
Senate Bill No. 620, entitled
A bill to amend 1943 PA 184, entitled "Township zoning act," (MCL 125.271 to 125.310) by adding section 16i.
The bill was read a first and second time by title and referred to the Committee on Natural Resources and Environmental Affairs.
Senators McManus, Gilbert, George, Toy, Allen, Basham, Bishop and Jelinek introduced
Senate Bill No. 621, entitled
A bill to amend 1982 PA 295, entitled "Support and parenting time enforcement act," by amending section 3 (MCL 552.603), as amended by 2002 PA 572.
The bill was read a first and second time by title and referred to the Committee on Families and Human Services.
Senator Basham introduced
Senate Bill No. 622, entitled
A bill to amend 1956 PA 218, entitled "The insurance code of 1956," by amending section 3104 (MCL 500.3104), as amended by 2002 PA 662.
The bill was read a first and second time by title and referred to the Committee on Banking and Financial Institutions.
Senator Basham introduced
Senate Bill No. 623, entitled
A bill to amend 1987 PA 96, entitled "The mobile home commission act," by amending sections 7, 16, 17, and 45 (MCL 125.2307, 125.2316, 125.2317, and 125.2345).
The bill was read a first and second time by title and referred to the Committee on Local, Urban and State Affairs.
Senator Basham introduced
Senate Bill No. 624, entitled
A bill to amend 1972 PA 230, entitled "Stille-DeRossett-Hale single state construction code act," by amending section 20 (MCL 125.1520), as amended by 1980 PA 371.
The bill was read a first and second time by title and referred to the Committee on Local, Urban and State Affairs.
Senators Cassis, Allen, Kuipers, Brown, Garcia, Van Woerkom, Sanborn, Olshove, McManus and Gilbert introduced
Senate Bill No. 625, entitled
A bill to amend 1986 PA 102, entitled "An act to establish a grant program for certain part-time, independent students in this state; and to prescribe the powers and duties of certain state agencies and institutions of higher education," by amending section 3 (MCL 390.1283).
The bill was read a first and second time by title and referred to the Committee on Education.
Senators Van Woerkom, Allen, Brown, Garcia, Stamas, Cropsey, Hardiman, Goschka, Sanborn, McManus, Gilbert and Olshove introduced
Senate Bill No. 626, entitled
A bill to amend 1964 PA 208, entitled "An act to grant scholarships to students enrolled in postsecondary education institutions; and to provide for the administration of the scholarship program," by amending section 7 (MCL 390.977), as amended by 1980 PA 500.
The bill was read a first and second time by title and referred to the Committee on Education.
Senators Allen, Brown, Barcia, Garcia, Van Woerkom, Sanborn, Olshove, Gilbert and McManus introduced
Senate Bill No. 627, entitled
A bill to amend 1976 PA 228, entitled "The legislative merit award program act," by amending section 4 (MCL 390.1304), as amended by 1980 PA 386.
The bill was read a first and second time by title and referred to the Committee on Education.
Senators Clark-Coleman, Allen, Kuipers, Clarke, Brown, Bernero, Scott, Garcia, Schauer, Van Woerkom, Sanborn, Olshove, Bishop and McManus introduced
Senate Bill No. 628, entitled
A bill to amend 1986 PA 273, entitled "An act to establish a Michigan educational opportunity grant program for resident qualified students enrolled in eligible public postsecondary schools; and to prescribe the powers and duties of certain state agencies," by amending section 3 (MCL 390.1403).
The bill was read a first and second time by title and referred to the Committee on Education.
Senators Kuipers, Allen, Brown, Barcia, Garcia, Van Woerkom, Sanborn, Olshove, McManus and Gilbert introduced
Senate Bill No. 629, entitled
A bill to amend 1966 PA 313, entitled "An act to award tuition grants to resident students enrolled in independent nonprofit institutions of higher learning; and to make an appropriation therefor," by amending section 4 (MCL 390.994), as amended by 1980 PA 503.
The bill was read a first and second time by title and referred to the Committee on Education.
Senators Patterson, Birkholz, Gilbert, George, Stamas, Van Woerkom, Hammerstrom, McManus, Bishop, Kuipers, Goschka and Jelinek introduced
Senate Bill No. 630, entitled
A bill to amend 1927 PA 175, entitled The code of criminal procedure," by amending section 11e of chapter XVII (MCL 777.11e), as added by 2002 PA 31.
The bill was read a first and second time by title and referred to the Committee on Government Operations.
Senators Patterson, Birkholz, Toy, Gilbert, George, Stamas, Van Woerkom, Hammerstrom, Bishop, McManus, Kuipers, Goschka and Jelinek introduced
Senate Bill No. 631, entitled
A bill to amend 1976 PA 388, entitled "Michigan campaign finance act," by amending sections 15, 33, 34, and 35 (MCL 169.215, 169.233, 169.234, and 169.235), section 15 as amended by 2001 PA 250, sections 33 and 34 as amended by 1999 PA 238, and section 35 as amended by 2000 PA 75.
The bill was read a first and second time by title and referred to the Committee on Government Operations.
Senators Clark-Coleman, Jacobs, Scott, Schauer, Basham, Patterson, Clarke, Switalski, Bernero, Prusi, Cherry, Olshove, Leland, Thomas, Brater, Barcia and Emerson introduced
Senate Bill No. 632, entitled
A bill to amend 1956 PA 218, entitled "The insurance code of 1956," (MCL 500.100 to 500.8302) by adding section 2107a.
The bill was read a first and second time by title and referred to the Committee on Banking and Financial Institutions.
Senators Cropsey, Garcia, Patterson, Schauer, Bernero, Brater, Cassis, McManus, Jacobs, Goschka and Bishop introduced
Senate Bill No. 633, entitled
A bill to amend 1961 PA 236, entitled "Revised judicature act of 1961," by amending section 2912a (MCL 600.2912a), as amended by 1993 PA 78.
The bill was read a first and second time by title and referred to the Committee on Judiciary.
Senators Olshove, Leland, Scott, Patterson, Jacobs, Brater, Clark-Coleman, Bernero, Cherry, Schauer, Barcia, Basham, Gilbert and Clarke introduced
Senate Bill No. 634, entitled
A bill to amend 1956 PA 218, entitled "The insurance code of 1956," by amending section 3101a (MCL 500.3101a), as amended by 1996 PA 456.
The bill was read a first and second time by title and referred to the Committee on Banking and Financial Institutions.
Senator Hammerstrom introduced
Senate Bill No. 635, entitled
A bill to amend 1978 PA 368, entitled "Public health code," by amending section 21311 (MCL 333.21311), as amended by 1984 PA 311.
The bill was read a first and second time by title and referred to the Committee on Health Policy.
Senators Olshove, Leland, Scott, Patterson, Jacobs, Brater, Clark-Coleman, Bernero, Cherry, Schauer, Barcia, Basham, Gilbert and Clarke introduced
Senate Bill No. 636, entitled
A bill to amend 1956 PA 218, entitled "The insurance code of 1956," (MCL 500.100 to 500.8302) by adding section 2110b.
The bill was read a first and second time by title and referred to the Committee on Banking and Financial Institutions.
Senators George, Kuipers, Patterson, Garcia, Birkholz, Cropsey, McManus, Jelinek and Schauer introduced
Senate Bill No. 637, entitled
A bill to amend 1998 PA 58, entitled "Michigan liquor control code of 1998," by amending section 703 (MCL 436.1703), as amended by 1999 PA 53.
The bill was read a first and second time by title and referred to the Committee on Judiciary.
Senators Olshove, Leland, Scott, Patterson, Jacobs, Brater, Clark-Coleman, Bernero, Cherry, Schauer, Barcia, Basham, Gilbert and Clarke introduced
Senate Bill No. 638, entitled
A bill to amend 1949 PA 300, entitled "Michigan vehicle code," by amending section 328 (MCL 257.328), as amended by 1995 PA 287, and by adding section 520a.
The bill was read a first and second time by title and referred to the Committee on Banking and Financial Institutions.
Senators Switalski, Brater and Cherry introduced
Senate Bill No. 639, entitled
A bill to amend 1939 PA 288, entitled "Probate code of 1939," by amending sections 23f and 24 of chapter X (MCL 710.23f and 710.24), section 23f as amended by 1994 PA 373 and section 24 as amended by 1996 PA 409.
The bill was read a first and second time by title and referred to the Committee on Families and Human Services.
House Bill No. 4945, entitled
A bill to amend 1936 (Ex Sess) PA 1, entitled "Michigan employment security act," by amending sections 3, 17, 20, and 64 (MCL 421.3, 421.17, 421.20, and 421.64), sections 3 and 20 as amended by 2002 PA 192, section 17 as amended by 1996 PA 535, and section 64 as amended by 1993 PA 275.
The House of Representatives has passed the bill and ordered that it be given immediate effect.
The bill was read a first and second time by title and referred to the Committee on Commerce and Labor.
Recess
Senator Hammerstrom moved that the Senate recess subject to the call of the Chair.
The motion prevailed, the time being 12:02 p.m.
12:18 p.m.
Pursuant to rule 1.101, in the absence of the Presiding Officers, the Senate was called to order by the Secretary of the Senate.
Recess
Senator Hammerstrom moved that the Senate recess until 2:30 p.m.
The motion prevailed, the time being 12:19 p.m.
The Senate reconvened at the expiration of the recess and was called to order by the Assistant President pro tempore, Senator Sanborn.
Recess
Senator Hammerstrom moved that the Senate recess until 4:00 p.m.
The motion prevailed, the time being 2:31 p.m.
The Senate reconvened at the expiration of the recess and was called to order by the Assistant President pro tempore, Senator Sanborn.
By unanimous consent the Senate returned to the order of
Messages from the House
Senate Bill No. 266, entitled
A bill to make appropriations for the department of military and veterans affairs for the fiscal year ending September 30, 2004; to provide for the expenditure of the appropriations; to provide for certain powers and duties of the department of military and veterans affairs, other state agencies, and local units of government related to the appropriations; and to provide for the preparation of certain reports related to the appropriations.
(For Conference Report, see Senate Journal No. 68, p. 1273.)
The House of Representatives has adopted the report of the Committee of Conference.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
Senate Bill No. 277, entitled
A bill to make appropriations for the department of state police and certain other state purposes for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to provide for certain reports and the consideration of those reports; to provide for the disposition of other income received by the various state agencies; to provide for the testing of certain persons; to provide for certain emergency powers; and to provide for the powers and duties of certain committees, certain state agencies, and certain employees.
(For Conference Report, see Senate Journal No. 68, p. 1263.)
The House of Representatives has adopted the report of the Committee of Conference.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
Senate Bill No. 281, entitled
A bill to make appropriations for the judicial branch for the fiscal year ending September 30, 2004; to provide for the expenditure of these appropriations; to place certain restrictions on the expenditure of these appropriations; to prescribe the powers and duties of certain officials and employees; to require certain reports; and to provide for the disposition of fees and other income received by the judicial branch.
(For Conference Report, see Senate Journal No. 63, p. 1017.)
The House of Representatives has adopted the report of the Committee of Conference.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
Senate Bill No. 286, entitled
A bill to make appropriations for the department of consumer and industry services and certain other state purposes for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to provide for the imposition of certain fees; to provide for the disposition of fees and other income received by the state agencies; to provide for reports to certain persons; and to prescribe powers and duties of certain state departments and certain state and local agencies and officers.
(For Conference Report, see Senate Journal No. 63, p. 1033.)
The House of Representatives has adopted the report of the Committee of Conference.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
Senate Bill No. 288, entitled
A bill to make appropriations for the department of agriculture for the fiscal year ending September 30, 2004; to provide for the expenditure of the appropriations; to create funds; to provide for the imposition of fees; to require reports, audits, and plans; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by certain state agencies.
(For Conference Report, see Senate Journal No. 63, p. 1045.)
The House of Representatives has adopted the report of the Committee of Conference.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
Senate Bill No. 509, entitled
A bill to amend 1949 PA 300, entitled "Michigan vehicle code," (MCL 257.1 to 257.923) by adding section 732a.
The House of Representatives has concurred in the Senate amendment to the House Substitute (H-6).
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
By unanimous consent the Senate returned to the order of
Motions and Communications
Senator Hammerstrom moved that the rules be suspended and that the following bills, now on Committee Reports, be placed on the General Orders calendar for consideration today:
House Bill No. 4627
House Bill No. 4630
House Bill No. 4631
The motion prevailed, a majority of the members serving voting therefor.
By unanimous consent the Senate returned to the order of
General Orders
Senator Hammerstrom moved that the Senate resolve itself into the Committee of the Whole for consideration of the General Orders calendar.
The motion prevailed, and the Assistant President pro tempore, Senator Sanborn, designated Senator Switalski as Chairperson.
After some time spent therein, the Committee arose; and, the Assistant President pro tempore, Senator Sanborn, having resumed the Chair, the Committee reported back to the Senate, favorably and without amendment, the following bills:
House Bill No. 4630, entitled
A bill to amend 1952 PA 214, entitled "An act authorizing the Mackinac bridge authority to acquire a bridge connecting the upper and lower peninsulas of Michigan, including causeways, tunnels, roads and all useful related equipment and facilities, including park, parking, recreation, lighting and terminal facilities; extending the corporate existence of the authority; authorizing such authority to enjoy and carry out all powers incident to its corporate objects; authorizing the appropriation and use of state funds for the preliminary purposes of the authority; providing for the payment of the cost of such bridge and in that connection authorizing the authority to issue revenue bonds payable solely from the revenues of the bridge; granting the right of condemnation to the authority; granting the use of state land and property to the authority; making provisions for the payment and security of such bonds and granting certain rights and remedies to the holders thereof; authorizing banks and trust companies to perform certain acts in connection therewith; authorizing the imposition of tolls and charges; authorizing the authority to secure the consent of the United States government to the construction of the bridge and to secure approval of plans, specifications and location of same; authorizing employment of engineers irrespective of whether such engineers have been previously employed to make preliminary inspections or reports with respect to the bridge; authorizing the state highway department to operate and maintain such bridge or to contribute thereto and enter into leases and agreements in connection therewith; exempting such bonds and the property of the authority from taxation; prohibiting competing traffic facilities; authorizing the operation of ferries by the authority; providing for the construction and use of certain buildings; and making an appropriation," by amending section 12 (MCL 254.322).
House Bill No. 4631, entitled
A bill to amend 1951 PA 51, entitled "An act to provide for the classification of all public roads, streets, and highways in this state, and for the revision of that classification and for additions to and deletions from each classification; to set up and establish the Michigan transportation fund; to provide for the deposits in the Michigan transportation fund of specific taxes on motor vehicles and motor vehicle fuels; to provide for the allocation of funds from the Michigan transportation fund and the use and administration of the fund for transportation purposes; to set up and establish the truck safety fund; to provide for the allocation of funds from the truck safety fund and administration of the fund for truck safety purposes; to set up and establish the Michigan truck safety commission; to establish certain standards for road contracts for certain businesses; to provide for the continuing review of transportation needs within the state; to authorize the state transportation commission, counties, cities, and villages to borrow money, issue bonds, and make pledges of funds for transportation purposes; to authorize counties to advance funds for the payment of deficiencies necessary for the payment of bonds issued under this act; to provide for the limitations, payment, retirement, and security of the bonds and pledges; to provide for appropriations and tax levies by counties and townships for county roads; to authorize contributions by townships for county roads; to provide for the establishment and administration of the state trunk line fund, critical bridge fund, comprehensive transportation fund, and certain other funds; to provide for the deposits in the state trunk line fund, critical bridge fund, comprehensive transportation fund, and certain other funds of money raised by specific taxes and fees; to provide for definitions of public transportation functions and criteria; to define the purposes for which Michigan transportation funds may be allocated; to provide for Michigan transportation fund grants; to provide for review and approval of transportation programs; to provide for submission of annual legislative requests and reports; to provide for the establishment and functions of certain advisory entities; to provide for conditions for grants; to provide for the issuance of bonds and notes for transportation purposes; to provide for the powers and duties of certain state and local agencies and officials; to provide for the making of loans for transportation purposes by the state transportation department and for the receipt and repayment by local units and agencies of those loans from certain specified sources; and to repeal acts and parts of acts," by amending the title and section 11 (MCL 247.661), the title as amended by 1997 PA 79 and section 11 as amended by 2002 PA 639.
The bills were placed on the order of Third Reading of Bills.
The Committee of the Whole reported back to the Senate, favorably and with amendment, the following bill:
House Bill No. 4627, entitled
A bill to amend 1952 PA 214, entitled "An act authorizing the Mackinac bridge authority to acquire a bridge connecting the upper and lower peninsulas of Michigan, including causeways, tunnels, roads and all useful related equipment and facilities, including park, parking, recreation, lighting and terminal facilities; extending the corporate existence of the authority; authorizing such authority to enjoy and carry out all powers incident to its corporate objects; authorizing the appropriation and use of state funds for the preliminary purposes of the authority; providing for the payment of the cost of such bridge and in that connection authorizing the authority to issue revenue bonds payable solely from the revenues of the bridge; granting the right of condemnation to the authority; granting the use of state land and property to the authority; making provisions for the payment and security of such bonds and granting certain rights and remedies to the holders thereof; authorizing banks and trust companies to perform certain acts in connection therewith; authorizing the imposition of tolls and charges; authorizing the authority to secure the consent of the United States government to the construction of the bridge and to secure approval of plans, specifications and location of same; authorizing employment of engineers irrespective of whether such engineers have been previously employed to make preliminary inspections or reports with respect to the bridge; authorizing the state highway department to operate and maintain such bridge or to contribute thereto and enter into leases and agreements in connection therewith; exempting such bonds and the property of the authority from taxation; prohibiting competing traffic facilities; authorizing the operation of ferries by the authority; providing for the construction and use of certain buildings; and making an appropriation," by amending section 7 (MCL 254.317).
The following is the amendment recommended by the Committee of the Whole:
1. Amend page 5, line 16, after "to" by inserting "subsection (2) and".
The Senate agreed to the amendment recommended by the Committee of the Whole, and the bill as amended was placed on the order of Third Reading of Bills.
Senator Schauer moved that Senator Bernero be temporarily excused from the balance of today's session.
The motion prevailed.
Senator Schauer moved that Senator Scott be excused from the balance of today's session.
The motion prevailed.
Senator Bernero entered the Senate Chamber.
By unanimous consent the Senate returned to the order of
Conference Reports
House Bill No. 4390, entitled
A bill to make appropriations for the department of corrections and certain state purposes related to corrections for the fiscal year ending September 30, 2004; to provide for the expenditure of the appropriations; to provide for reports; to provide for the creation of certain advisory committees and boards; to prescribe certain powers and duties of the department of corrections, certain other state officers and agencies, and certain advisory committees and boards; to provide for the collection of certain funds; and to provide for the disposition of fees and other income received by certain state agencies.
The House of Representatives has adopted the report of the Committee of Conference.
The Conference Report was read as follows:
FIRST CONFERENCE REPORT
The Committee of Conference on the matters of difference between the two Houses concerning
House Bill No. 4390, entitled
A bill to make appropriations for the department of corrections and certain state purposes related to corrections for the fiscal year ending September 30, 2004; to provide for the expenditure of the appropriations; to provide for reports; to provide for the creation of certain advisory committees and boards; to prescribe certain powers and duties of the department of corrections, certain other state officers and agencies, and certain advisory committees and boards; to provide for the collection of certain funds; and to provide for the disposition of fees and other income received by certain state agencies.
Recommends:
First: That the House and Senate agree to the Substitute of the Senate as passed by the Senate, amended to read as follows:
A bill to make appropriations for the department of corrections and certain state purposes related to corrections for the fiscal year ending September 30, 2004; to provide for the expenditure of the appropriations; to provide for reports; to provide for the creation of certain advisory committees and boards; to prescribe certain powers and duties of the department of corrections, certain other state officers and agencies, and certain advisory committees and boards; to provide for the collection of certain funds; and to provide for the disposition of fees and other income received by certain state agencies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for the department of corrections for the fiscal year ending September 30, 2004, from the funds indicated in this part. The following is a summary of the appropriations in this part:
DEPARTMENT OF CORRECTIONS
APPROPRIATION SUMMARY:
Average population 50,782
Full-time equated unclassified positions 16.0
Full-time equated classified positions 18,296.7
GROSS APPROPRIATION $ 1,724,507,200
Appropriated from:
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers 3,253,600
ADJUSTED GROSS APPROPRIATION $ 1,721,253,600
Federal revenues:
Total federal revenues 27,798,400
Special revenue funds:
Total local revenues 391,100
Total private revenues 0
Total other state restricted revenues | $ | 60,858,800 |
State general fund/general purpose | $ | 1,632,205,300 |
Sec. 102. EXECUTIVE
Full-time equated unclassified positions 16.0
Full-time equated classified positions 293.2
Unclassified positions--16.0 FTE positions $ 1,317,200
Executive direction--76.5 FTE positions 7,564,400
Human resources--216.7 FTE positions 15,752,000
Training 3,000,000
Worker's compensation 24,126,000
GROSS APPROPRIATION $ 51,759,600
Appropriated from:
Interdepartmental grant revenues:
IDG-MDSP, Michigan justice training fund 638,600
State general fund/general purpose $ 51,121,000
Sec. 103. ADMINISTRATION AND PROGRAMS
Average population 480
Full-time equated classified positions 302.9
Planning, research, and records--22.0 FTE positions $ 1,525,000
Administrative services--59.9 FTE positions 4,657,000
Substance abuse testing and treatment 20,070,800
Inmate legal services 314,900
Prison industries operations--220.0 FTE positions 16,312,000
Rent 2,095,200
Equipment and special maintenance 2,054,000
Compensatory buyout and union leave bank 275,000
Michigan youth correctional facility - management services 13,568,300
Michigan youth correctional facility - administration--1.0 FTE position 145,600
Average population 480
Michigan youth correctional facility - lease payments 5,646,100
Prosecutorial and detainer expenses 4,051,000
GROSS APPROPRIATION $ 70,714,900
Appropriated from:
Federal revenues:
DOJ - office of justice programs, RSAT 2,349,300
DOJ - office of justice programs, VOI/TIS 18,089,400
Special revenue funds:
Correctional industries revolving fund 16,312,000
State general fund/general purpose $ 33,964,200
Sec. 104. FIELD OPERATIONS ADMINISTRATION
Average population 581
Full-time equated classified positions 2,217.9
Field operations--1,842.2 FTE positions $ 126,026,400
Parole board operations--29.0 FTE positions 2,178,800
Loans to parolees 294,400
Parole/probation services 3,867,300
Corrections centers--70.0 FTE positions $ 8,860,300
Average population 581
Electronic monitoring center--49.4 FTE positions 6,002,100
Technical rule violator program--96.3 FTE positions 9,147,600
Special alternative incarceration program--131.0 FTE positions 10,320,900
GROSS APPROPRIATION $ 166,697,800
Appropriated from:
Special revenue funds:
Local - community tether program reimbursement 391,100
Parole and probation oversight fees 7,674,900
Tether program participant contributions 6,431,500
Parole and probation oversight fees set-aside 3,867,300
Corrections centers resident contributions revenue 1,407,800
Technical rule violator program public works user fees 163,500
Special alternative incarceration program public works user fees 119,000
State general fund/general purpose $ 146,642,700
Sec. 105. COMMUNITY CORRECTIONS
Full-time equated classified positions 16.0
Community corrections administration--16.0 FTE positions $ 1,394,300
Probation residential centers 15,034,500
Community corrections comprehensive plans and services 13,066,900
Public education and training 50,000
Regional jail program 100
Local facility housing program 2,451,000
Felony drunk driver jail reduction and community treatment program 3,000,000
County jail reimbursement program 13,249,000
GROSS APPROPRIATION $ 48,245,800
Appropriated from:
Special revenue funds:
Telephone fees and commissions 13,192,100
Civil infraction fees 7,000,000
State general fund/general purpose $ 28,053,700
Sec. 106. CONSENT DECREES
Average population 400
Full-time equated classified positions 526.0
Hadix consent decree--138.0 FTE positions $ 10,784,000
DOJ consent decree--161.5 FTE positions 11,329,900
DOJ psychiatric plan - MDCH mental health services 68,291,200
DOJ psychiatric plan - MDOC staff and services--226.5 FTE positions 15,483,400
GROSS APPROPRIATION $ 105,888,500
Appropriated from:
State general fund/general purpose $ 105,888,500
Sec. 107. HEALTH CARE
Full-time equated classified positions 955.9
Health care administration--18.0 FTE positions $ 2,153,800
Hospital and specialty care services 60,800,200
Vaccination program 991,200
Northern region clinical complexes--234.9 FTE positions 26,371,300
Southeastern region clinical complexes--398.6 FTE positions 50,379,200
Southwestern region clinical complexes--304.4 FTE positions 30,208,200
GROSS APPROPRIATION $ 170,903,900
Appropriated from:
Special revenue funds:
Prisoner health care copayments 301,200
State general fund/general purpose $ 170,602,700
Sec. 108. CORRECTIONAL FACILITIES - ADMINISTRATION
Average population 485
Full-time equated classified positions 597.5
Correctional facilities administration--45.0 FTE positions $ 4,173,000
Housing inmates in federal institutions 554,100
Education services and federal education grants--10.0 FTE positions 5,615,700
Federal school lunch program 712,800
Leased beds and alternatives to leased beds 100
Inmate housing fund--118.0 FTE positions 2,461,900
Average population 485
Academic/vocational programs--424.5 FTE positions 33,679,800
GROSS APPROPRIATION $ 47,197,400
Appropriated from:
Federal revenues:
DOJ BOP - federal prisoner reimbursement 372,600
DED - OESE title 1 512,600
DED - OVAE adult education 1,859,200
DED - adult literacy grants 302,800
DED - OSERS 99,400
DED - vocational education equipment 272,700
DED - youthful offender/Specter grant 1,266,700
DOJ OJP - serious and violent offender reintegration initiative 1,000,000
DAG - FNS national school lunch 712,800
SSA - SSI incentive payment 100,000
State general fund/general purpose $ 40,698,600
Sec. 109. NORTHERN REGION CORRECTIONAL FACILITIES
Average population 14,253
Full-time equated classified positions 4,263.2
Alger maximum correctional facility - Munising--362.8 FTE positions $ 27,917,600
Average population 849
Baraga maximum correctional facility - Baraga--425.4 FTE positions 31,433,400
Average population 1,084
Chippewa correctional facility - Kincheloe--513.7 FTE positions 39,148,700
Average population 2,182
Kinross correctional facility - Kincheloe--560.7 FTE positions 45,167,700
Average population 2,423
Marquette branch prison - Marquette--403.4 FTE positions 32,565,800
Average population 1,129
Newberry correctional facility - Newberry--345.4 FTE positions 25,950,500
Average population 1,144
Oaks correctional facility - Eastlake--378.6 FTE positions 29,565,400
Average population 900
Ojibway correctional facility - Marenisco--287.4 FTE positions 21,797,900
Average population 1,202
Pugsley correctional facility - Kingsley--220.4 FTE positions 16,489,700
Average population 954
Saginaw correctional facility - Freeland--360.8 FTE positions 28,525,800
Average population 1,480
Standish maximum correctional facility - Standish--404.6 FTE positions 31,292,400
Average population 906
GROSS APPROPRIATION $ 329,854,900
Appropriated from:
Special revenue funds:
Camps public works user fees 396,600
Resident stores 916,200
State general fund/general purpose $ 328,542,100
Sec. 110. SOUTHEASTERN REGION CORRECTIONAL FACILITIES
Average population 16,853
Full-time equated classified positions 4,782.6
Cooper street correctional facility - Jackson--268.2 FTE positions $ 22,143,700
Average population 1,360
G. Robert Cotton correctional facility - Jackson--431.7 FTE positions 33,393,300
Average population 1,734
Charles E. Egeler correctional facility - Jackson--414.2 FTE positions 32,508,500
Average population 1,106
Gus Harrison correctional facility - Adrian--500.0 FTE positions 38,991,100
Average population 2,200
Huron Valley correctional facility - Ypsilanti--277.6 FTE positions 21,070,200
Average population 510
Macomb correctional facility - New Haven--361.9 FTE positions 27,585,500
Average population 1,468
Mound correctional facility - Detroit--340.2 FTE positions 25,128,300
Average population 1,051
Parnall correctional facility - Jackson--265.0 FTE positions 21,744,600
Average population 1,378
Ryan correctional facility - Detroit--333.1 FTE positions 25,443,100
Average population 1,059
Robert Scott correctional facility - Plymouth--424.9 FTE positions 32,105,500
Average population 1,261
Southern Michigan correctional facility - Jackson--420.0 FTE positions 29,707,600
Average population 1,481
Thumb correctional facility - Lapeer--375.3 FTE positions 29,584,800
Average population 1,467
Western Wayne correctional facility - Plymouth--272.5 FTE positions 21,772,400
Average population 778
Jackson area support and services--98.0 FTE positions 16,445,100
GROSS APPROPRIATION $ 377,623,700
Appropriated from:
Intradepartmental transfer revenues:
IDT, production kitchen user fees 2,615,000
Federal revenues:
DOJ - state criminal alien assistance program 860,900
Special revenue funds:
Camps public works user fees 274,600
Resident stores 1,291,600
State general fund/general purpose $ 372,581,600
Sec. 111. SOUTHWESTERN REGION CORRECTIONAL FACILITIES
Average population 17,730
Full-time equated classified positions 4,341.5
Bellamy Creek correctional facility - Ionia--450.8 FTE positions $ 34,085,000
Average population 1,830
Earnest C. Brooks correctional facility - Muskegon--481.7 FTE positions 38,461,000
Average population 2,200
Carson City correctional facility - Carson City--530.8 FTE positions 41,448,300
Average population 2,200
Florence Crane correctional facility - Coldwater--392.0 FTE positions 31,368,100
Average population 1,560
Deerfield correctional facility - Ionia--198.4 FTE positions 16,285,700
Average population 960
Richard A. Handlon correctional facility - Ionia--257.0 FTE positions 21,109,900
Average population 1,320
Ionia maximum correctional facility - Ionia--359.6 FTE positions 26,733,700
Average population 636
Lakeland correctional facility - Coldwater--283.5 FTE positions $ 22,965,000
Average population 1,256
Muskegon correctional facility - Muskegon--265.4 FTE positions 22,442,000
Average population 1,310
Pine River correctional facility - St. Louis--215.6 FTE positions 17,032,100
Average population 960
Riverside correctional facility - Ionia--308.5 FTE positions 26,478,200
Average population 1,244
St. Louis correctional facility - St. Louis--598.2 FTE positions 44,822,900
Average population 2,254
GROSS APPROPRIATION $ 343,231,900
Appropriated from:
Special revenue funds:
Camps public works user fees 139,000
Resident stores 1,362,500
State general fund/general purpose $ 341,730,400
Sec. 112. INFORMATION TECHNOLOGY
Information technology services and projects | $ | 12,388,800 |
GROSS APPROPRIATION | $ | 12,388,800 |
Appropriated from:
Special revenue funds:
Correctional industries revolving fund 9,000
State general fund/general purpose $ 12,379,800
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2003-2004 is $1,693,064,100.00 and state spending from state resources to be paid to local units of government for fiscal year 2003-2004 is $81,068,000.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:
DEPARTMENT OF CORRECTIONS
Field operations - assumption of county probation staff $ 37,313,900
Prosecutorial and detainer expenses 4,051,000
Public service work projects 9,100,600
Community corrections comprehensive plans and services 13,066,900
Community corrections probation residential centers 15,034,500
Local facility housing program 2,451,000
Community corrections public education and training 50,000
Regional jail program 100
TOTAL $ 81,068,000
Sec. 202. The appropriations authorized under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 203. As used in this act:
(a) "DAG" means the United States department of agriculture.
(b) "DAG - FNS" means the DAG food and nutrition service.
(c) "DED" means the United States department of education.
(d) "DED - OESE" means the DED office of elementary and secondary education.
(e) "DED - OSERS" means the DED office of special education and rehabilitative services.
(f) "DED - OVAE" means the DED office of vocational and adult education.
(g) "Department" or "MDOC" means the Michigan department of corrections.
(h) "DOJ" means the United States department of justice.
(i) "DOJ BOP" means the DOJ bureau of prisons.
(j) "DOJ OJP" means the DOJ office of justice programs.
(k) "FTE" means full-time equated.
(l) "IDG" means interdepartmental grant.
(m) "IDT" means intradepartmental transfer.
(n) "MDCH" means the Michigan department of community health.
(o) "MDSP" means the Michigan department of state police.
(p) "OCC" means office of community corrections.
(q) "RSAT" means residential substance abuse treatment.
(r) "SSA" means the United States social security administration.
(s) "SSA - SSI" means SSA supplemental security income.
(t) "VOI/TIS" means violent offender incarceration/truth in sentencing.
Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.
Sec. 205. (1) A hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department.
(2) The state budget director shall grant exceptions to this hiring freeze when the state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services, cause a loss of revenue to the state, result in the inability of the state to receive federal funds, or would necessitate additional expenditures that exceed any savings from maintaining a vacancy. The state budget director shall report quarterly to the chairpersons of the senate and house standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous quarter and the reasons to justify the exception.
Sec. 207. At least 120 days before beginning any effort to privatize, the department shall submit a complete project plan to the appropriate senate and house of representatives appropriations subcommittees and the senate and house fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the appropriate senate and house of representatives appropriations subcommittees and the senate and house fiscal agencies within 30 months.
Sec. 208. Unless otherwise specified, the department shall use the Internet to fulfill the reporting requirements of this act. This requirement may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on an Internet or Intranet site.
Sec. 209. Funds appropriated in part 1 should not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods and services, or both, are available. Preference should be given to goods and services, or both, manufactured or provided by Michigan businesses if they are competitively priced and of comparable value.
Sec. 210. The director of each department receiving appropriations in part 1 shall take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies, or both. Each director shall strongly encourage firms with which the department contracts to subcontract with certified businesses in depressed and deprived communities for services, supplies, or both.
Sec. 211. (1) Pursuant to the provisions of civil service rules and regulations and applicable collective bargaining agreements, individuals seeking employment with the department shall submit to a controlled substance test. The test shall be administered by the department.
(2) Individuals seeking employment with the department who refuse to take a controlled substance test or who test positive for the illicit use of a controlled substance on such a test shall be denied employment.
Sec. 212. The department may charge fees and collect revenues in excess of appropriations in part 1 not to exceed the cost of offender services and programming, employee meals, academic/vocational services, custody escorts, compassionate visits, union steward activities, public work programs, and emergency services provided to units of government. The revenues and fees collected shall be appropriated for all expenses associated with these services and activities.
Sec. 213. Of the state general fund/general purpose revenue appropriated in part 1, $579,242,500.00 represents a state spending increase over the amount provided to the department for the fiscal year ending September 30, 1994, and may be used to meet state match requirements of programs contained in the violent crime control and law enforcement act of 1994, Public Law 103-322, 108 Stat. 1796, or successor grant programs, so that any additional federal funds received shall supplement funding provided to the department in part 1.
Sec. 214. The department shall provide quarterly reports on the Michigan youth correctional facility to the members of the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director. The reports shall provide information relevant to an assessment of the safety and security of the institution, including, but not limited to, information on the number of critical incidents by type occurring at the facility, the number of custody staff at the facility, staff turnover rates, staff vacancy rates, overtime reports, prisoner grievances, and number and severity of assaults occurring at the facility. The reports also shall provide information on programming available at the facility and on program enrollments, including, but not limited to, academic/vocational programs, counseling programs, mental health treatment programs, substance abuse treatment programs, and cognitive restructuring programs.
Sec. 215. The department shall require the contract monitor for the Michigan youth correctional facility to provide a manual to each prisoner at intake that details programs and services available at the facility, the processes by which prisoner complaints and grievances can be pursued, and the identity of staff available at the facility to answer questions regarding the information in the manual. The contract monitor shall obtain written verification of receipt from each prisoner receiving the manual. The contract monitor also shall answer prisoner questions regarding facility programs, services, and grievance procedures.
Sec. 216. As a condition of expending funds appropriated in part 1 for the Michigan youth correctional facility, the department shall use electronic mail to notify the members of the senate and house appropriations subcommittees on corrections and the senate and house fiscal agencies that an invitation to bid, request for proposals, or similar document pertaining to management services for the Michigan youth correctional facility has been issued and shall provide a link to an Internet or Intranet site from which the document can be viewed and downloaded. The electronic mail shall be sent on the same day the document is made available to the public.
Sec. 217. The bureau of health care services shall develop information on Hepatitis C prevention and the risks associated with exposure to Hepatitis C, and the health care providers shall disseminate this information verbally and in writing to each prisoner at the health screening and full health appraisal conducted at admissions, at the annual health care screening 1 week before or after a prisoner's birthday, and prior to release to the community by parole, transfer to community residential placement, or discharge on the maximum.
Sec. 218. (1) As a condition of expenditure of appropriations for health care made under part 1, the department shall conduct a seroprevalence study to determine the incidence of infection with Hepatitis C among the intake population and reliability of self-reported information pertinent to high-risk behaviors and the incidence of Hepatitis C infection. The study shall consist of testing each incoming prisoner for infection with the Hepatitis C virus and the collection of pertinent self-reported information. The study shall continue for as long as necessary to collect statistically significant data that will enable the department to assess the incidence of Hepatitis C in the prison intake.
(2) The department shall report the results of the study to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director as soon as practicable after completion, but no later than April 1, 2004.
Sec. 219. From the funds appropriated in part 1, the department shall offer an alanine aminotransferase (ALT) test to each prisoner who has received positive parole action. An explanation of results of the test shall be provided confidentially to the prisoner prior to release on parole, and if appropriate based on the test results, the prisoner shall also be provided a recommendation to seek follow-up medical attention in the community. The test shall be voluntary; if the prisoner refuses to be tested, that decision shall not affect parole release, conditions of parole, or parole supervision.
Sec. 220. By April 1, 2004, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on academic/vocational programs for the most recently completed appropriation year. The report shall provide information relevant to an assessment of the department's academic and vocational programs, including, but not limited to, the following:
(a) The number of prisoners enrolled in each program, the number of prisoners completing each program, and the number of prisoners on waiting lists for each program.
(b) The steps the department has undertaken to improve programs and reduce waiting lists.
(c) An explanation of the value and purpose of each program, e.g., to improve employability, reduce recidivism, reduce prisoner idleness, or some combination of these and other factors.
(d) An identification of program outcomes for each academic and vocational program.
(e) An explanation of the department's plans for academic and vocational programs.
Sec. 221. By February 15, 2004, the department shall provide the members of the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director with a report detailing nongeneral fund/general purpose sources of revenue, including but not limited to, federal revenues, state restricted revenues, local and private revenues, offender reimbursements and other payments, revolving funds, and 1-time sources of revenue, whether or not such revenues were appropriated. The report shall include statements detailing for each account the total amount of revenue received during fiscal year 2002-2003, the amount by which the revenue exceeded any applicable appropriated fund source, the amount spent during fiscal year 2002-2003, the account balance at the close of fiscal year 2002-2003, and the projected revenues and expenditures for fiscal year 2003-2004.
Sec. 222. From the funds appropriated in part 1 for information technology, the department shall pay user fees to the department of information technology for technology related services and projects. Such user fees shall be subject to provisions of an interagency agreement between the departments and agencies and the department of information technology.
Sec. 223. Amounts appropriated in part 1 for information technology may be designated as work projects and carried forward to support department of corrections technology projects under the direction of the department of information technology. Funds designated in this manner are not available for expenditure until approved as work projects under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a.
Sec. 224. By October 15, 2003, the department shall report to the senate and house appropriations subcommittees on corrections and the senate and house fiscal agencies a detailed plan of how the department will implement reductions in order to compensate for unfunded economic increases in salaries, insurance, and retirement rates. The report shall include, but not be limited to, the department's plan for layoffs, program changes and eliminations, prisoner release, and facility closures.
SUBSTANCE ABUSE TESTING AND TREATMENT
Sec. 301. (1) The department shall screen and assess each prisoner for alcohol and other drug involvement to determine the need for further treatment. The assessment process shall be designed to identify the severity of alcohol and other drug addiction and determine the treatment plan, if appropriate.
(2) Subject to the availability of funding resources, the department shall provide substance abuse treatment to prisoners with priority given to those prisoners who are most in need of treatment and who can best benefit from program intervention based on the screening and assessment provided under subsection (1).
Sec. 302. (1) In expending residential substance abuse treatment services funds appropriated by this act, the department shall ensure to the maximum extent possible that residential substance abuse treatment services are available statewide.
(2) It is the intent of the legislature that the funds appropriated in part 1 for substance abuse testing and treatment be fully expended for that purpose.
(3) By April 1, 2004, the department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director on the allocation, distribution, and expenditure of all funds appropriated by the substance abuse testing and treatment line item during fiscal year 2002-2003 and projected for fiscal year 2003-2004. The report shall include, but not be limited to, an explanation of an anticipated year-end balance, the number of participants in substance abuse programs, and the number of offenders on waiting lists for residential substance abuse programs. Information required by this subsection shall, where possible, be separated by MDOC administrative region and by offender type, including, but not limited to, a distinction between prisoners, parolees, and probationers.
EXECUTIVE
Sec. 401. The department shall submit 3-year and 5-year prison population projection updates by February 1, 2004 to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director.
Sec. 402. The department shall prepare by April 1, 2004 individual reports for the technical rule violator program, the community residential program, the electronic tether program, and the special alternative to incarceration program. The reports shall be submitted to the house and senate appropriations subcommittees on corrections, the house and senate fiscal agencies, and the state budget director. The reports shall include the following:
(a) Monthly new participants.
(b) Monthly participant unsuccessful terminations, including cause.
(c) Number of successful terminations.
(d) End month population by facility/program.
(e) Average length of placement.
(f) Return to prison statistics.
(g) Description of program location(s), capacity, and staffing.
(h) Sentencing guideline scores and actual sentence statistics for participants, if applicable.
(i) Comparison with prior year statistics.
(j) Analysis of the impact on prison admissions and jail utilization and the cost effectiveness of the program.
Sec. 403. From the funds appropriated in part 1, the department shall continue to maintain county jail services staff sufficient to enable the department to continue to fulfill its functions of providing technical support, inspections of county jails, and maintenance of the jail reimbursement program.
Sec. 404. The department shall report to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director by April 1, 2004 on the ratio of correctional officers to prisoners for each correctional institution, the ratio of shift command staff to line custody staff, and the ratio of noncustody institutional staff to prisoners for each correctional institution.
Sec. 405. (1) The department shall review and revise as necessary policy proposals that provide alternatives to prison for offenders being sentenced to prison as a result of technical probation violations and technical parole violations. To the extent the department has insufficient policies or resources to affect the continued increase in prison commitments among these offender populations, the department shall explore other policy options to allow for program alternatives, including department or OCC-funded programs, local level programs, and programs available through private agencies that may be used as prison alternatives for these offenders.
(2) To the extent policies or programs described in subsection (1) are used, developed, or contracted for, the department may request that funds appropriated in part 1 be transferred under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393, for their operation.
(3) The department shall continue to utilize parole violator processing guidelines that require parole agents to utilize all available appropriate community-based, nonincarcerative postrelease sanctions and services when appropriate. The department shall periodically evaluate such guidelines for modification, in response to emerging information from the pilot projects for substance abuse treatment provided under this act and applicable provisions of prior budget acts for the department.
(4) By March 1, 2004, the department shall report to the senate and house appropriations subcommittees on corrections, senate and house fiscal agencies, and state budget director on the effect that any recommended policy changes for technical violators of parole and technical violators of probation would have on admission to prison and jail and the impact on other program alternatives.
Sec. 406. From the funds allocated in part 1, the department shall conduct a cost/benefit analysis of privatizing prisoner transportation services and shall report the findings of this cost/benefit analysis to the senate and house appropriations subcommittees on corrections and the senate and house fiscal agencies by January 1, 2004.
ADMINISTRATION AND PROGRAMS
Sec. 501. From the funds appropriated in part 1 for prosecutorial and detainer expenses, the department shall reimburse counties for housing and custody of parole violators and offenders being returned by the department from community placement who are available for return to institutional status and for prisoners who volunteer for placement in a county jail.
FIELD OPERATIONS ADMINISTRATION
Sec. 601. From the funds appropriated in part 1, the department shall conduct a statewide caseload audit of field agents. The audit shall address public protection issues and assess the ability of the field agents to complete their professional duties. The results of the audit shall be submitted to the senate and house appropriations subcommittees on corrections and the senate and house fiscal agencies, and the state budget office by September 30, 2004.
Sec. 602. (1) Of the amount appropriated in part 1 for field operations, a sufficient amount shall be allocated for the community service work program and shall be used for salaries and wages and fringe benefit costs of community service coordinators employed by the department to supervise offenders participating in work crew assignments. Funds shall also be used to cover motor transport division rates on state vehicles used to transport offenders to community service work project sites.
(2) The community service work program shall provide offenders with community service work of tangible benefit to a community while fulfilling court-ordered community service work sanctions and other postconviction obligations.
(3) As used in this section, "community service work" means work performed by an offender in an unpaid position with a nonprofit or tax-supported or government agency for a specified number of hours of work or service within a given time period.
Sec. 603. (1) All prisoners, probationers, and parolees involved with the electronic tether program shall reimburse the department for the equipment costs and telephone charges associated with their participation in the program. The department may require community service work reimbursement as a means of payment for those able-bodied individuals unable to pay for the cost of the equipment.
(2) Program participant contributions and local community tether program reimbursement for the electronic tether program appropriated in part 1 are related to program expenditures and may be used to offset expenditures for this purpose.
(3) Included in the appropriation in part 1 is adequate funding to implement the community tether program to be administered by the department. The community tether program is intended to provide sentencing judges and county sheriffs in coordination with local community corrections advisory boards access to the state's electronic tether program to reduce prison admissions and improve local jail utilization. The department shall determine the appropriate distribution of the tether units throughout the state based upon locally developed comprehensive corrections plans pursuant to the community corrections act, 1988 PA 511, MCL 791.401 to 791.414.
(4) For a fee determined by the department, the department shall provide counties with the tether equipment, replacement parts, administrative oversight of the equipment's operation, notification of violators, and periodic reports regarding county program participants. Counties are responsible for tether equipment installation and service. For an additional fee as determined by the department, the department shall provide staff to install and service the equipment. Counties are responsible for the coordination and apprehension of program violators.
(5) Any county with tether charges outstanding over 60 days shall be considered in violation of the community tether program agreement and lose access to the program.
Sec. 604. Community-placement prisoners and parolees shall reimburse the department for the operational costs of the program. As an alternative method of payment, the department may develop a community service work schedule for those individuals unable to meet reimbursement requirements established by the department.
Sec. 605. The department shall establish a uniform rate to be paid by agencies that benefit from public work services provided by special alternative incarceration participants and prisoners.
COMMUNITY CORRECTIONS
Sec. 701. The office of community corrections shall provide and coordinate the delivery and implementation of services in communities to facilitate successful offender reintegration into the community. Programs and services to be offered shall include, but are not limited to, technical assistance for comprehensive corrections plan development, new program start-up funding, program funding for those programs delivering services for eligible offenders in geographic areas identified by the office of community corrections as having a shortage of available services, technical assistance, referral services for education, employment services, and substance abuse and family counseling. As used in this act:
(a) "Alternative to incarceration in a state facility or jail" means a program that involves offenders who receive a sentencing disposition which appears to be in place of incarceration in a state correctional facility or jail based on historical local sentencing patterns or which amounts to a reduction in the length of sentence in a jail.
(b) "Goal" means the intended or projected result of a comprehensive corrections plan or community corrections program to reduce prison commitment rates, to reduce the length of stay in a jail, or to improve the utilization of a jail.
(c) "Jail" means a facility operated by a local unit of government for the physical detention and correction of persons charged with or convicted of criminal offenses.
(d) "Offender eligibility criteria" means particular criminal violations, state felony sentencing guidelines descriptors, and offender characteristics developed by advisory boards and approved by local units of government that identify the offenders suitable for community corrections programs funded through the office of community corrections.
(e) "Offender target population" means felons or misdemeanants who would likely be sentenced to imprisonment in a state correctional facility or jail, who would not increase the risk to the public safety, who have not demonstrated a pattern of violent behavior, and who do not have criminal records that indicate a pattern of violent offenses.
(f) "Offender who would likely be sentenced to imprisonment" means either of the following:
(i) A felon or misdemeanant who receives a sentencing disposition that appears to be in place of incarceration in a state correctional facility or jail, according to historical local sentencing patterns.
(ii) A currently incarcerated felon or misdemeanant who is granted early release from incarceration to a community corrections program or who is granted early release from incarceration as a result of a community corrections program.
Sec. 702. (1) The funds included in part 1 for community corrections comprehensive plans and services are to encourage the development through technical assistance grants, implementation, and operation of community corrections programs that serve as an alternative to incarceration in a state facility or jail. The comprehensive corrections plans shall include an explanation of how the public safety will be maintained, the goals for the local jurisdiction, offender target populations intended to be affected, offender eligibility criteria for purposes outlined in the plan, and how the plans will meet the following objectives, consistent with section 8(4) of the community corrections act, 1988 PA 511, MCL 791.408:
(a) Reduce admissions to prison of nonviolent offenders who would have otherwise received an active sentence, including probation violators.
(b) Improve the appropriate utilization of jail facilities, the first priority of which is to open jail beds intended to house otherwise prison-bound felons, and the second priority being to appropriately utilize jail beds so that jail crowding does not occur.
(c) Open jail beds through the increase of pretrial release options.
(d) Reduce the readmission to prison of parole violators.
(e) Reduce the admission or readmission to prison of offenders, including probation violators and parole violators, for substance abuse violations.
(2) The award of community corrections comprehensive plans funds shall be based on criteria that include, but are not limited to, the prison commitment rate by category of offenders, trends in prison commitment rates and jail utilization, historical trends in community corrections program capacity and program utilization, and the projected impact and outcome of annual policies and procedures of programs on prison commitment rates and jail utilization.
(3) Funds awarded for probation residential centers in part 1 shall provide for a per diem reimbursement of not more than $43.00.
Sec. 703. The comprehensive corrections plans shall also include, where appropriate, descriptive information on the full range of sanctions and services which are available and utilized within the local jurisdiction and an explanation of how jail beds, probation residential services, the special alternative incarceration program (boot camp), probation detention centers, the electronic monitoring program for probationers, and treatment and rehabilitative services will be utilized to support the objectives and priorities of the comprehensive corrections plan and the purposes and priorities of section 8(4) of the community corrections act, 1988 PA 511, MCL 791.408. The plans shall also include, where appropriate, provisions that detail how the local communities plan to respond to sentencing guidelines found in chapter XVII of the code of criminal procedure, 1927 PA 175, MCL 777.1 to 777.69, and the use of the county jail reimbursement program pursuant to section 706 of this act. The state community corrections board shall encourage local community corrections boards to include in their comprehensive corrections plans strategies to collaborate with local alcohol and drug treatment agencies of the department of community health for the provision of alcohol and drug screening, assessment, case management planning, and delivery of treatment to alcohol- and drug-involved offenders, including, but not limited to, probation and parole violators who are at risk of revocation.
Sec. 704. (1) As part of the March biannual report specified under section 12(2) of the community corrections act, 1988 PA 511, MCL 791.412, which requires an analysis of the impact of that act on prison admissions and jail utilization, the department shall submit to the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director the following information for each county and counties consolidated for comprehensive corrections plans:
(a) Approved technical assistance grants and comprehensive corrections plans including each program and level of funding, the utilization level of each program, and profile information of enrolled offenders.
(b) If federal funds are made available, the number of participants funded, the number served, the number successfully completing the program, and a summary of the program activity.
(c) Status of the community corrections information system and the jail population information system.
(d) Data on probation residential centers, including participant data, participant sentencing guideline scores, program expenditures, average length of stay, and bed utilization data.
(e) Offender disposition data by sentencing guideline range, by disposition type, number and percent statewide and by county, current year, and comparisons to prior 3 years.
(2) The report required under subsection (1) shall include the total funding allocated, program expenditures, required program data, and year-to-date totals.
Sec. 705. (1) The department shall identify and coordinate information regarding the availability of and the demand for community corrections programs, jail-based community corrections programs, and basic state-required jail data.
(2) The department shall be responsible for the collection, analysis, and reporting of state-required jail data.
(3) As a prerequisite to participation in the programs and services offered through the department, counties shall provide basic jail data to the department.
Sec. 706. (1) The department shall administer a county jail reimbursement program from the funds appropriated in part 1 for the purpose of reimbursing counties for housing in jails felons who otherwise would have been sentenced to prison.
(2) The county jail reimbursement program shall reimburse counties for housing and custody of convicted felons if the conviction was for a crime committed before January 1, 1999 and 1 of the following applies:
(a) The felon would otherwise have been sentenced to a state prison term with a minimum sentencing guidelines range minimum of 12 months or more.
(b) The felon was sentenced under section 11 or 12 of chapter IX of the code of criminal procedure, 1927 PA 175, MCL 769.11 and 769.12.
(3) The county jail reimbursement program shall reimburse counties for housing and custody of convicted felons if the conviction was for a crime committed on or after January 1, 1999 and 1 of the following applies:
(a) The felon's sentencing guidelines recommended range upper limit is more than 18 months, the felon's sentencing guidelines recommended range lower limit is 12 months or less, the felon's prior record variable score is 35 or more points, and the felon's sentence is not for commission of a crime in crime class G or crime class H under chapter XVII of the code of criminal procedure, 1927 PA 175, MCL 777.1 to 777.69.
(b) The felon's minimum sentencing guidelines range minimum is more than 12 months.
(4) State reimbursement under this section for prisoner housing and custody expenses per diverted offender shall be $43.50 per diem for up to a 1-year total.
(5) From the funds appropriated in part 1 for the county jail reimbursement program, the department shall contract for an ongoing study to determine the impact of the new legislative sentencing guidelines. The study shall analyze sentencing patterns of jurisdictions as well as future patterns in order to determine and quantify the population impact on prisons and jails of the new guidelines as well as to identify and define felon or crime characteristics or sentencing guidelines scores that indicate a felon is a prison diversion. The department shall contract for a local and statewide study for this purpose and provide periodic reports regarding the status and findings of the study to the house and senate appropriations subcommittees on corrections, the house and senate fiscal agencies, and the state budget director.
(6) The department, the Michigan association of counties, and the Michigan sheriffs' association shall review the periodic findings of the study required in subsection (5) and, if appropriate, recommend modification of the criteria for reimbursement contained in subsection (3)(b) and (c). Any recommended modification shall be forwarded to the house and senate appropriations subcommittees on corrections and the state budget office.
(7) The department shall reimburse counties for offenders in jail based upon the reimbursement eligibility criteria in place on the date the offender was originally sentenced for the reimbursable offense.
(8) County jail reimbursement program expenditures shall not exceed the amount appropriated in part 1 for this purpose. Payments to counties under the county jail reimbursement program shall be made in the order in which properly documented requests for reimbursements are received. A request shall be considered to be properly documented if it meets MDOC requirements for documentation. The department shall by October 15, 2003 distribute the documentation requirements to all counties.
Sec. 707. Funds included in part 1 for the local facility housing program are appropriated for the purpose of reimbursing local units of government for housing state prisoners.
Sec. 708. (1) From the funds appropriated in part 1 for probation residential centers, funds are allocated for the operation of a probation detention program in a county that has adopted a charter pursuant to 1966 PA 293, MCL 45.501 to 45.521. The probation detention program shall have a capacity of 100 beds. The department shall provide the program administrator monthly with 90-day projections of the numbers of beds expected to be needed for probationers and parolees in Phase II residential placement under section 4(2) of the special alternative incarceration act, 1988 PA 287, MCL 798.14, and the program administrator shall make beds available as necessary to house probationers and parolees entering Phase II residential placement.
(2) Funds awarded for probation residential centers in part 1 shall provide for a per diem reimbursement of not more than $43.00.
(3) Payments under this section for operation of the probation detention program shall be made at the same rates applicable to disbursement of other funds awarded under the probation residential centers line item, not to exceed a total expenditure of $1,569,500.00.
(4) The purpose of the probation detention program is to reduce the admission to prison of probation violators by providing a community punishment program within a secure environment with 24-hour supervision and programming with an emphasis on structured daily activities. Programming shall include, but need not be limited to, the following components that may be provided directly or by referral:
(a) Orientation and assessment.
(b) Substance abuse counseling.
(c) Life skills counseling.
(d) Education.
(e) Employment preparation.
(f) Vocational training.
(g) Employment.
(h) Community service.
(i) Physical training.
(j) Cognitive skill training.
(5) The probation detention program shall reduce the admission to prison of probation violators directly or indirectly by providing a program for direct sentencing of felony probation violators who likely would be prison-bound based on historical local sentencing practices or by removing probation violators from jail with a resulting increase in the number of jail beds available and used for felons who otherwise would be likely to be sentenced to prison based on historical local sentencing practices.
(6) The operation of the probation detention program shall be included in an approved community corrections comprehensive plan for the county described in subsection (1) pursuant to the community corrections act, 1988 PA 511, MCL 791.401 to 791.414, and shall be consistent with sections 701, 702, and 703.
(7) The comprehensive plan shall specify the programs, eligibility criteria, referral, and enrollment process, the assessment and client-specific planning case management process, a program design that includes a variable length of stay based on assessed need, and the evaluation methodology to show the impact of the program on prison admissions and recidivism.
(8) The length of stay for a probationer or parolee in Phase II residential placement shall be at the department's discretion based on the offender assessment and client-specific planning case management process and the offender's progress at meeting the case management objectives, but shall not exceed 120 days.
(9) The department shall require the program administrator to report not later than March 1, 2004 to the state budget director, the senate and house fiscal agencies, and the senate and house appropriations subcommittees on corrections concerning the program's impact on prison admissions and recidivism including, but not limited to, the numbers of offenders released from the probation detention program who are arrested for a felony offense within 1 year of their termination from the program.
Sec. 709. (1) As a condition of receipt of the funds appropriated in part 1 for community corrections plans and services and probation residential centers, the department shall only award those funds requested under a properly prepared and approved comprehensive corrections plan submitted under section 8 of the community corrections act, 1988 PA 511, MCL 791.408, or directly applied for under section 10 of the community corrections act, 1988 PA 511, MCL 791.410.
(2) The department shall only halt funding for an entity funded under section 8 of the community corrections act, 1988 PA 511, MCL 791.408, in instances of substantial noncompliance during the period covered by the plan.
Sec. 710. (1) Funds included in part 1 for the felony drunk driver jail reduction and community treatment program are appropriated for and may be expended for any of the following purposes:
(a) To increase availability of treatment options to reduce drunk driving and drunk driving-related deaths by addressing the alcohol addiction of felony drunk drivers who otherwise likely would be sentenced to jail or a combination of jail and other sanctions.
(b) To divert from jail sentences or to reduce the length of jail sentences for felony drunk drivers who otherwise would have been sentenced to jail and whose recommended minimum sentence ranges under sentencing guidelines have upper limits of 18 months or less, through funding programs that may be used in lieu of incarceration and that increase the likelihood of rehabilitation.
(c) To provide a policy and funding framework to make additional jail space available for housing convicted felons whose recommended minimum sentence ranges under sentencing guidelines have lower limits of 12 months or less and who likely otherwise would be sentenced to prison, with the aim of enabling counties to meet or exceed amounts received through the county jail reimbursement program during fiscal year 2002-2003 and reducing the numbers of felons sentenced to prison.
(2) Expenditure of funds included in part 1 for the felony drunk driver jail reduction and community treatment program shall be by grant awards consistent with standards developed by a committee of the state community corrections advisory board. The chairperson of the committee shall be the board member representing county sheriffs. Remaining members of the committee shall be appointed by the chairperson of the board.
(3) In developing standards, the committee shall consult with interested agencies and associations. Standards developed by the committee shall include application criteria, performance objectives and measures, funding allocations, and allowable uses of the fund, consistent with the purposes specified in this section.
(4) Allowable uses of the fund shall include reimbursing counties for transportation, treatment costs, and housing felony drunk drivers during a period of assessment for treatment and case planning. Reimbursements for housing during the assessment process shall be at the rate of $43.50 per day per offender, up to a maximum of 5 days per offender.
(5) The standards developed by the committee shall assign each county a maximum funding allocation based on the amount the county received under the county jail reimbursement program in fiscal year 2001-2002 for housing felony drunk drivers whose sentencing guidelines recommended minimum sentence ranges had upper limits of 18 months or less.
(6) Awards of funding under this section shall be provided consistent with the local comprehensive corrections plans developed under the community corrections act, 1988 PA 511, MCL 791.401 to 791.414. Funds awarded under this section may be used in conjunction with funds awarded under grant programs established under that act. Due to the need for felony drunk drivers to be transitioned from county jails to community treatment services, it is the intent of the legislature that local units of government utilize funds received under this section to support county sheriff departments.
(7) As used in this section, "felony drunk driver" means a felon convicted of operating a motor vehicle under the influence of intoxicating liquor or a controlled substance, or both, third or subsequent offense, under section 625(8)(c) of the Michigan vehicle code, 1949 PA 300, MCL 257.625, or its predecessor statute, punishable as a felony.
CONSENT DECREES
Sec. 801. Funding appropriated in part 1 for consent decree line items is appropriated into separate control accounts created for each line item. Funding in each control account shall be distributed as necessary into separate accounts created for the purpose of separately identifying costs and expenditures associated with each consent decree.
HEALTH CARE
Sec. 901. The department shall not expend funds appropriated under part 1 for any surgery, procedure, or treatment to provide or maintain a prisoner's sex change unless it is determined medically necessary by the chief medical officer of the department.
Sec. 902. (1) As a condition of expenditure of the funds appropriated in part 1, the department shall report to the senate and house appropriations subcommittees on corrections on January 1, 2004 and July 1, 2004 the status of payments from contractors to vendors for health care services provided to prisoners, as well as the status of the contracts, and an assessment of prisoner health care quality.
(2) It is the intent of the legislature that, in the interest of providing the most efficient and cost-effective delivery of health care, local health care providers shall be considered and given the opportunity to competitively bid as vendors under future managed care contracts.
Sec. 903. There are sufficient funds and FTEs appropriated in part 1 to provide a full complement of nurses for clinical complexes working regular pay hours and it is the intent of the legislature that sufficient nurses be hired or retained to limit the use of overtime other-than-holiday pay.
Sec. 904. From the funds allocated in part 1 for health care services, the department shall conduct a 1-year cost/benefit analysis of privatizing pharmacy services and shall report the findings of this 1-year cost/benefit analysis to the senate and house appropriations subcommittees on corrections and the senate and house fiscal agencies not less than 120 days before any effort to privatize pharmacy services unless a report is completed prior to October 1, 2003.
Sec. 905. As a condition of expending funds appropriated in part 1 for hospital and specialty care or other correctional managed care health care services, the department shall use electronic mail to notify the members of the senate and house appropriations subcommittees on corrections, the senate and house fiscal agencies, and the state budget director that an invitation to bid, request for proposals, or similar document pertaining to hospital and specialty care or other correctional managed care health care services has been issued and shall provide a link to an Internet or Intranet site from which the document can be viewed and downloaded. The electronic mail shall be sent on the same day that the invitation to bid, request for proposals, or similar document is released to potential bidders and other members of the public.
Sec. 906. It is the intent of the legislature that, with the funds appropriated in part 1 for hospital and specialty care services, the department shall ensure that local providers of ambulance services to prisoners be reimbursed within 60 days of the filing of any uncontested claim for service.
Sec. 907. The department shall identify and manage prisoners who abuse the availability of medical services by obtaining transportation to off-site medical care when unnecessary or reasonably avoidable. In doing this, the department shall, when appropriate, consult with off-site medical facilities on how to accomplish this goal.
INSTITUTIONAL OPERATIONS
Sec. 1001. As a condition of expenditure of the funds appropriated in part 1, the department shall ensure that smoking areas are designated for use by prisoners and staff at each facility. At a minimum, all outdoor areas within each facility's perimeter shall be designated for smoking, except that smoking may be forbidden within 20 feet of any building designated as nonsmoking or smoke-free.
Sec. 1002. From the funds appropriated in part 1, the department shall allocate sufficient funds to develop a pilot children's visitation program. The pilot program shall teach parenting skills and arrange for day visitation at these facilities for parents and their children, except for the families of prisoners convicted of a crime involving criminal sexual conduct in which the victim was less than 18 years of age or involving child abuse.
Sec. 1003. The department shall prohibit prisoners access to or use of the Internet or any similar system.
Sec. 1004. Any department employee who, in the course of his or her job, is determined by a physician to have had a potential exposure to the Hepatitis B virus, shall receive a Hepatitis B vaccination upon request.
Sec. 1006. (1) The inmate housing fund shall be used for the custody, treatment, clinical, and administrative costs associated with the housing of prisoners other than those specifically budgeted for elsewhere in this act. Funding in the inmate housing fund is appropriated into a separate control account. Funding in the control account shall be distributed as necessary into separate accounts created to separately identify costs for specific purposes.
(2) Quarterly reports on all expenditures from the inmate housing fund shall be submitted by the department to the state budget director, the senate and house appropriations subcommittees on corrections, and the senate and house fiscal agencies.
Sec. 1008. It is the intent of the legislature that from the funds appropriated in part 1 for prison operations the department maintain on a voluntary basis 1 or more cognitive restructuring programs such as Project CHANGE for high-security-level prisoners.
Second: That the House and Senate agree to the title of the bill to read as follows:
A bill to make appropriations for the department of corrections and certain state purposes related to corrections for the fiscal year ending September 30, 2004; to provide for the expenditure of the appropriations; to provide for reports; to provide for the creation of certain advisory committees and boards; to prescribe certain powers and duties of the department of corrections, certain other state officers and agencies, and certain advisory committees and boards; to provide for the collection of certain funds; and to provide for the disposition of fees and other income received by certain state agencies.
Mike Pumford
Triette Reeves
Conferees for the House
Alan L. Cropsey
Mike Goschka
Conferees for the Senate
Pending the order that, under joint rule 9, the conference report be laid over one day,
Senator Hammerstrom moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on the adoption of the conference report,
The first conference report was adopted, a majority of the members serving voting therefor, as follows:
Roll Call No. 381 Yeas--37
Allen | Clark-Coleman | Hardiman | Prusi |
Barcia | Clarke | Jacobs | Sanborn |
Basham | Cropsey | Jelinek | Schauer |
Bernero | Emerson | Johnson | Sikkema |
Birkholz | Garcia | Kuipers | Stamas |
Bishop | George | Leland | Switalski |
Brater | Gilbert | McManus | Thomas |
Brown | Goschka | Olshove | Toy |
Cassis | Hammerstrom | Patterson | Van Woerkom |
Cherry
Nays--0
Excused--1
Scott
Not Voting--0
In The Chair: Sanborn
Senator Hammerstrom moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor.
House Bill No. 4391, entitled
A bill to make appropriations for the department of education and certain other purposes relating to education for the fiscal year ending September 30, 2004; to provide for the expenditure of the appropriations; to prescribe the powers and duties of certain state departments, school districts, and other governmental bodies; and to provide for the disposition of fees and other income received by certain legal entities and state agencies.
The House of Representatives has adopted the report of the Committee of Conference.
The Conference Report was read as follows:
FIRST CONFERENCE REPORT
The Committee of Conference on the matters of difference between the two Houses concerning
House Bill No. 4391, entitled
A bill to make appropriations for the department of education and certain other purposes relating to education for the fiscal year ending September 30, 2004; to provide for the expenditure of the appropriations; to prescribe the powers and duties of certain state departments, school districts, and other governmental bodies; and to provide for the disposition of fees and other income received by certain legal entities and state agencies.
Recommends:
First: That the House and Senate agree to the Substitute of the Senate as passed by the Senate, amended to read as follows:
A bill to make appropriations for the department of education and certain other purposes relating to education for the fiscal year ending September 30, 2004; to provide for the expenditure of the appropriations; to prescribe the powers and duties of certain state departments, school districts, and other governmental bodies; and to provide for the disposition of fees and other income received by certain legal entities and state agencies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for the department of education for the fiscal year ending September 30, 2004, from the funds indicated in this part. The following is a summary of the appropriations in this part:
DEPARTMENT OF EDUCATION
APPROPRIATION SUMMARY:
Full-time equated unclassified positions 6.0
Full-time equated classified positions 427.1
GROSS APPROPRIATION $ 114,381,200
Interdepartmental grant revenues:
Interdepartmental grant from corrections academy lease $ 1,000,000
Total interdepartmental grants and intradepartmental transfers 1,000,000
ADJUSTED GROSS APPROPRIATION $ 113,381,200
Federal revenues:
Total federal revenues 65,834,100
Special revenue funds:
Local cost sharing (schools for blind/deaf) 4,641,600
Local school district service fees 150,000
Total local revenues 4,791,600
Gifts, bequests, and donations 504,200
Private foundations 197,200
Total private revenues 701,400
Total local and private revenues 5,493,000
Certification fees 3,130,100
Commodity distribution fees 72,300
Driver fees 8,128,000
Lansing, Michigan school for the blind rent 739,000
Motorcycle license fees 5,000
Student insurance revenue 205,100
Teacher testing fees 282,100
Training and orientation workshop fees 100,000
Total other state restricted revenues 12,661,600
State general fund/general purpose $ 29,392,500
Sec. 102. STATE BOARD OF EDUCATION/OFFICE OF THE SUPERINTENDENT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 13.0
State board of education, per diem payments $ 24,400
Unclassified positions--6.0 FTE positions 515,600
State board/superintendent operations--13.0 FTE positions | 1,909,300 | |
GROSS APPROPRIATION | $ | 2,449,300 |
Appropriated from:
Federal revenues 1,128,900
Special revenue funds:
Certification fees 70,700
Private foundations 23,000
State general fund/general purpose $ 1,226,700
Sec. 103. CENTRAL SUPPORT
Full-time equated classified positions 43.3
Central support--43.3 FTE positions $ 5,409,800
Worker's compensation 26,000
Building occupancy charges - property management services 1,346,000
Training and orientation workshops 100,000
Terminal leave payments 624,100
GROSS APPROPRIATION $ 7,505,900
Appropriated from:
Federal revenues 4,999,600
Special revenue funds:
Certification fees 256,900
Commodity distribution fees 7,000
Driver fees 28,100
Local cost sharing 93,400
Motorcycle license fees 5,000
Teacher testing fees 12,300
Training and orientation workshop fees 100,000
State general fund/general purpose $ 2,003,600
Sec. 104. SCHOOL SUPPORT SERVICES
Full-time equated classified positions 40.4
School support operations--40.4 FTE positions | $ | 4,667,600 |
GROSS APPROPRIATION | $ | 4,667,600 |
Appropriated from:
Federal revenues 3,946,000
Special revenue funds:
Commodity distribution fees 65,300
Driver fees 499,900
State general fund/general purpose $ 156,400
Sec. 105. INFORMATION TECHNOLOGY SERVICES
Information technology operations | $ | 2,514,100 |
GROSS APPROPRIATION | $ | 2,514,100 |
Appropriated from:
Interdepartmental grant revenues:
Federal revenues 1,276,900
Special revenue funds:
Certification fees 168,200
Driver fees 44,800
State general fund/general purpose $ 1,024,200
Sec. 106. SPECIAL EDUCATION SERVICES
Full-time equated classified positions 68.6
Special education operations--68.6 FTE positions | $ | 11,237,900 |
GROSS APPROPRIATION | $ | 11,237,900 |
Appropriated from:
Federal revenues 11,006,500
Special revenue funds:
Certification fees 35,200
State general fund/general purpose $ 196,200
Sec. 107. LANSING, MICHIGAN SCHOOL FOR THE BLIND FORMER SITE
General services | $ | 1,749,000 |
GROSS APPROPRIATION | $ | 1,749,000 |
Appropriated from:
Interdepartmental grant revenues:
Interdepartmental grant from corrections academy lease 1,000,000
Special revenue funds:
Gifts, bequests, and donations 10,000
Lansing, Michigan school for the blind rent 739,000
State general fund/general purpose $ 0
Sec. 108. MICHIGAN SCHOOLS FOR THE DEAF AND BLIND
Full-time equated classified positions 93.0
Michigan schools for the deaf and blind operations--92.0 FTE positions $ 9,201,400
Summer institute 90,000
Camp Tuhsmeheta--1.0 FTE position 250,100
Private gifts - blind 90,000
Private gifts - deaf 50,000
GROSS APPROPRIATION $ 9,681,500
Appropriated from:
Federal revenues 4,328,800
Special revenue funds:
Local cost sharing (schools for blind/deaf) 4,503,400
Local school district service fees 150,000
Gifts, bequests, and donations 494,200
Student insurance revenue 205,100
State general fund/general purpose $ 0
Sec. 109. PROFESSIONAL PREPARATION SERVICES
Full-time equated classified positions 31.0
Professional preparation operations--31.0 FTE positions $ 5,020,900
Department of attorney general 50,000
GROSS APPROPRIATION $ 5,070,900
Appropriated from:
Federal revenues 2,528,100
Special revenue funds:
Certification fees 2,273,000
Teacher testing fees 269,800
State general fund/general purpose $ 0
Sec. 110. FIELD SERVICES
Full-time equated classified positions 46.9
Field services operations--46.9 FTE positions | $ | 5,868,300 |
GROSS APPROPRIATION | $ | 5,868,300 |
Appropriated from:
Federal revenues 5,868,300
State general fund/general purpose $ 0
Sec. 111. OFFICE OF SCHOOL EXCELLENCE
Full-time equated classified positions 61.5
School excellence operations--61.5 FTE positions | $ | 10,413,300 |
GROSS APPROPRIATION | $ | 10,413,300 |
Appropriated from:
Federal revenues 8,818,200
Private foundations 79,400
State general fund/general purpose $ 1,515,700
Sec. 112. GOVERNMENT SERVICES
Full-time equated classified positions 9.1
Government services operations--9.1 FTE positions | $ | 572,300 |
GROSS APPROPRIATION | $ | 572,300 |
Appropriated from:
Federal revenues 420,400
State general fund/general purpose $ 151,900
Sec. 113. SAFE SCHOOLS AND ADMINISTRATIVE LAW
Full-time equated classified positions 11.5
Safe schools operations--2.5 FTE positions $ 393,700
Administrative law operations--9.0 FTE positions 710,000
GROSS APPROPRIATION $ 1,103,700
Appropriated from:
Federal revenues 532,200
Special revenue funds:
Certification fees 226,100
State general fund/general purpose $ 345,400
Sec. 114. EDUCATION OPTIONS, CHARTERS, AND CHOICE
Full-time equated classified positions 8.8
Education options operations--8.8 FTE positions | $ | 1,132,500 |
GROSS APPROPRIATION | $ | 1,132,500 |
Appropriated from:
Federal revenues 980,200
State general fund/general purpose $ 152,300
Sec. 115. GRANTS AND DISTRIBUTIONS
FEDERAL PROGRAMS:
Urgent school renovation $ 20,000,000
STATE PROGRAMS:
Christa McAuliffe grants $ 94,800
Driver education 7,600,000
National board certification 100,000
School breakfast programs 10,370,100
School readiness grants 12,250,000
GROSS APPROPRIATION $ 50,414,900
Appropriated from:
Federal revenues:
DED-OESE, urgent school renovation 20,000,000
Special revenue funds:
Certification fees 100,000
Driver fees 7,600,000
Private foundations 94,800
State general fund/general purpose $ 22,620,100
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2003-2004 is $42,054,100.00 and state spending from state resources to be paid to local units of government for fiscal year 2003-2004 is estimated at $18,960,100.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:
GRANTS AND DISTRIBUTIONS
STATE PROGRAMS:
Driver education $ 7,600,000
School readiness grants 990,100
School lunch and breakfast 10,370,000
TOTAL $ 18,960,100
Sec. 202. The appropriations authorized under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 203. As used in this act:
(a) "DED-OESE" means the United States department of education office of elementary and secondary education.
(b) "Department" means the Michigan department of education.
(c) "District" means a local school district as defined in section 6 of the revised school code, 1976 PA 451, MCL 380.6, or a local act school district or public school academy as defined in section 5 of the revised school code, 1976 PA 451, MCL 380.5.
(d) "FTE" means full-time equated.
Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.
Sec. 205. (1) Beginning October 1, a hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department.
(2) The state budget director shall grant exceptions to this hiring freeze when the state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services, cause loss of revenue to the state, result in the inability of the state to receive federal funds, or necessitate additional expenditures that exceed any savings from maintaining a vacancy. The state budget director shall report monthly to the chairpersons of the senate and house appropriations committees and the fiscal agencies the number of exceptions to the hiring freeze approved during the previous month and the reasons to justify the exceptions.
Sec. 206. Unless otherwise specified, the departments and agencies receiving appropriations in part 1 shall use the Internet to fulfill the reporting requirements of this act. This requirement may include transmission of reports via electronic mail to the recipients identified for each reporting requirement, or it may include placement of reports on an Internet or Intranet site.
Sec. 207. The department may carry into the succeeding fiscal year unexpended federal pass-through funds to local institutions and governments that do not require additional state matching funds. Federal pass-through funds to local institutions and governments that are received in amounts in addition to those included in part 1 and that do not require additional state matching funds are appropriated for the purposes intended.
Sec. 208. The department shall provide the state budget director and the senate and house fiscal agencies with copies of the state board of education agenda and all supporting documents at the time the agenda and supporting documents are provided to state board of education members.
Sec. 209. (1) Upon receipt of the federal drug free grant, the department shall allocate $225,000.00 of the grant to the office for safe schools within the department. The office for safe schools shall work with local school boards, law enforcement agencies, community leaders, and the office of drug control policy for the prevention of school violence. The office for safe schools shall develop and implement, and serve as coordinator of, a statewide clearinghouse for information, program development, model programs and policies, and technical assistance on school violence prevention.
(2) To accomplish its functions under this section, the office for safe schools shall do all of the following:
(a) Evaluate the effectiveness of, and make recommendations to local school boards concerning public school violence prevention programs, including, but not limited to, programs aimed at reducing the possession of weapons and the incidence of other violent behaviors on school campuses, violence prevention curricula, conflict resolution and peer mediation training, interagency cooperative referral and treatment programs, parental involvement programs, and school safety planning.
(b) In consultation with appropriate organizations, develop and distribute to school districts and public school academies a model code of conduct for pupils.
(c) Coordinate with the office of drug control policy in the department of community health to ensure that there is a meaningful linkage between the efforts under this act to provide safe schools and the initiatives undertaken through that office, including, but not limited to, school districts' safe and drug-free school plans, and to facilitate timely applications for and distribution of available grant money.
(d) Provide through the Internet the availability to and information regarding the state model policy on locker searches, the state model policy on firearm safety and awareness, and any other state or local safety policies that the office considers exemplary.
Sec. 210. The department shall require all public school districts to maintain complete records within the personnel file of a teacher or school employee of any disciplinary actions taken by the local school board against the teacher or employee for sexual misconduct. The records shall not be destroyed or removed from the teacher's or employee's personnel file except as required by a court order.
Sec. 211. From the general funds appropriated in part 1 for special education services, the department shall provide funding for 1.0 special education auditors to audit school districts.
Sec. 212. From the funds appropriated in part 1 for information technology, the department shall pay user fees to the department of information technology for technology related services and projects. Such user fees shall be subject to provisions of an interagency agreement between the department and the department of information technology.
Sec. 213. Amounts appropriated in part 1 for information technology may be designated as work projects and carried forward to support department of education projects under the direction of the department of information technology. Funds designated in this manner are not available for expenditure until approved as work projects under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a.
Sec. 214. The departments and agencies receiving appropriations in part 1 shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow all federal guidelines and state laws regarding short-term and long-term retention of records.
Sec. 215. At least 60 days before beginning any effort to privatize services, the department shall submit a complete project plan to the appropriate house and senate appropriations subcommittees and the fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the appropriate subcommittees of the house and senate standing committees on appropriations and the fiscal agencies within 30 months.
Sec. 216. Funds appropriated in part 1 shall not be used for the purchase of foreign goods or services, or both, if competitively priced American goods or services, or both, of comparable quality, are available.
Sec. 217. The director of each department receiving appropriations in part 1 shall take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies, or both. Each director shall strongly encourage firms with which the department contracts to subcontract with certified businesses in depressed and deprived communities for services, supplies, or both.
Sec. 218. (1) The department of management and budget and each principal executive department and agency shall provide to the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies a monthly report on all personal service contracts awarded without competitive bidding, pricing, or rate-setting. The notification shall include all of the following:
(a) The total dollar amount of the contract.
(b) The duration of the contract.
(c) The name of the vendor.
(d) The type of service to be provided.
(2) For personal service contracts of $10,000.00 or more, the department of management and budget shall provide a monthly report including all of the following:
(a) The total dollar amount of the contract.
(b) The duration of the contract.
(c) The name of the vendor.
(d) The type of service to be provided.
(3) The department of management and budget shall provide a monthly listing of all bid requests or requests for proposal that were issued.
(4) Each principal executive department and agency shall provide a monthly summary listing of information that identifies any authorization for personal service contracts that are provided to the department of civil service pursuant to delegated authority granted to each principal executive department and agency related to personal service contracts.
(5) The department shall not enter into personal service contracts awarded without competitive bidding, pricing, or rate-setting valued at more than $10,000.00.
(6) The department shall not enter into more than 1 personal service contract with any 1 contractor in a fiscal year.
Sec. 219. The department shall work with the department of state to ensure that the motorcycle safety education program and grants are administered in the same manner as in 2002-2003.
Sec. 220. The department shall work with the department of natural resources to ensure that the off-road vehicle safety training program and grants are administered in the same manner as in 2002-2003.
Sec. 222. Before publishing a list of schools or districts determined to have failed to make adequate yearly progress as required by the federal no child left behind act of 2001, Public Law 107-110, 115 Stat. 1425, the department shall allow a school or district to appeal that determination. The department shall consider and act upon the appeal within 30 days after it is submitted and shall not publish the list until after all appeals have been considered and decided.
STATE BOARD/OFFICE OF THE SUPERINTENDENT
Sec. 301. (1) The appropriations in part 1 may be used for per diem payments to the state board at which a quorum is present. The per diem payments shall be at a rate as follows:
(a) State board of education - president | $ | 110.00 per day |
(b) State board of education - member other than president | $ | 100.00 per day |
(2) A state board of education member shall not be paid a per diem for more than 30 days per year.
(3) The administrative secretary of the state board of education shall report to the public, the senate and house fiscal agencies, and the state budget director the previous quarter's expenses by fund source for members of the state board of education related to the performance of their responsibilities.
Sec. 302. From the amount appropriated in part 1 to the state board of education, not more than $35,000.00 shall be expended for in-state travel. No amount appropriated in part 1 shall be expended for out-of-state travel.
MICHIGAN SCHOOLS FOR THE DEAF AND BLIND
Sec. 401. The employees at the Michigan schools for the deaf and blind who work on a school year basis shall be considered annual employees for purposes of service credits, retirement, and insurance benefits.
Sec. 402. For each student enrolled at the Michigan schools for the deaf and blind, the department shall assess the intermediate school district of residence 100% of the cost of operating the student's instructional program. The amount shall exclude room and board related costs and the cost of weekend transportation between the school and the student's home.
Sec. 403. (1) The department may assess rent to any state agency for the use of any facility at the Michigan school for the blind's former site in Lansing. The rental rates and all leasing arrangements shall be subject to the approval of the department of management and budget.
(2) In addition to those funds appropriated in part 1, the department may receive and expend additional funds from lease agreements at the Michigan school for the blind's former site in Lansing that have been negotiated with the approval of the department of management and budget. These funds are appropriated to the department for operation, maintenance, and renovation expenses associated with the leased space.
(3) Security guards or other patrols at the Michigan school for the blind's former site shall not be funded through section 108 funds appropriated for the Michigan schools for the deaf and blind.
(4) If the department leases real property to a person or organization that is not a department of state government, the department shall not expend funds in excess of the lease revenue received to replace, renovate, or repair that real property. This section shall not apply to emergency repairs or costs associated with technological renovations.
(5) The department shall not lease real property for less than fair market value.
(6) Unexpended balances of appropriations and any surplus restricted revenue for the former school for the blind site in Lansing, up to $100,000.00 in total, shall not lapse to the state general fund at the end of the fiscal year. Any unexpended and unencumbered funds remaining on September 30, 2004 may be carried forward as a work project or as restricted revenue and expended for special maintenance and repairs of facilities at the former Michigan school for the blind site in Lansing. The work project shall be performed by state employees or by contract when necessary at an estimated cost of $100,000.00. The estimated completion date of the work project is September 30, 2005.
Sec. 404. (1) The department may assess rent or lease excess property located on the campus of the Michigan schools for the deaf and blind in Flint to private or publicly funded organizations.
(2) In addition to those funds appropriated in part 1, the department may receive and expend additional funds from lease agreements at the Michigan schools for the deaf and blind Flint campus that have been negotiated with the approval of the department of management and budget. These funds are appropriated to the department for the operation, maintenance, and renovation expenses associated with the leased space.
(3) Unexpended balances of appropriations for the schools for the deaf and blind operations, and from proceeds of the sale of surplus property and facilities at the Michigan schools for the deaf and blind, up to $250,000.00 in total, shall not lapse to the state general fund at the end of the fiscal year. Any unexpended and unencumbered funds remaining on September 30, 2004 may be carried forward as a work project or as restricted revenue and expended for special maintenance and repairs of facilities at the campus of the Michigan schools for the deaf and blind in Flint. The work shall be carried out by state employees, or by contract as necessary, at an estimated cost of $250,000.00. The estimated completion date of the work is September 30, 2005.
Sec. 407. The department shall report to the house and senate appropriations subcommittees on education detailed information on the expenditures made from the amount authorized in part 1 quarterly for general services for the Michigan school for the blind's former site.
Sec. 408. The department may assist the department of community health, other departments, and local school districts to secure reimbursement for eligible services provided in Michigan schools from the federal Medicaid program. The department may submit reports of direct expenses related to this effort to the department of community health for reimbursement.
Sec. 409. (1) The Michigan schools for the deaf and blind may promote its residential program as a possible appropriate option for children who are deaf or hard of hearing or who are blind or visually impaired. The Michigan schools for the deaf and blind shall distribute information detailing its services to all intermediate school districts in the state.
(2) Upon knowledge of or recognition by an intermediate school district that a child in the district is deaf or hard of hearing or blind or visually impaired, the intermediate school district shall provide to the parents of the child the literature distributed by the Michigan schools for the deaf and blind to intermediate school districts under subsection (1).
(3) It is the intent of the legislature that parents continue to have a choice regarding the educational placement of their deaf or hard of hearing children.
Sec. 410. In addition to those funds appropriated in part 1, the department may receive and expend funds from the mid-Michigan academy for capital improvements. The department shall report to the house and senate fiscal agencies and the state budget office on an annual basis any expenditures made under this section. These additional funds are appropriated specifically for capital improvements authorized by the department of management and budget and shall be negotiated as part of the lease agreement.
Sec. 411. The department shall ensure that rental payments made by each tenant for space at the Michigan school for the blind former site are used for operation, maintenance, and renovation expenses associated with the leased space designated in the tenant's lease agreement.
Sec. 412. The department shall provide a report to the house and senate appropriations subcommittees on the department of education that details, to the extent information is available or attainable, the number of blind students in Michigan, the number of teachers certified to teach Braille, and the extent to which Braille is being offered and taught to blind or visually impaired students. This report shall be submitted by April 1, 2004.
PROFESSIONAL PREPARATION SERVICES
Sec. 501. From the funds appropriated in part 1 for professional preparation services, the department shall maintain the professional personnel register and certificate revocation/felony conviction files.
Sec. 502. The department shall authorize teacher preparation institutions to provide an alternative program by which up to 1/2 of the required student internship or student teaching credits may be earned through substitute teaching. The department shall require that teacher preparation institutions collaborate with school districts to ensure that the quality of instruction provided to student teachers is comparable to that required in a traditional student teaching program.
EDUCATION OPTIONS, CHARTERS, AND CHOICE
Sec. 601. (1) From the amount appropriated in part 1 for education options, charters, and choice, there is allocated $350,000.00 and 3.5 FTE positions to operate a charter school office to administer charter school legislation and associated regulations, and to coordinate the activities of the department relating to charter schools.
(2) It is the intent of the legislature to assess the number of FTEs allocated for the charter school office based on information provided by the department describing current staffing and the future staffing needed to sufficiently administer charter school legislation and associated regulations, coordinate the activities of the department relating to charter schools, and address the findings in the office of the auditor general audit report of June 2002.
GRANTS AND DISTRIBUTIONS
Sec. 701. The department shall disburse the funds to a general fund grantee in accordance with the same standards of timing and amount that apply to disbursements made by the department to a federal fund grantee. The disbursement shall be restricted to the minimum amount needed for immediate disbursement by the grantee. The department may waive this section if extenuating circumstances warrant and are substantiated in the grantee's application or other appropriate documentation. A waiver granted pursuant to this section shall not be effective until 15 days after written notice of the proposed waiver is given to the state budget director and the chairpersons of the senate and house appropriations subcommittees having jurisdiction over the department budget.
Sec. 702. The funds appropriated in part 1 for school breakfast programs shall be made available to all eligible applicant public school districts as follows:
(a) The public school district participates in the federal school breakfast program and meets all standards as prescribed by 7 C.F.R. parts 220 and 245.
(b) Payment is made for each breakfast served meeting standards prescribed in subdivision (a).
(c) The payment for a public school district is at a per meal rate equal to the lesser of the district's actual cost, or 100% of the cost of a breakfast served by an efficiently operated breakfast program as determined by the department, less federal reimbursement, participant payments, and other state reimbursement. Determination of efficient cost by the department shall be determined by using a statistical sampling of statewide and regional cost as reported in a manner approved by the department for the preceding school year.
(d) The payment determined under subdivision (c) is prorated if the appropriation in part 1 is not sufficient to fund all payments determined under this section.
Sec. 703. (1) The funds appropriated in part 1 for school readiness programs shall be made available through a competitive application process as follows:
(a) An applicant may be any public or private nonprofit legal entity or agency other than a local or intermediate school district except a local or intermediate school district acting as a fiscal agent for a child caring organization regulated under 1973 PA 116, MCL 722.111 to 722.128.
(b) Applications shall be submitted in a form and manner as required by the department.
(c) Applications shall be reviewed by a diverse interagency committee composed of representatives of the department, appropriate community, volunteer, and social service agencies and organizations, and parents.
(d) Priority in the recommendation for awarding of grants by the superintendent of public instruction to applicants shall be based upon the following criteria:
(i) Compliance with standards for early childhood development consistent with programs for 4-year-olds, as approved by the state board of education.
(ii) Active and continuous involvement of the parents or guardians of the children participating in the program.
(iii) Employment of teachers possessing proper training in early childhood development, including an early childhood (ZA) endorsement or child development associate, and trained support staff.
(iv) Evidence of collaboration with the community of providers in early childhood development programs including documentation of the total number of children in the community who would meet the criteria established in subparagraph (vi), and who are being served by other providers, and the number of children who will remain unserved by other community early childhood programs if this program is funded.
(v) The extent to which these funds will supplement other federal, state, local, or private funds.
(vi) The extent to which these funds will be targeted to children who will be at least 4, but less than 5, years of age as of December 1 of the year in which the programs are offered and who show evidence of 2 or more "at-risk" factors as defined in the state board of education report entitled, "children at risk" that was adopted by the state board on April 5, 1988.
(e) Whether the application contains a comprehensive evaluation plan that includes implementation of all program components required and an assessment of the gains of children participating in an early childhood development program.
(f) Applications shall provide for the establishment of a school readiness advisory committee that shall be involved in the planning and evaluation of the program and provides for the involvement of parents and appropriate community, volunteer, and social service agencies and organizations. There shall be on the committee at least 1 parent or guardian of a program participant for every 18 children enrolled in the program, with a minimum of 2 parent or guardian representatives. The committee shall do all of the following:
(i) Review the mechanisms and criteria used to determine referrals for participation in the school readiness program.
(ii) Review the health screening program for all participants.
(iii) Review the nutritional services provided to all participants.
(iv) Review the mechanisms in place for the referral of families to community social service agencies, as appropriate.
(v) Review the collaboration with and the involvement of appropriate community, volunteer, and social service agencies and organizations in addressing all aspects of education disadvantage.
(vi) Review, evaluate, and make recommendations for changes in the school readiness program.
(g) More than 50% of the children participating in the program shall meet the income eligibility criteria for free or reduced price lunch, as determined under the national school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to 1753, 1755 to 1761, 1762a, 1765 to 1766b, and 1769 to 1769h, or meet income and all other eligibility criteria for participation in the Michigan family independence agency unified child day care program.
(2) Grant awards by the superintendent of public instruction may be at whatever level the superintendent determines appropriate. A grant, when combined with other sources of state revenue for this program, shall not exceed $3,300.00 per child or the cost of the program, whichever is less.
(3) Except as otherwise provided, an applicant that receives a 2003-2004 grant under this section shall also receive priority for fiscal years 2004-2005 and 2005-2006 funding. However, after 3 fiscal years of continuous funding, an applicant will be required to compete openly with new programs and other programs completing their third year. All grant awards are contingent on the availability of funds and documented evidence of grantee compliance with standards for early childhood development consistent with programs for 4-year-olds, as approved by the state board of education, and with all operational, fiscal, administrative, and other program requirements. A program which offers supplementary day care and thereby offers full-day programs as part of its early childhood development program shall receive priority in the allocation of competitive funds.
Sec. 704. From the funds appropriated in part 1 for national board certification, the department shall pay 1/2 of the application fee for teachers who are deemed by the department to be qualified to apply to the national board for professional teaching standards for professional teaching certificates or licenses and to provide grants to recognize and reward teachers who receive certification or licensure.
Sec. 705. Before expending funds for DED-OESE, title IV, part A, community service grants and DED-OESE, title IV, part B, 21st century community learning centers, the department shall provide an assurance to the United States department of education that the application was developed in consultation and coordination with appropriate state officials, including the chief state school officer, and other state agencies administering before and after school programs, the heads of the state health and mental health agencies or their designees, and representatives of teachers, parents, students, the business community, and community-based organizations.
SAFE SCHOOLS AND ADMINISTRATIVE LAW
Sec. 801. The department shall furnish a report to the legislature on teacher tenure by December 31, 2003. The report shall include at least all of the following:
(a) A history of teacher tenure in this state.
(b) A statement of the purpose of teacher tenure and an assessment of the current need for teacher tenure.
(c) A history of administrative law cases related to teacher tenure.
(d) The number of teacher tenure cases heard by administrative law judges for the most recent year for which data is available.
(e) An estimate of the cost incurred by the department related to teacher tenure.
INFORMATION TECHNOLOGY
Sec. 901. The department shall work in collaboration with the center for educational performance and information to support the comprehensive educational information system and all data collection efforts of the department.
Sec. 902. The department and the Michigan virtual university shall work collaboratively to implement section 98 of the state school aid act of 1979, 1979 PA 94, MCL 388.1698, in accordance with all applicable federal laws and regulations.
Second: That the House and Senate agree to the title of the bill to read as follows:
A bill to make appropriations for the department of education and certain other purposes relating to education for the fiscal year ending September 30, 2004; to provide for the expenditure of the appropriations; to prescribe the powers and duties of certain state departments, school districts, and other governmental bodies; and to provide for the disposition of fees and other income received by certain legal entities and state agencies.
John Moolenaar
Judy Emmons
Gretchen Whitmer
Conferees for the House
Ron Jelinek
Alan Cropsey
Martha G. Scott
Conferees for the Senate
Pending the order that, under joint rule 9, the conference report be laid over one day,
Senator Hammerstrom moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on the adoption of the conference report,
The first conference report was adopted, a majority of the members serving voting therefor, as follows:
Roll Call No. 382 Yeas--37
Allen | Clark-Coleman | Hardiman | Prusi |
Barcia | Clarke | Jacobs | Sanborn |
Basham | Cropsey | Jelinek | Schauer |
Bernero | Emerson | Johnson | Sikkema |
Birkholz | Garcia | Kuipers | Stamas |
Bishop | George | Leland | Switalski |
Brater | Gilbert | McManus | Thomas |
Brown | Goschka | Olshove | Toy |
Cassis | Hammerstrom | Patterson | Van Woerkom |
Cherry
Nays--0
Excused--1
Scott
Not Voting--0
In The Chair: Sanborn
Senator Hammerstrom moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor.
House Bill No. 4388, entitled
A bill to make and supplement appropriations for community colleges and certain state purposes related to education for the fiscal year ending September 30, 2003 and for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to establish or continue certain funds, programs, and categories; and to prescribe the powers and duties of certain state departments, institutions, agencies, employees, and officers.
The House of Representatives has adopted the report of the Committee of Conference.
The Conference Report was read as follows:
FIRST CONFERENCE REPORT
The Committee of Conference on the matters of difference between the two Houses concerning
House Bill No. 4388, entitled
A bill to make appropriations for community colleges and certain state purposes related to education for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to establish or continue certain funds, programs, and categories; and to prescribe the powers and duties of certain state departments, institutions, agencies, employees, and officers.
Recommends:
First: That the House and Senate agree to the Substitute of the Senate as passed by the Senate, amended to read as follows:
A bill to make and supplement appropriations for community colleges and certain state purposes related to education for the fiscal year ending September 30, 2003 and for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to establish or continue certain funds, programs, and categories; and to prescribe the powers and duties of certain state departments, institutions, agencies, employees, and officers.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2003-04
Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for community colleges and certain other state purposes relating to education for the fiscal year ending September 30, 2004, from the funds indicated in this part. The following is a summary of the appropriations in this part:
COMMUNITY COLLEGES
APPROPRIATION SUMMARY:
GROSS APPROPRIATION $ 289,013,100
Appropriated from:
Total interdepartmental grants and intradepartmental transfers | $ | 0 |
ADJUSTED GROSS APPROPRIATION | $ | 289,013,100 |
Total federal revenues 0
Total local revenues 0
Total private revenues 0
Total other state restricted revenues 0
State general fund/general purpose $ 289,013,100
Sec. 102. OPERATIONS
Alpena Community College $ 4,930,500
Bay de Noc Community College 4,766,800
Delta College 13,331,900
Glen Oaks Community College 2,236,800
Gogebic Community College 4,078,400
Grand Rapids Community College 16,769,300
Henry Ford Community College 20,436,700
Jackson Community College 11,312,800
Kalamazoo Valley Community College 11,542,800
Kellogg Community College 9,068,800
Kirtland Community College 2,752,400
Lake Michigan College 4,880,800
Lansing Community College 28,999,400
Macomb Community College 30,941,500
Mid Michigan Community College 4,127,600
Monroe County Community College 4,015,800
Montcalm Community College 2,904,700
C.S. Mott Community College 14,661,600
Muskegon Community College 8,343,600
North Central Michigan College 2,826,100
Northwestern Michigan College 8,513,800
Oakland Community College 19,518,300
St. Clair County Community College 6,537,800
Schoolcraft College 11,455,400
Southwestern Michigan College 6,149,300
Washtenaw Community College 11,642,900
Wayne County Community College 15,050,600
West Shore Community College 2,144,000
GROSS APPROPRIATION $ 283,940,400
Appropriated from:
State general fund/general purpose $ 283,940,400
Sec. 103. GRANTS
At-risk student success program $ 3,322,700
Renaissance zone tax reimbursement funding 1,750,000
GROSS APPROPRIATION $ 5,072,700
Appropriated from:
State general fund/general purpose $ 5,072,700
PART 1A
LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2002-03
Sec. 151. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for community colleges and certain other state purposes relating to education for the fiscal year ending September 30, 2003, from the funds indicated in this part. The following is a summary of the appropriations in this part:
COMMUNITY COLLEGES
APPROPRIATION SUMMARY:
GROSS APPROPRIATION $ 1,077,700
Appropriated from:
Total interdepartmental grants and intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ 1,077,700
Total federal revenues 0
Total local revenues 0
Total private revenues 0
Total other state restricted revenues | $ | 1,077,700 |
State general fund/general purpose | $ | 0 |
Sec. 152. OPERATIONS
Alpena Community College $ 18,100
Bay de Noc Community College 17,500
Delta College 50,600
Glen Oaks Community College 8,500
Gogebic Community College 14,900
Grand Rapids Community College 63,600
Henry Ford Community College 77,600
Jackson Community College 42,900
Kalamazoo Valley Community College 43,800
Kellogg Community College 34,400
Kirtland Community College 10,400
Lake Michigan College 18,500
Lansing Community College 110,100
Macomb Community College 117,400
Mid Michigan Community College 15,700
Monroe County Community College 15,200
Montcalm Community College 11,000
C.S. Mott Community College 55,600
Muskegon Community College 31,700
North Central Michigan College 10,700
Northwestern Michigan College 32,300
Oakland Community College 74,100
St. Clair County Community College 24,800
Schoolcraft College 43,500
Southwestern Michigan College 23,300
Washtenaw Community College 44,200
Wayne County Community College 58,800
West Shore Community College 8,500
GROSS APPROPRIATION $ 1,077,700
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 1,077,700
State general fund/general purpose $ 0
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2003-04
GENERAL SECTIONS
Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2003-2004 is $289,013,100.00 and state spending from state resources to be paid to local units of government for fiscal year 2003-2004 is $289,013,100.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:
Operations $ 283,940,400
At-risk student success program 3,322,700
Renaissance zone tax reimbursement program 1,750,000
TOTAL $ 289,013,100
Sec. 202. The appropriations authorized under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 203. Unless otherwise specified, the department of career development shall use the Internet to fulfill the reporting requirements of this act. This requirement may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on an Internet or Intranet site.
Sec. 209. Funds appropriated in part 1 should not be used for the purchase of foreign goods or services, or both, if American goods or services, or both, that are competitively priced and of comparable quality are available. Preference should be given to goods or services, or both, manufactured or provided by Michigan businesses if they are competitively priced and of comparable value.
Sec. 210. The principal executive officer of each community college receiving appropriations in part 1 shall take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies, or both. Each principal executive officer shall strongly encourage firms with which the community college contracts to subcontract with certified businesses in depressed and deprived communities for services or supplies, or both.
Sec. 211. (1) The money appropriated in this act is appropriated for community colleges with fiscal years ending June 30, 2004, and shall be paid out of the state treasury and distributed by the state treasurer to the respective community colleges in 11 monthly installments on the sixteenth of each month, or the next succeeding business day, beginning with October 16, 2003. Each community college shall accrue its July and August 2004 payments to its institutional fiscal year ending June 30, 2004. However, if a community college fails to submit all verified Michigan community colleges activities classification structure data for school year 2002-2003 to the department of career development by November 1, 2003, the monthly installments shall be withheld from that community college until those data are submitted. The department of career development shall publish the activities classification structure data book for Michigan community colleges on or before March 1, 2004, for use by the legislature during budget development for the fiscal year ending September 30, 2005. The amount from the money appropriated in part 1 that is allocated under section 103 to address the special needs of at-risk students shall be paid in full by the state treasurer by November 1, 2003. The amount distributed to a community college or department shall not exceed the net state allocation authorized by this act.
(2) Except as otherwise provided by law, each of the amounts appropriated shall be used solely for the respective purposes stated in this act. The money appropriated by this act may be used to match the cost of any available programs under the Carl D. Perkins vocational and applied technology education act, Public Law 88-210, 98 Stat. 2435, including local administration.
Sec. 212. (1) The auditor general or an independent public accounting firm appointed by the auditor general shall audit data for the fiscal year ending on June 30, 2003, as submitted to the department of career development by 7 randomly selected community colleges. A community college shall maintain and provide those records necessary for the auditor general or certified public accountant appointed by the auditor general to determine the accuracy of the reported data. The audits shall be based upon the definitions and requirements contained in the Manual for Uniform Financial Reporting, Michigan Public Community Colleges, published by the Michigan department of career development in 2001, and the Activities Classification Structure Manual for Michigan Community Colleges, 1996 revision of the final report of the activities classification structure task force (July 1981), published by the department of education. Before the submission of a final audit report, a community college may appeal the findings of the preliminary report under an appeal process to be established by the auditor general. The auditor general shall submit a report of the findings to the house and senate appropriations committees, the department of career development, and the state budget director before June 1, 2004.
(2) The auditor general or a certified public accountant appointed by the auditor general may conduct performance audits of community colleges as the auditor general considers necessary.
(3) Not more than 60 days after an audit report is released by the office of the auditor general, the principal executive officer of the community college that was audited shall submit to the house and senate appropriations committees, the house and senate fiscal agencies, the department of career development, the auditor general, and the state budget director a plan to comply with audit recommendations. The plan shall contain projected dates and resources required, if any, to achieve compliance with the audit recommendations, or a documented explanation of the college's noncompliance with the audit recommendations concerning the matters on which the audited community college and office of the auditor general disagree.
(4) A community college whose audited activities classification structure data is significantly different than the data used to determine state aid under this act shall return any overappropriated money as provided in this subsection. The department of career development shall compare formula computations for the audited colleges using pre- and post-audit data. If the state allocation is 2% or more than the post-audit allocation amount, the college shall return the excess money. The returned money shall be redistributed to all 28 community colleges, prorated on the base appropriations contained in part 1.
Sec. 213. The department of career development shall review the taxonomy of the 7 community colleges selected for the audit under section 212 that is based on the Activities Classification Structure Manual for Michigan Community Colleges, 1996 revision of the final report of the activities classification structure task force (July 1981), published by the department of education.
Sec. 214. (1) A community college shall retain certified class summaries, class lists, registration documents, and student transcripts that are consistent with the taxonomy of courses. For each enrollment period during the fiscal year, these certified documents shall identify clearly by course the number of in-district and out-of-district student credit and contact hours. The class summaries and class lists shall be consistent with each other and shall include the course prefix and numbers, course title, course credit and contact hours, credit and contact hours generated by each student, and activity classifications consistent with the taxonomy. An auditable process shall be used by the community college to determine the unduplicated head count for in-district students, out-of-district students, and prisoners for each enrollment period during the fiscal year.
(2) Contracts between the community college and agencies that reimburse the community college for the costs of instruction shall be retained for audit purposes.
Sec. 215. Each community college shall have an annual audit of all income and expenditures performed by an independent auditor and shall furnish the independent auditor's management letter and an annual audited accounting of all general and current funds income and expenditures including audits of college foundations to the members of the senate and house appropriations subcommittees on community colleges, the senate and house fiscal agencies, the auditor general, the department of career development, and the state budget director before November 15, 2003. If a community college fails to furnish the audit materials, the monthly state aid installments shall be withheld from that college until the information is submitted. All reporting shall conform to the requirements set forth in the Manual for Uniform Financial Reporting, Michigan Public Community Colleges, published by the Michigan department of career development in 2001.
Sec. 216. (1) A community college shall pay the employer's contributions to the Michigan public school employees' retirement system created by the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408, as a condition of receiving money appropriated under this act.
(2) A community college shall not pay an employer's contribution to more than 1 retirement fund providing benefits for an employee.
(3) A community college shall not be required to submit more than 4 reports annually to the Michigan public school employees' retirement system for purposes of calculating retirement benefits.
Sec. 217. Money appropriated in part 1 shall not be used to pay for the construction or maintenance of a self-liquidating project. Any construction, renovation, or other capital outlay project that exceeds $1,000,000.00 requires the approval of a use and finance statement by the joint capital outlay subcommittee (JCOS) pursuant to JCOS policy.
Sec. 219. The department of treasury shall annually collect and compile data on the tax revenue losses to community colleges resulting from tax increment financing authorities (TIFA) and tax abatements. The department of treasury shall produce a report detailing the data. The report shall be completed and presented to the house and senate appropriations subcommittees on community colleges, the department of career development, and the department of management and budget not later than February 15, 2004. The report shall include, but is not limited to, the following:
(a) Estimated revenue losses for each community college for the calendar year 2003.
(b) Confirmed revenue losses for each community college for the calendar years 2001 and 2002.
(c) Other requirements requested by the house and senate appropriations subcommittees on community colleges.
Sec. 220. It is the intent of the legislature that the legislature, in cooperation with the Michigan community college association, develop proposals and financing alternatives for special maintenance projects at community colleges that otherwise would not qualify for financing under the state building authority.
Sec. 221. (1) Each community college shall report the following to the department of career development, no later than November 1, 2003:
(a) The number of North American Indian students enrolled each term for the previous fiscal year, using guidelines and procedures developed by the department of career development and the Michigan commission on Indian affairs.
(b) The number of Indian tuition waivers granted each term, and the monetary value of the waivers for the previous fiscal year.
(2) Colleges shall use the criteria cited in 1976 PA 174, MCL 390.1251 to 390.1253, to determine eligibility for tuition waivers, and shall grant those waivers to individuals who meet the criteria and request tuition waivers.
(3) The department of career development shall compile the information received under subsection (1) and shall submit this compilation to the house and senate appropriations subcommittees on community colleges, the senate and house fiscal agencies, and the state budget director by January 7, 2004.
Sec. 222. The appropriation in part 1 for renaissance zone reimbursements shall be made to each eligible recipient no later than 60 days after the department of treasury certifies to the state budget director that it has received all necessary information to properly determine the amounts due each eligible recipient under section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692.
Sec. 223. Upon request, a community college shall inform interested Michigan high schools of the aggregate academic status of its students for the prior academic year, in a manner prescribed by the Michigan community college association and in cooperation with the Michigan association of secondary school principals.
Sec. 224. Recognizing the critical importance of education in strengthening Michigan's workforce, the legislature encourages the state's public community colleges to explore ways of increasing collaboration and cooperation with 4-year universities, particularly in the areas related to training, instruction, and program articulation.
Sec. 226. (1) Each community college shall report to the house and senate fiscal agencies, the state budget director, and the department of career development by August 31, 2003, the tuition and mandatory fee rates paid by a full-time in-district student and a full-time out-of-district student as established by the college governing board for the 2003-2004 academic year. Each community college shall also report any revisions to the reported 2003-2004 academic year tuition and mandatory fee rates adopted by the college governing board to the house and senate fiscal agencies, the state budget director, and the department of career development within 15 days of being adopted.
(2) The department of career development shall prepare and provide to community colleges a standard format for reporting tuition and fee rates pursuant to subsection (1).
Sec. 227. (1) Each community college shall report to the department of career development the numbers and type of associate degrees and other certificates awarded during the previous fiscal year. The report shall be made not later than November 15, 2003.
(2) The department of career development shall compile the information received under subsection (1) and shall submit this compilation to the house and senate appropriations subcommittees on community colleges, the senate and house fiscal agencies, and the state budget director by January 7, 2004.
Sec. 228. It is the intent of the legislature to achieve full funding of the Gast-Mathieu fairness in funding formula.
Sec. 229. A community college receiving funding under this act and also subject to the student right-to-know and campus security act, Public Law 101-542, 104 Stat. 2381, shall make a copy of all material prepared in accordance with the public information reporting requirements under the crime awareness and campus security act of 1990, title II of the student right-to-know and campus security act, Public Law 101-542, 104 Stat. 2384, available in hard copy and electronic format accessible through the Internet for school districts, parents, and students.
Sec. 230. (1) A community college shall not expend money appropriated under this act to provide health care coverage for community college employees or their dependents for abortion services, other than for spontaneous abortion or to prevent the death of the woman upon whom the abortion is performed. A community college shall not approve a collective bargaining agreement or enter into any other employment contract that includes health care coverage for abortion services other than spontaneous abortion or to prevent the death of the woman upon whom the abortion is performed.
(2) If a community college expends money appropriated under this act in violation of subsection (1), the community college shall repay to this state an amount equal to the amount of money spent in violation of subsection (1).
Sec. 231. In light of sections 1, 3, and 4 of 1846 RS 83, MCL 551.1, 551.3, and 551.4, and section 1 of 1939 PA 168, MCL 551.271, the legislature intends that a community college receiving funding under this act shall not use part 1 money to extend employee benefits to the unmarried partners of the community college's employees except for pre- and post-natal costs.
Sec. 233. Community colleges that include prescription drugs and medications as a covered health benefit for adults are encouraged to ensure that payment for preventative contraceptives are included in the insurance plan.
Sec. 234. The legislature intends that each community college do all of the following:
(a) Undertake active measures to promote equal opportunities, eliminate discrimination, and foster a diverse student body and administration among all people including, but not limited to, women, minorities, seniors, veterans, and people with disabilities.
(b) Review, analyze, and eradicate activities that may tend to discriminate.
Sec. 235. It is the intent of the legislature that a workgroup be formed to evaluate, discuss, and make recommendations for future action regarding state university admission and enrollment policies that specifically address the acceptance and application of college credits earned by students through the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to 388.524. The workgroup shall be bipartisan and shall include the chairs of the house and senate appropriations subcommittees on higher education, community colleges, and school aid.
Sec. 236. (1) It is the intent of the legislature that the frequency and scope of on-site visits, evaluations, audits, and similar activities be limited to that which is reasonably necessary to monitor the performance of community colleges and confirm the accuracy of reported data. On-site visits, evaluations, audits, and similar activities conducted to comply with the state plan approved by the United States department of education under the Perkins act shall be limited to those necessary to meet the requirements of the state plan.
(2) In developing and implementing audit and reporting requirements, including those included in current and proposed state plans under the Perkins act, the department of career development shall consult with community colleges, the legislative auditor general, and independent auditors in an effort to coordinate activities and minimize duplication of audit and reporting requirements imposed on community colleges.
(3) At least 30 days before submission of a new state plan to the United States department of education for approval under the Perkins act, the department of career development shall provide copies of the proposed plan to the members of the senate and house appropriations subcommittees on community colleges for their review and comment. Copies of the proposed plan shall be provided to the senate and house fiscal agencies and the state budget director at the same time that they are provided to the senate and house subcommittees.
(4) The Perkins grant application process and content shall be streamlined to the extent possible.
(5) As used in this section, "Perkins act" means the Carl D. Perkins vocational and applied technology education act, Public Law 88-210, 98 Stat. 2435.
STATE AID - OPERATIONS
Sec. 301. Unless otherwise stated, all data items used in determining state aid in this act are as defined in the Manual for Uniform Financial Reporting, Michigan Public Community Colleges, published by the Michigan department of career development in 2001, which shall be the basis for reporting data, and the Activities Classification Structure Manual for Michigan Community Colleges, 1996 revision of the final report of the activities classification structure task force (July 1981), published by the department of education, as amended by the department of career development, which shall be used to document financial needs of the community colleges.
Sec. 302. A community college shall not include in the enrollment data reported for determining state aid under this act any student credit hours or student contact hours for a student incarcerated in a Michigan penal institution. Exclusion of these students is intended to avoid the payment of state aid under this act for the same individuals for whom reimbursement is provided by the state correctional system.
GRANTS
Sec. 401. (1) The community college at-risk student success program is continued. The funding shall be prorated among community colleges based on the number of student contact hours for developmental and preparatory instruction reported by each community college to the department of career development for use in the Activities Classification Structure Manual for Michigan Community Colleges, 1996 revision of the final report of the activities classification structure task force (July 1981), published by the department of education. Of the amount appropriated in part 1 for the at-risk student success program, $1,120,000.00 is allocated for base grants of $40,000.00 each, to address the special needs of at-risk students at community colleges or the acquisition or upgrade of technology related equipment and software.
(2) Of the amount appropriated in part 1 for the at-risk student success program, the balance of the appropriated money shall be distributed on a proration utilizing the sum of the most recent 3 years developmental/preparatory contact hours divided by the sum of the 3-year total contact hours at each college. Each community college's percentage shall be divided by the sum of all the percentages systemwide to obtain each community college's prorated grant amount.
(3) For the fiscal year ending September 30, 2004, the at-risk student success program money is allocated as follows:
Alpena Community College $ 68,700
Bay de Noc Community College 82,400
Delta College 99,400
Glen Oaks Community College 127,500
Gogebic Community College 71,500
Grand Rapids Community College 98,000
Henry Ford Community College 146,500
Jackson Community College 101,800
Kalamazoo Valley Community College 100,200
Kellogg Community College 143,000
Kirtland Community College 146,600
Lake Michigan College 162,100
Lansing Community College 147,600
Macomb Community College 84,400
Mid Michigan Community College 124,000
Monroe County Community College 90,700
Montcalm Community College 67,800
C.S. Mott Community College 101,900
Muskegon Community College 185,300
North Central Michigan College 121,300
Northwestern Michigan College 129,700
Oakland Community College 141,700
St. Clair Community College 88,500
Schoolcraft College 134,800
Southwestern Michigan College 152,400
Washtenaw Community College 157,200
Wayne County Community College 129,500
West Shore Community College 118,200
(4) As used in this act, "at-risk students" means students who meet 1 or more of the following criteria:
(a) Are initially placed in 1 or more developmental courses as a result of standardized testing or as a result of failure to make satisfactory academic progress.
(b) Are diagnosed as learning disabled.
(c) Require English as a second language (ESL) assistance.
(5) Grant funding under this section shall be utilized to address the special needs of at-risk students or for equipment or upgrade of information technology hardware or software. Activities related to services provided to at-risk students include, but are not limited to, pretesting for academic ability, counseling contacts, and special programs. Equipment or information technology hardware or software purchased under this section need not be associated with the operation of a program designed to address the needs of at-risk students.
(6) Grant funding under this section shall not be used for indirect costs including, but not limited to, rent, utilities, or, except as provided in this section, college administration.
(7) Each community college shall report to the department of career development a summary of all accomplishments under, expenditures for, and compliance with the intent of this program, including the number of at-risk students served. The report is subject to audit as provided for in section 212(1). The report shall be submitted not later than 90 days after the end of the state's fiscal year.
Sec. 402. The legislature intends that any executive or legislative proposal or action, subsequent to the adoption of a recommendation for appropriations for community colleges for the fiscal year ending September 30, 2004, to increase appropriations to state-supported 4-year universities in excess of the governor's original recommendation for the fiscal year ending September 30, 2004, will be accompanied by a similar action or proposal for state-supported community colleges.
Sec. 403. The legislature intends that not less than 70% of the economic development job training grant money be awarded to community colleges or a consortium of community colleges and other eligible applicants as provided in the budget that appropriated the economic development job training grant money. Further, the legislature intends that at least a portion of the total appropriation for economic development job training grants be awarded to community colleges that offer certified programs that are bureau of apprenticeship training certified. The Michigan economic development corporation shall report by November 1 of each year to the house and senate appropriations subcommittees on community colleges and the senate and house fiscal agencies the names of the community colleges awarded grant money under this section, the amount of the grants awarded, and the percentage awarded to bureau of apprenticeship training certified programs.
PART 2A
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2002-03
GENERAL SECTIONS
Sec. 1201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1A for fiscal year 2002-2003 is $1,077,700.00 and state spending from state resources to be paid to local units of government for fiscal year 2002-2003 is $1,077,700.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:
Operations | $ | 1,077,700 |
TOTAL | $ | 1,077,700 |
Second: That the House and Senate agree to the title of the bill to read as follows:
A bill to make and supplement appropriations for community colleges and certain state purposes related to education for the fiscal year ending September 30, 2003 and for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to establish or continue certain funds, programs, and categories; and to prescribe the powers and duties of certain state departments, institutions, agencies, employees, and officers.
Bruce Caswell
Michael Sak
Conferees for the House
Ron Jelinek
Tony Stamas
Michael Switalski
Conferees for the Senate
Pending the order that, under joint rule 9, the conference report be laid over one day,
Senator Hammerstrom moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on the adoption of the conference report,
The first conference report was adopted, a majority of the members serving voting therefor, as follows:
Roll Call No. 383 Yeas--37
Allen | Clark-Coleman | Hardiman | Prusi |
Barcia | Clarke | Jacobs | Sanborn |
Basham | Cropsey | Jelinek | Schauer |
Bernero | Emerson | Johnson | Sikkema |
Birkholz | Garcia | Kuipers | Stamas |
Bishop | George | Leland | Switalski |
Brater | Gilbert | McManus | Thomas |
Brown | Goschka | Olshove | Toy |
Cassis | Hammerstrom | Patterson | Van Woerkom |
Cherry
Nays--0
Excused--1
Scott
Not Voting--0
In The Chair: Sanborn
Senator Hammerstrom moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor.
House Bill No. 4400, entitled
A bill to make appropriations for the department of natural resources for the fiscal years ending September 30, 2003 and September 30, 2004; to provide for the expenditure of those appropriations; to create funds and accounts; to require reports; to prescribe certain powers and duties of certain state agencies and officials; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by the various state agencies.
The House of Representatives has adopted the report of the Committee of Conference.
The Conference Report was read as follows:
FIRST CONFERENCE REPORT
The Committee of Conference on the matters of difference between the two Houses concerning
House Bill No. 4400, entitled
A bill to make appropriations for the department of natural resources for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to create funds and accounts; to require reports; to prescribe certain powers and duties of certain state agencies and officials; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by the various state agencies.
Recommends:
First: That the Senate recede from the Substitute of the Senate as passed by the Senate.
Second: That the House and Senate agree to the Substitute of the House as passed by the House, amended to read as follows:
A bill to make appropriations for the department of natural resources for the fiscal years ending September 30, 2003 and September 30, 2004; to provide for the expenditure of those appropriations; to create funds and accounts; to require reports; to prescribe certain powers and duties of certain state agencies and officials; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by the various state agencies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2003-04
Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for the department of natural resources for the fiscal year ending September 30, 2004, from the funds indicated in this part. The following is a summary of the appropriations in this part:
DEPARTMENT OF NATURAL RESOURCES
APPROPRIATION SUMMARY:
Full-time equated unclassified positions 6.0
Full-time equated classified positions 2,088.5
GROSS APPROPRIATION $ 254,243,100
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers 3,437,900
ADJUSTED GROSS APPROPRIATION $ 250,805,200
Federal revenues:
Total federal revenues 33,706,600
Special revenue funds:
Total local revenues 0
Total private revenues 1,871,400
Total other state restricted revenues 186,403,700
State general fund/general purpose $ 28,823,500
DEPARTMENT OF NATURAL RESOURCES - FUNDING SOURCE SUMMARY
APPROPRIATION SUMMARY:
Full-time equated unclassified positions 6.0
Full-time equated classified positions 2,088.5
GROSS APPROPRIATION $ 254,243,100
Interdepartmental grant revenues:
IDG, engineering services to work orders 1,472,800
IDG, MacMullan conference center revenue 1,300,600
IDG, land acquisition services to work orders 664,500
Total interdepartmental grants and intradepartmental transfers 3,437,900
ADJUSTED GROSS APPROPRIATION $ 250,805,200
Federal revenues:
DAG, federal 6,831,700
DOC, federal 60,900
DOE, federal 1,000
DOD, federal 31,000
DOI, federal 18,880,000
DOI, oil and gas royalty revenue 150,000
DOI, timber revenue 3,300,000
DOT, federal 4,203,300
EPA, federal 248,700
Total federal revenues 33,706,600
Special revenue funds:
Private funds 1,271,400
Private, gift revenues 500,000
Private, IGLFC 100,000
Total private revenues 1,871,400
Air photo fees-geographic information system 135,000
Aircraft fees 219,900
Automated license system revenue 429,300
Clean Michigan initiative fund 277,800
Delinquent property tax administration fund 1,765,900
Forest recreation fund 1,120,700
Forest resource revenue 25,575,500
Game and fish protection fund 60,771,500
Game and fish protection fund - deer habitat reserve 2,263,100
Game and fish protection fund - turkey permit fees 1,457,200
Game and fish protection fund - waterfowl fees 90,500
Game and fish - wildlife resource protection fund 1,344,100
Harbor development fund 245,900
Land exchange facilitation fund $ 5,503,100
Marine safety fund 4,588,200
Michigan civilian conservation corps endowment fund 1,000,000
Michigan state parks endowment fund 11,576,600
Michigan state waterways fund 14,980,200
Michigan natural resources trust fund 4,134,800
Nongame wildlife fund 592,500
Off-road vehicle trail improvement fund 2,759,800
Safety education fund 344,300
Park improvement fund 33,562,300
Publication revenue 58,700
Recreation improvement fund 1,414,400
Shop fees 56,300
Snowmobile registration fee revenue 1,780,100
Snowmobile trail improvement fund 8,356,000
Total other state restricted revenues 186,403,700
State general fund/general purpose $ 28,823,500
Sec. 102. EXECUTIVE
Full-time equated unclassified positions 6.0
Full-time equated classified positions 42.6
Commission (including travel expense--per diem) $ 90,000
Unclassified salaries--6.0 FTE positions 438,600
Education and outreach--32.6 FTE positions 2,991,500
Executive direction--10.0 FTE positions 1,711,900
GROSS APPROPRIATION $ 5,232,000
Appropriated from:
Interdepartmental grant revenues:
IDG, MacMullan conference center revenue 21,400
Special revenue funds:
Aircraft fees 500
Air photo fees - geographic information system 10,500
Automated license system revenue 3,000
Delinquent property tax administration fund 9,000
Forest resource revenue 266,100
Game and fish protection fund 1,789,900
Harbor development fund 600
Land exchange facilitation fund 37,100
Marine safety fund 41,300
Michigan civilian conservation corps endowment fund 500
Michigan natural resources trust fund 7,600
Michigan state parks endowment fund 28,800
Michigan state waterways fund 308,800
Nongame wildlife fund 4,800
Off-road vehicle trail improvement fund 2,700
Park improvement fund 1,876,900
Publications revenue 500
Recreation improvement fund 5,200
Snowmobile registration fee revenue 4,200
Snowmobile trail improvement fund 32,200
State general fund/general purpose $ 780,400
Sec. 103. ADMINISTRATIVE SERVICES
Full-time equated classified positions 237.2
Budget and support services--10.0 FTE positions $ 776,200
Grants, contracts, and customer systems--31.0 FTE positions 5,241,700
Human resources--24.0 FTE positions 2,045,700
Office of financial services--26.0 FTE positions 2,253,500
Office of land and facilities--134.2 FTE positions $ 16,704,600
Program assistance and review--12.0 FTE positions 738,700
GROSS APPROPRIATION $ 27,760,400
Appropriated from:
Interdepartmental grant revenues:
IDG, MacMullan conference center revenue 1,279,200
IDG, engineering services to work orders 1,472,800
IDG, land acquisition services to work orders 664,500
Federal revenues:
DOI, federal 320,300
Special revenue funds:
Aircraft fees 112,900
Air photo fees - geographic information system 700
Automated license system revenue 426,300
Clean Michigan initiative fund 277,800
Delinquent property tax administration fund 1,720,800
Forest resource revenue 1,659,300
Game and fish protection fund 8,600,100
Land exchange facilitation fund 5,424,400
Marine safety fund 368,600
Michigan natural resources trust fund 756,500
Michigan state parks endowment fund 46,000
Michigan state waterways fund 883,700
Michigan civilian conservation corps endowment fund 5,900
Nongame wildlife fund 3,700
Off-road vehicle trail improvement fund 63,200
Park improvement fund 1,377,800
Publication revenue 58,200
Recreation improvement fund 5,300
Snowmobile registration fee revenue 65,600
Snowmobile trail improvement fund 77,100
State general fund/general purpose $ 2,089,700
Sec. 104. DEPARTMENTAL OPERATION SUPPORT
Building occupancy charges $ 2,000,100
Rent - privately owned property 335,700
Gifts and bequests 500,000
GROSS APPROPRIATION $ 2,835,800
Appropriated from:
Special revenue funds:
Private - gift revenues 500,000
Forest resource revenue 753,100
Game and fish protection fund 726,900
Marine safety fund 44,600
Michigan state parks endowment fund 211,200
Michigan state waterways fund 203,800
Michigan natural resources trust fund 62,700
Snowmobile trail improvement fund 20,800
Park improvement fund 304,800
State general fund/general purpose $ 7,900
Sec. 105. WILDLIFE MANAGEMENT
Full-time equated classified positions 191.0
Wildlife administration--14.5 FTE positions $ 1,448,200
Wildlife management--167.5 FTE positions 22,158,100
Natural resources heritage--9.0 FTE positions 1,192,700
State game and wildlife area maintenance 200,000
GROSS APPROPRIATION $ 24,999,000
Appropriated from:
Interdepartmental grant revenues:
Federal revenues:
DOD, federal $ 31,000
DOI, federal 9,983,500
EPA, federal 1,000
Special revenue funds:
Private funds 100,000
Game and fish protection fund 8,626,800
Game and fish protection fund - deer habitat reserve 2,020,100
Game and fish protection fund - turkey permit fees 1,457,200
Game and fish protection fund - waterfowl fees 90,500
Nongame wildlife fund 563,600
State general fund/general purpose $ 2,125,300
Sec. 106. FISHERIES MANAGEMENT
Full-time equated classified positions 225.0
Fisheries administration--8.5 FTE positions $ 959,600
Fisheries resource management--159.1 FTE positions 15,756,600
Fish production--57.4 FTE positions 7,372,400
Stream habitat improvement 1,284,800
GROSS APPROPRIATION $ 25,373,400
Appropriated from:
Federal revenues:
DOE, federal 1,000
DOC, federal 45,900
DOI, federal 7,410,400
EPA, federal 142,100
Special revenue funds:
Private, IGLFC 100,000
Game and fish protection fund 17,651,900
State general fund/general purpose $ 22,100
Sec. 107. PARKS AND RECREATION
Full-time equated classified positions 785.7
State parks--581.2 FTE positions $ 38,285,700
State park improvement revenue bonds - debt service 1,081,900
Recreational boating--201.5 FTE positions 12,306,700
Michigan civilian conservation corps--3.0 FTE positions | 993,600 | |
GROSS APPROPRIATION | $ | 52,667,900 |
Appropriated from:
Interdepartmental grant revenues:
Federal revenues:
EPA, federal 104,600
Special revenue funds:
Private funds 316,600
Harbor development fund 245,300
Michigan civilian conservation corps endowment fund 993,600
Michigan state parks endowment fund 10,753,700
Michigan state waterways fund 12,061,400
Off-road vehicle trail improvement fund 211,700
Park improvement fund 27,981,000
State general fund/general purpose $ 0
Sec. 108. FOREST, MINERAL, AND FIRE MANAGEMENT
Full-time equated classified positions 334.5
Forest and timber treatments--114.0 FTE positions $ 12,378,700
Forest management planning--13.0 FTE positions 4,556,900
Adopt-a-forest program 50,000
Forest fire protection--137.5 FTE positions $ 9,506,000
Forest recreation and trails--33.0 FTE positions 4,400,000
Minerals management--17.3 FTE positions 1,979,700
Bennett arboretum 20,000
Cooperative resource programs--10.5 FTE positions 3,112,100
Forest management initiative--9.2 FTE positions 1,009,000
Forest fire equipment 1,700,000
GROSS APPROPRIATION $ 38,712,400
Appropriated from:
Federal revenues:
DAG, federal 2,056,700
DOI, federal 2,000
EPA, federal 1,000
Special revenue funds:
Private funds 804,800
Aircraft fees 106,500
Air photo fees - geographic information system 103,000
Forest recreation fund 1,120,700
Forest resource revenue 21,360,900
Game and fish protection fund 1,781,800
Michigan state waterways fund 340,500
Michigan natural resources trust fund 1,106,400
Michigan state parks endowment fund 496,700
Off-road vehicle trail improvement fund 363,700
Recreation improvement fund 284,900
Shop fees 56,300
Snowmobile trail improvement fund 1,745,900
State general fund/general purpose $ 6,980,600
Sec. 109. LAW ENFORCEMENT
Full-time equated classified positions 272.5
Wildlife resource protection--10.0 FTE positions $ 1,332,500
General law enforcement--262.5 FTE positions 25,504,300
GROSS APPROPRIATION $ 26,836,800
Appropriated from:
Federal revenues:
DOC, federal 15,000
DOI, federal 1,062,800
DOT, federal 2,403,300
Special revenue funds:
Game and fish - wildlife resource protection fund 1,332,500
Game and fish protection fund 15,619,800
Marine safety fund 1,304,800
Off-road vehicle trail improvement fund 744,000
Safety education fund 50,000
Snowmobile registration fee revenue 564,600
State general fund/general purpose $ 3,740,000
Sec. 110. PAYMENTS IN LIEU OF TAXES
Swamp and tax reverted lands $ 7,071,500
Purchased lands 8,272,800
Commercial forest reserve 2,691,700
GROSS APPROPRIATION $ 18,036,000
Appropriated from:
Special revenue funds:
Game and fish protection fund 4,668,300
Michigan natural resources trust fund 1,214,700
Michigan state waterways fund 376,900
State general fund/general purpose $ 11,776,100
Sec. 111. GRANTS
Grant to counties - marine safety $ 2,805,000
Federal - land and water conservation fund payments 1,000
Federal - forest stewardship grants 625,000
Federal - urban forestry grants 3,900,000
Federal - rural community fire protection 250,000
Federal - clean vessel act grants 100,000
Grants to communities - federal oil, gas, and timber payments 3,450,000
Recreation improvement fund grants 1,100,000
Sebewaing harbor commission flood control 50,000
Snowmobile local grants program 6,480,000
Snowmobile law enforcement grants 1,142,000
Off-road vehicle safety training grants 294,300
Off-road vehicle trail improvement grants 1,374,500
National recreational trails 1,850,000
Game and nongame wildlife fund grants 10,000
Inland fisheries resources grants 200,000
GROSS APPROPRIATION $ 23,631,800
Appropriated from:
Federal revenues:
DAG, federal 4,775,000
DOI, federal 101,000
DOI, federal oil and gas royalty revenue 150,000
DOI, federal timber revenue 3,300,000
DOT 1,800,000
Special revenue funds:
Private funds 50,000
Game and fish protection fund 200,000
Marine safety fund 2,805,000
Michigan state waterways fund 50,000
Nongame wildlife fund 10,000
Off-road vehicle trail improvement fund 1,374,500
Safety education fund 294,300
Recreation improvement fund 1,100,000
Snowmobile registration fee revenue 1,142,000
Snowmobile trail improvement fund 6,480,000
State general fund/general purpose $ 0
Sec. 112. INFORMATION TECHNOLOGY
Information technology services and projects | $ | 8,157,500 |
GROSS APPROPRIATION | $ | 8,157,500 |
Appropriated from:
Special revenue funds:
Air photo fees - geographic information system 20,800
Delinquent property tax administration fund 36,100
Forest resource revenue 1,536,100
Game and fish protection fund 1,106,000
Game and fish protection fund - deer habitat reserve 243,000
Game and fish - wildlife resource protection fund 11,600
Land exchange facilitation fund 41,600
Marine safety fund 23,900
Michigan natural resources trust fund 986,900
Michigan state parks endowment fund 40,200
Michigan state waterways fund 755,100
Nongame wildlife fund 10,400
Park improvement fund 2,021,800
Recreation improvement fund 19,000
Snowmobile registration fee revenue | $ | 3,700 |
State general fund/general purpose | $ | 1,301,300 |
Sec. 113. FEDERAL ADVISORY REPORT
Game and fish protection fund | $ | 100 |
GROSS APPROPRIATION | $ | 100 |
Appropriated from:
State general fund/general purpose $ 100
PART 1A
LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2002-03
Sec. 151. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for the department of natural resources for the fiscal year ending September 30, 2003, from the funds indicated in this part. The following is a summary of the appropriations in this part:
DEPARTMENT OF NATURAL RESOURCES
FUND SOURCE SUMMARY:
GROSS APPROPRIATION $ 100
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ 100
Federal revenues:
Total federal revenues 0
Special revenue funds:
Total local revenues 0
Total private revenues 0
Total other state restricted revenues 0
State general fund/general purpose $ 100
Sec. 152. FEDERAL ADVISORY REPORT
Game and fish protection fund | $ | 100 |
GROSS APPROPRIATION | $ | 100 |
Appropriated from:
State general fund/general purpose $ 100
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2003-04
GENERAL SECTIONS
Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for the fiscal year ending September 30, 2004 is $215,227,200.00 and state spending from state resources to be paid to local units of government for the fiscal year ending September 30, 2004 is $21,983,000.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:
DEPARTMENT OF NATURAL RESOURCES
PAYMENTS IN LIEU OF TAXES
Swamp and tax reverted lands 7,071,500
Purchased lands 8,272,800
Commercial forest reserves 2,691,700
GRANTS
Grants to counties - marine safety 2,805,000
Snowmobile law enforcement 1,142,000
TOTAL $ 21,983,000
Sec. 202. The appropriations authorized under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 203. As used in this act:
(a) "Commission" means the commission of natural resources.
(b) "DAG" means the United States department of agriculture.
(c) "Department" means the department of natural resources.
(d) "DOC" means the United States department of commerce.
(e) "DOD" means the United States department of defense.
(f) "DOE" means the United States department of energy.
(g) "DOI" means the United States department of interior.
(h) "DOT" means the United States department of transportation.
(i) "EPA" means the United States environmental protection agency.
(j) "FTE" means full-time equated.
(k) "IDG" means interdepartmental grant.
(l) "IGLFC" means the international Great Lakes fish commission.
Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.
Sec. 205. (1) Beginning October 1, 2003, a hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department.
(2) The state budget director shall grant exceptions to this hiring freeze when the state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services, cause loss of revenue to the state, result in the inability of the state to receive federal funds, or necessitate additional expenditures that exceed any savings from maintaining a vacancy. The state budget director shall report quarterly to the chairpersons of the senate and house of representatives standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous quarter and the reasons to justify the exception.
Sec. 207. At least 60 days before beginning any effort to privatize, the department shall submit a complete project plan to the appropriate senate and house of representatives appropriations subcommittees and the senate and house fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the appropriate senate and house of representatives appropriations subcommittees and the senate and house fiscal agencies within 30 months.
Sec. 208. Unless otherwise specified in this act, the department shall use the Internet to fulfill the reporting requirements of this act. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on an Internet or Intranet site.
Sec. 209. Funds appropriated in part 1 should not be used for the purchase of foreign goods or services, or both, if competitively priced American goods or services, or both, of comparable quality are available. Preference should be given to goods or services, or both, manufactured or provided by Michigan businesses if they are competitively priced and of comparable value.
Sec. 210. By February 15, 2004, the department shall provide the state budget director, the senate and house appropriations subcommittees on natural resources, and the senate and house fiscal agencies with an annual report on estimated restricted fund balances, projected revenues, and expenditures for the fiscal years ending September 30, 2003 and September 30, 2004.
Sec. 211. The departments and state agencies receiving appropriations under this act shall receive and retain copies of all reports funded from appropriations in part 1. These departments and state agencies shall follow federal and state guidelines for short-term and long-term retention of these reports. To the extent consistent with federal and state guidelines, the requirements of this section are satisfied if the reports funded from appropriations in part 1 are retained in electronic format.
Sec. 212. (1) From the funds appropriated under part 1, the department shall prepare a report that lists all of the following regarding grant, loan, or grant and loan programs administered by the department for the fiscal year ending on September 30, 2004:
(a) The name of each program.
(b) The goals, criteria, filing fees, nominating procedures, eligibility requirements, processes, and deadlines for each program.
(c) The maximum and minimum grant and loan available and whether there is a match requirement for each program.
(d) The amount of any required match, and whether in-kind contributions may be used as part or all of a required match.
(e) Information pertaining to the application process, timeline for each program, and the contact people within the department.
(f) The source of funds for each program, including the citation of pertinent authorizing acts.
(g) Information regarding plans for the next fiscal year for the phaseout, expansion, or changes for each program.
(h) A listing of all recipients of grants or loans awarded by the department by type and amount of grant or loan during the fiscal year ending September 30, 2003.
(2) The reports required under this section shall be submitted to the state budget director, the senate and house appropriations committees and the senate and house fiscal agencies by January 1, 2004.
Sec. 213. Appropriations of state restricted game and fish protection funds have been made to the following departments and agencies in their respective appropriation bills. The amounts appropriated to these departments and agencies are limited to the amounts listed below:
Department of civil service $ 293,200
Legislative auditor general 21,400
Attorney general 640,800
Department of management and budget 320,500
Department of treasury 4,200
Sec. 214. (1) Before January 16, 2004, the department, in cooperation with the Michigan state waterways commission, shall report to the executive budget office, the senate and house fiscal agencies, and the senate and house of representatives appropriations subcommittees on natural resources detailing operations of the Michigan state waterways commission for the preceding 1-year period.
(2) The department, in cooperation with the Michigan state waterways commission, shall determine which projects should be acquired or developed with money from the state waterways fund or harbor development fund and shall submit to the executive budget office, the senate and house fiscal agencies, and the senate and house of representatives appropriations subcommittees on natural resources in January 2004 a list of those projects, compiled in order of priority. The list shall be accompanied by estimates of total costs for the proposed projects.
(3) The department, in cooperation with the Michigan state waterways commission, shall supply with each list under subsection (2) a statement of the guidelines used in listing and assigning the priority of these projects.
Sec. 215. The department shall develop a plan for allocating restricted funds among department administrative support and regulatory activities. This plan shall be submitted to the house and senate appropriations subcommittees on natural resources by January 30, 2004. This plan shall include a cost allocation plan for financial services support, office space rent and building occupancy charges, support division service for information systems and technology, and a methodology to use information generated through activity reports that identifies the percentage of employee time spent on restricted fund activities.
Sec. 216. Pursuant to section 43703(3) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.43703, there is appropriated from the game and fish protection trust fund to the game and fish protection fund, $6,000,000.00 for the fiscal year ending September 30, 2004.
Sec. 217. From the funds appropriated in part 1 for information technology, the department shall pay user fees to the department of information technology for technology-related services and projects. Such user fees shall be subject to provisions of an interagency agreement between the department and the department of information technology.
Sec. 218. Amounts appropriated in part 1 for information technology may be designated as work projects and carried forward to support technology projects under the direction of the department of information technology. Funds designated in this manner are not available for expenditure until approved as work projects under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a.
Sec. 219. The department of information technology shall establish a schedule of rates, user fees, and charges or assessments for standard services and information system support requirements to be made to departments for technology-related services and projects. This schedule, as well as copies of related interagency agreements, shall be provided to the state budget office and the house of representatives and senate committees on appropriations before October 15, 2003. The department of natural resources shall not process any payments or fund transfers to the department of information technology until the schedule of rates, user fees, and assessments is provided to the legislature and the department of natural resources.
EXECUTIVE
Sec. 301. On June 15, 2004, the department shall submit to the house and senate appropriations subcommittees on natural resources and the house and senate fiscal agencies a report on fish, game, and nongame habitat improvement and treatment projects completed or planned during the fiscal years ending September 30, 2003 and September 30, 2004. This report shall include a list of all habitat treatment and improvement projects by management unit. This list shall be accompanied by all of the following information:
(a) The target species of wildlife or fish to benefit from unit projects.
(b) The number of acres or, for an inland lake, river, or stream, the number of feet treated or improved, the county in which the project is located, and the methods of treatment or improvement.
(c) The division with lead responsibility for the projects and all organizations involved in the projects, including, but not limited to, department personnel, contractors, or subcontractors.
(d) The total cost per acre and the funding sources supporting management unit projects. The report shall identify the program line item supporting project expenditures.
(e) A separate summary, by fund or subfund, of all projects completed in the fiscal year ending September 30, 2003 or September 30, 2004.
ADMINISTRATIVE SERVICES
Sec. 401. The department may charge the appropriations contained in part 1, including all special maintenance and capital projects appropriated for the fiscal year ending September 30, 2004, for engineering services provided, a standard percentage fee to recover actual costs. The department may use the revenue derived to support the engineering services charges provided for in part 1.
Sec. 402. The department may charge land acquisition projects appropriated for the fiscal year ending September 30, 2004, and for prior fiscal years, a standard percentage fee to recover actual costs, and may use the revenue derived to support the land acquisition service charges provided for in part 1.
Sec. 403. The department of natural resources may charge both application fees and transaction fees related to the exchange or sale of state-owned land or rights in land. The fees shall be set by the director at a rate which allows the department to recover its costs for providing these services.
Sec. 404. The department shall prominently display in a prominent place in the fishing guide provided to each licensed fisher and paid for from the funds appropriated in part 1, the website for the department of community health. In addition, the fishing guide shall include information on alternative sources where interested parties without Internet access may find information on fish advisories issued by the department of community health.
Sec. 405. The department shall report quarterly on all land transactions completed by the department in the previous fiscal quarter. For each land transaction, the report shall include, but not be limited to, the size of the parcel, the county and municipality in which the parcel is located, the dollar amount of the transaction, the fund source used to purchase the parcel, and the type of transaction, such as tax reversion, purchase, public auction, transfer, exchange, or other type of transaction. The report shall be submitted to the senate and house appropriation subcommittees on natural resources within 21 days of the end of each fiscal quarter.
Sec. 406. The department is encouraged to offer the land occupied by the Roscommon airport for lease or sale.
Sec. 407. The department shall provide a commission subsidy to offset the dealer cost of credit card license sales. This cost reimbursement shall not exceed 5% of the license sales.
Sec. 408. In addition to the annual report on travel expenditures required by section 217 of the management and budget act, 1984 PA 431, MCL 18.1217, the department shall provide to the senate and house appropriations subcommittees on natural resources and the senate and house fiscal agencies a quarterly report within 30 days of the end of each quarter on expenses incurred for travel inside and outside the state. The report shall include, but not be limited to, the name of the person who traveled, total expenditures for compensation, fees, or remuneration for meals, transportation, and related contractual services, supplies, and materials, and the destination, reason for, and dates of the travel.
WILDLIFE MANAGEMENT
Sec. 501. By April 1, 2004 and September 30, 2004, the department shall report to the state budget director, the senate and house appropriations subcommittees on natural resources, and the senate and house fiscal agencies on spending from the amounts appropriated in part 1 for bovine tuberculosis control efforts. The report shall include, but not be limited to, information on activities at the animal diagnostic laboratory at Michigan State University that are funded with appropriations in part 1.
Sec. 502. Of the funds appropriated in part 1, the department shall reimburse the department of agriculture for costs incurred for indemnification payments for livestock losses caused by wolves or coyotes under the animal industry act of 1987, 1988 PA 466, MCL 287.701 to 287.745.
FISHERIES MANAGEMENT
Sec. 601. The department shall not impede the certification process for water control structures on Michigan waterways. The department shall fund from funds appropriated in part 1 all non-water-quality studies or requirements that the department requests of either of the following:
(a) The department of environmental quality as a condition for issuance of a certification under section 401 of title IV of the federal water pollution control act, chapter 758, 86 Stat. 877, 33 U.S.C. 1341.
(b) The federal energy regulatory commission as a condition of licensing under the federal power act, chapter 285, 41 Stat. 1063, 16 U.S.C. 791a to 793, 796 to 797, 798 to 818, 820 to 824a, and 824b to 825r.
Sec. 602. (1) From the appropriation in part 1 for stream habitat improvement, not more than $758,000.00 shall be allocated for grants to watershed councils, resource development councils, soil conservation districts, local governmental units, and other nonprofit organizations for stream habitat stabilization and soil erosion control.
(2) The fisheries division of the department shall develop priority and cost estimates for all recommended projects.
Sec. 603. From the funds appropriated in part 1 for fisheries resource management, $22,100.00 is provided to the Big Rapids area foundation for completion of the riverwalk project.
PARKS AND RECREATION
Sec. 701. Pursuant to section 1902(2) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.1902, there is appropriated from the Michigan natural resources trust fund to the Michigan state parks endowment fund an amount not to exceed $10,000,000.00 for the fiscal year ending September 30, 2004.
Sec. 702. The department shall provide trash receptacles and regular trash collection services in all public use areas located in state parks.
Sec. 703. (1) The department shall prepare detailed reports for construction projects in state parks that will involve campsite or campground closures. These reports shall include expected costs, impacts on recreation opportunities, impacts on state park revenues, and the expected impact on state park users. The department shall also prepare reports on average monthly campground occupancy rates for every state park during the previous summer season. The department shall provide reports described in this subsection to the house and senate appropriations subcommittees on natural resources and environmental quality and the house and senate fiscal agencies not later than April 1, 2004.
(2) The department shall notify the house and senate appropriations subcommittees on natural resources and environmental quality and the house and senate fiscal agencies if it intends to reduce operations or reduce recreation opportunities at any state park or recreation area.
Sec. 704. From the funds appropriated in part 1, the department shall attempt to place an appropriate number of defibrillators in state parks. State parks may accept donations of defibrillators.
Sec. 705. On September 30, 2004, the department shall submit a report on the economic impact and financial status of the ski hill in porcupine mountains wilderness state park to the legislature, the state budget director, and the senate and house fiscal agencies. Except as provided in the current request for proposals process, the department shall not alter or halt operations of the ski hill or demolish buildings related to the ski hill in porcupine mountains wilderness state park until this report is received. The department shall collaborate with travel Michigan for both the marketing and promotion of the ski hill and in locating an operating partner through a competitive bidding process.
Sec. 706. As a condition of expenditure of appropriations under part 1 for state parks, the department shall not enter into a lease, concession, or other agreement for the operation of a farm on state park property with a party that has an annual operating budget of less than $100,000.00, that employs fewer than 2 individuals, or that has not been recognized by the United States government as a 501(c) tax-exempt organization by issuance of an internal revenue service letter of final determination. The party must be licensed to solicit donations under the charitable organizations and solicitation act, 1975 PA 169, MCL 400.271 to 400.294, and must provide a financial statement audited or reviewed by a certified public accountant to the department at the time the lease, concession, or agreement is awarded.
Sec. 707. The department shall collaborate with the department of history, arts, and libraries to begin implementation of the department of natural resources' recommendations for a system of water trails in the state as part of the statewide recreation plan.
FOREST, MINERAL, AND FIRE MANAGEMENT
Sec. 801. Of the funds appropriated in part 1, the department shall prescribe appropriate treatment on 63,000 acres, plus or minus 10%, at the current average rate of 12.5 to 13 cords per acre provided that the department shall take into consideration the impact of timber harvesting on wildlife habitat and recreation uses. The department shall endeavor to increase marking or treatment of hardwood timber by 10% over 2003 levels. In addition, the department shall take into consideration silvicultural analysis and report annually to the legislature on plans and efforts to address factors limiting management of timber.
Sec. 802. The department shall spend amounts appropriated in part 1 for forest-related activities to employ or contract for additional foresters to mark timber, pursuant to section 801.
Sec. 803. The appropriation for the adopt-a-forest program in part 1 shall be used to cover the cost of disposing of waste material collected from state forest lands.
Sec. 804. In addition to the funds appropriated in part 1, $350,000.00 is appropriated to cover costs related to any declared emergency involving the collapse of any abandoned mine shaft located on state land. This appropriation shall not be expended unless the state budget director recommends the expenditure and the department notifies the house and senate committees on appropriations.
Sec. 805. It is the intent of the legislature that there shall be at least 1 owner or operator of an off-road vehicle dealership among the members of the off-road vehicle trails advisory committee.
Sec. 806. As a condition of expenditure of appropriations in part 1, on October 1, 2003 the department shall provide $1,000,000.00 from cooperative resources programs as an interdepartmental grant to the department of agriculture for the cooperative resources management initiative program for the purposes of supporting forestry programs in local conservation districts.
Sec. 807. Forest camping fees shall not be assessed for dispersed camping in state forests.
LAW ENFORCEMENT
Sec. 901. The appropriation in part 1 for snowmobile law enforcement grants shall be used to provide grants to county law enforcement agencies in counties with state snowmobile trails to enforce part 821 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.82101 to 324.82160, including rules promulgated under that part and ordinances enacted pursuant to that part. The department shall consider the number of enforcement hours and the number of miles of trails in each county in allocating these grants. Any funds not distributed to counties revert back to the local law enforcement fund. Counties shall provide semiannual reports to the department.
GRANTS
Sec. 1101. The amount appropriated in part 1 for federal-rural community fire protection shall be awarded as grants to local fire protection departments. To be eligible, local fire protection departments shall be located in governmental units or fire protection districts with permanent populations of less than 10,000.
Sec. 1102. Federal pass-through funds to local institutions and governments that are received in amounts in addition to those included in part 1 for grants to communities - federal oil, gas, and timber payments and that do not require additional state matching funds are appropriated for the purposes intended. By November 30, 2004, the department shall report to the senate and house appropriations subcommittees on natural resources, the senate and house fiscal agencies, and the state budget office on all amounts appropriated under this section during the fiscal year ending September 30, 2003.
Sec. 1103. (1) The use of federal funding received by the state from the land and water conservation fund and appropriated in part 1 shall be coordinated with state grants to local units of government from the Michigan natural resources trust fund. The coordination of the two funding sources shall be conducted in a manner that minimizes the total matching funds required from local units of government for local land acquisition or recreational development projects.
(2) The Michigan natural resources trust fund board shall report on the final disposition of federal funding from the land and water conservation fund in the board's annual report to the legislature.
Sec. 1104. Of the amount appropriated in part 1 for off-road vehicle trail improvement grants, not less than $25,000.00 shall be available for a county that contains a state park off-road vehicle area and applies for law enforcement assistance to regulate off-road vehicle use.
FEDERAL ADVISORY REPORT
Sec. 1201. The amount appropriated in part 1 for the game and fish protection fund is an appropriation from the general fund to the game and fish protection fund pursuant to the settlement agreement addressing issues raised in the advisory report from the United States fish and wildlife service dated February 5, 2003. Pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393, the department shall request the approval of transfers by the legislature from unobligated appropriation balances to the appropriation for the game and fish protection fund of up to $556,000.00.
PART 2A
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2002-03
GENERAL SECTIONS
Sec. 1301. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1a for fiscal year 2002-03 is $100.00, and state spending from state resources to be paid to local units of government for fiscal year 2002-03 is $0.00.
FEDERAL ADVISORY REPORT
Sec. 1401. The amount appropriated in part 1A for the game and fish protection fund is an appropriation from the general fund to the game and fish protection fund pursuant to the settlement agreement addressing issues raised in the advisory report from the United States fish and wildlife service dated February 5, 2003. Pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393, the department shall request the approval of transfers by the legislature from unobligated appropriation balances to the appropriation for the game and fish protection fund of up to $556,000.00.
Third: That the House and Senate agree to the title of the bill to read as follows:
A bill to make appropriations for the department of natural resources for the fiscal years ending September 30, 2003 and September 30, 2004; to provide for the expenditure of those appropriations; to create funds and accounts; to require reports; to prescribe certain powers and duties of certain state agencies and officials; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by the various state agencies.
John Pastor
Rick Shaffer
Rich Brown
Conferees for the House
Michelle McManus
Shirley Johnson
Conferees for the Senate
Pending the order that, under joint rule 9, the conference report be laid over one day,
Senator Hammerstrom moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on the adoption of the conference report,
The first conference report was adopted, a majority of the members serving voting therefor, as follows:
Roll Call No. 384 Yeas--37
Allen | Clark-Coleman | Hardiman | Prusi |
Barcia | Clarke | Jacobs | Sanborn |
Basham | Cropsey | Jelinek | Schauer |
Bernero | Emerson | Johnson | Sikkema |
Birkholz | Garcia | Kuipers | Stamas |
Bishop | George | Leland | Switalski |
Brater | Gilbert | McManus | Thomas |
Brown | Goschka | Olshove | Toy |
Cassis | Hammerstrom | Patterson | Van Woerkom |
Cherry
Nays--0
Excused--1
Scott
Not Voting--0
In The Chair: Sanborn
Senator Hammerstrom moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor.
House Bill No. 4396, entitled
A bill to make appropriations for the state institutions of higher education and certain state purposes related to education for the fiscal year ending September 30, 2003 and for the fiscal year ending September 30, 2004; to provide for the expenditures of those appropriations; and to prescribe the powers and duties of certain state departments, institutions, agencies, employees, and officers.
The House of Representatives has adopted the report of the Committee of Conference.
The Conference Report was read as follows:
FIRST CONFERENCE REPORT
The Committee of Conference on the matters of difference between the two Houses concerning
House Bill No. 4396, entitled
A bill to make appropriations for the state institutions of higher education and certain state purposes related to education for the fiscal year ending September 30, 2004; to provide for the expenditures of those appropriations; and to prescribe the powers and duties of certain state departments, institutions, agencies, employees, and officers.
Recommends:
First: That the House and Senate agree to the Substitute of the Senate as passed by the Senate, amended to read as follows:
A bill to make appropriations for the state institutions of higher education and certain state purposes related to education for the fiscal year ending September 30, 2003 and for the fiscal year ending September 30, 2004; to provide for the expenditures of those appropriations; and to prescribe the powers and duties of certain state departments, institutions, agencies, employees, and officers.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2003-2004
Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for higher education for the fiscal year ending September 30, 2004, from the funds indicated in this part. The following is a summary of the appropriations in this part:
HIGHER EDUCATION
APPROPRIATION SUMMARY:
Full-time equated classified positions 1.0
GROSS APPROPRIATION $ 1,789,837,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers | $ | 0 |
ADJUSTED GROSS APPROPRIATION | $ | 1,789,837,000 |
Federal revenues:
Total federal revenues 4,400,000
Special revenue funds:
Total local revenues 0
Total private revenues 0
Total other state restricted revenues 152,750,000
State general fund/general purpose $ 1,632,687,000
Sec. 102. CENTRAL MICHIGAN UNIVERSITY
Operations | $ | 81,541,700 |
GROSS APPROPRIATION | $ | 81,541,700 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 538,440
State general fund/general purpose $ 81,003,260
Sec. 103. EASTERN MICHIGAN UNIVERSITY
Operations | $ | 78,873,300 |
GROSS APPROPRIATION | $ | 78,873,300 |
Appropriated from:
State general fund/general purpose $ 78,873,300
Sec. 104. FERRIS STATE UNIVERSITY
Operations | $ | 49,968,200 |
GROSS APPROPRIATION | $ | 49,968,200 |
Appropriated from:
State general fund/general purpose $ 49,968,200
Sec. 105. GRAND VALLEY STATE UNIVERSITY
Operations | $ | 59,085,800 |
GROSS APPROPRIATION | $ | 59,085,800 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 5,000,000
State general fund/general purpose $ 54,085,800
Sec. 106. LAKE SUPERIOR STATE UNIVERSITY
Operations | $ | 12,841,800 |
GROSS APPROPRIATION | $ | 12,841,800 |
Appropriated from:
State general fund/general purpose $ 12,841,800
Sec. 107. MICHIGAN STATE UNIVERSITY
Operations $ 293,383,700
Agricultural experiment station 33,163,800
Cooperative extension service 28,604,300
GROSS APPROPRIATION $ 355,151,800
Appropriated from:
State general fund/general purpose $ 355,151,800
Sec. 108. MICHIGAN TECHNOLOGICAL UNIVERSITY
Operations | $ | 49,717,400 |
GROSS APPROPRIATION | $ | 49,717,400 |
Appropriated from:
State general fund/general purpose $ 49,717,400
Sec. 109. NORTHERN MICHIGAN UNIVERSITY
Operations | $ | 46,811,500 |
GROSS APPROPRIATION | $ | 46,811,500 |
Appropriated from:
State general fund/general purpose $ 46,811,500
Sec. 110. OAKLAND UNIVERSITY
Operations | $ | 49,087,900 |
GROSS APPROPRIATION | $ | 49,087,900 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 1,941,768
State general fund/general purpose $ 47,146,132
Sec. 111. SAGINAW VALLEY STATE UNIVERSITY
Operations | $ | 26,673,700 |
GROSS APPROPRIATION | $ | 26,673,700 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 2,019,792
State general fund/general purpose $ 24,653,908
Sec. 112. UNIVERSITY OF MICHIGAN - ANN ARBOR
Operations | $ | 327,206,100 |
GROSS APPROPRIATION | $ | 327,206,100 |
Appropriated from:
State general fund/general purpose $ 327,206,100
Sec. 113. UNIVERSITY OF MICHIGAN - DEARBORN
Operations | $ | 25,193,900 |
GROSS APPROPRIATION | $ | 25,193,900 |
Appropriated from:
State general fund/general purpose $ 25,193,900
Sec. 114. UNIVERSITY OF MICHIGAN - FLINT
Operations | $ | 21,661,300 |
GROSS APPROPRIATION | $ | 21,661,300 |
Appropriated from:
State general fund/general purpose $ 21,661,300
Sec. 115. WAYNE STATE UNIVERSITY
Operations | $ | 228,279,900 |
GROSS APPROPRIATION | $ | 228,279,900 |
Appropriated from:
State general fund/general purpose $ 228,279,900
Sec. 116. WESTERN MICHIGAN UNIVERSITY
Operations | $ | 113,109,300 |
GROSS APPROPRIATION | $ | 113,109,300 |
Appropriated from:
State general fund/general purpose $ 113,109,300
Sec. 117. STATE AND REGIONAL PROGRAMS
Full-time equated positions 1.0
Higher education database modernization and conversion--1.0 FTE position $ 200,000
Midwestern higher education compact 82,500
GROSS APPROPRIATION $ 282,500
Appropriated from:
State general fund/general purpose $ 282,500
Sec. 118. MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS PROGRAM
Select student supportive services $ 1,956,100
Michigan college/university partnership program 586,800
Morris Hood, Jr. educator development program 148,600
GROSS APPROPRIATION $ 2,691,500
Appropriated from:
State general fund/general purpose $ 2,691,500
Sec. 119. GRANTS AND FINANCIAL AID
State competitive scholarships $ 35,530,500
Tuition grants 64,768,100
Michigan work-study program 7,326,300
Part-time independent student program 2,653,300
Dental clinics grant 4,547,000
Michigan education opportunity grants 2,084,200
Robert C. Byrd honors scholarship program 1,500,000
Nursing scholarship program 4,000,000
Michigan merit award program 130,000,000
Tuition incentive program 9,250,000
GROSS APPROPRIATION $ 261,659,400
Appropriated from:
Federal revenues:
Higher education act of 1965, title IV, 20 U.S.C. 2,900,000
Higher education act of 1965, title IV, part A 1,500,000
Special revenue funds:
Michigan merit award trust fund 143,250,000
State general fund/general purpose $ 114,009,400
PART 1A
LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2002-2003
HIGHER EDUCATION
APPROPRIATION SUMMARY:
GROSS APPROPRIATION $ 7,000,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ 7,000,000
Federal revenues:
Total federal revenues 0
Special revenue funds:
Total local revenues 0
Total private revenues 0
Total other state restricted revenues 7,000,000
State general fund/general purpose $ 0
Sec. 152. CENTRAL MICHIGAN UNIVERSITY
Operations | $ | 1,500,000 |
GROSS APPROPRIATION | $ | 1,500,000 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 1,500,000
State general fund/general purpose $ 0
Sec. 153. EASTERN MICHIGAN UNIVERSITY
Operations | $ | 423,932 |
GROSS APPROPRIATION | $ | 423,932 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 423,932
State general fund/general purpose $ 0
Sec. 154. FERRIS STATE UNIVERSITY
Operations | $ | 360,190 |
GROSS APPROPRIATION | $ | 360,190 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 360,190
State general fund/general purpose $ 0
Sec. 156. LAKE SUPERIOR STATE UNIVERSITY
Operations | $ | 278,320 |
GROSS APPROPRIATION | $ | 278,320 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund | $ | 278,320 |
State general fund/general purpose | $ | 0 |
Sec. 157. MICHIGAN STATE UNIVERSITY
Operations | $ | 896,973 |
GROSS APPROPRIATION | $ | 896,973 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 896,973
State general fund/general purpose $ 0
Sec. 158. MICHIGAN TECHNOLOGICAL UNIVERSITY
Operations | $ | 359,637 |
GROSS APPROPRIATION | $ | 359,637 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 359,637
State general fund/general purpose $ 0
Sec. 159. NORTHERN MICHIGAN UNIVERSITY
Operations | $ | 353,229 |
GROSS APPROPRIATION | $ | 353,229 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 353,229
State general fund/general purpose $ 0
Sec. 162. UNIVERSITY OF MICHIGAN - ANN ARBOR
Operations | $ | 971,558 |
GROSS APPROPRIATION | $ | 971,558 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 971,558
State general fund/general purpose $ 0
Sec. 163. UNIVERSITY OF MICHIGAN - DEARBORN
Operations | $ | 305,558 |
GROSS APPROPRIATION | $ | 305,558 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 305,558
State general fund/general purpose $ 0
Sec. 164. UNIVERSITY OF MICHIGAN - FLINT
Operations | $ | 297,768 |
GROSS APPROPRIATION | $ | 297,768 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 297,768
State general fund/general purpose $ 0
Sec. 165. WAYNE STATE UNIVERSITY
Operations | $ | 753,405 |
GROSS APPROPRIATION | $ | 753,405 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 753,405
State general fund/general purpose $ 0
Sec. 166. WESTERN MICHIGAN UNIVERSITY
Operations | $ | 499,430 |
GROSS APPROPRIATION | $ | 499,430 |
Appropriated from:
Special revenue funds:
Michigan merit award trust fund | $ | 499,430 |
State general fund/general purpose | $ | 0 |
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2003-2004
GENERAL SECTIONS
Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2003-2004 is $1,785,437,000.00 and state spending from state resources to be paid to local units of government for fiscal year 2003-2004 is $3,759,100.00. The itemized statement below identifies the estimated appropriations from which spending to units of local government will occur:
Part-time independent student program $ 1,255,700
Michigan education opportunity grant 932,900
Michigan work-study 1,570,500
TOTAL $ 3,759,100
Sec. 202. The appropriations authorized under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 208. Unless otherwise specified, the institutions of higher education receiving appropriations in part 1 shall use the Internet to fulfill the reporting requirements of this act. This requirement may include transmission of reports via electronic mail to the recipients identified for each reporting requirement, or it may include placement of reports on an Internet or Intranet site.
Sec. 209. Funds appropriated in part 1 shall not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods and services, or both, are available.
Sec. 212. (1) The funds appropriated in part 1 to state institutions of higher education shall be paid out of the state treasury and distributed by the state treasurer to the respective institutions in 11 equal monthly installments on the sixteenth of each month, or the next succeeding business day, beginning with October 16, 2003. Except for Wayne State University, each institution shall accrue its July and August 2004 payments to its institutional fiscal year ending June 30, 2004.
(2) All universities shall submit higher education institutional data inventory (HEIDI) data and associated financial and program information requested by and in a manner prescribed by the state budget director. For universities with fiscal years ending June 30, 2003, these data shall be submitted to the state budget director by October 15, 2003. Universities with a fiscal year ending September 30, 2003 shall submit preliminary HEIDI data by November 15, 2003 and final data by December 15, 2003. If a university fails to submit HEIDI data and associated financial aid program information in accordance with this reporting schedule, the state treasurer shall withhold the monthly installments under subsection (1) to the university until those data are submitted.
(3) A detailed description of procedures utilized to arrive at the amounts appropriated in part 1 shall be submitted to each institution by the senate and house fiscal agencies.
Sec. 213. Funds received by the state from the federal government or private sources for the use of a college or university are appropriated for the purposes for which they are provided. The acceptance and use of federal or private funds do not place an obligation upon the legislature to continue the purposes for which the funds are made available.
Sec. 214. If section 274 of the income tax act of 1967, 1967 PA 281, MCL 206.274, is not repealed and if a state institution of higher education that receives funds under this act notifies the department of treasury regarding its tuition and fee rates in order to qualify as an eligible institution for the Michigan tuition tax credit under section 274 of the income tax act of 1967, 1967 PA 281, MCL 206.274, the institution shall also submit the notification and applicable documentation of tuition and fee changes to the house and senate fiscal agencies.
Sec. 215. A state institution of higher education that receives funds under this act shall furnish all program and financial information that is required by and in a manner prescribed by the state budget director or the house or senate appropriations committee.
GRANTS AND FINANCIAL AID
Sec. 301. (1) Payments of the amounts included in part 1 for the state competitive scholarship program shall be distributed pursuant to 1964 PA 208, MCL 390.971 to 390.981.
(2) The Michigan higher education assistance authority shall implement a proportional competitive scholarship maximum award level for recipients enrolled less than full-time in a given semester or term.
(3) If a student who receives an award under this section has his or her tuition and fees paid under the Michigan educational trust program, pursuant to the Michigan education trust act, 1986 PA 316, MCL 390.1421 to 390.1444, and still has financial need, the funds awarded under this section may be used for educational expenses other than tuition and fees.
(4) If the Michigan higher education assistance authority increases the maximum award per eligible student from that provided in the previous fiscal year, it shall not have the effect of reducing the number of eligible students receiving awards in relation to the total number of eligible applicants. Any increase in the maximum grant shall be proportional for all eligible students receiving awards.
Sec. 302. (1) The amounts appropriated in part 1 for the state tuition grant program shall be distributed pursuant to 1966 PA 313, MCL 390.991 to 390.997a.
(2) Tuition grant awards shall be made to all eligible Michigan residents who apply before July 15, 2003 and who are qualified. Tuition grant awards shall not be made to students newly enrolled in a juris doctor law degree program after the 1995-96 academic year.
(3) The Michigan higher education assistance authority shall determine an actual maximum tuition grant award per student that ensures that the aggregate payments for the tuition grant program do not exceed the appropriation contained in part 1 for the state tuition grant program. By December 15, 2003, and again by February 1, 2004, the authority shall analyze the status of award commitments, shall make any necessary adjustments, and shall confirm that those award commitments will not exceed the appropriation contained in part 1 for the tuition grant program. The determination and actions shall be reported to the state budget director and the house and senate fiscal agencies no later than February 15, 2004. If award adjustments are necessary, the students shall be notified of the adjustment by the third Monday in February.
(4) Any unexpended and unencumbered funds remaining on September 30, 2004 from the amounts appropriated in part 1 for the tuition grant program shall not lapse on September 30, 2004, but shall continue to be available for expenditure for tuition grants provided in the 2004-2005 fiscal year. The use of these unexpended fiscal year 2003-2004 funds shall terminate at the end of the 2004-2005 fiscal year.
(5) The Michigan higher education assistance authority shall continue a proportional tuition grant maximum award level for recipients enrolled less than full-time in a given semester or term.
(6) If the Michigan higher education assistance authority increases the maximum award per eligible student from that provided in the previous fiscal year, it shall not have the effect of reducing the number of eligible students receiving awards in relation to the total number of eligible applicants. Any increase in the maximum grant shall be proportional for all eligible students receiving awards for fiscal year 2003-2004.
(7) All Ferris State University students enrolled at Kendall College of Art and Design prior to January 1, 2001 who were qualified for the state tuition grant shall continue to receive the dollar amount of the state tuition grant for which they were eligible until they graduate or are no longer enrolled in the Kendall College of Art and Design at Ferris State University.
Sec. 303. (1) Included in the appropriation in part 1 is funding for the Michigan work-study program established under 1986 PA 288, MCL 390.1371 to 390.1382, and 1986 PA 303, MCL 390.1321 to 390.1332. An effort should be made by each institution participating in the Michigan work-study program to assure that not less than 10% of those undergraduate, graduate, and professional students eligible to participate in the program are placed with for-profit employers no later than December 31 of each year for which funding is provided under this act.
(2) The Michigan higher education assistance authority shall allocate funds to institutions eligible for work-study money based upon each institution's specific Pell grant index and each institution's utilization rate of work-study funds for the 3 most recent years for which statistics are available.
(3) The Michigan higher education assistance authority shall set aside not more than 5% of the total work-study appropriation to process requests from participating institutions for allocation adjustments. Allocation adjustments shall be based on criteria set by the authority prior to making the allocations under subsection (2).
Sec. 307. The auditor general may audit selected enrollments, degrees, and awards at selected independent colleges and universities receiving awards administered by the department of treasury. The audits shall be based upon definitions and requirements established by the Michigan higher education assistance authority, the state budget director, and the senate and house fiscal agencies. The auditor general shall accept the Free Application for Federal Student Aid (FAFSA) form as the standard of residency documentation. The auditor general shall submit a report of findings to the senate and house appropriations committees and state budget director by May 1, 2004.
Sec. 308. The sums appropriated in part 1 for the student financial aid programs shall be paid out of the state treasury and shall be distributed to the respective institutions under a quarterly payment system as follows:
(a) For the state competitive scholarship, nursing scholarship, tuition incentive, and tuition grant programs, 40% shall be paid at the beginning of the state's first fiscal quarter, 40% at the beginning of the state's second fiscal quarter, l0% at the beginning of the state's third fiscal quarter, and l0% at the beginning of the state's fourth fiscal quarter.
(b) For the work-study program, payments shall be made in 11 monthly installments from October 1 to August 31 of any year.
(c) For the part-time independent student program and the Michigan education opportunity grant program, 50% shall be paid at the beginning of the state's first fiscal quarter, 25% at the beginning of the state's second fiscal quarter, and 25% at the beginning of the state's third fiscal quarter.
(d) For the dental clinics grant program and Robert C. Byrd honors scholarship program, 50% shall be paid at the beginning of the state's first fiscal quarter and 50% at the beginning of the state's second fiscal quarter after the number of earned degrees conferred and total amounts to be paid are certified.
Sec. 309. The Michigan higher education assistance authority shall determine the needs analysis criteria for students to qualify for the competitive scholarship program and tuition grant program. To be consistent with federal requirements, student wages may be taken into consideration when determining the amount of the award.
Sec. 310. (1) The funds appropriated in part 1 for the tuition incentive program/high school completion program shall be distributed as provided in this section and pursuant to the administrative procedures for the tuition incentive program/high school completion program of the department of treasury.
(2) As used in this section:
(a) "Phase I" means the first part of the tuition incentive assistance program defined as the academic period of 80 semester or 120 term credits, or less, leading to an associate degree or certificate.
(b) "Phase II" means the second part of the tuition incentive assistance program which provides assistance in the third and fourth year of 4-year degree programs.
(c) "Department" means the department of treasury.
(3) A person shall meet the following basic criteria and financial thresholds to be eligible for tuition incentive benefits:
(a) To be eligible for phase I, a person shall meet all of the following criteria:
(i) Apply for certification to the department before graduating from high school or completing the general education development (GED) certificate.
(ii) Be less than 20 years of age at the time of high school graduation or GED completion.
(iii) Be a United States citizen and a resident of Michigan according to institutional criteria.
(iv) Be at least a half-time student, earning less than 80 semester or 120 term credits at a participating educational institution within 4 years of high school graduation or GED certificate completion.
(b) To be eligible for phase II, a person shall meet either of the following criteria in addition to the criteria in subdivision (a):
(i) Complete at least 56 transferable semester or 84 transferable term credits.
(ii) Obtain an associate degree or certificate at a participating institution.
(c) To be eligible for phase I or phase II, a person must be financially eligible as determined by the department. A person is financially eligible for the tuition incentive program if that person was Medicaid eligible for 24 months within the 36 months before application. Certification of eligibility may begin in the sixth grade and continue until the time of enrollment in a participating institution.
(4) For phase I, the department shall provide payment on behalf of a person eligible under subsection (3). The department shall reject billings that are excessive or outside the guidelines for the type of educational institution.
(5) For phase I, all of the following apply:
(a) Payments for associate degree or certificate programs shall not be made for more than 80 semester or 120 term credits for any individual student at any participating institution.
(b) For persons enrolled at a Michigan community college, the department shall pay the current in-district tuition and mandatory fees. For persons residing in an area that is not included in any community college district, the out-of-district tuition rate may be authorized.
(c) For persons enrolled at a Michigan public university, the department shall pay lower level resident tuition and mandatory fees for the current year.
(d) For persons enrolled at a Michigan independent, nonprofit degree granting college or university, or a Michigan federal tribally controlled community college, or Focus: HOPE, the department shall pay mandatory fees for the current year and a per-credit payment that does not exceed the average community college in-district per-credit tuition rate as reported on August 1, for the immediately preceding academic year.
(6) A person participating in phase II may be eligible for additional funds not to exceed $500.00 per semester or $400.00 per term up to a maximum of $2,000.00 subject to the following conditions:
(a) Credits are earned in a 4-year program at a Michigan degree granting 4-year college or university.
(b) The tuition reimbursement is for coursework completed within 30 months of completion of the phase I requirements.
(7) Program payments shall not be used by any recipient for theology or divinity courses.
(8) The department shall work closely with participating institutions to develop an application and eligibility determination process that will provide the highest level of participation and ensure that all requirements of the program are met.
(9) Applications for the tuition incentive program may be approved at any time after the student begins the sixth grade. If a determination of financial eligibility is made, that determination is valid as long as the student meets all other program requirements and conditions.
(10) Each institution shall ensure that all known available restricted grants for tuition and fees are used prior to billing the tuition incentive program for any portion of a student's tuition and fees.
(11) The department shall ensure that the tuition incentive program is well publicized and that potentially eligible Medicaid clients are provided information on the program. The department shall provide the necessary funding and staff to fully operate the program.
(12) Any unexpended and unencumbered funds remaining on September 30, 2004 from the amounts appropriated in part 1 for the tuition incentive program shall not lapse on September 30, 2004, but shall continue to be available for expenditure for the tuition incentive program in the fiscal year ending September 30, 2005.
Sec. 311. To enable the legislature and the state budget director to evaluate the appropriation needs of higher education, each independent college and university shall make available to the legislature or state budget director, upon request, data regarding grants for the preceding, current, and ensuing fiscal years.
Sec. 312. From the funds appropriated in part 1, the Michigan higher education assistance authority shall administer the nursing scholarship program pursuant to 2002 PA 591, MCL 390.1181 to 390.1189.
Sec. 315. Included in part 1 is funding for the dental clinics grant. This appropriation is for the University of Detroit Mercy to support dental clinical services provided by its school of dentistry to low income residents in southeastern Michigan.
STATE UNIVERSITIES
Sec. 401. (1) Included in part 1 is $5,720,400.00 to Wayne State University for the Joseph F. Young, Sr. psychiatric research and training program. Wayne State University shall use these funds for psychiatric laboratory and clinical research, training, and treatment services. Within the available appropriation, services shall not be denied to any patient who meets established research guidelines for treatment on the basis of personal financial circumstances, age, geographic residence, or projected/actual length of treatment as medically warranted.
(2) Wayne State University shall report the following information to the department of community health by November 1, 2004:
(a) The number and type of psychiatric research projects funded by the appropriation described in subsection (1).
(b) The number and type of students trained and the location of training funded by the appropriation.
(c) Demographic data regarding the number and profile of patients to receive psychiatric services funded by the appropriation and a profile of the services provided.
(d) A summary budget outlining major expenditure categories and any first- and third-party reimbursements.
(3) Copies of these reports shall also be provided to the house and senate fiscal agencies and the state budget director.
Sec. 402. The University of Michigan biological station at Douglas Lake in Cheboygan County is regarded as a unique resource and is designated as a special research reserve. It is the intent of the legislature to protect and preserve the unique long-term research value and capabilities of the biological station area and Douglas Lake. The legislature further intends that no state programs or policies be developed that would have a deleterious impact on the research value of Douglas Lake.
Sec. 405. (1) There is created the higher education institutional data inventory advisory committee. The committee shall be appointed by the state budget director and shall consist of the following members:
(a) One representative from the house fiscal agency.
(b) One representative from the senate fiscal agency.
(c) One representative from the state budget director's office.
(d) Three representatives of the presidents council of state universities. The presidents council shall appoint 1 representative each from a masters, a doctoral, and a research university.
(2) The committee shall be responsible for maintaining and enhancing the state higher education database for which funding is included in part 1.
Sec. 408. The legislature recognizes that the first and foremost obligation of the public universities is undergraduate instruction. The public universities are therefore encouraged to increase their commitment of tenured and tenure track faculty to undergraduate instruction.
Sec. 418. No state funds shall be used by any state university to undertake a collaborative effort with any other university that would have the effect of increasing its enrollment of first-time professional law degree seeking students.
Sec. 421. (1) Central Michigan University shall report by September 30, 2004 to the state budget director, house and senate appropriations committees, and the house and senate fiscal agencies information on the activities and effectiveness of the national charter schools institute for which an appropriation is provided in part 1. Included in the report shall be an accounting of all revenues and expenditures of the institute, the names of the public school academies served, and the type of assistance provided to each public school academy.
(2) All funds received under part 1 for the national charter schools institute are intended to be expended on activities of that institute.
Sec. 426. It is the legislative intent that private bookstores that sell textbooks to university students and student governments that provide a book swap for university students have accurate and timely access to lists of universities' required textbooks in order to provide prompt and efficient service for students. It is further the legislative intent that each state university allow students who are on financial aid or are receiving tuition grants to decide where to purchase their textbooks.
Sec. 433. (1) Included in part 1 is $2,953,400.00 for the agricultural experiment station and $2,619,000.00 for the cooperative extension service for project GREEEN. Project GREEEN is intended to address critical regulatory, food safety, economic, and environmental problems faced by this state's plant-based agriculture, forestry, and processing industries. "GREEEN" is an acronym for generating research and extension to meet environmental and economic needs.
(2) The department of agriculture and Michigan State University, in consultation with agricultural commodity groups and other interested parties, shall develop project GREEEN and its program priorities.
(3) Not later than September 30, 2004, a report shall be submitted by Michigan State University to the state budget director, the house and senate appropriations subcommittees on agriculture and on higher education, and the house and senate fiscal agencies for the preceding fiscal year regarding project GREEEN projects. The report shall include, but is not limited to, the dollar amount of each project and a review of each project's performance and accomplishments.
Sec. 434. All state universities shall work with the Michigan economic development corporation (MEDC) to foster the state's economic development. The presidents council shall meet quarterly with the MEDC or its representative to discuss potential cooperative efforts and examine any strategies or issues of concern related to advancement of Michigan's economic development. The state universities, through its presidents council, shall submit a report that summarizes the discussion and identifies any conclusions or recommendations of the participants at each quarterly meeting. The quarterly report shall be submitted to the state budget director, the house and senate appropriations subcommittees on higher education, and the house and senate fiscal agencies no later than 30 days after each quarterly meeting.
Sec. 436. The appropriations in part 1 for Michigan's 15 public universities are intended to maintain the access and affordability to these institutions for students and parents. As a condition to receiving the appropriations in part 1, public universities shall adopt reasonable tuition and fee increases for the 2003-2004 academic year.
Sec. 437. It is the intent of the legislature that funds in a Michigan public school employee retirement system (MPSERS) stabilization subaccount be used for fiscal year 2003-04 to maintain the annual level percentage of the payroll contribution rate at the fiscal year 2002-03 estimated rate for the 7 state universities that have employees in the MPSERS system.
Sec. 439. Any of Michigan's public universities which have a policy allowing smoking in their dormitories or residence halls shall report to the legislature, by December 1, 2003, the reason or reasons for that policy.
MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS PROGRAMS
Sec. 501. (1) Included in the appropriation for each public university in part 1 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks future faculty program, that is intended to increase the pool of minority candidates pursuing faculty teaching careers in postsecondary education. Each university shall apply the percentage increase applicable to every university in the calculation of appropriations in part 1 to the amount of funds allocated to the future faculty program.
(2) The program shall be administered by each university in a manner prescribed by the Michigan department of career development. The Michigan department of career development shall use a good faith effort standard to evaluate whether a fellowship is in default.
Sec. 502. (1) Included in the appropriation for each public university in part 1 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college day program that is intended to introduce schoolchildren underrepresented in postsecondary education to the potential of a college education.
(2) Individual program plans of each university shall include a budget of equal contributions from this program, the participating public university, the participating school district, and the participating independent degree granting college. College day funds shall not be expended to cover indirect costs. Not more than 20% of the university match shall be attributable to indirect costs. Each university shall apply the percentage increase applicable to every university in the calculation of appropriations in part 1 to the amount of funds allocated to the college day program.
(3) The program shall be administered by each university in a manner prescribed by the Michigan department of career development.
Sec. 503. (1) Included in part 1 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks select student support services program for developing academically and economically disadvantaged student retention programs for 4-year public and independent educational institutions in this state.
(2) An award made under this program to any 1 institution shall not be greater than $150,000.00, and the amount awarded shall be matched on a 70% state, 30% college or university basis.
(3) The program shall be administered by the Michigan department of career development.
Sec. 504. (1) Included in part 1 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college/university partnership program between 4-year public and independent colleges and universities and public community colleges, which is intended to increase the number of academically and economically disadvantaged students who transfer from community colleges into baccalaureate programs.
(2) The grants shall be made under this program to Michigan public and independent colleges and universities. An award to any 1 institution shall not be greater than $150,000.00, and the amount awarded shall be matched on a 70% state, 30% college or university basis.
(3) The program shall be administered by the Michigan department of career development.
Sec. 505. (1) Included in the appropriation for each public university in part 1 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks visiting professors program which is intended to increase the number of underrepresented minority instructors in the classroom and provide role models for underrepresented minority students.
(2) The program shall be administered by the Michigan department of career development.
Sec. 506. (1) Included in the appropriation in part 1 is funding under the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks initiative for the Morris Hood, Jr. educator development program which is intended to increase the number of minority students, especially males, who enroll in and complete K-12 teacher education programs at the baccalaureate level.
(2) The program shall be administered by each state-approved teacher education institution in a manner prescribed by the Michigan department of career development.
(3) Approved teacher education institutions may and are encouraged to use student support services funding in coordination with the Morris Hood, Jr. funding to achieve the goals of the program.
Sec. 507. Each state institution of higher education receiving funds under section 503, 504, or 506 shall notify the Michigan department of career development by April 15, 2004 as to whether it will expend by the end of its fiscal year the funds received under section 503, 504, or 506. Notwithstanding the award limitations in sections 503 and 504, the amount of funding reported as not being expended will be reallocated to the institutions that intend to expend all funding received under section 503, 504, or 506.
STUDENT PERFORMANCE REPORTING
Sec. 601. (1) From the amount appropriated in part 1 for state universities, the state universities shall systematically inform Michigan high schools regarding the academic status of students from each high school in a manner prescribed by the presidents council, state universities of Michigan in cooperation with the Michigan association of secondary school principals.
(2) The Michigan high schools shall systematically inform the state universities about the use of information received under this section in a manner prescribed by the Michigan association of secondary school principals in cooperation with the presidents council, state universities of Michigan.
Sec. 602. From the amount appropriated in part 1 for state universities, the state universities shall inform Michigan community colleges regarding the academic status of community college transfer students in a manner prescribed by the presidents council, state universities of Michigan in cooperation with the Michigan community college association.
GENERAL REPORTS AND AUDITS
Sec. 701. (1) The auditor general shall review higher education institutional data inventory (HEIDI) enrollment data submitted by all public universities and may perform audits of selected public universities if determined necessary. The review and audits shall be based upon the definitions, requirements, and uniform reporting categories established by the state budget director and the senate and house fiscal agencies. The auditor general shall submit a report of findings to the house and senate appropriations committees and the state budget director no later than July 1, 2004.
(2) Student credit hours reports shall not include the following:
(a) Student credit hours generated through correspondence courses, credit by examination, or inmate prison programs regardless of teaching location.
(b) Student credit hours generated in new degree programs after January 1, 1975, that have not been specifically authorized for funding by the legislature, except spin-off programs converted from existing core programs that do all of the following:
(i) Represent new options, fields, or concentrations within existing programs.
(ii) Are consistent with the current institutional role and mission.
(iii) Are accommodated within the continuing funding base of the institution.
(iv) Do not require a new degree level beyond that which the institution is currently authorized to grant within that discipline or field.
(v) Do not require funding from the state other than that provided by the student credit hours generated within the program, either before program initiation or within the first 3 years of program operation.
(3) The auditor general shall periodically audit higher education institutional data inventory (HEIDI) data as submitted by the state universities for compliance with the definitions approved by the HEIDI advisory committee for the HEIDI database.
Sec. 701a. (1) Pursuant to section 701(2)(b), the following degree programs may be established:
(a) Bachelors:
Ferris State University Art education, B.F.A.
Ferris State University Biochemistry major, B.A.
Ferris State University Chemistry major, B.A.
Ferris State University Metals/jewelry design, B.F.A.
Grand Valley State University Cell and molecular biology, B.S.
Grand Valley State University Clinical laboratory science, B.S.
Grand Valley State University Dance, B.A.
Grand Valley State University Medical imaging/radiation science, B.S.
Lake Superior State University Athletic training, B.S.
Michigan State University Professional writing, B.A.
Michigan Technological University Computer network and system administration, B.S.
Michigan Technological University Computer systems science, B.S.
Northern Michigan University Earth science, Bachelors
Northern Michigan University Entertainment and sports promotion, Bachelors
Northern Michigan University Geographic information science, Bachelors
Oakland University Financial information systems, B.S.
Oakland University Wellness, health promotion, and injury prevention, B.S.
Wayne State University Major in health education, B.S.
Western Michigan University Athletic training, B.A.
Western Michigan University Engineering, B.S.E.
Western Michigan University Major in financial planning, B.B.A.
Western Michigan University Major in geochemistry, B.S.
Western Michigan University Major in global and international studies, B.A.
(b) Masters:
Central Michigan University Reading and literacy K-12, M.A.
Eastern Michigan University Schools, society, and violence, M.A.
Ferris State University Masters in business administration, M.B.A.
Grand Valley State University Biology, M.S.
Grand Valley State University M.A. program in English, M.A.
Grand Valley State University Psychology, M.S.
Michigan State University Digital rhetoric and professional writing, M.A.
Michigan State University Environmental design, M.A.
Michigan State University Finance, M.S.
Michigan State University Food safety, M.S.
Michigan State University Youth development, M.A.
Saginaw Valley State University Instructional technology, M.A.
University of Michigan Health and health care research, M.S.
University of Michigan International tax, L.L.M.
University of Michigan Media arts, M.A.
University of Michigan-Dearborn Psychology specialization in health psychology, M.S.
University of Michigan-Dearborn Science education, M.S.
Wayne State University Accounting, M.S.
Wayne State University Master of occupational therapy, M.O.T.
(c) Doctorate:
Michigan State University Rhetoric and writing, Ph.D.
Oakland University Ph.D. program in mechanical engineering, Ph.D.
University of Michigan Joint doctoral program on women's studies and sociology
Western Michigan University Evaluation, Ph.D.
Western Michigan University Spanish, Ph.D.
(2) The listing of degree programs in subsection (1) does not constitute legislative intent to provide additional dollars for those programs.
(3) When submitting the listing of new degree programs for future fiscal years, the presidents council shall also provide a listing of degree programs that will no longer be offered in subsequent academic years.
Sec. 702. The principal executive officer of each institution of higher education receiving an appropriation under this act shall expend a portion of the funds appropriated to that institution to make a report to the auditor general, the house and senate fiscal agencies, and the state budget director within 60 days after the auditor general issues his or her report on the operation of the institution. The institution's report shall specify all of the following:
(a) The recommendations of the auditor general implemented by the institution, including projected dates and resources required, if any, to achieve compliance.
(b) The recommendations of the auditor general not implemented by the institution or implemented by the institution as modified.
(c) The rationale for not implementing a recommendation of the auditor general or of implementing a recommendation as modified.
Sec. 708. The auditor general may conduct performance audits of state universities during the fiscal year ending September 30, 2004 as the auditor general considers necessary.
Sec. 709. An institution receiving funds under this bill and also subject to the student right-to-know and campus security act, Public Law 101-522, 104 Stat. 2381, shall make a copy of all material prepared pursuant to the public information reporting requirements under the crime awareness and campus security act of 1990, title II of the student right-to-know and campus security act, Public Law 101-542, 104 Stat. 2381 available in electronic Internet format on their websites.
Sec. 710. By February 15, 2004, each public university that receives funds under this act shall report to the house and senate appropriations subcommittees on higher education and the house and senate fiscal agencies the aggregate dollar amount and the number and percentages of undergraduate students who receive need-based grants, merit-based scholarships and grants, loans, and work-study financial aid for the academic year 2002-2003.
PART 2A
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2002-2003
GENERAL SECTIONS
Sec. 1201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1A for fiscal year 2002-2003 is $7,000,000.00 and state spending from state resources to be paid to local units of government for fiscal year 2002-2003 is $0.00.
Sec. 1301. The appropriations in 2002 PA 746 for fiscal year 2002-2003, sections 153 and 157, financed from the Michigan merit award trust fund, shall be appropriated from the tobacco settlement trust fund instead of the Michigan merit award trust fund. An amount of $1,595,982.00 for community colleges and $9,060,952.00 for higher education shall be appropriated from the tobacco settlement trust fund instead of the Michigan merit award trust fund.
Sec. 1302. It is the intent of the legislature that Michigan competitive scholarship award applicants and Michigan tuition grant applicants be notified not later than July 31, 2003 of the status of their awards.
Second: That the House and Senate agree to the title of the bill to read as follows:
A bill to make appropriations for the state institutions of higher education and certain state purposes related to education for the fiscal year ending September 30, 2003 and for the fiscal year ending September 30, 2004; to provide for the expenditures of those appropriations; and to prescribe the powers and duties of certain state departments, institutions, agencies, employees, and officers.
Sandy Caul
Glenn Steil, Jr.
Rich Brown
Conferees for the House
Mike Goschka
Shirley Johnson
Deborah Cherry
Conferees for the Senate
Pending the order that, under joint rule 9, the conference report be laid over one day,
Senator Hammerstrom moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on the adoption of the conference report,
The first conference report was adopted, a majority of the members serving voting therefor, as follows:
Roll Call No. 385 Yeas--37
Allen | Clark-Coleman | Hardiman | Prusi |
Barcia | Clarke | Jacobs | Sanborn |
Basham | Cropsey | Jelinek | Schauer |
Bernero | Emerson | Johnson | Sikkema |
Birkholz | Garcia | Kuipers | Stamas |
Bishop | George | Leland | Switalski |
Brater | Gilbert | McManus | Thomas |
Brown | Goschka | Olshove | Toy |
Cassis | Hammerstrom | Patterson | Van Woerkom |
Cherry
Nays--0
Excused--1
Scott
Not Voting--0
In The Chair: Sanborn
Senator Hammerstrom moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor.
By unanimous consent the Senate returned to the order of
Third Reading of Bills
Senator Hammerstrom moved that the rules be suspended and that the following bills, now on the order of Third Reading of Bills, be placed on their immediate passage:
Senate Bill No. 99
House Bill No. 4218
House Bill No. 4866
House Bill No. 4627
House Bill No. 4630
House Bill No. 4631
The motion prevailed, a majority of the members serving voting therefor.
Senator Schauer moved that Senator Emerson be temporarily excused from the balance of today's session.
The motion prevailed.
Senator Emerson entered the Senate Chamber.
The following bill was read a third time:
Senate Bill No. 99, entitled
A bill to authorize the administration of an organ donor leave time program for certain persons employed by this state; to provide for implementation and operation; and to prescribe powers and duties of certain state officers and agencies.
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows:
Roll Call No. 386 Yeas--37
Allen | Clark-Coleman | Hardiman | Prusi |
Barcia | Clarke | Jacobs | Sanborn |
Basham | Cropsey | Jelinek | Schauer |
Bernero | Emerson | Johnson | Sikkema |
Birkholz | Garcia | Kuipers | Stamas |
Bishop | George | Leland | Switalski |
Brater | Gilbert | McManus | Thomas |
Brown | Goschka | Olshove | Toy |
Cassis | Hammerstrom | Patterson | Van Woerkom |
Cherry
Nays--0
Excused--1
Scott
Not Voting--0
In The Chair: Sanborn
The Senate agreed to the title of the bill.
The following bill was read a third time:
House Bill No. 4218, entitled
A bill to amend 1976 PA 451, entitled "The revised school code," by amending section 1303 (MCL 380.1303), as amended by 1995 PA 289.
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows:
Roll Call No. 387 Yeas--37
Allen | Clark-Coleman | Hardiman | Prusi |
Barcia | Clarke | Jacobs | Sanborn |
Basham | Cropsey | Jelinek | Schauer |
Bernero | Emerson | Johnson | Sikkema |
Birkholz | Garcia | Kuipers | Stamas |
Bishop | George | Leland | Switalski |
Brater | Gilbert | McManus | Thomas |
Brown | Goschka | Olshove | Toy |
Cassis | Hammerstrom | Patterson | Van Woerkom |
Cherry
Nays--0
Excused--1
Scott
Not Voting--0
In The Chair: Sanborn
The question being on concurring in the committee recommendation to give the bill immediate effect,
The recommendation was concurred in, 2/3 of the members serving voting therefor.
Pursuant to Joint Rule 20, the full title of the act shall be inserted to read as follows:
"An act to provide a system of public instruction and elementary and secondary schools; to revise, consolidate, and clarify the laws relating to elementary and secondary education; to provide for the organization, regulation, and maintenance of schools, school districts, public school academies, and intermediate school districts; to prescribe rights, powers, duties, and privileges of schools, school districts, public school academies, and intermediate school districts; to provide for the regulation of school teachers and certain other school employees; to provide for school elections and to prescribe powers and duties with respect thereto; to provide for the levy and collection of taxes; to provide for the borrowing of money and issuance of bonds and other evidences of indebtedness; to establish a fund and provide for expenditures from that fund; to provide for and prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to provide for licensure of boarding schools; to prescribe penalties; and to repeal acts and parts of acts,".
The Senate agreed to the full title.
The following bill was read a third time:
House Bill No. 4866, entitled
A bill to amend 1961 PA 112, entitled "An act to authorize and provide for the issuance, sale, and refunding of bonds, notes, or commercial paper of the state; to provide funds for making loans to school districts for payment of principal and interest on certain school bonds; to provide for use of moneys repaid to the state by school districts; and to make an appropriation," by amending section 3 (MCL 388.983), as amended by 1991 PA 64.
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows:
Roll Call No. 388 Yeas--37
Allen | Clark-Coleman | Hardiman | Prusi |
Barcia | Clarke | Jacobs | Sanborn |
Basham | Cropsey | Jelinek | Schauer |
Bernero | Emerson | Johnson | Sikkema |
Birkholz | Garcia | Kuipers | Stamas |
Bishop | George | Leland | Switalski |
Brater | Gilbert | McManus | Thomas |
Brown | Goschka | Olshove | Toy |
Cassis | Hammerstrom | Patterson | Van Woerkom |
Cherry
Nays--0
Excused--1
Scott
Not Voting--0
In The Chair: Sanborn
The question being on concurring in the committee recommendation to give the bill immediate effect,
The recommendation was concurred in, 2/3 of the members serving voting therefor.
The Senate agreed to the title of the bill.
The following bill was read a third time:
House Bill No. 4627, entitled
A bill to amend 1952 PA 214, entitled "An act authorizing the Mackinac bridge authority to acquire a bridge connecting the upper and lower peninsulas of Michigan, including causeways, tunnels, roads and all useful related equipment and facilities, including park, parking, recreation, lighting and terminal facilities; extending the corporate existence of the authority; authorizing such authority to enjoy and carry out all powers incident to its corporate objects; authorizing the appropriation and use of state funds for the preliminary purposes of the authority; providing for the payment of the cost of such bridge and in that connection authorizing the authority to issue revenue bonds payable solely from the revenues of the bridge; granting the right of condemnation to the authority; granting the use of state land and property to the authority; making provisions for the payment and security of such bonds and granting certain rights and remedies to the holders thereof; authorizing banks and trust companies to perform certain acts in connection therewith; authorizing the imposition of tolls and charges; authorizing the authority to secure the consent of the United States government to the construction of the bridge and to secure approval of plans, specifications and location of same; authorizing employment of engineers irrespective of whether such engineers have been previously employed to make preliminary inspections or reports with respect to the bridge; authorizing the state highway department to operate and maintain such bridge or to contribute thereto and enter into leases and agreements in connection therewith; exempting such bonds and the property of the authority from taxation; prohibiting competing traffic facilities; authorizing the operation of ferries by the authority; providing for the construction and use of certain buildings; and making an appropriation," by amending section 7 (MCL 254.317).
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows:
Roll Call No. 389 Yeas--24
Allen | Garcia | Jelinek | Sanborn |
Birkholz | George | Johnson | Schauer |
Bishop | Gilbert | Kuipers | Sikkema |
Brown | Goschka | McManus | Stamas |
Cassis | Hammerstrom | Patterson | Toy |
Cropsey | Hardiman | Prusi | Van Woerkom |
Nays--13
Barcia | Cherry | Emerson | Olshove |
Basham | Clark-Coleman | Jacobs | Switalski |
Bernero | Clarke | Leland | Thomas |
Brater
Excused--1
Scott
Not Voting--0
In The Chair: Sanborn
The question being on concurring in the committee recommendation to give the bill immediate effect,
The recommendation was concurred in, 2/3 of the members serving voting therefor.
The Senate agreed to the title of the bill.
The following bill was read a third time:
House Bill No. 4630, entitled
A bill to amend 1952 PA 214, entitled "An act authorizing the Mackinac bridge authority to acquire a bridge connecting the upper and lower peninsulas of Michigan, including causeways, tunnels, roads and all useful related equipment and facilities, including park, parking, recreation, lighting and terminal facilities; extending the corporate existence of the authority; authorizing such authority to enjoy and carry out all powers incident to its corporate objects; authorizing the appropriation and use of state funds for the preliminary purposes of the authority; providing for the payment of the cost of such bridge and in that connection authorizing the authority to issue revenue bonds payable solely from the revenues of the bridge; granting the right of condemnation to the authority; granting the use of state land and property to the authority; making provisions for the payment and security of such bonds and granting certain rights and remedies to the holders thereof; authorizing banks and trust companies to perform certain acts in connection therewith; authorizing the imposition of tolls and charges; authorizing the authority to secure the consent of the United States government to the construction of the bridge and to secure approval of plans, specifications and location of same; authorizing employment of engineers irrespective of whether such engineers have been previously employed to make preliminary inspections or reports with respect to the bridge; authorizing the state highway department to operate and maintain such bridge or to contribute thereto and enter into leases and agreements in connection therewith; exempting such bonds and the property of the authority from taxation; prohibiting competing traffic facilities; authorizing the operation of ferries by the authority; providing for the construction and use of certain buildings; and making an appropriation," by amending section 12 (MCL 254.322).
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows:
Roll Call No. 390 Yeas--37
Allen | Clark-Coleman | Hardiman | Prusi |
Barcia | Clarke | Jacobs | Sanborn |
Basham | Cropsey | Jelinek | Schauer |
Bernero | Emerson | Johnson | Sikkema |
Birkholz | Garcia | Kuipers | Stamas |
Bishop | George | Leland | Switalski |
Brater | Gilbert | McManus | Thomas |
Brown | Goschka | Olshove | Toy |
Cassis | Hammerstrom | Patterson | Van Woerkom |
Cherry
Nays--0
Excused--1
Scott
Not Voting--0
In The Chair: Sanborn
The question being on concurring in the committee recommendation to give the bill immediate effect,
The recommendation was concurred in, 2/3 of the members serving voting therefor.
The Senate agreed to the title of the bill.
The following bill was read a third time:
House Bill No. 4631, entitled
A bill to amend 1951 PA 51, entitled "An act to provide for the classification of all public roads, streets, and highways in this state, and for the revision of that classification and for additions to and deletions from each classification; to set up and establish the Michigan transportation fund; to provide for the deposits in the Michigan transportation fund of specific taxes on motor vehicles and motor vehicle fuels; to provide for the allocation of funds from the Michigan transportation fund and the use and administration of the fund for transportation purposes; to set up and establish the truck safety fund; to provide for the allocation of funds from the truck safety fund and administration of the fund for truck safety purposes; to set up and establish the Michigan truck safety commission; to establish certain standards for road contracts for certain businesses; to provide for the continuing review of transportation needs within the state; to authorize the state transportation commission, counties, cities, and villages to borrow money, issue bonds, and make pledges of funds for transportation purposes; to authorize counties to advance funds for the payment of deficiencies necessary for the payment of bonds issued under this act; to provide for the limitations, payment, retirement, and security of the bonds and pledges; to provide for appropriations and tax levies by counties and townships for county roads; to authorize contributions by townships for county roads; to provide for the establishment and administration of the state trunk line fund, critical bridge fund, comprehensive transportation fund, and certain other funds; to provide for the deposits in the state trunk line fund, critical bridge fund, comprehensive transportation fund, and certain other funds of money raised by specific taxes and fees; to provide for definitions of public transportation functions and criteria; to define the purposes for which Michigan transportation funds may be allocated; to provide for Michigan transportation fund grants; to provide for review and approval of transportation programs; to provide for submission of annual legislative requests and reports; to provide for the establishment and functions of certain advisory entities; to provide for conditions for grants; to provide for the issuance of bonds and notes for transportation purposes; to provide for the powers and duties of certain state and local agencies and officials; to provide for the making of loans for transportation purposes by the state transportation department and for the receipt and repayment by local units and agencies of those loans from certain specified sources; and to repeal acts and parts of acts," by amending section 11 (MCL 247.661), as amended by 2002 PA 639.
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows:
Roll Call No. 391 Yeas--24
Allen | Garcia | Jelinek | Sanborn |
Birkholz | George | Johnson | Schauer |
Bishop | Gilbert | Kuipers | Sikkema |
Brown | Goschka | McManus | Stamas |
Cassis | Hammerstrom | Patterson | Toy |
Cropsey | Hardiman | Prusi | Van Woerkom |
Nays--13
Barcia | Cherry | Emerson | Olshove |
Basham | Clark-Coleman | Jacobs | Switalski |
Bernero | Clarke | Leland | Thomas |
Brater
Excused--1
Scott
Not Voting--0
In The Chair: Sanborn
The question being on concurring in the committee recommendation to give the bill immediate effect,
The recommendation was concurred in, 2/3 of the members serving voting therefor.
The Senate agreed to the title of the bill.
By unanimous consent the Senate returned to the order of
General Orders
Senator Hammerstrom moved that the Senate resolve itself into the Committee of the Whole for consideration of the General Orders calendar.
The motion prevailed, and the Assistant President pro tempore, Senator Sanborn, designated Senator Brater as Chairperson.
After some time spent therein, the Committee arose; and, the Assistant President pro tempore, Senator Sanborn, having resumed the Chair, the Committee reported back to the Senate, favorably and with a substitute therefor, the following bill:
Senate Bill No. 334, entitled
A bill to amend 1951 PA 51, entitled "An act to provide for the classification of all public roads, streets, and highways in this state, and for the revision of that classification and for additions to and deletions from each classification; to set up and establish the Michigan transportation fund; to provide for the deposits in the Michigan transportation fund of specific taxes on motor vehicles and motor vehicle fuels; to provide for the allocation of funds from the Michigan transportation fund and the use and administration of the fund for transportation purposes; to set up and establish the truck safety fund; to provide for the allocation of funds from the truck safety fund and administration of the fund for truck safety purposes; to set up and establish the Michigan truck safety commission; to establish certain standards for road contracts for certain businesses; to provide for the continuing review of transportation needs within the state; to authorize the state transportation commission, counties, cities, and villages to borrow money, issue bonds, and make pledges of funds for transportation purposes; to authorize counties to advance funds for the payment of deficiencies necessary for the payment of bonds issued under this act; to provide for the limitations, payment, retirement, and security of the bonds and pledges; to provide for appropriations and tax levies by counties and townships for county roads; to authorize contributions by townships for county roads; to provide for the establishment and administration of the state trunk line fund, critical bridge fund, comprehensive transportation fund, and certain other funds; to provide for the deposits in the state trunk line fund, critical bridge fund, comprehensive transportation fund, and certain other funds of money raised by specific taxes and fees; to provide for definitions of public transportation functions and criteria; to define the purposes for which Michigan transportation funds may be allocated; to provide for Michigan transportation fund grants; to provide for review and approval of transportation programs; to provide for submission of annual legislative requests and reports; to provide for the establishment and functions of certain advisory entities; to provide for conditions for grants; to provide for the issuance of bonds and notes for transportation purposes; to provide for the powers and duties of certain state and local agencies and officials; to provide for the making of loans for transportation purposes by the state transportation department and for the receipt and repayment by local units and agencies of those loans from certain specified sources; and to repeal acts and parts of acts," by amending section 13 (MCL 247.663), as amended by 1999 PA 54.
Substitute (S-3).
The following are the amendments to the substitute recommended by the Committee of the Whole:
1. Amend page 8, line 27, after "the" by inserting "major street system being spent on a".
2. Amend page 9, line 2, after "on" by inserting "maintenance and".
The Senate agreed to the substitute, as amended, recommended by the Committee of the Whole, and the bill as substituted was placed on the order of Third Reading of Bills.
By unanimous consent the Senate returned to the order of
Conference Reports
House Bill No. 4393, entitled
A bill to make appropriations for the department of environmental quality for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to create certain funds and accounts; to require certain reports; to prescribe the powers and duties of certain state agencies and officials; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by the various state agencies.
The House of Representatives has adopted the report of the Committee of Conference.
The Conference Report was read as follows:
FIRST CONFERENCE REPORT
The Committee of Conference on the matters of difference between the two Houses concerning
House Bill No. 4393, entitled
A bill to make appropriations for the department of environmental quality for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to create certain funds and accounts; to require certain reports; to prescribe the powers and duties of certain state agencies and officials; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by the various state agencies.
Recommends:
First: That the Senate recede from the Substitute of the Senate as passed by the Senate.
Second: That the House and Senate agree to the Substitute of the House as passed by the House, amended to read as follows:
A bill to make appropriations for the department of environmental quality for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to create certain funds and accounts; to require certain reports; to prescribe the powers and duties of certain state agencies and officials; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by the various state agencies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for the department of environmental quality for the fiscal year ending September 30, 2004, from the funds indicated in this part. The following is a summary of the appropriations in this part:
DEPARTMENT OF ENVIRONMENTAL QUALITY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 1,605.7
GROSS APPROPRIATION $ 346,424,400
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers | $ | 14,142,900 |
ADJUSTED GROSS APPROPRIATION | $ | 332,281,500 |
Federal revenues:
Total federal revenues 129,169,500
Special revenue funds:
Total local revenues 0
Total private revenues 435,700
Total other state restricted revenues 146,480,000
State general fund/general purpose $ 56,196,300
FUND SOURCE SUMMARY:
Full-time equated unclassified positions 6.0
Full-time equated classified positions 1,605.7
GROSS APPROPRIATION $ 346,424,400
Interdepartmental grant revenues:
IDG-MDA 100,000
IDG-MDCH, local public health operations 10,472,500
IDG-MDSP 632,200
IDG, Michigan transportation fund 884,800
IDT, interdivisional charges 2,053,400
Total interdepartmental grants and intradepartmental transfers 14,142,900
ADJUSTED GROSS APPROPRIATION $ 332,281,500
Federal revenues:
DOC-NOAA, federal 3,063,500
DOD, federal 455,300
DOI, federal 525,900
EPA, multiple 124,722,900
FEMA, federal 401,900
Total federal revenues 129,169,500
Special revenue funds:
Private funds 435,700
Total private revenues $ 435,700
Aboveground storage tank fees 717,500
Air emissions fees 11,572,700
CESARS service fee 26,300
Clean Michigan initiative - administration 2,885,700
Clean Michigan initiative - clean water fund 4,400,000
Clean Michigan initiative - response activities 1,600,000
Cleanup and redevelopment fund 14,797,100
Community pollution prevention fund 250,000
Drinking water revolving fund 6,059,000
Environmental education fund 184,500
Environmental pollution prevention fund 1,492,700
Environmental protection fund 15,042,700
Environmental response fund 21,503,900
Fees and collections 818,700
Financial instruments 5,000,000
Great Lakes protection fund 2,551,100
Groundwater and freshwater protection fund 200,000
Groundwater discharge permit fees 1,700,000
Hazardous materials transportation permit fund 87,800
Land and water permit fees 3,330,900
Landfill maintenance trust fund 47,200
Metallic mining surveillance fee revenue 68,200
Mineral well regulatory fee revenue 215,300
NPDES fees 3,000,000
Oil and gas regulatory fund 7,814,200
Orphan well fund 2,002,000
Public utility assessments 786,100
Public water supply fees 4,445,600
Publication revenue 103,200
Retired engineers technical assistance fund 1,500,000
Saginaw Bay and River restoration revenue 154,500
Sand extraction fee revenue 188,300
Scrap tire regulatory fund 4,642,800
Septage waste license fees 1,752,400
Settlement funds 3,395,900
Sewage sludge land application fee 742,500
Soil erosion and sedimentation control training fund 101,300
Solid waste program fees 3,914,500
Stormwater permit fees 2,526,500
Submerged log recovery fund 101,600
Underground storage tank fees 4,245,400
Waste reduction fee revenue 4,464,300
Wastewater operator training fees 168,400
Water analysis fees 2,839,700
Water pollution control revolving fund 2,884,300
Water quality protection fund 25,000
Water use reporting fees 130,200
Total other state restricted revenues 146,480,000
State general fund/general purpose $ 56,196,300
Sec. 102. EXECUTIVE
Full-time equated unclassified positions 6.0
Full-time equated classified positions 15.0
Unclassified salaries--6.0 FTE positions $ 482,600
Executive direction--8.0 FTE positions 847,500
Office of the Great Lakes--7.0 FTE positions 820,700
GROSS APPROPRIATION $ 2,150,800
Appropriated from:
Federal revenues:
DOI, federal $ 120,000
EPA, multiple 101,100
Special revenue funds:
Environmental education fund 184,500
Environmental response fund 43,200
Great Lakes protection fund 501,100
Oil and gas regulatory fund 89,600
Settlement funds 210,700
State general fund/general purpose $ 900,600
Sec. 103. DEPARTMENT SUPPORT SERVICES
Full-time equated classified positions 72.0
Financial and business services--32.0 FTE positions $ 1,570,600
Field operations support--20.0 FTE positions 1,325,600
Automated data processing 2,053,400
Office of special environmental projects--3.0 FTE positions 406,300
Personnel--13.0 FTE positions 715,200
Administrative hearings--4.0 FTE positions 369,900
Building occupancy charges 7,895,000
Rent - privately owned property 1,836,900
Environmental support projects 5,000,000
GROSS APPROPRIATION $ 21,172,900
Appropriated from:
Interdepartmental grant revenues:
IDT, interdivisional charges 2,053,400
Federal revenues:
EPA, multiple 57,800
Special revenue funds:
Aboveground storage tank fees 25,600
Air emissions fees 401,800
Clean Michigan initiative - administration 162,600
Environmental pollution prevention fund 62,900
Environmental response fund 1,443,700
Fees and collections 99,400
Financial instruments 5,000,000
Land and water permit fees 107,500
Oil and gas regulatory fund 598,100
Public utility assessments 12,300
Public water supply fees 528,100
Scrap tire regulatory fund 88,400
Settlement funds 170,600
Solid waste program fees 69,600
Stormwater permit fees 50,500
Underground storage tank fees 206,600
Waste reduction fee revenue 54,700
Water analysis fees 187,700
Water pollution control revolving fund 14,900
Water use reporting fees 8,400
State general fund/general purpose $ 9,768,300
Sec. 104. AIR QUALITY
Full-time equated classified positions 249.5
Air quality programs--249.5 FTE positions | $ | 20,546,300 |
GROSS APPROPRIATION | $ | 20,546,300 |
Appropriated from:
Federal revenues:
EPA, multiple 3,777,100
Special revenue funds:
Air emissions fees $ 10,029,800
Environmental response fund 89,200
Fees and collections 343,000
State general fund/general purpose $ 6,307,200
Sec. 105. ENVIRONMENTAL SCIENCE AND SERVICES
Full-time equated classified positions 184.5
Environmental services--26.5 FTE positions $ 1,886,000
Laboratory services--68.0 FTE positions 5,886,600
Municipal assistance--35.5 FTE positions 4,670,800
Pollution prevention and technical assistance--54.5 FTE positions 5,062,800
Pollution prevention outreach 300,000
Retired engineers technical assistance program 1,500,000
GROSS APPROPRIATION $ 19,306,200
Appropriated from:
Interdepartmental grant revenues:
IDG-MDA 100,000
Federal revenues:
DOC-NOAA, federal 300,000
EPA, multiple 2,150,600
Special revenue funds:
Private funds 300,000
Air emissions fees 654,200
Clean Michigan initiative - administration 147,900
Clean Michigan initiative - response activities 1,600,000
Drinking water revolving fund 1,273,800
Environmental protection fund 58,200
Environmental response fund 255,800
Public water supply fees 218,000
Retired engineers technical assistance fund 1,500,000
Settlement funds 363,100
Stormwater permit fees 86,500
Waste reduction fee revenue 3,962,900
Wastewater operator training fees 168,400
Water analysis fees 2,496,600
Water pollution control revolving fund 2,159,300
State general fund/general purpose $ 1,510,900
Sec. 106. GEOLOGICAL AND LAND MANAGEMENT
Full-time equated classified positions 201.5
Program direction--11.0 FTE positions $ 797,800
Coal and sand dune management--3.0 FTE positions 594,200
Field permitting and project assistance--69.0 FTE positions 5,858,700
Great Lakes shorelands--28.0 FTE positions 2,374,800
Metallic mine reclamation--1.0 FTE position 68,200
Mineral wells management--3.0 FTE positions 215,300
Orphan well--2.5 FTE positions 2,002,000
Services to oil and gas--61.0 FTE positions 6,623,600
Water management--23.0 FTE positions 2,120,800
Submerged log recovery 101,600
GROSS APPROPRIATION $ 20,757,000
Appropriated from:
Interdepartmental grant revenues:
IDG, Michigan transportation fund 838,500
Federal revenues:
DOC-NOAA, federal 1,237,900
DOI, federal 405,900
EPA, multiple $ 453,000
FEMA, federal 401,900
Special revenue funds:
Environmental response fund 75,900
Land and water permit fees 2,691,700
Metallic mining surveillance fee revenue 68,200
Mineral well regulatory fee revenue 215,300
Oil and gas regulatory fund 6,444,500
Orphan well fund 2,002,000
Publication revenue 103,200
Sand extraction fee revenue 188,300
Submerged log recovery fund 101,600
State general fund/general purpose $ 5,529,100
Sec. 107. REMEDIATION AND REDEVELOPMENT
Full-time equated classified positions 304.5
Contaminated site investigation, cleanup, and revitalization--233.5 FTE positions $ 19,957,900
Federal cleanup project management--71.0 FTE positions 7,203,200
Emergency cleanup actions 4,000,000
Environmental cleanup and redevelopment program 21,715,000
State cleanup 451 3,027,900
Superfund cleanup 4,000,000
GROSS APPROPRIATION $ 59,904,000
Appropriated from:
Federal revenues:
DOD, federal 455,300
EPA, multiple 8,723,200
Special revenue funds:
Private funds 135,700
Clean Michigan initiative - administration 2,038,200
Cleanup and redevelopment fund 13,097,100
Environmental protection fund 14,915,500
Environmental response fund 18,569,200
Landfill maintenance trust fund 47,200
Settlement funds 1,922,600
State general fund/general purpose $ 0
Sec. 108. WASTE AND HAZARDOUS MATERIALS
Full-time equated classified positions 187.5
Aboveground storage tank program--9.0 FTE positions $ 691,900
Hazardous waste management program--61.0 FTE positions 5,634,200
Low-level radioactive waste authority--2.0 FTE positions 769,700
Radiological protection program--16.5 FTE positions 1,504,800
Scrap tire regulatory program--11.0 FTE positions 915,000
Solid waste management program--51.0 FTE positions 3,846,800
Underground storage tank program--37.0 FTE positions 4,102,900
GROSS APPROPRIATION $ 17,465,300
Appropriated from:
Interdepartmental grant revenues:
IDG-MDSP 632,200
Federal revenues:
EPA, multiple 3,383,400
Special revenue funds:
Aboveground storage tank fees 691,900
Environmental pollution prevention fund 1,429,800
Environmental response fund 262,700
Hazardous materials transportation permit fund 87,800
Public utility assessments 769,700
Scrap tire regulatory fund $ 915,000
Solid waste program fees 3,784,900
Underground storage tank fees 3,864,900
Waste reduction fee revenue 61,900
State general fund/general purpose $ 1,581,100
Sec. 109. WATER
Full-time equated classified positions 369.2
Aquifer protection and dispute resolution $ 400,000
Aquifer protection revolving fund 400,000
Drinking water--84.2 FTE positions 13,663,600
Environmental health--30.0 FTE positions 2,725,400
Fish contaminant monitoring 316,100
Groundwater discharge--31.0 FTE positions 1,717,500
Groundwater use reporting 150,000
NPDES nonstormwater program--121.4 FTE positions 8,624,100
Sewage sludge land application program--6.5 FTE positions 742,500
Surface water--96.1 FTE positions 14,316,300
GROSS APPROPRIATION $ 43,055,500
Appropriated from:
Federal revenues:
EPA, multiple 12,741,400
Special revenue funds:
CESARS service fee 26,300
Clean Michigan initiative - administration 537,000
Clean Michigan initiative - clean water fund 4,400,000
Drinking water revolving fund 3,369,600
Environmental response fund 147,800
Fees and collections 376,300
Great Lakes protection fund 150,000
Groundwater and freshwater protection fund 200,000
Groundwater discharge permit fees 1,700,000
Land and water permit fees 425,000
NPDES fees 3,000,000
Public water supply fees 2,034,200
Saginaw Bay and River restoration revenue 154,500
Septage waste license fees 227,400
Sewage sludge land application fee 742,500
Soil erosion and sedimentation control training fund 101,300
Stormwater permit fees 2,389,500
Water pollution control revolving fund 590,300
Water use reporting fees 121,800
State general fund/general purpose $ 9,620,600
Sec. 110. CRIMINAL INVESTIGATIONS
Full-time equated classified positions 22.0
Environmental investigations--22.0 FTE positions | $ | 1,832,600 |
GROSS APPROPRIATION | $ | 1,832,600 |
Appropriated from:
Federal revenues:
EPA, multiple 129,900
Special revenue funds:
Environmental response fund 111,700
Oil and gas regulatory fund 137,800
Scrap tire regulatory fund 58,100
State general fund/general purpose $ 1,395,100
Sec. 111. GRANTS
Grants to counties--air pollution | $ | 83,700 |
Water pollution control and drinking water revolving fund | $ | 102,353,500 |
Noncommunity water grants 1,400,000
Coastal management grants 1,800,000
Federal - nonpoint source water pollution grants 6,500,000
Federal - Great Lakes remedial action plan grants 700,000
Grants to counties - water quality monitoring 1,700,000
Great Lakes research and protection grants 1,900,000
Pollution prevention local grants 250,000
Radon grants 134,300
Septage waste compliance grants 1,525,000
Scrap tire grants 3,500,000
Drinking water revolving fund implementation 1,330,000
Local health department operations 10,472,500
Volunteer river, stream, and creek cleanup 25,000
GROSS APPROPRIATION $ 133,674,000
Appropriated from:
Interdepartmental grant revenues:
IDG-MDCH, local public health operations 10,472,500
Federal revenues:
DOC-NOAA, federal 1,500,000
EPA, multiple 92,590,000
Special revenue funds:
Cleanup and redevelopment fund 1,700,000
Community pollution prevention fund 250,000
Drinking water revolving fund 1,330,000
Great Lakes protection fund 1,900,000
Public water supply fees 1,400,000
Scrap tire regulatory fund 3,500,000
Septage waste license fees 1,525,000
Water quality protection fund 25,000
State general fund/general purpose $ 17,481,500
Sec. 112. INFORMATION TECHNOLOGY
Information technology services and projects | $ | 6,559,800 |
GROSS APPROPRIATION | $ | 6,559,800 |
Appropriated from:
Interdepartmental grant revenues:
IDG, Michigan transportation fund 46,300
Federal revenues:
DOC-NOAA, federal 25,600
EPA, multiple 615,400
Special revenue funds:
Air emissions fees 486,900
Drinking water revolving fund 85,600
Environmental protection fund 69,000
Environmental response fund 504,700
Land and water permit fees 106,700
Oil and gas regulatory fund 544,200
Public utility assessments 4,100
Public water supply fees 265,300
Scrap tire regulatory fund 81,300
Settlement funds 728,900
Solid waste program fees 60,000
Underground storage tank fees 173,900
Waste reduction fee revenue 384,800
Water analysis fees 155,400
Water pollution control revolving fund 119,800
State general fund/general purpose $ 2,101,900
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2003-2004 is $202,676,300.00 and state spending from state resources to be paid to local units of government for fiscal year 2003-2004 is $20,145,500.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:
DEPARTMENT OF ENVIRONMENTAL QUALITY
GRANTS
Grants to counties - air pollution $ 83,700
Grants to counties - water quality monitoring 1,700,000
Local health department operations 10,472,500
Septage waste compliance program 1,525,000
Scrap tire grants 3,500,000
Noncommunity water grants 1,400,000
Radon grants 134,300
Drinking water grants 1,330,000
TOTAL $ 20,145,500
Sec. 202. The appropriations authorized under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 203. As used in this act:
(a) "CESARS" means chemical evaluation search and retrieval system.
(b) "Department" means the department of environmental quality.
(c) "DOC" means the United States department of commerce.
(d) "DOC-NOAA" means the DOC national oceanic and atmospheric administration.
(e) "DOD" means the United States department of defense.
(f) "DOI" means the United States department of interior.
(g) "EPA" means the United States environmental protection agency.
(h) "FEMA" means the federal emergency management agency.
(i) "FTE" means full-time equated.
(j) "IDG" means interdepartmental grant.
(k) "IDT" means intradepartmental transfer.
(l) "MDA" means the Michigan department of agriculture.
(m) "MDCH" means the Michigan department of community health.
(n) "MDSP" means the Michigan department of state police.
(o) "MI" means Michigan.
(p) "NPDES" means national pollutant discharge elimination system.
Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.
Sec. 205. (1) Beginning October 1, 2004, a hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department.
(2) The state budget director shall grant exceptions to the hiring freeze described in subsection (1) when the state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services, cause a loss of revenue to the state, result in the inability of the state to receive federal funds, or would necessitate additional expenditures that exceed any savings from maintaining a vacancy. The state budget director shall report quarterly to the chairpersons of the senate and house of representatives standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous quarter and the reasons to justify the exception.
Sec. 207. At least 60 days before beginning any effort to privatize, the department shall submit a complete project plan to the appropriate senate and house of representatives appropriations subcommittees and the senate and house fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the appropriate senate and house of representatives appropriations subcommittees and the senate and house fiscal agencies within 30 months.
Sec. 208. Unless otherwise specified in this act, the department shall use the internet to fulfill the reporting requirements of this act. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on an Internet or Intranet site.
Sec. 209. Funds appropriated in part 1 shall not be used for the purchase of foreign goods or services, or both, if competitively priced American goods or services, or both, of comparable quality are available. Preference should be given to goods or services, or both, manufactured or provided by Michigan businesses if they are competitively priced and of comparable value.
Sec. 211. The departments and state agencies receiving appropriations under this act shall receive and retain copies of all reports funded from appropriations in part 1. These departments and state agencies shall follow federal and state guidelines for short-term and long-term retention of these reports. To the extent consistent with federal and state guidelines, the requirements of this section are satisfied if the reports funded from appropriations in part 1 are retained in electronic format.
Sec. 212. By February 15, 2004, the department shall provide the state budget director, the subcommittees on natural resources and environmental quality of the senate and house appropriations committees, and the senate and house fiscal agencies with an annual report on restricted fund balances, projected revenues, and expenditures for the fiscal years ending September 30, 2003 and September 30, 2004.
Sec. 213. (1) From funds appropriated under part 1, the department shall prepare a report that lists all of the following regarding grant or loan or grant and loan programs administered by the department for the fiscal year ending September 30, 2004:
(a) The name of each program.
(b) The goals of the program, the criteria, eligibility, process, filing fees, nominating procedures, and deadlines for each program.
(c) The maximum and minimum grant and loan available and whether there is a match requirement for each program.
(d) The amount of any required match, and whether in-kind contributions may be used as part or all of a required match.
(e) Information pertaining to the application process, timeline for each program, and the contact people within the department.
(f) The source of funds for each program, including the citation of pertinent authorizing acts.
(g) Information regarding plans for the next fiscal year for the phaseout, expansion, or changes for each program.
(h) A listing of all recipients of grants or loans awarded by the department by type and amount of grant or loan.
(2) The reports required under this section shall be submitted to the state budget office, the senate and house appropriations committees, and senate and house fiscal agencies by January 1, 2004.
Sec. 215. The department shall notify the legislature and shall provide a public meeting and public comment opportunity with respect to any request received by the state of Michigan to divert water from the Great Lakes pursuant to the water resources development act of 1986, Public Law 99-662, 100 Stat. 4082.
Sec. 216. (1) The department shall report all of the following information relative to allocations made in part 1 for the environmental cleanup and redevelopment program, state cleanup, emergency actions, superfund cleanup, the revitalization revolving loan program, the brownfield grants and loans program, the leaking underground storage tank cleanup program, the contaminated lake and river sediments cleanup program, and the environmental protection bond projects under section 19508(7) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.19508, to the state budget director, the senate and house appropriations subcommittees on environmental quality, and the senate and house fiscal agencies:
(a) The name and location of the site for which an allocation is made.
(b) The nature of the problem encountered at the site.
(c) A brief description of how the problem will be resolved if the allocation is made for a response activity.
(d) The estimated date that site closure activities will be completed.
(e) The amount of the allocation, or the anticipated financing for the site.
(f) A summary of the sites and the total amount of funds expended at the sites at the conclusion of the fiscal year.
(g) The number of sites that would qualify as brownfields that were redeveloped.
(2) The report prepared under subsection (1) shall also include all of the following:
(a) The status of all state-owned facilities that are on the list compiled under part 201 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20101 to 324.20142.
(b) The report shall include the total amount of funds expended during the fiscal year and the total amount of funds awaiting expenditure.
(c) The total amount of bonds issued for the environmental protection bond program pursuant to part 193 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.19301 to 324.19306, and bonds issued pursuant to the clean Michigan initiative act, 1998 PA 284, MCL 324.95101 to 324.95108.
(3) The report shall be made available by March 31 of each year.
Sec. 217. (1) In addition to the funds appropriated in part 1 for the environmental cleanup and redevelopment program and the leaking underground storage tank cleanup program, the department of environmental quality is authorized to expend amounts remaining from prior fiscal year appropriations to meet funding needs of legislatively approved sites.
(2) Unexpended and unencumbered amounts remaining from appropriations from the environmental protection bond fund contained in 1989 PA 180, 1990 PA 55, 1990 PA 194, 1991 PA 31, 1991 PA 160, 1993 PA 74, 1993 PA 353, 1994 PA 442, 1996 PA 353, and 1997 PA 114 are appropriated for expenditure for any site listed in this act and any site listed in the public acts referenced in this section.
(3) Unexpended and unencumbered amounts remaining from appropriations from the cleanup and redevelopment fund and unclaimed bottle deposits fund contained in 1996 PA 319, 1997 PA 113, 1997 PA 114, 1998 PA 292, 1999 PA 125, 2000 PA 275, 2001 PA 43, and 2002 PA 520 are appropriated for expenditure for any site listed in this act and any site listed in the public acts referenced in this section.
(4) Unexpended and unencumbered amounts remaining from appropriations from the clean Michigan initiative fund - response activities contained in 1999 PA 111, 2000 PA 52, 2000 PA 506, and 2001 PA 120 are appropriated for expenditure for any site listed in this act and any site listed in the public acts referenced in this section.
Sec. 218. Of the money appropriated from the environmental education fund in part 1, $5,000.00 shall be allocated to Michigan State University Extension Service - 4-H Youth Programs to fund the Michigan Youth Conservation Council.
Sec. 219. From the funds appropriated in part 1 for information technology, the department shall pay user fees to the department of information technology for technology-related services and projects. These user fees shall be subject to provisions of an interagency agreement between the department and the department of information technology.
Sec. 220. Amounts appropriated in part 1 for information technology may be designated as work projects and carried forward to support department of environmental quality technology projects under the direction of the department of information technology. Funds designated in this manner are not available for expenditure until approved as work projects under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a.
Sec. 221. The department of information technology shall establish a schedule of rates, user fees, and charges or assessments for standard services and information system support requirements to be made to departments for technology related services and projects. This schedule, as well as copies of related interagency agreements, shall be provided to the state budget office and the house of representatives and senate committees on appropriations before October 15, 2003. The department of environmental quality shall not process any payments or fund transfers to the department of information technology until the schedule of rates, user fees, and assessments is provided to the legislature and the department of environmental quality.
DEPARTMENT SUPPORT SERVICES
Sec. 301. In addition to the annual report on travel expenditures required by section 217 of the management and budget act, 1984 PA 431, MCL 18.1217, the department shall provide to the senate and house appropriation subcommittees on natural resources and the senate and house fiscal agencies a quarterly report within 30 days of the end of each quarter on expenses incurred for travel inside and outside the state. The report shall include, but not be limited to, the name of the person who traveled, total expenditures for compensation, fees, or remuneration for meals, transportation, and related contractual services, supplies, and materials, and the destination, reason for, and dates of the travel.
AIR QUALITY
Sec. 401. The department shall report quarterly, via the department's Internet website, on air quality program expenditures and revenues. The report shall include expenditures and revenues by fund source and by program function.
ENVIRONMENTAL SCIENCE AND SERVICES
Sec. 501. The funds appropriated in part 1 for pollution prevention and technical assistance include authorization for 1.0 FTE position and $60,000.00 to provide technical assistance to organizations and businesses involved in recycling and composting.
Sec. 502. The recycling coordinator shall conduct a study of the state's capacity to handle material recovered for recycling, the feasibility of collecting and transporting the material for recycling within the state, and the ability of the state to sustain markets for products containing recycled content. The department shall make recommendations for improving and expanding recycling in the state in a report submitted to the legislature, the state budget director, and the senate and house fiscal agencies no later than December 30, 2004.
Sec. 503. By July 1, 2004, the department shall prepare and submit a report to the state budget director, the legislature, the chairs of the standing committees of the senate and house of representatives with primary responsibility for issues related to natural resources and the environment, and the chairs of the subcommittees of the senate and house appropriations committees with primary responsibility for appropriations for the department of environmental quality, outlining the implementation of the Great Lakes water quality bond, 2002 PA 397, MCL 324.19701 to 324.19708, including, but not limited to, the amount of bonds issued and the date they were issued, the number of applications received for loans from the state water pollution control revolving fund created in section 16a of the shared credit rating act, 1985 PA 227, MCL 141.1066a, the total amount of loans requested, a listing of the applicants receiving loans and the total amount of loans provided to those applicants, a listing of applicants whose loan applications were not approved and the reasons why those applications were not approved, the amount of the loans granted that were leveraged from bond proceeds, and the remaining bond proceeds and bond authorization.
GEOLOGICAL AND LAND MANAGEMENT
Sec. 601. The department shall collect Great Lakes bottomland permit fees uniformly and fairly from commercial and noncommercial users of the Great Lakes bottomlands.
Sec. 602. The department may waive permit fees for nonprofit organizations conducting approved stream habitat improvement projects.
REMEDIATION AND REDEVELOPMENT
Sec. 701. The unexpended funds appropriated in part 1 for the state cleanup program, environmental cleanup and redevelopment program, emergency cleanup action, contaminated site investigations, cleanup and revitalization, state site cleanup, leaking underground storage tank cleanup program, and superfund cleanup projects are considered work project appropriations and any unencumbered or unallotted funds are carried forward into the succeeding fiscal year. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the projects to be carried forward is to provide contaminated site cleanup.
(b) The projects will be accomplished by contract.
(c) The total estimated cost of all projects is identified in each line-item appropriation.
(d) The tentative completion date is September 30, 2008.
Sec. 702. The funds appropriated in part 1 for the environmental cleanup and redevelopment program shall be used to fund redevelopment and cleanup activities on the following sites:
Allegan Sunrise Landfill
Berrien Coloma DCPA
Berrien Bendix
Branch Bronson Area Wells
Cass U.S. Aviex
Eaton Parsons Chemical
Gladwin Gladwin Bulk Oil Plant State St.
Gratiot Velsicol Chemical Corporation
Gratiot Pine R Downstream of St. Louis
Houghton Torch Lake
Ingham Americhem Corporation
Iosco Res Wells Bachman Rd.
Jackson Exxon Petroleum
Kalamazoo Portage Creek/Kalamazoo River
Kent Former Autostyle Plastics, Inc.
Mecosta Joe's Tire/Ridderman Oil
Midland Tittabawasee River
Montmorency Mary D's
Muskegon Green Ridge Subdivision
Muskegon Laketon Auto Clinic
Muskegon Meat Block
Wayne Plymouth Industrial Center Holding Company
Sec. 703. Of the funds appropriated in part 1 for the environmental cleanup and redevelopment program, an amount not to exceed $2,000,000.00 shall be expended for the NPL municipal landfill match grants.
Sec. 704. If federal funding is available, the department shall work with local stakeholders to identify the sources of contamination in the ruddiman creek watershed and shall submit an application for federal funding pursuant to the Great Lakes legacy act of 2002, title I of the Great Lakes and Lake Champlain act of 2002, Public Law 107-303, 116 Stat. 2355, for this sediment cleanup project.
WASTE AND HAZARDOUS MATERIALS
Sec. 802. By February 1, 2004, the department shall submit to the chairpersons of the senate and house of representatives standing committees on appropriations, the chairpersons of the senate and house appropriations subcommittees on environmental quality, the state budget director, and the senate and house fiscal agencies a report on out-of-state waste disposed of in landfills in this state. The report shall include, but not be limited to, the amount, type, and state of origin for all out-of-state waste.
WATER
Sec. 901. Of the funds appropriated in part 1 for water quality monitoring, funding up to $20,000.00 may be provided, on a 50:50 cost-sharing basis, to erect signs at beaches owned by governmental entities. These signs will inform the public where the most recent beach water quality information may be found.
Sec. 902. The appropriation in part 1 for aquifer protection and dispute resolution includes a $100,000.00 interdepartmental grant to the Michigan department of agriculture to cover costs related to implementation of part 317 of the natural resources and environmental protection act, 1994 PA 451.
Sec. 903. The funds appropriated in part 1 for groundwater use reporting shall be awarded as a grant for the development of a groundwater database needed to model the demands for domestic water uses of groundwater supplies.
Sec. 904. The appropriation in part 1 for drinking water includes $1,000,000.00 from the clean Michigan initiative - clean water fund for preparation of the statewide groundwater inventory and map established in section 32802 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.32802.
Sec. 909. By February 1, 2004, the department shall submit a report on the department's use of the national pollutant discharge elimination system fund created in MCL 324.3121 for the previous fiscal year, to the senate and house appropriations subcommittees on environmental quality and natural resources, the standing committees of the legislature with jurisdiction over issues primarily related to natural resources and the environment, and the senate and house fiscal agencies. The report shall include a summary of how the appropriations in part 1 for NPDES nonstormwater program were used for the various permissible uses of the fund and shall include specific information on all of the following:
(a) The number of compliance and complaint inspections completed, by category, the number of on-site compliance inspections conducted, and the number of compliance inspections that were not announced in advance to the permittee or licensee.
(b) The number and percent of permit and license inspections that were found to be in significant noncompliance, by category.
(c) The number of administrative enforcement actions taken for permit or license violations and the results of the enforcement actions, including the amount of fines and penalties collected.
(d) The number of judicial enforcement actions taken for permit or license violations and the results of the enforcement actions, including the amount of fines and penalties collected.
(e) A listing of the supplemental environmental projects agreed to as a result of a consent agreement including all of the following: the case name, the monetary value of the supplemental environmental project, and a description of the project.
CRIMINAL INVESTIGATIONS
Sec. 1001. From funds appropriated in part 1, the department shall conduct periodic inspections of imported solid waste at disposal facilities to mitigate the unpermitted disposal of waste at Michigan disposal sites.
Sec. 1002. With funds appropriated in part 1, the department shall provide training in support of local efforts to regulate solid waste disposal. Department environmental conservation officers shall be directed to help train law enforcement officers and other enforcement personnel to develop community partnerships to combat illegal dumping at the local level.
GRANTS
Sec. 1101. If a certified health department does not exist in a city, county, or district or does not fulfill its responsibilities under part 117 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.11701 to 324.11719, then the department may spend funds appropriated in part 1 under the septage waste compliance program in accordance with section 11716 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.11716.
Sec. 1102. Of the funds appropriated in part 1 for scrap tire grants, $100,000.00 shall be available for grants to communities to cover scrap tire fire suppression costs, provided owner liability bonds and other available funding sources have been exhausted.
Sec. 1103. From the funds appropriated in part 1 for the drinking water revolving loan program, the department shall provide low-interest loans for public water supply systems found to be out of compliance with federal arsenic standards.
Sec. 1104. Of the money appropriated in part 1 for grants to counties - water quality monitoring, $700,000.00 is for the city of St. Clair Shores for dredging of contaminated canals and $1,000,000.00 is to establish and operate a comprehensive monitoring program to protect and manage the environmental quality of the St. Clair River, Lake St. Clair, and the Clinton River watershed, consistent with the appropriation made for this purpose in section 1205 of 2002 PA 520.
Third: That the House and Senate agree to the title of the bill to read as follows:
A bill to make appropriations for the department of environmental quality for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to create certain funds and accounts; to require certain reports; to prescribe the powers and duties of certain state agencies and officials; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by the various state agencies.
John Pastor
Howard Walker
Rich Brown
Conferees for the House
Michelle McManus
Mike Goschka
Conferees for the Senate
Pending the order that, under joint rule 9, the conference report be laid over one day,
Senator Hammerstrom moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on the adoption of the conference report,
The first conference report was adopted, a majority of the members serving voting therefor, as follows:
Roll Call No. 392 Yeas--37
Allen | Clark-Coleman | Hardiman | Prusi |
Barcia | Clarke | Jacobs | Sanborn |
Basham | Cropsey | Jelinek | Schauer |
Bernero | Emerson | Johnson | Sikkema |
Birkholz | Garcia | Kuipers | Stamas |
Bishop | George | Leland | Switalski |
Brater | Gilbert | McManus | Thomas |
Brown | Goschka | Olshove | Toy |
Cassis | Hammerstrom | Patterson | Van Woerkom |
Cherry
Nays--0
Excused--1
Scott
Not Voting--0
In The Chair: Sanborn
Senator Hammerstrom moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor.
Senator Brater asked and was granted unanimous consent to make a statement and moved that the statement be printed in the Journal.
The motion prevailed.
Senator Brater's statement is as follows:
I do appreciate the work that the Senate has done on this bill, and I know it's been a very difficult environment to work in this year--no pun intended. The environment of the state of Michigan couldn't be more important, and the fact that we are the steward of four of the five Great Lakes, we have to keep an eye on the discharges that are being put into the Great Lakes. A major component of this budget is the NPDES program and other water quality programs that, for the first time, the Governor has asked us that those who are creating this pollution that goes into our water pay the full cost of the service that the department is providing.
Unfortunately, the bill that we have before us at this point, even though the Senate did make more of an effort than the House to reach the levels that are needed to fully enforce and monitor those discharges, it is still not sufficient money. Right now it's under $5 million for NPDES, which is no more than the current year that we're spending, and that program only allows that permits to be issued and are not to be monitored or enforced.
So there are some serious problems with this budget. I know that some of the fees are going to be dealt with separately in separate bills, but I certainly have some reservations about this budget and the level of commitment that we are able to show this year to protecting the environment in our great state. I think we have a lot more work to do before we can really pat ourselves on the back for it. I'm committed to work with people on both sides of the aisle to improve this situation, and I know that all of my colleagues are committed to clean air and clean water in this state. So I look forward to working with you to find some even better solutions to this problem.
By unanimous consent the Senate returned to the order of
Messages from the House
Senate Bill No. 279, entitled
A bill to make appropriations for the department of history, arts, and libraries for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to provide for the disposition of fees and other income received by the state agencies; to provide for the disbursement of certain grants; to provide for reports; to prescribe powers and duties of certain state departments and certain state and local agencies and officers; and to repeal acts and parts of acts.
(For Conference Report, see p. 1288.)
The House of Representatives has adopted the report of the Committee of Conference.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
Senate Bill No. 283, entitled
A bill to make, supplement, and adjust appropriations for the family independence agency and certain state purposes related to public welfare services for the fiscal years ending September 30, 2003 and September 30, 2004; to provide for the expenditure of the appropriations; to create funds; to provide for the imposition of fees; to provide for reports; to provide for the disposition of fees and other income received by the state agency; to provide for the powers and duties of certain individuals, local governments, and state departments, agencies, and officers; and to repeal acts and parts of acts.
(For Conference Report, see Senate Journal No. 64, p. 1070.)
The House of Representatives has adopted the report of the Committee of Conference.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
Recess
Senator Hammerstrom moved that the Senate recess until 7:00 p.m.
The motion prevailed, the time being 5:03 p.m.
The Senate reconvened at the expiration of the recess and was called to order by the Assistant President pro tempore, Senator Sanborn.
Recess
Senator Hammerstrom moved that the Senate recess subject to the call of the Chair.
The motion prevailed, the time being 7:01 p.m.
7:16 p.m.
The Senate was called to order by the Assistant President pro tempore, Senator Sanborn.
Senator Schauer moved that Senator Emerson be temporarily excused from the balance of today's session.
The motion prevailed.
Senator Emerson entered the Senate Chamber.
Senate Bill No. 464, entitled
A bill to amend 1952 PA 214, entitled "An act authorizing the Mackinac bridge authority to acquire a bridge connecting the upper and lower peninsulas of Michigan, including causeways, tunnels, roads and all useful related equipment and facilities, including park, parking, recreation, lighting and terminal facilities; extending the corporate existence of the authority; authorizing such authority to enjoy and carry out all powers incident to its corporate objects; authorizing the appropriation and use of state funds for the preliminary purposes of the authority; providing for the payment of the cost of such bridge and in that connection authorizing the authority to issue revenue bonds payable solely from the revenues of the bridge; granting the right of condemnation to the authority; granting the use of state land and property to the authority; making provisions for the payment and security of such bonds and granting certain rights and remedies to the holders thereof; authorizing banks and trust companies to perform certain acts in connection therewith; authorizing the imposition of tolls and charges; authorizing the authority to secure the consent of the United States government to the construction of the bridge and to secure approval of plans, specifications and location of same; authorizing employment of engineers irrespective of whether such engineers have been previously employed to make preliminary inspections or reports with respect to the bridge; authorizing the state highway department to operate and maintain such bridge or to contribute thereto and enter into leases and agreements in connection therewith; exempting such bonds and the property of the authority from taxation; prohibiting competing traffic facilities; authorizing the operation of ferries by the authority; providing for the construction and use of certain buildings; and making an appropriation," by amending section 2 (MCL 254.312).
Substitute (H-1).
The question being on concurring in the substitute made to the bill by the House,
The substitute was concurred in, a majority of the members serving voting therefor, as follows:
Roll Call No. 393 Yeas--25
Allen | Garcia | Jelinek | Schauer |
Bernero | George | Johnson | Sikkema |
Birkholz | Gilbert | McManus | Stamas |
Bishop | Goschka | Patterson | Thomas |
Brown | Hammerstrom | Prusi | Toy |
Cassis | Hardiman | Sanborn | Van Woerkom |
Cropsey
Nays--10
Barcia | Cherry | Emerson | Olshove |
Basham | Clark-Coleman | Jacobs | Switalski |
Brater | Clarke |
Excused--1
Scott
Not Voting--2
Kuipers Leland
In The Chair: Sanborn
The question being on concurring in the committee recommendation to give the bill immediate effect,
The recommendation was concurred in, 2/3 of the members serving voting therefor.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
Senate Bill No. 466, entitled
A bill to amend 2000 PA 403, entitled "Motor fuel tax act," by amending section 163 (MCL 207.1163).
The House of Representatives has passed the bill, ordered that it be given immediate effect and pursuant to Joint Rule 20, inserted the full title.
The question being on concurring in the committee recommendation to give the bill immediate effect,
The recommendation was concurred in, 2/3 of the members serving voting therefor.
The Senate agreed to the full title.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
By unanimous consent the Senate returned to the order of
Conference Reports
House Bill No. 4392, entitled
A bill to make appropriations for the department of community health and certain state purposes related to mental health, public health, and medical services for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to create funds; to require and provide for reports; to prescribe the powers and duties of certain local and state agencies and departments; and to provide for disposition of fees and other income received by the various state agencies.
The House of Representatives has adopted the report of the Committee of Conference.
The conference report was read as follows:
FIRST CONFERENCE REPORT
The Committee of Conference on the matters of difference between the two Houses concerning
House Bill No. 4392, entitled
A bill to make appropriations for the department of community health and certain state purposes related to mental health, public health, and medical services for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to create funds; to require and provide for reports; to prescribe the powers and duties of certain local and state agencies and departments; and to provide for disposition of fees and other income received by the various state agencies.
Recommends:
First: That the House and Senate agree to the Substitute of the Senate as passed by the Senate, amended to read as follows:
A bill to make appropriations for the department of community health and certain state purposes related to mental health, public health, and medical services for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to create funds; to require and provide for reports; to prescribe the powers and duties of certain local and state agencies and departments; and to provide for disposition of fees and other income received by the various state agencies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. Subject to the conditions set forth in this act, the amounts listed in this part are appropriated for the department of community health for the fiscal year ending September 30, 2004, from the funds indicated in this part. The following is a summary of the appropriations in this part:
DEPARTMENT OF COMMUNITY HEALTH
Full-time equated unclassified positions 6.0
Full-time equated classified positions 4,382.3
Average population 995.0
GROSS APPROPRIATION $ 9,486,616,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers | $ | 69,204,800 |
ADJUSTED GROSS APPROPRIATION | $ | 9,417,411,200 |
Federal revenues:
Total federal revenues 5,248,332,100
Special revenue funds:
Total local revenues 812,256,100
Total private revenues 57,844,000
Tobacco settlement revenue 98,000,000
Total other state restricted revenues 639,408,300
State general fund/general purpose $ 2,561,570,700
Sec. 102. DEPARTMENTWIDE ADMINISTRATION
Full-time equated unclassified positions 6.0
Full-time equated classified positions 286.9
Director and other unclassified--6.0 FTE positions $ 581,500
Community health advisory council 28,900
Departmental administration and management--265.5 FTE positions 23,490,400
Certificate of need program administration--10.0 FTE positions 944,800
Worker's compensation program 9,550,700
Rent and building occupancy $ 8,300,100
Developmental disabilities council and projects--10.0 FTE positions 2,743,600
Rural health services 1,377,900
Michigan essential health care provider program 1,391,700
Primary care services--1.4 FTE positions 2,790,100
GROSS APPROPRIATION $ 51,199,700
Appropriated from:
Interdepartmental grant revenues:
Interdepartmental grant from the department of treasury, Michigan state hospital finance
authority 101,600
Federal revenues:
Total federal revenues 15,706,000
Special revenue funds:
Total private revenues 185,900
Total other state restricted revenues 1,580,000
State general fund/general purpose $ 33,626,200
Sec. 103. MENTAL HEALTH/SUBSTANCE ABUSE SERVICES ADMINISTRATION
AND SPECIAL PROJECTS
Full-time equated classified positions 83.3
Mental health/substance abuse program administration--83.3 FTE positions $ 9,135,900
Consumer involvement program 189,100
Gambling addiction 3,500,000
Protection and advocacy services support 777,400
Mental health initiatives for older persons 1,349,200
Community residential and support services 3,838,200
Highway safety projects 1,837,200
Federal and other special projects 1,977,200
GROSS APPROPRIATION $ 22,604,200
Federal revenues:
Total federal revenues 6,169,100
Special revenue funds:
Total private revenues 190,000
Total other state restricted revenues 3,682,300
State general fund/general purpose $ 12,562,800
Sec. 104. COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES
PROGRAMS
Full-time equated classified positions 2.5
Medicaid mental health services $ 1,372,625,900
Community mental health non-Medicaid services 328,394,100
Medicaid adult benefits waiver 40,000,000
Multicultural services 3,663,800
Medicaid substance abuse services 27,788,900
Respite services 1,000,000
CMHSP, purchase of state services contracts 97,115,800
Civil service charges 2,065,500
Federal mental health block grant--2.5 FTE positions 15,317,400
State disability assistance program substance abuse services 2,509,800
Community substance abuse prevention, education and treatment programs 80,548,400
GROSS APPROPRIATION $ 1,971,029,600
Appropriated from:
Federal revenues:
Total federal revenues 917,992,600
Special revenue funds:
Total local revenues 26,000,000
Total other state restricted revenues 3,042,400
State general fund/general purpose $ 1,023,994,600
Sec. 105. STATE PSYCHIATRIC HOSPITALS, CENTERS FOR PERSONS
WITH DEVELOPMENTAL DISABILITIES, AND FORENSIC AND PRISON MENTAL
HEALTH SERVICES
Total average population 995.0
Full-time equated classified positions 3,060.4
Caro regional mental health center-psychiatric hospital-adult--409.2 FTE positions $ 36,376,400
Average population 167.0
Kalamazoo psychiatric hospital-adult--317.9 FTE positions 20,568,200
Average population 115.0
Walter P. Reuther psychiatric hospital-adult--452.0 FTE positions 38,718,800
Average population 244.0
Hawthorn center-psychiatric hospital-children and adolescents--242.6 FTE positions 20,370,500
Average population 80.0
Mount Pleasant center-developmental disabilities--428.1 FTE positions 29,107,100
Average population 164.0
Center for forensic psychiatry--495.0 FTE positions 41,785,400
Average population 225.0
Forensic mental health services provided to the department of corrections--
704.6 FTE positions 68,120,600
Revenue recapture 750,000
IDEA, federal special education 120,000
Special maintenance and equipment 335,300
Purchase of medical services for residents of hospitals and centers 1,358,200
Closed site, transition, and related costs--11.0 FTE positions 1,067,200
Severance pay 216,900
Gifts and bequests for patient living and treatment environment 500,000
GROSS APPROPRIATION $ 259,394,600
Appropriated from:
Interdepartmental grant revenues:
Interdepartmental grant from the department of corrections 68,120,600
Federal revenues:
Total federal revenues 30,004,900
Special revenue funds:
CMHSP, purchase of state services contracts 97,115,800
Other local revenues 15,228,300
Total private revenues 500,000
Total other state restricted revenues 7,034,600
State general fund/general purpose $ 41,390,400
Sec. 106. PUBLIC HEALTH ADMINISTRATION
Full-time equated classified positions 76.3
Executive administration--7.0 FTE positions $ 1,014,300
Minority health grants and contracts 650,000
Vital records and health statistics--69.3 FTE positions | 6,141,700 | |
GROSS APPROPRIATION | $ | 7,806,000 |
Appropriated from:
Interdepartmental grant revenues:
Interdepartmental grant from family independence agency 447,800
Federal revenues:
Total federal revenues 2,045,100
Special revenue funds:
Total other state restricted revenues 2,963,400
State general fund/general purpose $ 2,349,700
Sec. 107. INFECTIOUS DISEASE CONTROL
Full-time equated classified positions 51.3
AIDS prevention, testing, and care programs--13.0 FTE positions $ 29,158,600
Immunization local agreements 13,990,300
Immunization program management and field support--14.0 FTE positions $ 1,582,100
Sexually transmitted disease control local agreements 3,494,900
Sexually transmitted disease control management and field support--24.3 FTE positions 3,377,100
GROSS APPROPRIATION $ 51,603,000
Appropriated from:
Federal revenues:
Total federal revenues 37,593,000
Special revenue funds:
Total private revenues 1,847,000
Total other state restricted revenues 7,550,000
State general fund/general purpose $ 4,613,000
Sec. 108. LABORATORY SERVICES
Full-time equated classified positions 115.2
Laboratory services--115.2 FTE positions | $ | 12,091,600 |
GROSS APPROPRIATION | $ | 12,091,600 |
Appropriated from:
Interdepartmental grant revenues:
Interdepartmental grant from environmental quality 392,100
Federal revenues:
Total federal revenues 2,040,100
Special revenue funds:
Total other state restricted revenues 3,131,300
State general fund/general purpose $ 6,528,100
Sec. 109. EPIDEMIOLOGY
Full-time equated classified positions 90.0
AIDS surveillance and prevention program $ 1,883,100
Asthma prevention and control 1,032,300
Bioterrorism preparedness--59.5 FTE positions 50,579,900
Epidemiology administration--30.5 FTE positions 5,375,700
Tuberculosis control and recalcitrant AIDS program 867,000
GROSS APPROPRIATION $ 59,738,000
Appropriated from:
Federal revenues:
Total federal revenues 57,619,600
Special revenue funds:
Total other state restricted revenues 179,000
State general fund/general purpose $ 1,939,400
Sec. 110. LOCAL HEALTH ADMINISTRATION AND GRANTS
Full-time equated classified positions 3.0
Implementation of 1993 PA 133, MCL 333.17015 $ 100,000
Lead abatement program--3.0 FTE positions 1,550,200
Local health services 220,000
Local public health operations 40,618,400
Medical services cost reimbursement to local health departments 1,800,000
GROSS APPROPRIATION $ 44,288,600
Appropriated from:
Federal revenues:
Total federal revenues 3,249,100
Special revenue funds:
Total other state restricted revenues 344,600
State general fund/general purpose $ 40,694,900
Sec. 111. CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH
PROMOTION
Full-time equated classified positions 41.6
African-American male health initiative | $ | 106,700 |
AIDS and risk reduction clearinghouse and media campaign | 1,576,000 | |
Alzheimer's information network | $ | 440,000 |
Cancer prevention and control program--10.6 FTE positions | 11,043,100 |
Chronic disease prevention 1,622,400
Diabetes and kidney program--8.0 FTE positions 2,953,900
Health education, promotion, and research programs--11.0 FTE positions 1,038,800
Injury control intervention project 714,900
Morris Hood Wayne State University diabetes outreach 250,000
Obesity program 250,000
Physical fitness, nutrition, and health 100,000
Public health traffic safety coordination 350,000
School health and education programs 500,000
Smoking prevention program--12.0 FTE positions 4,852,700
Tobacco tax collection and enforcement 810,000
Violence prevention 1,446,900
GROSS APPROPRIATION $ 28,055,400
Appropriated from:
Federal revenues:
Total federal revenues 15,493,200
Special revenue funds:
Total other state restricted revenues 9,891,800
State general fund/general purpose $ 2,670,400
Sec. 112. COMMUNITY LIVING, CHILDREN, AND FAMILIES
Full-time equated classified positions 72.0
Childhood lead program--5.0 FTE positions $ 1,470,700
Children's waiver home care program 19,549,800
Community living, children, and families administration--60.0 FTE positions 7,074,100
Dental programs 485,400
Dental program for persons with developmental disabilities 151,000
Early childhood collaborative secondary prevention 524,000
Family planning local agreements 11,318,100
Family support subsidy 15,593,500
Housing and support services 5,579,300
Local MCH services 13,050,200
Migrant health care 200,000
Newborn screening follow-up and treatment services 2,428,000
Omnibus budget reconciliation act implementation--7.0 FTE positions 12,770,500
Pediatric AIDS prevention and control 1,026,300
Pregnancy prevention program 5,846,100
Prenatal care outreach and service delivery support 3,049,300
Southwest community partnership 996,700
Special projects 5,274,500
Sudden infant death syndrome program 321,300
GROSS APPROPRIATION $ 106,708,800
Appropriated from:
Federal revenues:
Total federal revenues 76,378,000
Special revenue funds:
Private funds 261,100
Total other state restricted revenues 10,540,000
State general fund/general purpose $ 19,529,700
Sec. 113. WOMEN, INFANTS, AND CHILDREN FOOD AND NUTRITION
PROGRAMS
Full-time equated classified positions 41.0
Women, infants, and children program administration and special projects--
41.0 FTE positions $ 5,600,100
Women, infants, and children program local agreements and food costs 181,392,100
GROSS APPROPRIATION $ 186,992,200
Appropriated from:
Federal revenues:
Total federal revenues $ 136,644,900
Special revenue funds:
Total private revenues 50,347,300
State general fund/general purpose $ 0
Sec. 114. CHILDREN'S SPECIAL HEALTH CARE SERVICES
Full-time equated classified positions 66.6
Children's special health care services administration--66.6 FTE positions $ 4,478,800
Amputee program 184,600
Bequests for care and services 1,829,600
Case management services 3,773,500
Conveyor contract 513,500
Medical care and treatment 129,465,100
GROSS APPROPRIATION $ 140,245,100
Appropriated from:
Federal revenues:
Total federal revenues 69,387,200
Special revenue funds:
Private - bequests 1,000,000
Total other state restricted revenues 650,000
State general fund/general purpose $ 69,207,900
Sec. 115. OFFICE OF DRUG CONTROL POLICY
Full-time equated classified positions 17.0
Drug control policy--17.0 FTE positions $ 1,973,400
Anti-drug-abuse grants 26,859,200
Interdepartmental grant to judiciary for drug treatment courts 1,800,000
GROSS APPROPRIATION $ 30,632,600
Appropriated from:
Federal revenues:
Total federal revenues 30,246,600
State general fund/general purpose $ 386,000
Sec. 116. CRIME VICTIM SERVICES COMMISSION
Full-time equated classified positions 9.0
Grants administration services--9.0 FTE positions $ 1,080,500
Justice assistance grants 13,000,000
Crime victim rights services grants 8,265,300
GROSS APPROPRIATION $ 22,345,800
Appropriated from:
Federal revenues:
Total federal revenues 13,946,900
Special revenue funds:
Total other state restricted revenues 7,984,400
State general fund/general purpose $ 414,500
Sec. 117. OFFICE OF SERVICES TO THE AGING
Full-time equated classified positions 32.5
Commission (per diem $50.00) $ 10,500
Office of services to aging administration--32.5 FTE positions 4,167,800
Community services 35,286,100
Nutrition services 38,191,200
Senior volunteer services 5,645,900
Senior citizen centers staffing and equipment 1,068,700
Employment assistance 2,818,300
Respite care program 7,100,000
GROSS APPROPRIATION $ 94,288,500
Appropriated from:
Federal revenues:
Total federal revenues $ 52,094,300
Special revenue funds:
Tobacco settlement revenue 5,000,000
Total other state restricted revenues 2,267,000
State general fund/general purpose $ 34,927,200
Sec. 118. MEDICAL SERVICES ADMINISTRATION
Full-time equated classified positions 333.7
Medical services administration--333.7 FTE positions $ 39,319,900
Facility inspection contract - state police 132,800
MIChild administration 4,327,800
GROSS APPROPRIATION $ 43,780,500
Appropriated from:
Federal revenues:
Total federal revenues 29,512,300
Special revenue funds:
State general fund/general purpose $ 14,268,200
Sec. 119. MEDICAL SERVICES
Hospital services and therapy $ 892,626,500
Hospital disproportionate share payments 45,000,000
Physician services 227,166,200
Medicare premium payments 172,663,700
Pharmaceutical services 517,225,600
Home health services 36,401,400
Transportation 8,538,300
Auxiliary medical services 88,195,600
Ambulance services 5,000,000
Long-term care services 1,626,345,000
Elder prescription insurance coverage 68,011,800
Health plan services 1,549,361,500
MIChild program 36,875,600
Medicaid adult benefits waiver 178,707,600
Maternal and child health 9,234,500
Social services to the physically disabled 1,344,900
Subtotal basic medical services program 5,462,698,200
School-based services 69,159,500
Special adjustor payments 791,338,100
Subtotal special medical services payments 860,497,600
GROSS APPROPRIATION $ 6,323,195,800
Appropriated from:
Federal revenues:
Total federal revenues 3,734,905,000
Special revenue funds:
Total local revenues 673,912,000
Total private revenues 3,512,700
Tobacco settlement revenue 93,000,000
Total other state restricted revenues 576,773,700
State general fund/general purpose $ 1,241,092,400
Sec. 120. INFORMATION TECHNOLOGY
Information technology services and projects | $ | 30,616,000 |
GROSS APPROPRIATION | $ | 30,616,000 |
Appropriated from:
Interdepartmental grant revenues:
Interdepartmental grant from the department of corrections 142,700
Federal revenues:
Total federal revenues 17,304,200
Special revenue funds:
Total other state restricted revenues | $ | 1,793,800 |
State general fund/general purpose | $ | 11,375,300 |
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2003-2004 is $3,298,979,000.00 and state spending from state resources to be paid to units of local government for fiscal year 2003-2004 is $1,042,260,100.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:
DEPARTMENT OF COMMUNITY HEALTH
DEPARTMENTWIDE ADMINISTRATION
Departmental administration and management $ 11,657,700
Rural health services 35,000
MENTAL HEALTH/SUBSTANCE ABUSE SERVICES ADMINISTRATION AND
SPECIAL PROJECTS
Mental health initiatives for older persons 1,049,200
COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES PROGRAMS
State disability assistance program substance abuse services 2,509,800
Community substance abuse prevention, education, and treatment programs 19,133,500
Medicaid mental health services 575,692,600
Community mental health non-Medicaid services 328,394,100
Multicultural services 3,663,800
Medicaid substance abuse services 11,652,900
Respite services 1,000,000
INFECTIOUS DISEASE CONTROL
AIDS prevention, testing and care programs 1,466,800
Immunization local agreements 2,973,900
Sexually transmitted disease control local agreements 406,100
LOCAL HEALTH ADMINISTRATION AND GRANTS
Local public health operations 40,618,400
CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH PROMOTION
School health and education programs 500,000
Smoking prevention program 1,898,400
COMMUNITY LIVING, CHILDREN, AND FAMILIES
Childhood lead program 85,000
Family planning local agreements 1,142,200
Local MCH services 246,100
Omnibus budget reconciliation act implementation 2,030,800
Prenatal care outreach and service delivery support 610,000
CHILDREN'S SPECIAL HEALTH CARE SERVICES
Case management services 3,169,900
MEDICAL SERVICES
Transportation 1,175,300
OFFICE OF SERVICES TO THE AGING
Community services 12,530,300
Nutrition services 12,439,500
Senior volunteer services 517,500
CRIME VICTIM SERVICES COMMISSION
Crime victim rights services grants 5,661,300
TOTAL OF PAYMENTS TO LOCAL UNITS
OF GOVERNMENT $ 1,042,260,100
Sec. 202. (1) The appropriations authorized under this act are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
(2) Funds for which the state is acting as the custodian or agent are not subject to annual appropriation.
Sec. 203. As used in this act:
(a) "AIDS" means acquired immunodeficiency syndrome.
(b) "CMHSP" means a community mental health services program as that term is defined in section 100a of the mental health code, 1974 PA 258, MCL 330.1100a.
(c) "Disease management" means a comprehensive system that incorporates the patient, physician, and health plan into 1 system with the common goal of achieving desired outcomes for patients.
(d) "Department" means the Michigan department of community health.
(e) "DSH" means disproportionate share hospital.
(f) "EPIC" means elder prescription insurance coverage program.
(g) "EPSDT" means early and periodic screening, diagnosis, and treatment.
(h) "FTE" means full-time equated.
(i) "GME" means graduate medical education.
(j) "Health plan" means, at a minimum, an organization that meets the criteria for delivering the comprehensive package of services under the department's comprehensive health plan.
(k) "HMO" means health maintenance organization.
(l) "IDEA" means individual disability education act.
(m) "IDG" means interdepartmental grant.
(n) "MCH" means maternal and child health.
(o) "MiChild" means the program described in section 1670.
(p) "MSS/ISS" means maternal and infant support services.
(q) "Specialty prepaid health plan" means a program described in section 232b of the mental health code, 1974 PA 258, MCL 330.1232b.
(r) "Title XVIII" means title XVIII of the social security act, chapter 531, 49 Stat. 620, 42 U.S.C. 1395 to 1395b, 1395b-2, 1395b-6 to 1395b-7, 1395c to 1395i, 1395i-2 to 1395i-5, 1395j to 1395t, 1395u to 1395w, 1395w-2 to 1395w-4, 1395w-21 to 1395w-28, 1395x to 1395yy, and 1395bbb to 1395ggg.
(s) "Title XIX" means title XIX of the social security act, chapter 531, 49 Stat. 620, 42 U.S.C. 1396 to 1396r-6 and 1396r-8 to 1396v.
(t) "Title XX" means title XX of the social security act, chapter 531, 49 Stat. 620, 49 U.S.C. 1397 to 1397f.
(u) "WIC" means women, infants, and children supplemental nutrition program.
Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.
Sec. 205. (1) A hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department.
(2) The state budget director shall grant exceptions to this hiring freeze when the state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services, cause loss of revenue to the state, result in the inability of the state to receive federal funds, or would necessitate additional expenditures that exceed any savings from maintaining the vacancy. The state budget director shall report quarterly to the chairpersons of the senate and house of representatives standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous quarter and the reasons to justify the exception.
Sec. 207. Sixty days before beginning any effort to privatize services, the department shall submit a complete project plan to the appropriate senate and house of representatives appropriations subcommittees and the senate and house fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the appropriate senate and house of representatives appropriations subcommittees and the senate and house fiscal agencies within 30 months.
Sec. 208. Unless otherwise specified, the department shall use the Internet to fulfill the reporting requirements of this act. This requirement may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on the Internet or Intranet site.
Sec. 209. (1) Funds appropriated in part 1 shall not be used for the purchase of foreign goods or services, or both, if competitively priced and comparable quality American goods or services, or both, are available.
(2) Funds appropriated in part 1 shall not be used for the purchase of out-of-state goods or services, or both, if competitively priced and comparable quality Michigan goods or services, or both, are available.
Sec. 210. (1) The director shall take all reasonable steps to ensure businesses in deprived and depressed communities 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 businesses in depressed and deprived communities for services, supplies, or both.
(2) The director shall take all reasonable steps to ensure equal opportunity for all who compete for and perform contracts to provide services or supplies, or both, for the department. The director shall strongly encourage firms with which the department contracts to provide equal opportunity for subcontractors to provide services or supplies, or both.
Sec. 211. If the revenue collected by the department from fees and collections exceeds the amount appropriated in part 1, the revenue may be carried forward with the approval of the state budget director into the subsequent fiscal year. The revenue carried forward under this section shall be used as the first source of funds in the subsequent fiscal year.
Sec. 212. (1) From the amounts appropriated in part 1, no greater than the following amounts are supported with federal maternal and child health block grant, preventive health and health services block grant, substance abuse block grant, healthy Michigan fund, and Michigan health initiative funds:
(a) Maternal and child health block grant $ 21,714,000
(b) Preventive health and health services block grant 4,982,500
(c) Substance abuse block grant 60,095,600
(d) Healthy Michigan fund 56,617,100
(e) Michigan health initiative 9,060,200
(2) On or before February 1, 2004, the department shall report to the house of representatives and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director on the detailed name and amounts of federal, restricted, private, and local sources of revenue that support the appropriations in each of the line items in part 1 of this act.
(3) Upon the release of the fiscal year 2004-2005 executive budget recommendation, the department shall report to the same parties in subsection (2) on the amounts and detailed sources of federal, restricted, private, and local revenue proposed to support the total funds appropriated in each of the line items in part 1 of the fiscal year 2004-2005 executive budget proposal.
(4) The department shall provide to the same parties in subsection (2) all revenue source detail for consolidated revenue line item detail upon request to the department.
Sec. 213. The state departments, agencies, and commissions receiving tobacco tax funds from part 1 shall report by January 1, 2004, to the senate and house of representatives appropriations committees, the senate and house fiscal agencies, and the state budget director on the following:
(a) Detailed spending plan by appropriation line item including description of programs.
(b) Description of allocations or bid processes including need or demand indicators used to determine allocations.
(c) Eligibility criteria for program participation and maximum benefit levels where applicable.
(d) Outcome measures to be used to evaluate programs.
(e) Any other information considered necessary by the house of representatives or senate appropriations committees or the state budget director.
Sec. 214. The use of state-restricted tobacco tax revenue received for the purpose of tobacco prevention, education, and reduction efforts and deposited in the healthy Michigan fund shall not be used for lobbying as defined in 1978 PA 472, MCL 4.411 to 4.431.
Sec. 216. (1) In addition to funds appropriated in part 1 for all programs and services, there is appropriated for write-offs of accounts receivable, deferrals, and for prior year obligations in excess of applicable prior year appropriations, an amount equal to total write-offs and prior year obligations, but not to exceed amounts available in prior year revenues.
(2) The department's ability to satisfy appropriation deductions in part 1 shall not be limited to collections and accruals pertaining to services provided in fiscal year 2003-2004, but shall also include reimbursements, refunds, adjustments, and settlements from prior years.
(3) The department shall report by March 15, 2004 to the house of representatives and senate appropriations subcommittees on community health on all reimbursements, refunds, adjustments, and settlements from prior years.
Sec. 218. Basic health services for the purpose of part 23 of the public health code, 1978 PA 368, MCL 333.2301 to 333.2321, are: immunizations, communicable disease control, sexually transmitted disease control, tuberculosis control, prevention of gonorrhea eye infection in newborns, screening newborns for the 8 conditions listed in section 5431(1)(a) through (h) of the public health code, 1978 PA 368, MCL 333.5431, community health annex of the Michigan emergency management plan, and prenatal care.
Sec. 219. (1) The department may contract with the Michigan public health institute for the design and implementation of projects and for other public health related activities prescribed in section 2611 of the public health code, 1978 PA 368, MCL 333.2611. The department may develop a master agreement with the institute to carry out these purposes for up to a 3-year period. The department shall report to the house of representatives and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director on or before November 1, 2003 and May 1, 2004 all of the following:
(a) A detailed description of each funded project.
(b) The amount allocated for each project, the appropriation line item from which the allocation is funded, and the source of financing for each project.
(c) The expected project duration.
(d) A detailed spending plan for each project, including a list of all subgrantees and the amount allocated to each subgrantee.
(2) If a report required under subsection (1) is not received by the house of representatives and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director on or before the date specified for that report, the disbursement of funds to the Michigan public health institute under this section shall stop. The disbursement of those funds shall recommence when the overdue report is received.
(3) On or before September 30, 2004, the department shall provide to the same parties listed in subsection (1) a copy of all reports, studies, and publications produced by the Michigan public health institute, its subcontractors, or the department with the funds appropriated in part 1 and allocated to the Michigan public health institute.
Sec. 220. All contracts with the Michigan public health institute funded with appropriations in part 1 shall include a requirement that the Michigan public health institute submit to financial and performance audits by the state auditor general of projects funded with state appropriations.
Sec. 223. The department of community health may establish and collect fees for publications, videos and related materials, conferences, and workshops. Collected fees shall be used to offset expenditures to pay for printing and mailing costs of the publications, videos and related materials, and costs of the workshops and conferences. The costs shall not exceed fees collected.
Sec. 259. From the funds appropriated in part 1 for information technology, the department shall pay user fees to the department of information technology for technology-related services and projects. Such user fees shall be subject to provisions of an interagency agreement between the departments and agencies and the department of information technology.
Sec. 260. Amounts appropriated in part 1 for information technology may be designated as work projects and carried forward to support department of community health projects under the direction of the department of information technology. Funds designated in this manner are not available for expenditure until approved as work projects under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a.
Sec. 262. (1) The department shall provide the members of the house of representatives and senate appropriations subcommittees on community health and the house and senate fiscal agencies with a written explanation for all legislative transfers upon submission of the request for legislative transfer by the department of management and budget. The explanation should include reasons for not fully expending appropriated funds which shall include references to boilerplate language expressing intent for program implementation, if applicable, and transfers requested for work projects.
(2) The department shall provide an annual report of lapses by line item for this appropriation act.
Sec. 264. Upon submission of a Medicaid waiver, a Medicaid state plan amendment, or a similar proposal to the centers for Medicare and Medicaid services, the department shall notify the house of representatives and senate appropriations subcommittees on community health and the house and senate fiscal agencies of the submission.
Sec. 265. The departments and agencies receiving appropriations in part 1 shall receive and retain copies of all reports funded from appropriations in part 1. Federal and state guidelines for short-term and long-term retention of records shall be followed.
DEPARTMENTWIDE ADMINISTRATION
Sec. 301. From funds appropriated for worker's compensation, the department may make payments in lieu of worker's compensation payments for wage and salary and related fringe benefits for employees who return to work under limited duty assignments.
Sec. 303. The department is prohibited from requiring first-party payment from individuals or families with a taxable income of $10,000.00 or less for mental health services for determinations made in accordance with section 818 of the mental health code, 1974 PA 258, MCL 330.1818.
Sec. 304. The funds appropriated in part 1 for the Michigan essential health care provider program may also provide loan repayment for dentists that fit the criteria established by part 27 of the public health code, 1978 PA 368, MCL 333.2701 to 333.2727.
Sec. 305. The department is directed to continue support of multicultural agencies that provide primary care services from the funds appropriated in part 1.
Sec. 307. From the funds appropriated in part 1 for primary care services, an amount not to exceed $2,790,100.00 is appropriated to enhance the service capacity of the federally qualified health centers and other health centers which are similar to federally qualified health centers.
Sec. 313. By November 1, 2003, the department shall report to the house of representatives and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director on activities undertaken by the department to address compulsive gambling.
MENTAL HEALTH/SUBSTANCE ABUSE SERVICES ADMINISTRATION AND SPECIAL PROJECTS
Sec. 350. The department may enter into a contract with the protection and advocacy service, authorized under section 931 of the mental health code, 1974 PA 258, MCL 330.1931, or a similar organization to provide legal services for purposes of gaining and maintaining occupancy in a community living arrangement which is under lease or contract with the department or a community mental health services program to provide services to persons with mental illness or developmental disability.
COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES PROGRAMS
Sec. 401. Funds appropriated in part 1 are intended to support a system of comprehensive community mental health services under the full authority and responsibility of local CMHSPs or specialty prepaid health plans. The department shall ensure that each CMHSP or specialty prepaid health plan provides all of the following:
(a) A system of single entry and single exit.
(b) A complete array of mental health services which shall include, but shall not be limited to, all of the following services: residential and other individualized living arrangements, outpatient services, acute inpatient services, and long-term, 24-hour inpatient care in a structured, secure environment.
(c) The coordination of inpatient and outpatient hospital services through agreements with state-operated psychiatric hospitals, units, and centers in facilities owned or leased by the state, and privately-owned hospitals, units, and centers licensed by the state pursuant to sections 134 through 149b of the mental health code, 1974 PA 258, MCL 330.1134 to 330.1149b.
(d) Individualized plans of service that are sufficient to meet the needs of individuals, including those discharged from psychiatric hospitals or centers, and that ensure the full range of recipient needs is addressed through the CMHSP's or specialty prepaid health plan's program or through assistance with locating and obtaining services to meet these needs.
(e) A system of case management to monitor and ensure the provision of services consistent with the individualized plan of services or supports.
(f) A system of continuous quality improvement.
(g) A system to monitor and evaluate the mental health services provided.
(h) A system that serves at-risk and delinquent youth as required under the provisions of the mental health code, 1974 PA 258, MCL 330.1001 to 330.2106.
Sec. 402. (1) From funds appropriated in part 1, final authorizations to CMHSPs or specialty prepaid health plans shall be made upon the execution of contracts between the department and CMHSPs or specialty prepaid health plans. The contracts shall contain an approved plan and budget as well as policies and procedures governing the obligations and responsibilities of both parties to the contracts. Each contract with a CMHSP or specialty prepaid health plan that the department is authorized to enter into under this subsection shall include a provision that the contract is not valid unless the total dollar obligation for all of the contracts between the department and the CMHSPs or specialty prepaid health plans entered into under this subsection for fiscal year 2003-2004 does not exceed the amount of money appropriated in part 1 for the contracts authorized under this subsection.
(2) The department shall immediately report to the senate and house of representatives appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director if either of the following occurs:
(a) Any new contracts with CMHSPs or specialty prepaid health plans that would affect rates or expenditures are enacted.
(b) Any amendments to contracts with CMHSPs or specialty prepaid health plans that would affect rates or expenditures are enacted.
(3) The report required by subsection (2) shall include information about the changes and their effects on rates and expenditures.
Sec. 403. From the funds appropriated in part 1 for multicultural services, the department shall ensure that CMHSPs or specialty prepaid health plans continue contracts with multicultural services providers.
Sec. 404. (1) Not later than May 31 of each fiscal year, the department shall provide a report on the community mental health services programs to the members of the house of representatives and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director that includes the information required by this section.
(2) The report shall contain information for each CMHSP or specialty prepaid health plan and a statewide summary, each of which shall include at least the following information:
(a) A demographic description of service recipients which, minimally, shall include reimbursement eligibility, client population, age, ethnicity, housing arrangements, and diagnosis.
(b) When the encounter data is available, a breakdown of clients served, by diagnosis. As used in this subdivision, "diagnosis" means a recipient's primary diagnosis, stated as a specifically named mental illness, emotional disorder, or developmental disability corresponding to terminology employed in the latest edition of the American psychiatric association's diagnostic and statistical manual.
(c) Per capita expenditures by client population group.
(d) Financial information which, minimally, shall include a description of funding authorized; expenditures by client group and fund source; and cost information by service category, including administration. Service category shall include all department approved services.
(e) Data describing service outcomes which shall include, but not be limited to, an evaluation of consumer satisfaction, consumer choice, and quality of life concerns including, but not limited to, housing and employment.
(f) Information about access to community mental health services programs which shall include, but not be limited to, the following:
(i) The number of people receiving requested services.
(ii) The number of people who requested services but did not receive services.
(iii) The number of people requesting services who are on waiting lists for services.
(iv) The average length of time that people remained on waiting lists for services.
(g) The number of second opinions requested under the code and the determination of any appeals.
(h) An analysis of information provided by community mental health service programs in response to the needs assessment requirements of the mental health code, including information about the number of persons in the service delivery system who have requested and are clinically appropriate for different services.
(i) An estimate of the number of FTEs employed by the CMHSPs or specialty prepaid health plans or contracted with directly by the CMHSPs or specialty prepaid health plans as of September 30, 2003 and an estimate of the number of FTEs employed through contracts with provider organizations as of September 30, 2003.
(j) Lapses and carryforwards during fiscal year 2002-2003 for CMHSPs or specialty prepaid health plans.
(k) Contracts for mental health services entered into by CMHSPs or specialty prepaid health plans with providers, including amount and rates, organized by type of service provided.
(l) Information on the community mental health Medicaid managed care program, including, but not limited to, both of the following:
(i) Expenditures by each CMHSP or specialty prepaid health plan organized by Medicaid eligibility group, including per eligible individual expenditure averages.
(ii) Performance indicator information required to be submitted to the department in the contracts with CMHSPs or specialty prepaid health plans.
(3) The department shall include data reporting requirements listed in subsection (2) in the annual contract with each individual CMHSP or specialty prepaid health plan.
(4) The department shall take all reasonable actions to ensure that the data required are complete and consistent among all CMHSPs or specialty prepaid health plans.
Sec. 405. It is the intent of the legislature that the employee wage pass-through funded to the community mental health services programs for direct care workers in local residential settings and for paraprofessional and other nonprofessional direct care workers in day programs, supported employment, and other vocational programs shall continue to be paid to direct care workers.
Sec. 406. (1) The funds appropriated in part 1 for the state disability assistance substance abuse services program shall be used to support per diem room and board payments in substance abuse residential facilities. Eligibility of clients for the state disability assistance substance abuse services program shall include needy persons 18 years of age or older, or emancipated minors, who reside in a substance abuse treatment center.
(2) The department shall reimburse all licensed substance abuse programs eligible to participate in the program at a rate equivalent to that paid by the family independence agency to adult foster care providers. Programs accredited by department-approved accrediting organizations shall be reimbursed at the personal care rate, while all other eligible programs shall be reimbursed at the domiciliary care rate.
Sec. 407. (1) The amount appropriated in part 1 for substance abuse prevention, education, and treatment grants shall be expended for contracting with coordinating agencies or designated service providers. It is the intent of the legislature that the coordinating agencies and designated service providers work with the CMHSPs or specialty prepaid health plans to coordinate the care and services provided to individuals with both mental illness and substance abuse diagnoses.
(2) The department shall establish a fee schedule for providing substance abuse services and charge participants in accordance with their ability to pay. Any changes in the fee schedule shall be developed by the department with input from substance abuse coordinating agencies.
Sec. 408. (1) By April 15, 2004, the department shall report the following data from fiscal year 2002-2003 on substance abuse prevention, education, and treatment programs to the senate and house of representatives appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget office:
(a) Expenditures stratified by coordinating agency, by central diagnosis and referral agency, by fund source, by subcontractor, by population served, and by service type. Additionally, data on administrative expenditures by coordinating agency and by subcontractor shall be reported.
(b) Expenditures per state client, with data on the distribution of expenditures reported using a histogram approach.
(c) Number of services provided by central diagnosis and referral agency, by subcontractor, and by service type. Additionally, data on length of stay, referral source, and participation in other state programs.
(d) Collections from other first- or third-party payers, private donations, or other state or local programs, by coordinating agency, by subcontractor, by population served, and by service type.
(2) The department shall take all reasonable actions to ensure that the required data reported are complete and consistent among all coordinating agencies.
Sec. 409. The funding in part 1 for substance abuse services shall be distributed in a manner that provides priority to service providers that furnish child care services to clients with children.
Sec. 410. The department shall assure that substance abuse treatment is provided to applicants and recipients of public assistance through the family independence agency who are required to obtain substance abuse treatment as a condition of eligibility for public assistance.
Sec. 411. (1) The department shall ensure that each contract with a CMHSP or specialty prepaid health plan requires the CMHSP or specialty prepaid health plan to implement programs to encourage diversion of persons with serious mental illness, serious emotional disturbance, or developmental disability from possible jail incarceration when appropriate.
(2) Each CMHSP or specialty prepaid health plan shall have jail diversion services and shall work toward establishing working relationships with representative staff of local law enforcement agencies, including county prosecutors' offices, county sheriffs' offices, county jails, municipal police agencies, municipal detention facilities, and the courts. Written interagency agreements describing what services each participating agency is prepared to commit to the local jail diversion effort and the procedures to be used by local law enforcement agencies to access mental health jail diversion services are strongly encouraged.
Sec. 412. The department shall contract directly with the Salvation Army harbor light program to provide non-Medicaid substance abuse services at not less than the amount contracted for in fiscal year 2002-2003.
Sec. 414. Medicaid substance abuse treatment services shall be managed by selected CMHSPs or specialty prepaid health plans pursuant to the centers for Medicare and Medicaid services' approval of Michigan's 1915(b) waiver request to implement a managed care plan for specialized substance abuse services. The selected CMHSPs or specialty prepaid health plans shall receive a capitated payment on a per eligible per month basis to assure provision of medically necessary substance abuse services to all beneficiaries who require those services. The selected CMHSPs or specialty prepaid health plans shall be responsible for the reimbursement of claims for specialized substance abuse services. The CMHSPs or specialty prepaid health plans that are not coordinating agencies may continue to contract with a coordinating agency. Any alternative arrangement must be based on client service needs and have prior approval from the department.
Sec. 418. On or before the tenth of each month, the department shall report to the senate and house of representatives appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director on the amount of funding paid to the CMHSPs or specialty prepaid health plans to support the Medicaid managed mental health care program in that month. The information shall include the total paid to each CMHSP or specialty prepaid health plan, per capita rate paid for each eligibility group for each CMHSP or specialty prepaid health plan, and number of cases in each eligibility group for each CMHSP or specialty prepaid health plan, and year-to-date summary of eligibles and expenditures for the Medicaid managed mental health care program.
Sec. 423. The department shall work cooperatively with the family independence agency and the departments of corrections, education, state police, and military and veterans affairs to coordinate and improve the delivery of substance abuse prevention, education, and treatment programs within existing appropriations. The department shall report by March 15, 2004 on the outcomes of this cooperative effort to the house of representatives and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director.
Sec. 424. Each community mental health services program or specialty prepaid health plan that contracts with the department to provide services to the Medicaid population shall adhere to the following timely claims processing and payment procedure for claims submitted by health professionals and facilities:
(a) A "clean claim" as described in section 111i of the social welfare act, 1939 PA 280, MCL 400.111i, must be paid within 45 days after receipt of the claim by the community mental health services program or specialty prepaid health plan. A clean claim that is not paid within this time frame shall bear simple interest at a rate of 12% per annum.
(b) A community mental health services program or specialty prepaid health plan must state in writing to the health professional or facility any defect in the claim within 30 days after receipt of the claim.
(c) A health professional and a health facility have 30 days after receipt of a notice that a claim or a portion of a claim is defective within which to correct the defect. The community mental health services program or specialty prepaid health plan shall pay the claim within 30 days after the defect is corrected.
Sec. 425. By April 1, 2004, the department, in conjunction with the department of corrections, shall report the following data from fiscal year 2002-2003 on mental health and substance abuse services to the house of representatives and senate appropriations subcommittees on community health and corrections, the house and senate fiscal agencies, and the state budget office:
(a) The number of prisoners receiving substance abuse services which shall include a description and breakdown on the type of substance abuse services provided to prisoners.
(b) The number of prisoners receiving mental health services which shall include a description and breakdown on the type of mental health services provided to prisoners.
(c) Data indicating if prisoners receiving mental health services were previously hospitalized in a state psychiatric hospital for persons with mental illness.
Sec. 428. (1) Each CMHSP and affiliation of CMHSPs shall provide, from internal resources, local funds to be used as a bona fide part of the state match required under the Medicaid program in order to increase capitation rates for CMHSPs and affiliations of CMHSPs. These funds shall not include either state funds received by a CMHSP for services provided to non-Medicaid recipients or the state matching portion of the Medicaid capitation payments made to a CMHSP or an affiliation of CMHSPs.
(2) The distribution of the aforementioned increases in the capitation payment rates, if any, shall be based on a formula developed by a committee established by the department, including representatives from CMHSPs or affiliations of CMHSPs and department staff.
Sec. 435. A county required under the provisions of the mental health code, 1974 PA 258, MCL 330.1001 to 330.2106, to provide matching funds to a CMHSP for mental health services rendered to residents in its jurisdiction shall pay the matching funds in equal installments on not less than a quarterly basis throughout the fiscal year, with the first payment being made by October 1, 2003.
Sec. 439. (1) It is the intent of the legislature that the department, in conjunction with CMHSPs, support pilot projects that facilitate the movement of adults with mental illness from state psychiatric hospitals to community residential settings.
(2) The purpose of the pilot projects is to encourage the placement of persons with mental illness in community residential settings who may require any of the following:
(a) A secured and supervised living environment.
(b) Assistance in taking prescribed medications.
(c) Intensive case management services.
(d) Assertive community treatment team services.
(e) Alcohol or substance abuse treatment and counseling.
(f) Individual or group therapy.
(g) Day or partial day programming activities.
(h) Vocational, educational, or self-help training or activities.
(i) Other services prescribed to treat a person's mental illness to prevent the need for hospitalization.
(3) The pilot projects described in this section shall be completely voluntary.
(4) The department shall provide semiannual reports to the house of representatives and senate appropriations subcommittees on community health, the state budget office, and the house and senate fiscal agencies as to any activities undertaken by the department and CMHSPs for pilot projects implemented under this section.
Sec. 442. (1) It is the intent of the legislature that the $40,000,000.00 in funding transferred from the community mental health non-Medicaid services line to support the Medicaid adult benefits waiver program be used to provide state match for increases in federal funding for primary care and specialty services provided to Medicaid adult benefits waiver enrollees and for economic increases for the Medicaid specialty services and supports program.
(2) The department shall assure that persons eligible for mental health services under the priority population sections of the mental health code, 1974 PA 258, MCL 330.1001 to 330.2106, will receive mandated services under this plan.
(3) Capitation payments to CMHSPs or specialty prepaid health plans for persons who become enrolled in the Medicaid adult benefits waiver program shall be made using the same rate methodology as payments for the current Medicaid beneficiaries.
(4) If enrollment in the Medicaid adult benefits waiver program does not achieve expectations and the funding appropriated for the Medicaid adult benefits waiver program for specialty services is not expended, the general fund balance shall be transferred back to the community mental health non-Medicaid services line. The department shall report quarterly to the senate and house of representatives appropriation subcommittees on community health a summary of eligible expenditures for the Medicaid adult benefits waiver program by CMHSPs or specialty prepaid health plans.
(5) In the waiver renewal application the department submits to the centers for Medicare and Medicaid services for continuation of the state's 1915(b) specialty services waiver, the department will request that the amount of savings that may be retained by a specialty prepaid health plan be changed from 5% to 7.5% of aggregate capitation payments. If the department is unable to secure centers for Medicare and Medicaid services approval for this change, the department shall allow specialty prepaid health plans and their affiliate CMHSP members to retain 50% of the unspent general fund/general purpose portion of the funds allocated to the specialty prepaid health plan for services to be provided under the Medicaid specialty services waiver. Any such general fund/general purpose portion retained by the specialty prepaid health plan and its CMHSP affiliates under this section shall be considered as state revenues for purposes of determining the amount of state funds that the CMHSP may carry forward under section 226(2)(c) of the mental health code, 1974 PA 258, MCL 330.1226.
Sec. 450. The department shall establish a work group comprised of CMHSPs or specialty prepaid health plans and departmental staff to recommend strategies to streamline audit and reporting requirements for CMHSPs or specialty prepaid health plans. The department shall report on the recommendations of the work group by March 31, 2004 to the house of representatives and senate appropriations subcommittees on community health, the house fiscal agency, the senate fiscal agency, and the state budget director.
STATE PSYCHIATRIC HOSPITALS, CENTERS FOR PERSONS WITH DEVELOPMENTAL DISABILITIES,
AND FORENSIC AND PRISON MENTAL HEALTH SERVICES
Sec. 601. (1) In funding of staff in the financial support division, reimbursement, and billing and collection sections, priority shall be given to obtaining third-party payments for services. Collection from individual recipients of services and their families shall be handled in a sensitive and nonharassing manner.
(2) The department shall continue a revenue recapture project to generate additional revenues from third parties related to cases that have been closed or are inactive. Revenues collected through project efforts are appropriated to the department for departmental costs and contractual fees associated with these retroactive collections and to improve ongoing departmental reimbursement management functions.
Sec. 602. Unexpended and unencumbered amounts and accompanying expenditure authorizations up to $500,000.00 remaining on September 30, 2004 from pay telephone revenues and the amounts appropriated in part 1 for gifts and bequests for patient living and treatment environments shall be carried forward for 1 fiscal year. The purpose of gifts and bequests for patient living and treatment environments is to use additional private funds to provide specific enhancements for individuals residing at state-operated facilities. Use of the gifts and bequests shall be consistent with the stipulation of the donor. The expected completion date for the use of gifts and bequests donations is within 3 years unless otherwise stipulated by the donor.
Sec. 603. The funds appropriated in part 1 for forensic mental health services provided to the department of corrections are in accordance with the interdepartmental plan developed in cooperation with the department of corrections. The department is authorized to receive and expend funds from the department of corrections in addition to the appropriations in part 1 to fulfill the obligations outlined in the interdepartmental agreements.
Sec. 604. (1) The CMHSPs or specialty prepaid health plans shall provide semiannual reports to the department on the following information:
(a) The number of days of care purchased from state hospitals and centers.
(b) The number of days of care purchased from private hospitals in lieu of purchasing days of care from state hospitals and centers.
(c) The number and type of alternative placements to state hospitals and centers other than private hospitals.
(d) Waiting lists for placements in state hospitals and centers.
(2) The department shall semiannually report the information in subsection (1) to the house of representatives and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director.
Sec. 605. (1) The department shall not implement any closures or consolidations of state hospitals, centers, or agencies until CMHSPs or specialty prepaid health plans have programs and services in place for those persons currently in those facilities and a plan for service provision for those persons who would have been admitted to those facilities.
(2) All closures or consolidations are dependent upon adequate department-approved CMHSP plans that include a discharge and aftercare plan for each person currently in the facility. A discharge and aftercare plan shall address the person's housing needs. A homeless shelter or similar temporary shelter arrangements are inadequate to meet the person's housing needs.
(3) Four months after the certification of closure required in section 19(6) of the state employees' retirement act, 1943 PA 240, MCL 38.19, the department shall provide a closure plan to the house of representatives and senate appropriations subcommittees on community health.
(4) Upon the closure of state-run operations and after transitional costs have been paid, the remaining balances of funds appropriated for that operation shall be transferred to CMHSPs or specialty prepaid health plans responsible for providing services for persons previously served by the operations.
Sec. 606. The department may collect revenue for patient reimbursement from first- and third-party payers, including Medicaid, to cover the cost of placement in state hospitals and centers. The department is authorized to adjust financing sources for patient reimbursement based on actual revenues earned. If the revenue collected exceeds current year expenditures, the revenue may be carried forward with approval of the state budget director. The revenue carried forward shall be used as a first source of funds in the subsequent year.
INFECTIOUS DISEASE CONTROL
Sec. 801. In the expenditure of funds appropriated in part 1 for AIDS programs, the department and its subcontractors shall ensure that adolescents receive priority for prevention, education, and outreach services.
Sec. 802. In developing and implementing AIDS provider education activities, the department may provide funding to the Michigan state medical society to serve as lead agency to convene a consortium of health care providers, to design needed educational efforts, to fund other statewide provider groups, and to assure implementation of these efforts, in accordance with a plan approved by the department.
Sec. 803. The department shall continue the AIDS drug assistance program maintaining the prior year eligibility criteria and drug formulary. This section is not intended to prohibit the department from providing assistance for improved AIDS treatment medications.
EPIDEMIOLOGY
Sec. 853. From the funds appropriated in part 1 for bioterrorism preparedness, up to $1,000,000.00, as allowed by federal law and regulations, shall be allocated for bioterrorism preparedness and response services to a multispecies laboratory and necropsy facility located in this state that is certified by the United States department of agriculture animal, plant, health inspection service, with a biosafety level 2/3 certification.
LOCAL HEALTH ADMINISTRATION AND GRANTS
Sec. 901. The amount appropriated in part 1 for implementation of the 1993 amendments to sections 9161, 16221, 16226, 17014, 17015, and 17515 of the public health code, 1978 PA 368, MCL 333.9161, 333.16221, 333.16226, 333.17014, 333.17015, and 333.17515, shall reimburse local health departments for costs incurred related to implementation of section 17015(18) of the public health code, 1978 PA 368, MCL 333.17015.
Sec. 902. If a county that has participated in a district health department or an associated arrangement with other local health departments takes action to cease to participate in such an arrangement after October 1, 2003, the department shall have the authority to assess a penalty from the local health department's operational accounts in an amount equal to no more than 5% of the local health department's local public health operations funding. This penalty shall only be assessed to the local county that requests the dissolution of the health department.
Sec. 903. The department shall provide a report annually to the house of representatives and senate appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director on the expenditures and activities undertaken by the lead abatement program. The report shall include, but is not limited to, a funding allocation schedule, expenditures by category of expenditure and by subcontractor, revenues received, description of program elements, and description of program accomplishments and progress.
Sec. 904. (1) Funds appropriated in part 1 for local public health operations shall be prospectively allocated to local health departments to support immunizations, infectious disease control, sexually transmitted disease control and prevention, hearing screening, vision services, food protection, public water supply, private groundwater supply, and on-site sewage management. Food protection shall be provided in consultation with the Michigan department of agriculture. Public water supply, private groundwater supply, and on-site sewage management shall be provided in consultation with the Michigan department of environmental quality.
(2) Local public health departments will be held to contractual standards for the services in subsection (1).
(3) Distributions in subsection (1) shall be made only to counties that maintain local spending in fiscal year 2003-2004 of at least the amount expended in fiscal year 1992-1993 for the services described in subsection (1).
(4) By April 1, 2004, the department shall make available upon request a report to the senate or house of representatives appropriations subcommittee on community health, the senate or house fiscal agency, or the state budget director on the planned allocation of the funds appropriated for local public health operations.
CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH PROMOTION
Sec. 1001. From the state funds appropriated in part 1, the department shall allocate funds to promote awareness, education, and early detection of breast, cervical, prostate, and colorectal cancer, and provide for other health promotion media activities.
Sec. 1002. (1) Provision of the school health education curriculum, such as the Michigan model or another comprehensive school health education curriculum, shall be in accordance with the health education goals established by the Michigan model for the comprehensive school health education state steering committee. The state steering committee shall be comprised of a representative from each of the following offices and departments:
(a) The department of education.
(b) The department of community health.
(c) The health administration in the department of community health.
(d) The bureau of mental health and substance abuse services in the department of community health.
(e) The family independence agency.
(f) The department of state police.
(2) Upon written or oral request, a pupil not less than 18 years of age or a parent or legal guardian of a pupil less than 18 years of age, within a reasonable period of time after the request is made, shall be informed of the content of a course in the health education curriculum and may examine textbooks and other classroom materials that are provided to the pupil or materials that are presented to the pupil in the classroom. This subsection does not require a school board to permit pupil or parental examination of test questions and answers, scoring keys, or other examination instruments or data used to administer an academic examination.
Sec. 1003. Funds appropriated in part 1 for the Alzheimer's information network shall be used to provide information and referral services through regional networks for persons with Alzheimer's disease or related disorders, their families, and health care providers.
Sec. 1006. In spending the funds appropriated in part 1 for the smoking prevention program, priority shall be given to prevention and smoking cessation programs for pregnant women, women with young children, and adolescents.
Sec. 1007. (1) The funds appropriated in part 1 for violence prevention shall be used for, but not be limited to, the following:
(a) Programs aimed at the prevention of spouse, partner, or child abuse and rape.
(b) Programs aimed at the prevention of workplace violence.
(2) In awarding grants from the amounts appropriated in part 1 for violence prevention, the department shall give equal consideration to public and private nonprofit applicants.
(3) From the funds appropriated in part 1 for violence prevention, the department may include local school districts as recipients of the funds for family violence prevention programs.
Sec. 1009. From the funds appropriated in part 1 for the diabetes and kidney program, a portion of the funds may be allocated to the National Kidney Foundation of Michigan for kidney disease prevention programming including early identification and education programs and kidney disease prevention demonstration projects.
Sec. 1010. Contingent on the availability of state restricted healthy Michigan fund money or federal preventive health and health services block grant fund money, funds shall be appropriated for osteoporosis prevention and treatment education.
Sec. 1019. From the funds appropriated in part 1 for chronic disease prevention, $50,000.00 shall be allocated for stroke prevention, education, and outreach. The objectives of the program shall include education to assist persons in identifying risk factors, and education to assist persons in the early identification of the occurrence of a stroke in order to minimize stroke damage.
Sec. 1020. From the funds appropriated in part 1 for chronic disease prevention, $105,000.00 shall be allocated for a childhood and adult arthritis program.
Sec. 1028. Contingent on the availability of state restricted healthy Michigan fund money or federal preventive health and health services block grant fund money, funds shall be appropriated for the African-American male health initiative.
COMMUNITY LIVING, CHILDREN, AND FAMILIES
Sec. 1101. The department shall review the basis for the distribution of funds to local health departments and other public and private agencies for the women, infants, and children food supplement program; family planning; and prenatal care outreach and service delivery support program and indicate the basis upon which any projected underexpenditures by local public and private agencies shall be reallocated to other local agencies that demonstrate need.
Sec. 1104. Before April 1, 2004, the department shall submit a report to the house and senate fiscal agencies and the state budget director on planned allocations from the amounts appropriated in part 1 for local MCH services, prenatal care outreach and service delivery support, family planning local agreements, and pregnancy prevention programs. Using applicable federal definitions, the report shall include information on all of the following:
(a) Funding allocations.
(b) Actual number of women, children, and/or adolescents served and amounts expended for each group for the fiscal year 2002-2003.
Sec. 1105. For all programs for which an appropriation is made in part 1, the department shall contract with those local agencies best able to serve clients. Factors to be used by the department in evaluating agencies under this section shall include ability to serve high-risk population groups; ability to serve low-income clients, where applicable; availability of, and access to, service sites; management efficiency; and ability to meet federal standards, when applicable.
Sec. 1106. Each family planning program receiving federal title X family planning funds shall be in compliance with all performance and quality assurance indicators that the United States bureau of community health services specifies in the family planning annual report. An agency not in compliance with the indicators shall not receive supplemental or reallocated funds.
Sec. 1106a. (1) Federal abstinence money expended in part 1 for the purpose of promoting abstinence education shall provide abstinence education to teenagers most likely to engage in high-risk behavior as their primary focus, and may include programs that include 9- to 17-year-olds. Programs funded must meet all of the following guidelines:
(a) Teaches the gains to be realized by abstaining from sexual activity.
(b) Teaches abstinence from sexual activity outside of marriage as the expected standard for all school-age children.
(c) Teaches that abstinence is the only certain way to avoid out-of-wedlock pregnancy, sexually transmitted diseases, and other health problems.
(d) Teaches that a monogamous relationship in the context of marriage is the expected standard of human sexual activity.
(e) Teaches that sexual activity outside of marriage is likely to have harmful effects.
(f) Teaches that bearing children out of wedlock is likely to have harmful consequences.
(g) Teaches young people how to avoid sexual advances and how alcohol and drug use increases vulnerability to sexual advances.
(h) Teaches the importance of attaining self-sufficiency before engaging in sexual activity.
(2) Coalitions, organizations, and programs that do not provide contraceptives to minors and demonstrate efforts to include parental involvement as a means of reducing the risk of teens becoming pregnant shall be given priority in the allocations of funds.
(3) Programs and organizations that meet the guidelines of subsection (1) and criteria of subsection (2) shall have the option of receiving all or part of their funds directly from the department of community health.
Sec. 1107. Of the amount appropriated in part 1 for prenatal care outreach and service delivery support, not more than 10% shall be expended for local administration, data processing, and evaluation.
Sec. 1108. The funds appropriated in part 1 for pregnancy prevention programs shall not be used to provide abortion counseling, referrals, or services.
Sec. 1109. (1) Subject to subsection (3), from the amounts appropriated in part 1 for dental programs, funds shall be allocated to the Michigan dental association for the administration of a volunteer dental program that would provide dental services to the uninsured in an amount that is no less than the amount allocated to that program in fiscal year 1996-1997.
(2) Not later than December 1 of the current fiscal year, the department shall make available upon request a report to the senate or house of representatives appropriations subcommittee on community health or the senate or house of representatives standing committee on health policy the number of individual patients treated, number of procedures performed, and approximate total market value of those procedures through September 30, 2003.
(3) As a condition to receiving the allocation of the funds described in subsection (1), the Michigan dental association shall provide a report to the senate and house subcommittees on community health and the senate and house fiscal agencies documenting the Michigan dental association's efforts to increase its membership's participation as Medicaid providers. This report shall be provided no later than December 1, 2003.
Sec. 1110. Agencies that currently receive pregnancy prevention funds and either receive or are eligible for other family planning funds shall have the option of receiving all of their family planning funds directly from the department of community health and be designated as delegate agencies.
Sec. 1111. The department shall allocate no less than 87% of the funds appropriated in part 1 for family planning local agreements and the pregnancy prevention program for the direct provision of family planning/pregnancy prevention services.
Sec. 1112. From the funds appropriated for prenatal care outreach and service delivery support, the department shall allocate at least $1,000,000.00 to communities with high infant mortality rates.
Sec. 1124. (1) From the funds appropriated in part 1 from the federal maternal and child health block grant, $450,000.00 shall be allocated if additional block grant funds are available for the statewide fetal infant mortality review network.
(2) It is the intent of the legislature that this project shall be funded with a like amount in fiscal year 2004-2005 should federal funds become available.
Sec. 1128. The department shall make every effort to maximize the receipt of federal Medicaid funds to support the activities of the migrant health care line item.
Sec. 1129. The department shall provide a report annually to the house of representatives and senate appropriations subcommittees on community health, the house and senate fiscal agencies, and the state budget director on the number of children with elevated blood lead levels from information available to the department. The report shall provide the information by county, shall include the level of blood lead reported, and shall indicate the sources of the information.
Sec. 1133. The department shall release infant mortality rate data to all local public health departments no later than 48 hours prior to releasing infant mortality rate data to the public.
Sec. 1134. On the condition that there are unallocated funds remaining in the special projects line item, following the allotment of funds from this line item to existing programs that are required to be funded under this act, the department may provide $100,000.00 to the yellow ribbon suicide prevention program for an adolescent suicide and assessment pilot project.
WOMEN, INFANTS, AND CHILDREN FOOD AND NUTRITION PROGRAM
Sec. 1151. The department may work with local participating agencies to define local annual contributions for the farmer's market nutrition program, project FRESH, to enable the department to request federal matching funds by April 1, 2004 based on local commitment of funds.
CHILDREN'S SPECIAL HEALTH CARE SERVICES
Sec. 1201. Funds appropriated in part 1 for medical care and treatment of children with special health care needs shall be paid according to reimbursement policies determined by the Michigan medical services program. Exceptions to these policies may be taken with the prior approval of the state budget director.
Sec. 1202. The department may do 1 or more of the following:
(a) Provide special formula for eligible clients with specified metabolic and allergic disorders.
(b) Provide medical care and treatment to eligible patients with cystic fibrosis who are 21 years of age or older.
(c) Provide genetic diagnostic and counseling services for eligible families.
(d) Provide medical care and treatment to eligible patients with hereditary coagulation defects, commonly known as hemophilia, who are 21 years of age or older.
Sec. 1203. All children who are determined medically eligible for the children's special health care services program shall be referred to the appropriate locally-based services program in their community.
OFFICE OF DRUG CONTROL POLICY
Sec. 1250. In addition to the $1,800,000.00 in Byrne formula grant program funding the department provides to local drug treatment courts, the department shall provide $1,800,000.00 in Byrne formula grant program funding to the judiciary by interdepartmental grant.
CRIME VICTIM SERVICES COMMISSION
Sec. 1302. From the funds appropriated in part 1 for justice assistance grants, up to $50,000.00 shall be allocated for expansion of forensic nurse examiner programs to facilitate training for improved evidence collection for the prosecution of sexual assault. The funds shall be used for program coordination, training, and counseling. Unexpended funds shall be carried forward.
Sec. 1304. The department shall work with the department of state police, the Michigan hospital association, the Michigan state medical society, and the Michigan nurses association to ensure that the recommendations included in the "Standard Recommended Procedures for the Emergency Treatment of Sexual Assault Victims" are followed in the collection of evidence.
OFFICE OF SERVICES TO THE AGING
Sec. 1401. The appropriation in part 1 to the office of services to the aging, for community and nutrition services and home services, shall be restricted to eligible individuals at least 60 years of age who fail to qualify for home care services under title XVIII, XIX, or XX.
Sec. 1403. The office of services to the aging shall require each region to report to the office of services to the aging home delivered meals waiting lists based upon standard criteria. Determining criteria shall include all of the following:
(a) The recipient's degree of frailty.
(b) The recipient's inability to prepare his or her own meals safely.
(c) Whether the recipient has another care provider available.
(d) Any other qualifications normally necessary for the recipient to receive home delivered meals.
Sec. 1404. The area agencies and local providers may receive and expend fees for the provision of day care, care management, respite care, and certain eligible home and community-based services. The fees shall be based on a sliding scale, taking client income into consideration. The fees shall be used to expand services.
Sec. 1406. The appropriation of $5,000,000.00 of tobacco settlement funds to the office of services to the aging for the respite care program shall be allocated in accordance with a long-term care plan developed by the long-term care working group established in section 1657 of 1998 PA 336 upon implementation of the plan. The use of the funds shall be for direct respite care or adult respite care center services. Not more than 10% of the amount allocated under this section shall be expended for administration and administrative purposes.
Sec. 1413. The legislature affirms the commitment to locally-based services. The legislature supports the role of local county board of commissioners in the approval of area agency on aging plans. The legislature supports choice and the right of local counties to change membership in the area agencies on aging if the change is to an area agency on aging that is contiguous to that county. The legislature supports the office of services to the aging working with others to provide training to commissions to better understand and advocate for aging issues. It is the intent of the legislature to prohibit area agencies on aging from providing direct services, including home and community-based waiver services, unless they receive a waiver from the department. The legislature's intent in this section is conditioned on compliance with federal and state laws, rules, and policies.
Sec. 1416. The legislature affirms the commitment to provide in-home services, resources, and assistance for the frail elderly who are not being served by the Medicaid home and community services waiver program.
MEDICAL SERVICES
Sec. 1601. The cost of remedial services incurred by residents of licensed adult foster care homes and licensed homes for the aged shall be used in determining financial eligibility for the medically needy. Remedial services include basic self-care and rehabilitation training for a resident.
Sec. 1602. Medical services shall be provided to elderly and disabled persons with incomes less than or equal to 100% of the official poverty line, pursuant to the state's option to elect such coverage set out at section 1902(a)(10)(A)(ii) and (m) of title XIX, 42 U.S.C. 1396a.
Sec. 1603. (1) The department may establish a program for persons to purchase medical coverage at a rate determined by the department.
(2) The department may receive and expend premiums for the buy-in of medical coverage in addition to the amounts appropriated in part 1.
(3) The premiums described in this section shall be classified as private funds.
Sec. 1605. (1) The protected income level for Medicaid coverage determined pursuant to section 106(1)(b)(iii) of the social welfare act, 1939 PA 280, MCL 400.106, shall be 100% of the related public assistance standard.
(2) The department shall notify the senate and house of representatives appropriations subcommittees on community health and the state budget director of any proposed revisions to the protected income level for Medicaid coverage related to the public assistance standard 90 days prior to implementation.
Sec. 1606. For the purpose of guardian and conservator charges, the department of community health may deduct up to $60.00 per month as an allowable expense against a recipient's income when determining medical services eligibility and patient pay amounts.
Sec. 1607. (1) An applicant for Medicaid, whose qualifying condition is pregnancy, shall immediately be presumed to be eligible for Medicaid coverage unless the preponderance of evidence in her application indicates otherwise. The applicant who is qualified as described in this subsection shall be allowed to select or remain with the Medicaid participating obstetrician of her choice.
(2) An applicant qualified as described in subsection (1) shall be given a letter of authorization to receive Medicaid covered services related to her pregnancy. All qualifying applicants shall be entitled to receive all medically necessary obstetrical and prenatal care without preauthorization from a health plan. All claims submitted for payment for obstetrical and prenatal care shall be paid at the Medicaid fee-for-service rate in the event a contract does not exist between the Medicaid participation obstetrical or prenatal care provider and the managed care plan. The applicant shall receive a listing of Medicaid physicians and managed care plans in the immediate vicinity of the applicant's residence.
(3) In the event that an applicant, presumed to be eligible pursuant to subsection (1), is subsequently found to be ineligible, a Medicaid physician or managed care plan that has been providing pregnancy services to an applicant under this section is entitled to reimbursement for those services until such time as they are notified by the department that the applicant was found to be ineligible for Medicaid.
(4) If the preponderance of evidence in an application indicates that the applicant is not eligible for Medicaid, the department shall refer that applicant to the nearest public health clinic or similar entity as a potential source for receiving pregnancy-related services.
(5) The department shall develop an enrollment process for pregnant women covered under this section that facilitates the selection of a managed care plan at the time of application.
Sec. 1608. The department shall update by October 1, 2003 and distribute by November 1, 2003 to health care providers the pamphlet identifying patient rights and responsibilities described in section 20201 of the public health code, 1978 PA 368, MCL 333.20201.
Sec. 1610. The department of community health shall provide an administrative procedure for the review of cost report grievances by medical services providers with regard to reimbursement under the medical services program. Settlements of properly submitted cost reports shall be paid not later than 9 months from receipt of the final report.
Sec. 1611. (1) For care provided to medical services recipients with other third-party sources of payment, medical services reimbursement shall not exceed, in combination with such other resources, including Medicare, those amounts established for medical services-only patients. The medical services payment rate shall be accepted as payment in full. Other than an approved medical services copayment, no portion of a provider's charge shall be billed to the recipient or any person acting on behalf of the recipient. Nothing in this section shall be considered to affect the level of payment from a third-party source other than the medical services program. The department shall require a nonenrolled provider to accept medical services payments as payment in full.
(2) Notwithstanding subsection (1), medical services reimbursement for hospital services provided to dual Medicare/ medical services recipients with Medicare Part B coverage only shall equal, when combined with payments for Medicare and other third-party resources, if any, those amounts established for medical services-only patients, including capital payments.
Sec. 1615. Unless prohibited by federal or state law or regulation, the department shall require enrolled Medicaid providers to submit their billings for services electronically by April 1, 2004 and have a program that provides a mechanism for Medicaid providers to submit their billings for services over the Internet.
Sec. 1620. (1) For fee-for-service recipients, the pharmaceutical dispensing fee shall be $3.77 or the pharmacy's usual or customary cash charge, whichever is less.
(2) If carved-out of the capitation rate for managed care recipients, the pharmaceutical dispensing fee shall be $3.77 or the pharmacy's usual or customary cash charge or the usual charge allowed by the recipient's Medicaid HMO, whichever is less.
(3) The department shall require a prescription copayment for Medicaid recipients except as prohibited by federal or state law or regulation.
Sec. 1621. (1) The department may implement prospective drug utilization review and disease management systems. The prospective drug utilization review and disease management systems authorized by this subsection shall have physician oversight, shall focus on patient, physician, and pharmacist education, and shall be developed in consultation with the national pharmaceutical council, Michigan state medical society, Michigan association of osteopathic physicians, Michigan pharmacists' association, Michigan health and hospital association, and Michigan nurses' association.
(2) This section does not authorize or allow therapeutic substitution.
Sec. 1621a. (1) The department, in conjunction with pharmaceutical manufacturers or their agents, may establish pilot projects to test the efficacy of disease management and health management programs.
(2) The department may negotiate a plan that uses the savings resulting from the services rendered from these programs, in lieu of requiring a supplemental rebate for the inclusion of those participating parties' products on the department's preferred drug list.
Sec. 1622. The department shall implement a pharmaceutical best practice initiative. All of the following apply to that initiative:
(a) A physician that calls the department's agent for prior authorization of drugs that are not on the department's preferred drug list shall be informed of the option to speak to the agent's physician on duty concerning the prior authorization request if the agent's pharmacist denies the prior authorization request. If immediate contact with the agent's physician on duty is requested, but cannot be arranged, the physician placing the call shall be immediately informed of the right to request a 72-hour supply of the nonauthorized drug.
(b) The department's prior authorization and appeal process shall be available on the department's website. The department shall also continue to implement a program that allows providers to file prior authorization and appeal requests electronically.
(c) The department shall provide authorization for prescribed drugs that are not on its preferred drug list if the prescribing physician verifies that the drugs are necessary for the continued stabilization of the patient's medical condition following documented previous failures on earlier prescription regimens. Documentation of previous failures may be provided by telephone, facsimile, or electronic transmission.
(d) Meetings of the department's pharmacy and therapeutics committee shall be open to the public with advance notice of the meeting date, time, place, and agenda posted on the department's website 14 days in advance of each meeting date. By January 31 of each year, the department shall publish the committee's regular meeting schedule for the year on the department's website. The pharmacy and therapeutics committee meetings shall be subject to the requirements of the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. The committee shall provide an opportunity for interested parties to comment at each meeting following written notice to the committee's chairperson of the intent to provide comment.
(e) The pharmacy and therapeutics committee shall make recommendations for the inclusion of medications on the preferred drug list based on sound clinical evidence found in labeling, drug compendia, and peer-reviewed literature pertaining to use of the drug in the relevant population. The committee shall develop a method to receive notification and clinical information about new drugs. The department shall post this process and the necessary forms on the department's website.
(f) The department shall assure compliance with the published Medicaid bulletin implementing the Michigan pharmaceutical best practices initiative program. The department shall also include this information on its website.
(g) The department shall by March 15, 2004 provide to the members of the house and senate subcommittees on community health a report on the impact of the pharmaceutical best practice initiative on the Medicaid community. The report shall include, but not be limited to, the number of appeals used in the prior authorization process and any reports of patients who are hospitalized because of authorization denial.
(h) By May 15, 2004, the department shall provide a report to the members of the house and senate appropriations subcommittees on community health and the house and senate fiscal agencies identifying the prescribed drugs that are grandfathered in as preferred drugs and available without prior authorization and the population groups to which they apply. The report shall assess strategies to improve the drug prior authorization process.
Sec. 1622a. (1) It is the intent of the legislature that the pharmacy and therapeutics committee shall consist of the following 11 members:
(a) Five members of the committee shall be Michigan licensed retail pharmacists who are in active clinical practice residing in the state. All member pharmacists shall have a representative portion of fee-for-service Medicaid clients in their practice.
(b) Six members of the committee shall be Michigan licensed physicians who are in active clinical practice residing in the state. All member physicians shall have a representative portion of fee-for-service Medicaid clients in their practice.
(2) It is also the intent of the legislature that the membership on the committee shall be developed by appointing:
(a) Physicians, recommended by the Michigan medical society and the Michigan osteopathic association, and may include at least 1 physician with expertise in mental health.
(b) Retail pharmacists, recommended by the Michigan pharmacists association and the Michigan retailers association, and may include at least 1 pharmacist with expertise with mental health drugs.
Sec. 1623. (1) The department shall continue the Medicaid policy that allows for the dispensing of a 100-day supply for maintenance drugs.
(2) The department shall notify all HMOs, physicians, pharmacies, and other medical providers that are enrolled in the Medicaid program that Medicaid policy allows for the dispensing of a 100-day supply for maintenance drugs.
(3) The notice in subsection (2) shall also clarify that a pharmacy shall fill a prescription written for maintenance drugs in the quantity specified by the physician, but not more than the maximum allowed under Medicaid, unless subsequent consultation with the prescribing physician indicates otherwise.
Sec. 1624. The department may continue all rebate and supplemental rebate contracts with a pharmaceutical manufacturer until a multistate drug purchasing compact is fully established.
Sec. 1625. The department shall continue its practice of placing all atypical antipsychotic medications on the Medicaid preferred drug list.
Sec. 1626. Prior to implementing a multistate drug purchasing compact, the department shall provide the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies with a benefit-cost analysis to document that the savings from the compact exceed the savings from the current preferred drug list (PDL) supplemental rebate drug programs.
Sec. 1627. (1) The department shall use procedures and rebates amounts specified under section 1927 of title XIX, 42 U.S.C. 1396r-8, to secure quarterly rebates from pharmaceutical manufacturers for outpatient drugs dispensed to participants in the MIChild program, maternal outpatient medical services program, state medical program, children's special health care services, and EPIC.
(2) For products distributed by pharmaceutical manufacturers not providing quarterly rebates as listed in subsection (1), the department may require preauthorization.
Sec. 1628. Recipients of children's special health care services shall be exempt from the prior authorization requirements for prescription drugs related to their qualifying condition in the department of community health's pharmaceutical best practices initiative.
Sec. 1629. The department shall utilize maximum allowable cost pricing for generic drugs that is based on wholesaler pricing to providers that is available from at least 2 wholesalers who deliver in the state of Michigan.
Sec. 1630. Medicaid hearing aid services, podiatric services, and chiropractic services shall continue at not less than the level in effect on October 1, 2002, except that reasonable utilization limitations may be adopted in order to prevent excess utilization. The department shall not impose utilization restrictions on chiropractic services unless a recipient has exceeded 18 office visits within 1 year.
Sec. 1631. The department shall require copayments on dental, podiatric, chiropractic, vision, and hearing aid services provided to Medicaid recipients, except as prohibited by federal or state law or regulation.
Sec. 1633. From the funds appropriated in part 1 for auxiliary medical services, the department shall expand the healthy kids dental program statewide if funds become available specifically for expansion of the program.
Sec. 1634. From the funds appropriated in part 1 for ambulance services, the department shall continue the 5% increase in payment rates for ambulance services implemented in fiscal year 2000-2001.
Sec. 1641. An institutional provider that is required to submit a cost report under the medical services program shall submit cost reports completed in full within 5 months after the end of its fiscal year.
Sec. 1643. Of the funds appropriated in part 1 for graduate medical education in the hospital services and therapy line item appropriation, $7,270,200.00 shall be allocated for the psychiatric residency training program that establishes and maintains collaborative relations with the schools of medicine at Michigan State University and Wayne State University if the necessary Medicaid matching funds are provided by the universities as allowable state match.
Sec. 1647. From the funds appropriated in part 1 for hospital services, the department shall allocate for graduate medical education not less than the level of rates and payments in effect on April 1, 2003.
Sec. 1648. The department shall maintain an automated toll-free phone line to enable medical providers to verify the eligibility status of Medicaid recipients. There shall be no charge to providers for the use of the toll-free phone line.
Sec. 1649. From the funds appropriated in part 1 for medical services, the department shall continue breast and cervical cancer treatment coverage for women up to 250% of the federal poverty level, who are under age 65, and who are not otherwise covered by insurance. This coverage shall be provided to women who have been screened through the centers for disease control breast and cervical cancer early detection program, and are found to have breast or cervical cancer, pursuant to the breast and cervical cancer prevention and treatment act of 2000, Public Law 106-354, 114 Stat. 1381.
Sec. 1650. (1) The department may require medical services recipients residing in counties offering managed care options to choose the particular managed care plan in which they wish to be enrolled. Persons not expressing a preference may be assigned to a managed care provider.
(2) Persons to be assigned a managed care provider shall be informed in writing of the criteria for exceptions to capitated managed care enrollment, their right to change HMOs for any reason within the initial 90 days of enrollment, the toll-free telephone number for problems and complaints, and information regarding grievance and appeals rights.
(3) The criteria for medical exceptions to HMO enrollment shall be based on submitted documentation that indicates a recipient has a serious medical condition, and is undergoing active treatment for that condition with a physician who does not participate in 1 of the HMOs. If the person meets the criteria established by this subsection, the department shall grant an exception to mandatory enrollment at least through the current prescribed course of treatment, subject to periodic review of continued eligibility.
Sec. 1651. (1) Medical services patients who are enrolled in HMOs have the choice to elect hospice services or other services for the terminally ill that are offered by the HMOs. If the patient elects hospice services, those services shall be provided in accordance with part 214 of the public health code, 1978 PA 368, MCL 333.21401 to 333.21420.
(2) The department shall not amend the medical services hospice manual in a manner that would allow hospice services to be provided without making available all comprehensive hospice services described in 42 C.F.R. part 418.
Sec. 1653. Implementation and contracting for managed care by the department through HMOs shall be subject to the following conditions:
(a) Continuity of care is assured by allowing enrollees to continue receiving required medically necessary services from their current providers for a period not to exceed 1 year if enrollees meet the managed care medical exception criteria.
(b) The department shall require contracted HMOs to submit data determined necessary for evaluation on a timely basis.
(c) A health plans advisory council is functioning that meets all applicable federal and state requirements for a medical care advisory committee. The council shall review at least quarterly the implementation of the department's managed care plans.
(d) Mandatory enrollment of Medicaid beneficiaries living in counties defined as rural by the federal government, which is any nonurban standard metropolitan statistical area, is allowed if there is only 1 HMO serving the Medicaid population, as long as each Medicaid beneficiary is assured of having a choice of at least 2 physicians by the HMO.
(e) Enrollment of recipients of children's special health care services in HMOs shall be voluntary during fiscal year 2003-2004.
(f) The department shall develop a case adjustment to its rate methodology that considers the costs of persons with HIV/AIDS, end stage renal disease, organ transplants, epilepsy, and other high-cost diseases or conditions and shall implement the case adjustment when it is proven to be actuarially and fiscally sound. Implementation of the case adjustment must be budget neutral.
Sec. 1654. Medicaid HMOs shall provide for reimbursement of HMO covered services delivered other than through the HMO's providers if medically necessary and approved by the HMO, immediately required, and that could not be reasonably obtained through the HMO's providers on a timely basis. Such services shall be considered approved if the HMO does not respond to a request for authorization within 24 hours of the request. Reimbursement shall not exceed the Medicaid fee-for-service payment for those services.
Sec. 1655. (1) The department may require a 12-month lock-in to the HMO selected by the recipient during the initial and subsequent open enrollment periods, but allow for good cause exceptions during the lock-in period.
(2) Medicaid recipients shall be allowed to change HMOs for any reason within the initial 90 days of enrollment.
Sec. 1656. (1) The department shall provide an expedited complaint review procedure for Medicaid eligible persons enrolled in HMOs for situations in which failure to receive any health care service would result in significant harm to the enrollee.
(2) The department shall provide for a toll-free telephone number for Medicaid recipients enrolled in managed care to assist with resolving problems and complaints. If warranted, the department shall immediately disenroll persons from managed care and approve fee-for-service coverage.
(3) Annual reports summarizing the problems and complaints reported and their resolution shall be provided to the house of representatives and senate appropriations subcommittees on community health, the house and senate fiscal agencies, the state budget office, and the department's health plans advisory council.
Sec. 1657. (1) Reimbursement for medical services to screen and stabilize a Medicaid recipient, including stabilization of a psychiatric crisis, in a hospital emergency room shall not be made contingent on obtaining prior authorization from the recipient's HMO. If the recipient is discharged from the emergency room, the hospital shall notify the recipient's HMO within 24 hours of the diagnosis and treatment received.
(2) If the treating hospital determines that the recipient will require further medical service or hospitalization beyond the point of stabilization, that hospital must receive authorization from the recipient's HMO prior to admitting the recipient.
(3) Subsections (1) and (2) shall not be construed as a requirement to alter an existing agreement between an HMO and their contracting hospitals nor as a requirement that an HMO must reimburse for services that are not considered to be medically necessary.
(4) Prior to contracting with an HMO for managed care services that did not have a contract with the department before October 1, 2002, the department shall receive assurances from the office of financial and insurance services that the HMO meets the net worth and financial solvency requirements contained in chapter 35 of the insurance code of 1956, 1956 PA 218, MCL 500.3501 to 500.3580.
Sec. 1658. (1) It is the intent of the legislature that HMOs shall have contracts with hospitals within a reasonable distance from their enrollees. If a hospital does not contract with the HMO, in its service area, that hospital shall enter into a hospital access agreement as specified in the MSA bulletin Hospital 01-19.
(2) A hospital access agreement specified in subsection (1) shall be considered an affiliated provider contract pursuant to the requirements contained in chapter 35 of the insurance code of 1956, 1956 PA 218, MCL 500.3501 to 500.3580.
Sec. 1659. The following sections are the only ones that shall apply to the following Medicaid managed care programs, including the comprehensive plan, children's special health care services plan, MIChoice long-term care plan, and the mental health, substance abuse, and developmentally disabled services program: 402, 404, 414, 418, 424, 428, 442, 1650, 1651, 1653, 1654, 1655, 1656, 1657, 1658, 1660, 1661, 1662, and 1699.
Sec. 1660. (1) The department shall assure that all Medicaid children have timely access to EPSDT services as required by federal law. Medicaid HMOs shall provide EPSDT services to their child members in accordance with Medicaid EPSDT policy.
(2) The primary responsibility of assuring a child's hearing and vision screening is with the child's primary care provider. The primary care provider shall provide age appropriate screening or arrange for these tests through referrals to local health departments. Local health departments shall provide preschool hearing and vision screening services and accept referrals for these tests from physicians or from Head Start programs in order to assure all preschool children have appropriate access to hearing and vision screening. Local health departments shall be reimbursed for the cost of providing these tests for Medicaid eligible children by the Medicaid program.
(3) The department shall require Medicaid HMOs to provide EPSDT utilization data through the encounter data system, and health employer data and information set well child health measures in accordance with the National Committee on Quality Assurance prescribed methodology.
(4) The department shall require HMOs to be responsible for well child visits and maternal and infant support services as described in Medicaid policy. These responsibilities shall be specified in the information distributed by the HMOs to their members.
(5) The department shall provide, on an annual basis, budget neutral incentives to Medicaid HMOs and local health departments to improve performance on measures related to the care of children and pregnant women.
Sec. 1661. (1) The department shall assure that all Medicaid eligible children and pregnant women have timely access to MSS/ISS services. Medicaid HMOs shall assure that maternal support service screening is available to their pregnant members and that those women found to meet the maternal support service high-risk criteria are offered maternal support services. Local health departments shall assure that maternal support service screening is available for Medicaid pregnant women not enrolled in an HMO and that those women found to meet the maternal support service high-risk criteria are offered maternal support services or are referred to a certified maternal support service provider.
(2) The department shall prohibit HMOs from requiring prior authorization of their contracted providers for any EPSDT screening and diagnosis service, for any MSS/ISS screening referral, or for up to 3 MSS/ISS service visits.
(3) The department shall assure the coordination of MSS/ISS services with the WIC program, state-supported substance abuse, smoking prevention, and violence prevention programs, the family independence agency, and any other state or local program with a focus on preventing adverse birth outcomes and child abuse and neglect.
Sec. 1662. (1) The department shall require the external quality review contractor to conduct a review of all EPSDT components provided to children from a statistically valid sample of health plan medical records.
(2) The department shall provide a copy of the analysis of the Medicaid HMO annual audited health employer data and information set reports and the annual external quality review report to the senate and house of representatives appropriations subcommittees on community health, the senate and house fiscal agencies, and the state budget director, within 30 days of the department's receipt of the final reports from the contractors.
(3) The department shall work with the Michigan association of health plans and the Michigan association for local public health to improve service delivery and coordination in the MSS/ISS and EPSDT programs.
(4) The department shall provide training and technical assistance workshops on EPSDT and MSS/ISS for Medicaid health plans, local health departments, and MSS/ISS contractors.
Sec. 1664. The department shall develop and implement incentives for providers to increase early entry of Medicaid recipients into prenatal care. The department shall provide documentation to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies on their progress in carrying out this section by June 1, 2004.
Sec. 1665. The department shall develop and implement a plan to improve access to health screening services under the EPSDT program for all Medicaid-eligible persons under the age of 21. The department shall provide documentation to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies on their progress in carrying out this section by June 1, 2004.
Sec. 1670. (1) The appropriation in part 1 for the MIChild program is to be used to provide comprehensive health care to all children under age 19 who reside in families with income at or below 200% of the federal poverty level, who are uninsured and have not had coverage by other comprehensive health insurance within 6 months of making application for MIChild benefits, and who are residents of this state. The department shall develop detailed eligibility criteria through the medical services administration public concurrence process, consistent with the provisions of this act. Health care coverage for children in families below 150% of the federal poverty level shall be provided through expanded eligibility under the state's Medicaid program. Health coverage for children in families between 150% and 200% of the federal poverty level shall be provided through a state-based private health care program.
(2) The department shall enter into a contract to obtain MIChild services from any HMO, dental care corporation, or any other entity that offers to provide the managed health care benefits for MIChild services at the MIChild capitated rate. As used in this subsection:
(a) "Dental care corporation", "health care corporation", "insurer", and "prudent purchaser agreement" mean those terms as defined in section 2 of the prudent purchaser act, 1984 PA 233, MCL 550.52.
(b) "Entity" means a health care corporation or insurer operating in accordance with a prudent purchaser agreement.
(3) The department may enter into contracts to obtain certain MIChild services from community mental health service programs.
(4) The department may make payments on behalf of children enrolled in the MIChild program from the line-item appropriation associated with the program as described in the MIChild state plan approved by the United States department of health and human services, or from other medical services line-item appropriations providing for specific health care services.
Sec. 1671. From the funds appropriated in part 1, the department shall continue a comprehensive approach to the marketing and outreach of the MIChild program. The marketing and outreach required under this section shall be coordinated with current outreach, information dissemination, and marketing efforts and activities conducted by the department.
Sec. 1672. The department may provide up to 1 year of continuous eligibility to children eligible for the MIChild program unless the family fails to pay the monthly premium, a child reaches age 19, or the status of the children's family changes and its members no longer meet the eligibility criteria as specified in the federally approved MIChild state plan.
Sec. 1673. The department may establish premiums for MIChild eligible persons in families with income above 150% of the federal poverty level. The monthly premiums shall not exceed $5.00 for a family.
Sec. 1674. The department shall not require copayments under the MIChild program.
Sec. 1675. Children whose category of eligibility changes between the Medicaid and MIChild programs shall be assured of keeping their current health care providers through the current prescribed course of treatment for up to 1 year, subject to periodic reviews by the department if the beneficiary has a serious medical condition and is undergoing active treatment for that condition.
Sec. 1676. To be eligible for the MIChild program, a child must be residing in a family with an adjusted gross income of less than or equal to 200% of the federal poverty level. The department's verification policy shall be used to determine eligibility.
Sec. 1677. The MIChild program shall provide all benefits available under the state employee insurance plan that are delivered through contracted providers and consistent with federal law, including, but not limited to, the following medically necessary services:
(a) Inpatient mental health services, other than substance abuse treatment services, including services furnished in a state-operated mental hospital and residential or other 24-hour therapeutically planned structured services.
(b) Outpatient mental health services, other than substance abuse services, including services furnished in a state-operated mental hospital and community-based services.
(c) Durable medical equipment and prosthetic and orthotic devices.
(d) Dental services as outlined in the approved MIChild state plan.
(e) Substance abuse treatment services that may include inpatient, outpatient, and residential substance abuse treatment services.
(f) Care management services for mental health diagnoses.
(g) Physical therapy, occupational therapy, and services for individuals with speech, hearing, and language disorders.
(h) Emergency ambulance services.
Sec. 1680. (1) It is the intent of the legislature that payment increases for enhanced wages and new or enhanced employee benefits provided through the Medicaid nursing home wage pass-through program in previous years be continued in fiscal year 2003-2004.
(2) The department shall provide a report to the house and senate appropriations subcommittees on community health and the house and senate fiscal agencies regarding the amount of nursing home employee wage and benefit increases provided through the nursing home wage pass-through program in fiscal year 2002-2003.
Sec. 1681. From the funds appropriated in part 1 for home and community-based services, the department and local waiver agents shall encourage the use of family members, friends, and neighbors of home and community-based services participants, where appropriate, to provide homemaker services, meal preparation, transportation, chore services, and other nonmedical covered services to participants in the Medicaid home and community-based services program. This section shall not be construed as allowing for the payment of family members, friends, or neighbors for these services unless explicitly provided for in federal or state law.
Sec. 1682. (1) The department shall implement enforcement actions as specified in the nursing facility enforcement provisions of section 1919 of title XIX, 42 U.S.C. 1396r.
(2) The department is authorized to receive and spend penalty money received as the result of noncompliance with medical services certification regulations. Penalty money, characterized as private funds, received by the department shall increase authorizations and allotments in the long-term care accounts.
(3) Any unexpended penalty money, at the end of the year, shall carry forward to the following year.
Sec. 1683. The department shall promote activities that preserve the dignity and rights of terminally ill and chronically ill individuals. Priority shall be given to programs, such as hospice, that focus on individual dignity and quality of care provided persons with terminal illness and programs serving persons with chronic illnesses that reduce the rate of suicide through the advancement of the knowledge and use of improved, appropriate pain management for these persons; and initiatives that train health care practitioners and faculty in managing pain, providing palliative care, and suicide prevention.
Sec. 1685. All nursing home rates, class I and class III, must have their respective fiscal year rate set 30 days prior to the beginning of their rate year. Rates may take into account the most recent cost report prepared and certified by the preparer, provider corporate owner or representative as being true and accurate, and filed timely, within 5 months of the fiscal year end in accordance with Medicaid policy. If the audited version of the last report is available, it shall be used. Any rate factors based on the filed cost report may be retroactively adjusted upon completion of the audit of that cost report.
Sec. 1687. (1) The department shall undertake an assessment and inventory of all facilities capable of providing the appropriate level of residential care to persons afflicted with Alzheimer's disease or dementia.
(2) As part of this assessment, the department may establish pilot projects with freestanding psychiatric or other qualifying facilities that have developed specific units to provide specialized residential care for patients with Alzheimer's disease or dementia, or both. The purpose of these pilots shall be to ascertain whether such treatment modalities are cost effective at negotiated rates and can increase access to this level of care needed by affected patients and their families.
Sec. 1688. The department shall not impose a limit on per unit reimbursements to service providers that provide personal care or other services under the Medicaid home and community-based waiver program for the elderly and disabled. The department's per day per client reimbursement cap calculated in the aggregate for all services provided under the Medicaid home and community-based waiver is not a violation of this section.
Sec. 1689. (1) Priority in enrolling additional persons in the Medicaid home and community-based services program shall be given to those who are currently residing in nursing homes or who are eligible to be admitted to a nursing home if they are not provided home and community-based services. The department shall implement screening and assessment procedures to assure that no additional Medicaid eligible persons are admitted to nursing homes who would be more appropriately served by the Medicaid home and community-based services program. If there is a net decrease in the number of Medicaid nursing home days of care during the most recent quarter in comparison with the previous quarter and a net cost savings attributable to moving individuals from a nursing home to the home and community-based services waiver program, the department shall transfer the net cost savings to the home and community-based services waiver program. If a transfer is required, it shall be done on a quarterly basis.
(2) Within 30 days of the end of each fiscal quarter, the department shall provide a report to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies that details existing and future allocations for the home and community-based waiver program by regions as well as the associated expenditures. The report shall include information regarding the net cost savings from moving individuals from a nursing home to the home and community-based services waiver program and the amount of funds transferred.
(3) The department shall utilize a competitive bid process to award funds for the implementation of the new screening process to be applied to home and community-based services and nursing facility services provided by Medicaid.
Sec. 1690. (1) Contingent on the availability of funds and the approval of the centers for Medicaid and Medicare services, the department shall encourage and assist in the establishment of a program of all inclusive care for the elderly (PACE), in at least parts of 3 west Michigan counties, being Kent, Barry, and Ionia.
(2) This program shall provide a capitated, managed care benefit for the frail elderly, provided by a not-for-profit agency, that will feature a comprehensive medical and social service delivery system. In addition, the program shall use a multidisciplinary team approach in an adult day health center supplemented by in-home and referral service in accordance with participants' needs. The PACE program may be funded by a combination of Medicaid, Medicare, or other fund sources.
Sec. 1692. (1) The department of community health is authorized to pursue reimbursement for eligible services provided in Michigan schools from the federal Medicaid program. The department and the state budget director are authorized to negotiate and enter into agreements, together with the department of education, with local and intermediate school districts regarding the sharing of federal Medicaid services funds received for these services. The department is authorized to receive and disburse funds to participating school districts pursuant to such agreements and state and federal law.
(2) From the funds appropriated in part 1 for medical services school services payments, the department is authorized to do all of the following:
(a) Finance activities within the medical services administration related to this project.
(b) Reimburse participating school districts pursuant to the fund sharing ratios negotiated in the state-local agreements authorized in subsection (1).
(c) Offset general fund costs associated with the medical services program.
Sec. 1693. The special adjustor payments appropriation in part 1 may be increased if the department submits a medical services state plan amendment pertaining to this line item at a level higher than the appropriation. The department is authorized to appropriately adjust financing sources in accordance with the increased appropriation.
Sec. 1694. The department of community health shall distribute $695,000.00 to children's hospitals that have a high indigent care volume. The amount to be distributed to any given hospital shall be based on a formula determined by the department of community health.
Sec. 1697. (1) As may be allowed by federal law or regulation, the department may use funds provided by a local or intermediate school district, which have been obtained from a qualifying health system, as the state match required for receiving federal Medicaid or children health insurance program funds. Any such funds received shall be used only to support new school-based or school-linked health services.
(2) A qualifying health system is defined as any health care entity licensed to provide health care services in the state of Michigan, that has entered into a contractual relationship with a local or intermediate school district to provide or manage school-based or school-linked health services.
Sec. 1699. The department may make separate payments directly to qualifying hospitals serving a disproportionate share of indigent patients, and to hospitals providing graduate medical education training programs. If direct payment for GME and DSH is made to qualifying hospitals for services to Medicaid clients, hospitals will not include GME costs or DSH payments in their contracts with HMOs.
Sec. 1710. Any proposed changes by the department to the MIChoice home and community-based services waiver program screening process shall be provided to the members of the house and senate appropriations subcommittees on community health prior to implementation of the proposed changes.
Sec. 1711. (1) The department shall maintain the 2-tier reimbursement methodology for Medicaid emergency physicians professional services that was in effect on September 30, 2002, subject to the following conditions:
(a) Payments by case and in the aggregate shall not exceed 80% of Medicare payment rates.
(b) Total expenditures for these services shall not exceed the level of total payments made during fiscal year 2001-2002, after adjusting for Medicare copayments and deductibles and for changes in utilization.
(2) To ensure that total expenditures stay within the spending constraints of subsection (1)(b), the department shall develop a utilization adjustor for the basic 2-tier payment methodology. The adjustor shall be based on a good faith estimate by the department as to what the expected utilization of emergency room services will be during fiscal year 2003-2004, given changes in the number and category of Medicaid recipients. If expenditure and utilization data indicate that the amount and/or type of emergency physician professional services are exceeding the department's estimate, the utilization adjustor shall be applied to the 2-tier reimbursement methodology in such a manner as to reduce aggregate expenditures to the fiscal year 2001-2002 adjusted expenditure target.
(3) If federal law, regulation, or judicial ruling finds that this 2-tier reimbursement methodology is not health insurance portability and accountability act (HIPAA) compliant prior to the end of fiscal year 2003-2004, the department shall immediately provide the chairpersons of the senate and house appropriations subcommittee on community health and their respective fiscal agencies, with the proposed modifications necessary to bring this methodology into compliance.
(4) The proposal specified in subsection (3) should be as consistent as possible with the intent of the methodology specified in this section and must be provided to the subcommittee chairpersons and respective fiscal agencies no less than 30 days before the effective date of the proposal.
Sec. 1712. (1) Subject to the availability of funds, the department shall implement a rural health initiative. Available funds shall first be allocated as an outpatient adjustor payment to be paid directly to hospitals in rural counties in proportion to each hospital's Medicaid and indigent patient population. Additional funds, if available, shall be allocated for defibrillator grants, EMT training and support, or other similar programs.
(2) Except as otherwise specified in this section, "rural" means a city, village, or township with a population of not more than 15,000, including those entities if located within a metropolitan statistical area.
Sec. 1713. (1) The department, in conjunction with the Michigan dental association, shall undertake a study to determine the level of participation by Michigan licensed dentists in the state's Medicaid program. The study shall identify the distribution of dentists throughout the state, the volume of Medicaid recipients served by each participating dentist, and areas in the state underserved for dental services.
(2) The study described in subsection (1) shall also include an assessment of what factors may be related to the apparent low participation by dentists in the Medicaid program, and the study shall make recommendations as to how these barriers to participation may be reduced or eliminated.
(3) This study shall be provided to the senate and house appropriations subcommittees on community health and the senate and house fiscal agencies no later than April 1, 2004.
Sec. 1715. (1) It is the intent of the legislature that at least $18,900,000.00 of general fund/general purpose savings generated by the implementation of a Medicare pharmacy prescription coverage program shall be used to fund the pharmaceutical services line item.
(2) In the event that such a program is not implemented, or that the program does not produce a general fund/general purpose savings of at least the amount specified in subsection (1), the department shall request that a transfer of funds, in an amount sufficient to offset the loss of general fund/general purpose savings, be made from the Medicaid benefits trust fund to the pharmaceutical services line item.
Sec. 1716. In implementing the hospital case rate under the Medicaid adult benefits waiver, the department shall set the hospital case rate at a level that ensures that the gross savings from the hospital case rate does not exceed $108,592,200.00.
Sec. 1717. From the funds appropriated in part 1 for hospital services and therapy, the $50,000,000.00 hospital disproportionate share payment for the Detroit medical center shall only be distributed if local funds in the amount of $7,000,000.00 are received by the state from the city of Detroit and Wayne County.
Second: That the House and Senate agree to the title of the bill to read as follows:
A bill to make appropriations for the department of community health and certain state purposes related to mental health, public health, and medical services for the fiscal year ending September 30, 2004; to provide for the expenditure of those appropriations; to create funds; to require and provide for reports; to prescribe the powers and duties of certain local and state agencies and departments; and to provide for disposition of fees and other income received by the various state agencies.
Gary Newell
Marc Shulman
Gretchen Whitmer
Conferees for the House
Tony Stamas
Shirley Johnson
Deborah Cherry
Conferees for the Senate
Pending the order that, under joint rule 9, the conference report be laid over one day,
Senator Hammerstrom moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on the adoption of the conference report,
The first conference report was adopted, a majority of the members serving voting therefor, as follows:
Roll Call No. 394 Yeas--37
Allen | Clark-Coleman | Hardiman | Prusi |
Barcia | Clarke | Jacobs | Sanborn |
Basham | Cropsey | Jelinek | Schauer |
Bernero | Emerson | Johnson | Sikkema |
Birkholz | Garcia | Kuipers | Stamas |
Bishop | George | Leland | Switalski |
Brater | Gilbert | McManus | Thomas |
Brown | Goschka | Olshove | Toy |
Cassis | Hammerstrom | Patterson | Van Woerkom |
Cherry
Nays--0
Excused--1
Scott
Not Voting--0
In The Chair: Sanborn
Senator Hammerstrom moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor.
House Bill No. 4401, entitled
A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending sections 3, 6, 8b, 11, 11f, 11g, 11j, 18, 19, 20, 22a, 22b, 24, 26a, 31a, 31d, 32c, 32d, 38, 39a, 41, 51a, 51c, 51d, 53a, 54, 56, 57, 61a, 62, 68, 74, 81, 94a, 98, 99, 101, 104a, 105, 107, 108, 147, and 166a (MCL 388.1603, 388.1606, 388.1608b, 388.1611, 388.1611f, 388.1611g, 388.1611j, 388.1618, 388.1619, 388.1620, 388.1622a, 388.1622b, 388.1624, 388.1626a, 388.1631a, 388.1631d, 388.1632c, 388.1632d, 388.1638, 388.1639a, 388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662, 388.1668, 388.1674, 388.1681, 388.1694a, 388.1698, 388.1699, 388.1701, 388.1704a, 388.1705, 388.1707, 388.1708, 388.1747, and 388.1766a), section 3 as amended by 2000 PA 297, sections 6, 11, 11f, 11g, 20, 22a, 22b, 24, 26a, 31a, 31d, 32c, 32d, 39a, 41, 51a, 51c, 51d, 53a, 54, 56, 57, 61a, 62, 68, 74, 81, 94a, 98, 99, 104a, 107, 108, and 147 as amended by 2002 PA 521, sections 8b and 11j as added and sections 19, 38, and 105 as amended by 2002 PA 191, section 18 as amended by 1999 PA 119, section 101 as amended by 2002 PA 476, and section 166a as amended by 1996 PA 300, and by adding sections 11a, 11b, 11c, 20k, 22d, 22e, 31e, 32j, 41a, 55a, 98b, and 107a; and to repeal acts and parts of acts.
The House of Representatives has adopted the report of the Committee of Conference.
The conference report was read as follows:
FIRST CONFERENCE REPORT
The Committee of Conference on the matters of difference between the two Houses concerning
House Bill No. 4401, entitled
A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending sections 3, 6, 8b, 11, 11f, 11g, 18, 19, 20, 22a, 22b, 24, 26a, 31a, 31d, 32c, 32d, 38, 39a, 41, 51a, 51c, 51d, 53a, 54, 56, 57, 61a, 62, 74, 81, 94a, 98, 99, 101, 105, 107, and 147 (MCL 388.1603, 388.1606, 388.1608b, 388.1611, 388.1611f, 388.1611g, 388.1618, 388.1619, 388.1620, 388.1622a, 388.1622b, 388.1624, 388.1626a, 388.1631a, 388.1631d, 388.1632c, 388.1632d, 388.1638, 388.1639a, 388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662, 388.1674, 388.1681, 388.1694a, 388.1698, 388.1699, 388.1701, 388.1705, 388.1707, and 388.1747), section 3 as amended by 2000 PA 297, sections 6, 11, 11f, 11g, 20, 22a, 22b, 24, 26a, 31a, 31d, 32c, 32d, 39a, 41, 51a, 51c, 51d, 53a, 54, 56, 57, 61a, 62, 74, 81, 94a, 98, 99, 107, and 147 as amended by 2002 PA 521, section 8b as added and sections 19, 38, and 105 as amended by 2002 PA 191, section 18 as amended by 1999 PA 119, and section 101 as amended by 2002 PA 476, and by adding sections 20k, 20l, 22d, 22e, 32j, and 98b; and to repeal acts and parts of acts.
Recommends:
First: That the House and Senate agree to the Substitute of the Senate as passed by the Senate, amended to read as follows:
A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending sections 3, 6, 8b, 11, 11f, 11g, 11j, 18, 19, 20, 22a, 22b, 24, 26a, 31a, 31d, 32c, 32d, 38, 39a, 41, 51a, 51c, 51d, 53a, 54, 56, 57, 61a, 62, 68, 74, 81, 94a, 98, 99, 101, 104a, 105, 107, 108, 147, and 166a (MCL 388.1603, 388.1606, 388.1608b, 388.1611, 388.1611f, 388.1611g, 388.1611j, 388.1618, 388.1619, 388.1620, 388.1622a, 388.1622b, 388.1624, 388.1626a, 388.1631a, 388.1631d, 388.1632c, 388.1632d, 388.1638, 388.1639a, 388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662, 388.1668, 388.1674, 388.1681, 388.1694a, 388.1698, 388.1699, 388.1701, 388.1704a, 388.1705, 388.1707, 388.1708, 388.1747, and 388.1766a), section 3 as amended by 2000 PA 297, sections 6, 11, 11f, 11g, 20, 22a, 22b, 24, 26a, 31a, 31d, 32c, 32d, 39a, 41, 51a, 51c, 51d, 53a, 54, 56, 57, 61a, 62, 68, 74, 81, 94a, 98, 99, 104a, 107, 108, and 147 as amended by 2002 PA 521, sections 8b and 11j as added and sections 19, 38, and 105 as amended by 2002 PA 191, section 18 as amended by 1999 PA 119, section 101 as amended by 2002 PA 476, and section 166a as amended by 1996 PA 300, and by adding sections 11a, 11b, 11c, 20k, 22d, 22e, 31e, 32j, 41a, 55a, 98b, and 107a; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to make appropriations to aid in the support of the public schools and the intermediate school districts of the state; to make appropriations for certain other purposes relating to education; to provide for the disbursement of the appropriations; to supplement the school aid fund by the levy and collection of certain taxes; to authorize the issuance of certain bonds and provide for the security of those bonds; to prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to create certain funds and provide for their expenditure; to prescribe penalties; and to repeal acts and parts of acts.
Sec. 3. (1) "Average daily attendance", for the purposes of complying with federal law, means 92% of the membership as defined in section 6(4).
(2) "Board" means the governing body of a district or public school academy.
(3) "Center" means the center for educational performance and information created in section 94a.
(4) (3) "Cooperative education program" means a written voluntary agreement between and among districts to provide certain educational programs for pupils in certain groups of districts. The written agreement shall be approved by all affected districts at least annually and shall specify the educational programs to be provided and the estimated number of pupils from each district who will participate in the educational programs.
(5) (4) "Department", except in sections 67, 68, 107, and 108, means the department of education.
(6) (5) "District" means a local school district established under the revised school code, a local act school district, or, except in sections 6(4), 6(6), 13, 20, 22a, 23, 31a, 32f, 105, and 105c, a public school academy. Except in sections 6(4), 6(6), 13, 20, 22a, 105, and 105c, district also includes a university school.
(7) (6) "District of residence", except as otherwise provided in this subsection, means the district in which a pupil's custodial parent or parents or legal guardian resides. For a pupil described in section 24b, the pupil's district of residence is the district in which the pupil enrolls under that section. For a pupil described in section 6(4)(d), the pupil's district of residence shall be considered to be the district or intermediate district in which the pupil is counted in membership under that section. For a pupil under court jurisdiction who is placed outside the district in which the pupil's custodial parent or parents or legal guardian resides, the pupil's district of residence shall be considered to be the educating district or educating intermediate district.
(8) (7) "District superintendent" means the superintendent of a district, the chief administrator of a public school academy, or the chief administrator of a university school.
Sec. 6. (1) "Center program" means a program operated by a district or intermediate district for special education pupils from several districts in programs for the autistically impaired, trainable mentally impaired, severely mentally impaired, severely multiply impaired, hearing impaired, physically and otherwise health impaired, and visually impaired. Programs for emotionally impaired pupils housed in buildings that do not serve regular education pupils also qualify. Unless otherwise approved by the department, a center program either shall serve all constituent districts within an intermediate district or shall serve several districts with less than 50% of the pupils residing in the operating district. In addition, special education center program pupils placed part-time in noncenter programs to comply with the least restrictive environment provisions of section 612 of part B of the individuals with disabilities education act, title VI of Public Law 91-230, 20 U.S.C. 1412, may be considered center program pupils for pupil accounting purposes for the time scheduled in either a center program or a noncenter program.
(2) "District pupil retention and high school graduation rate" means the proportion of pupils who have not dropped out of school in the immediately preceding school year and is equal to 1 minus the quotient of the number of pupils unaccounted for in the immediately preceding school year, as determined pursuant to subsection (3), divided by the pupils of the immediately preceding school year annual completion and pupil dropout rate that is calculated by the center pursuant to nationally recognized standards.
(3) "District pupil retention and high school graduation report" means a report of the number of pupils, excluding migrant and adult, in the district for the immediately preceding school year, adjusted for those pupils who have transferred into or out of the district , transferred out of the district, or transferred to alternative programs, and have graduated, to determine the number of pupils who are unaccounted for. The number of pupils unaccounted for shall be calculated as determined by the department who leave high school with a diploma or other credential.
(4) "Membership", except as otherwise provided in this act, means for a district, public school academy, university school, or intermediate district the sum of the product of .8 times the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the pupil membership count day for the current school year, plus the product of .2 times the final audited count from the supplemental count day for the immediately preceding school year. All pupil counts used in this subsection are as determined by the department and calculated by adding the number of pupils registered for attendance plus pupils received by transfer and minus pupils lost as defined by rules promulgated by the superintendent, and as corrected by a subsequent department audit. The amount of the foundation allowance for a pupil in membership is determined under section 20. In making the calculation of membership, all of the following, as applicable, apply to determining the membership of a district, public school academy, university school, or intermediate district:
(a) Except as otherwise provided in this subsection, and pursuant to subsection (6), a pupil shall be counted in membership in the pupil's educating district or districts. An individual pupil shall not be counted for more than a total of 1.0 full-time equated membership.
(b) If a pupil is educated in a district other than the pupil's district of residence, if the pupil is not being educated as part of a cooperative education program, if the pupil's district of residence does not give the educating district its approval to count the pupil in membership in the educating district, and if the pupil is not covered by an exception specified in subsection (6) to the requirement that the educating district must have the approval of the pupil's district of residence to count the pupil in membership, the pupil shall not be counted in membership in any district.
(c) A special education pupil educated by the intermediate district shall be counted in membership in the intermediate district.
(d) A pupil placed by a court or state agency in an on-grounds program of a juvenile detention facility, a child caring institution, or a mental health institution, or a pupil funded under section 53a, shall be counted in membership in the district or intermediate district approved by the department to operate the program.
(e) A pupil enrolled in the Michigan schools for the deaf and blind shall be counted in membership in the pupil's intermediate district of residence.
(f) A pupil enrolled in a vocational education program supported by a millage levied over an area larger than a single district or in an area vocational-technical education program established pursuant to section 690 of the revised school code, MCL 380.690, shall be counted only in the pupil's district of residence.
(g) A pupil enrolled in a university school shall be counted in membership in the university school.
(h) A pupil enrolled in a public school academy shall be counted in membership in the public school academy.
(i) For a new district, university school, or public school academy beginning its operation after December 31, 1994, membership for the first 2 full or partial fiscal years of operation shall be determined as follows:
(i) If operations begin before the pupil membership count day for the fiscal year, membership is the average number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the pupil membership count day for the current school year and on the supplemental count day for the current school year, as determined by the department and calculated by adding the number of pupils registered for attendance on the pupil membership count day plus pupils received by transfer and minus pupils lost as defined by rules promulgated by the superintendent, and as corrected by a subsequent department audit, plus the final audited count from the supplemental count day for the current school year, and dividing that sum by 2.
(ii) If operations begin after the pupil membership count day for the fiscal year and not later than the supplemental count day for the fiscal year, membership is the final audited count of the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the supplemental count day for the current school year.
(j) If a district is the authorizing body for a public school academy, then, in the first school year in which pupils are counted in membership on the pupil membership count day in the public school academy, the determination of the district's membership shall exclude from the district's pupil count for the immediately preceding supplemental count day any pupils who are counted in the public school academy on that first pupil membership count day who were also counted in the district on the immediately preceding supplemental count day.
(k) In a district, public school academy, university school, or intermediate district operating an extended school year program approved by the superintendent, a pupil enrolled, but not scheduled to be in regular daily attendance on a pupil membership count day, shall be counted.
(l) Pupils to be counted in membership shall be not less than 5 years of age on December 1 and less than 20 years of age on September 1 of the school year except a special education pupil who is enrolled and receiving instruction in a special education program or service approved by the department and not having a high school diploma who is less than 26 years of age as of September 1 of the current school year shall be counted in membership.
(m) An individual who has obtained a high school diploma shall not be counted in membership. An individual who has obtained a general education development (G.E.D.) certificate shall not be counted in membership. An individual participating in a job training program funded under former section 107a or a jobs program funded under former section 107b, administered by the Michigan strategic fund or the department of career development, or participating in any successor of either of those 2 programs, shall not be counted in membership.
(n) If a pupil counted in membership in a public school academy is also educated by a district or intermediate district as part of a cooperative education program, the pupil shall be counted in membership only in the public school academy, and the instructional time scheduled for the pupil in the district or intermediate district shall be included in the full-time equated membership determination under subdivision (q). However, for pupils receiving instruction in both a public school academy and in a district or intermediate district but not as a part of a cooperative education program, the following apply:
(i) If the public school academy provides instruction for at least 1/2 of the class hours specified in subdivision (q), the public school academy shall receive as its prorated share of the full-time equated membership for each of those pupils an amount equal to 1 times the product of the hours of instruction the public school academy provides divided by the number of hours specified in subdivision (q) for full-time equivalency, and the remainder of the full-time membership for each of those pupils shall be allocated to the district or intermediate district providing the remainder of the hours of instruction.
(ii) If the public school academy provides instruction for less than 1/2 of the class hours specified in subdivision (q), the district or intermediate district providing the remainder of the hours of instruction shall receive as its prorated share of the full-time equated membership for each of those pupils an amount equal to 1 times the product of the hours of instruction the district or intermediate district provides divided by the number of hours specified in subdivision (q) for full-time equivalency, and the remainder of the full-time membership for each of those pupils shall be allocated to the public school academy.
(o) An individual less than 16 years of age as of September 1 of the current school year who is being educated in an alternative education program shall not be counted in membership if there are also adult education participants being educated in the same program or classroom.
(p) The department shall give a uniform interpretation of full-time and part-time memberships.
(q) The number of class hours used to calculate full-time equated memberships shall be consistent with section 101(3). In determining full-time equated memberships for pupils who are enrolled in a postsecondary institution, a pupil shall not be considered to be less than a full-time equated pupil solely because of the effect of his or her postsecondary enrollment, including necessary travel time, on the number of class hours provided by the district to the pupil.
(r) Full-time equated memberships for pupils in kindergarten shall be determined by dividing the number of class hours scheduled and provided per year per kindergarten pupil by a number equal to 1/2 the number used for determining full-time equated memberships for pupils in grades 1 to 12.
(s) For a district, university school, or public school academy that has pupils enrolled in a grade level that was not offered by the district, university school, or public school academy in the immediately preceding school year, the number of pupils enrolled in that grade level to be counted in membership is the average of the number of those pupils enrolled and in regular daily attendance on the pupil membership count day and the supplemental count day of the current school year, as determined by the department. Membership shall be calculated by adding the number of pupils registered for attendance in that grade level on the pupil membership count day plus pupils received by transfer and minus pupils lost as defined by rules promulgated by the superintendent, and as corrected by subsequent department audit, plus the final audited count from the supplemental count day for the current school year, and dividing that sum by 2.
(t) A pupil enrolled in a cooperative education program may be counted in membership in the pupil's district of residence with the written approval of all parties to the cooperative agreement.
(u) If, as a result of a disciplinary action, a district determines through the district's alternative or disciplinary education program that the best instructional placement for a pupil is in the pupil's home, if that placement is authorized in writing by the district superintendent and district alternative or disciplinary education supervisor, and if the district provides appropriate instruction as described in this subdivision to the pupil at the pupil's home, the district may count the pupil in membership on a pro rata basis, with the proration based on the number of hours of instruction the district actually provides to the pupil divided by the number of hours specified in subdivision (q) for full-time equivalency. For the purposes of this subdivision, a district shall be considered to be providing appropriate instruction if all of the following are met:
(i) The district provides at least 2 nonconsecutive hours of instruction per week to the pupil at the pupil's home under the supervision of a certificated teacher.
(ii) The district provides instructional materials, resources, and supplies, except computers, that are comparable to those otherwise provided in the district's alternative education program.
(iii) Course content is comparable to that in the district's alternative education program.
(iv) Credit earned is awarded to the pupil and placed on the pupil's transcript.
(v) A pupil enrolled in an alternative or disciplinary education program described in section 25 shall be counted in membership in the district or public school academy that expelled the pupil.
(w) If a pupil was enrolled in a public school academy on the pupil membership count day, if the public school academy's contract with its authorizing body is revoked, and if the pupil enrolls in a district within 45 days after the pupil membership count day, the department shall adjust the district's pupil count for the pupil membership count day to include the pupil in the count.
(x) For a public school academy that has been in operation for at least 2 years and that suspended operations for at least 1 semester and is resuming operations, membership is the sum of the product of .8 times the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the first pupil membership count day or supplemental count day, whichever is first, occurring after operations resume, plus the product of .2 times the final audited count from the most recent pupil membership count day or supplemental count day that occurred before suspending operations, as determined by the superintendent.
(y) If a district's membership for a particular fiscal year, as otherwise calculated under this subsection, would be less than 1,550 pupils and the district has 4.5 or fewer pupils per square mile, as determined by the department, the district's membership shall be considered to be the membership figure calculated under this subdivision. However, beginning in 2003-2004, this subdivision applies only to districts located in the Lower Peninsula. If a district educates and counts in its membership pupils in grades 9 to 12 who reside in a contiguous district that does not operate grades 9 to 12 and if 1 or both of the affected districts request the department to use the determination allowed under this sentence, the department shall include the square mileage of both districts in determining the number of pupils per square mile for each of the districts for the purposes of this subdivision. The membership figure calculated under this subdivision is the greater of the following:
(i) The average of the district's membership for the 3-fiscal-year period ending with that fiscal year, calculated by adding the district's actual membership for each of those 3 fiscal years, as otherwise calculated under this subsection, and dividing the sum of those 3 membership figures by 3.
(ii) The district's actual membership for that fiscal year as otherwise calculated under this subsection.
(z) If a public school academy that is not in its first or second year of operation closes at the end of a school year and does not reopen for the next school year, the department shall adjust the membership count of the district in which a former pupil of the public school academy enrolls and is in regular daily attendance for the next school year to ensure that the district receives the same amount of membership aid for the pupil as if the pupil were counted in the district on the supplemental count day of the preceding school year.
(5) "Public school academy" means a public school academy, urban high school academy, or strict discipline academy operating under the revised school code.
(6) "Pupil" means a person in membership in a public school. A district must have the approval of the pupil's district of residence to count the pupil in membership, except approval by the pupil's district of residence shall not be required for any of the following:
(a) A nonpublic part-time pupil enrolled in grades 1 to 12 in accordance with section 166b.
(b) A pupil receiving 1/2 or less of his or her instruction in a district other than the pupil's district of residence.
(c) A pupil enrolled in a public school academy or university school.
(d) A pupil enrolled in a district other than the pupil's district of residence under an intermediate district schools of choice pilot program as described in section 91a or former section 91 if the intermediate district and its constituent districts have been exempted from section 105.
(e) A pupil enrolled in a district other than the pupil's district of residence but within the same intermediate district if the educating district enrolls nonresident pupils in accordance with section 105.
(f) A pupil enrolled in a district other than the pupil's district of residence if the pupil has been continuously enrolled in the educating district since a school year in which the pupil enrolled in the educating district under section 105 or 105c and in which the educating district enrolled nonresident pupils in accordance with section 105 or 105c.
(g) A pupil who has made an official written complaint or whose parent or legal guardian has made an official written complaint to law enforcement officials and to school officials of the pupil's district of residence that the pupil has been the victim of a criminal sexual assault or other serious assault, if the official complaint either indicates that the assault occurred at school or that the assault was committed by 1 or more other pupils enrolled in the school the pupil would otherwise attend in the district of residence or by an employee of the district of residence. A person who intentionally makes a false report of a crime to law enforcement officials for the purposes of this subdivision is subject to section 411a of the Michigan penal code, 1931 PA 328, MCL 750.411a, which provides criminal penalties for that conduct. As used in this subdivision:
(i) "At school" means in a classroom, elsewhere on school premises, on a school bus or other school-related vehicle, or at a school-sponsored activity or event whether or not it is held on school premises.
(ii) "Serious assault" means an act that constitutes a felony violation of chapter XI of the Michigan penal code, 1931 PA 328, MCL 750.81 to 750.90g, or that constitutes an assault and infliction of serious or aggravated injury under section 81a of the Michigan penal code, 1931 PA 328, MCL 750.81a.
(h) A pupil enrolled in a district located in a contiguous intermediate district, as described in section 105c, if the educating district enrolls those nonresident pupils in accordance with section 105c.
(i) A pupil whose district of residence changed after the pupil membership count day and before the supplemental count day and who continues to be enrolled on the supplemental count day as a nonresident in the district in which he or she was enrolled as a resident on the pupil membership count day of the same school year.
(j) A pupil enrolled in an alternative education program operated by a district other than his or her district of residence who meets 1 or more of the following:
(i) The pupil has been suspended or expelled from his or her district of residence for any reason, including, but not limited to, a suspension or expulsion under section 1310, 1311, or 1311a of the revised school code, MCL 380.1310, 380.1311, and 380.1311a.
(ii) The pupil had previously dropped out of school.
(iii) The pupil is pregnant or is a parent.
(iv) The pupil has been referred to the program by a court.
(k) A pupil enrolled in the Michigan virtual high school, for the pupil's enrollment in the Michigan virtual high school.
However, if a district that is not a first class district educates pupils who reside in a first class district and if the primary instructional site for those pupils is located within the boundaries of the first class district, the educating district must have the approval of the first class district to count those pupils in membership. As used in this subsection, "first class district" means a district organized as a school district of the first class under the revised school code.
(7) "Pupil membership count day" of a district or intermediate district means:
(a) Except as provided in subdivision (b), the fourth Wednesday in September each school year.
(b) For a district or intermediate district maintaining school during the entire school year, the following days:
(i) Fourth Wednesday in July.
(ii) Fourth Wednesday in September.
(iii) Second Wednesday in February.
(iv) Fourth Wednesday in April.
(8) "Pupils in grades K to 12 actually enrolled and in regular daily attendance" means pupils in grades K to 12 in attendance and receiving instruction in all classes for which they are enrolled on the pupil membership count day or the supplemental count day, as applicable. A pupil who is absent from any of the classes in which the pupil is enrolled on the pupil membership count day or supplemental count day and who does not attend each of those classes during the 10 consecutive school days immediately following the pupil membership count day or supplemental count day, except for a pupil who has been excused by the district, shall not be counted as 1.0 full-time equated membership. In addition, a pupil who is excused from attendance on the pupil membership count day or supplemental count day and who fails to attend each of the classes in which the pupil is enrolled within 30 calendar days after the pupil membership count day or supplemental count day shall not be counted as 1.0 full-time equated membership. Pupils not counted as 1.0 full-time equated membership due to an absence from a class shall be counted as a prorated membership for the classes the pupil attended. For purposes of this subsection, "class" means a period of time in 1 day when pupils and a certificated teacher or legally qualified substitute teacher are together and instruction is taking place.
(9) "Rule" means a rule promulgated pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(10) "The revised school code" means 1976 PA 451, MCL 380.1 to 380.1852.
(11) "School fiscal year" means a fiscal year that commences July 1 and continues through June 30.
(12) "State board" means the state board of education.
(13) "Superintendent", unless the context clearly refers to a district or intermediate district superintendent, means the superintendent of public instruction described in section 3 of article VIII of the state constitution of 1963.
(14) "Supplemental count day" means the day on which the supplemental pupil count is conducted under section 6a.
(15) "Tuition pupil" means a pupil of school age attending school in a district other than the pupil's district of residence for whom tuition may be charged. Tuition pupil does not include a pupil who is a special education pupil or a pupil described in subsection (6)(d) to (k). A pupil's district of residence shall not require a high school tuition pupil, as provided under section 111, to attend another school district after the pupil has been assigned to a school district.
(16) "State school aid fund" means the state school aid fund established in section 11 of article IX of the state constitution of 1963.
(17) "Taxable value" means the taxable value of property as determined under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a.
(18) "Textbook" means a book that is selected and approved by the governing board of a district and that contains a presentation of principles of a subject, or that is a literary work relevant to the study of a subject required for the use of classroom pupils, or another type of course material that forms the basis of classroom instruction.
(19) (18) "Total state aid" or "total state school aid" means the total combined amount of all funds due to a district, intermediate district, or other entity under all of the provisions of this act.
(20) (19) "University school" means an instructional program operated by a public university under section 23 that meets the requirements of section 23.
Sec. 8b. (1) The department shall assign a district code to each public school academy that is authorized under the revised school code and is eligible to receive funding under this act within 30 days after a contract is submitted to the department by the authorizing body of a public school academy.
(2) If the department does not assign a district code to a public school academy in a timely manner within the 30-day period described in subsection (1), the department of treasury may assign a temporary district code to the public school academy for the purpose of making payments under this act. district code the department shall use to make payments under this act to the newly authorized public school academy shall be a number that is equivalent to the sum of the last district code assigned to a public school academy located in the same county as the newly authorized public school academy plus 1. However, if there is not an existing public school academy located in the same county as the newly authorized public school academy, then the district code the department shall use to make payments under this act to the newly authorized public school academy shall be a 5-digit number that has the county code in which the public school academy is located as its first 2 digits, 9 as its third digit, 0 as its fourth digit, and 1 as its fifth digit.
Sec. 11. (1) For the fiscal year ending September 30, 2002, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $10,990,148,200.00 from the state school aid fund established by section 11 of article IX of the state constitution of 1963 and the sum of $198,413,500.00 from the general fund. For the fiscal year ending September 30, 2003, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $11,259,441,400.00 $11,230,753,400.00 from the state school aid fund established by section 11 of article IX of the state constitution of 1963, the sum of $198,413,500.00 from the general fund, and the sum of $700,000.00 from local revenues. However, if legislation authorizing the transfer of $79,500,000.00 from the Michigan employment security act contingent fund, penalties and interest subaccount, is not enacted and in effect on or before October 1, 2002, there is instead appropriated from the general fund for 2002-2003 the sum of $122,656,500.00. For the fiscal year ending September 30, 2004, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $11,246,667,400.00 $10,987,820,500.00 from the state school aid fund established by section 11 of article IX of the state constitution of 1963 and the sum of $198,413,500.00 $282,100,000.00 from the general fund. For the fiscal year ending September 30, 2004, from loan repayments deposited to the general fund pursuant to section 4 of 1961 PA 112, MCL 388.984, on the settlement date, as determined under section 9c of 1961 PA 108, MCL 388.959c, there is appropriated from the general fund to the state school aid fund the amount determined by the state treasurer to equal the difference between the outstanding amount of general obligation debt incurred pursuant to 1961 PA 112, MCL 388.981 to 388.985, and the outstanding amount of loans under 1961 PA 108, MCL 388.951 to 388.963, as reduced in accordance with section 9c(1) of 1961 PA 108, MCL 388.959c. In addition, for the fiscal year ending September 30, 2004, there is appropriated from the general fund to the state school aid fund an amount equal to the amount of all school bond loan fund repayments received by the state treasurer from June 1, 2003 through December 21, 2003, determined by the state treasurer not to have been paid from proceeds of bonds of the school district and representing the difference between the outstanding amount of general obligation debt incurred by this state under 1961 PA 112, MCL 388.981 to 388.985, and the outstanding amount of loans under 1961 PA 108, MCL 388.951 to 388.963, at the time of repayment. Funds appropriated to the state school aid fund from the general fund from loan repayments received as described in this subsection shall be expended within 90 days of deposit within the state school aid fund. In addition, available federal funds are appropriated for each of those fiscal years.
(2) The appropriations under this section shall be allocated as provided in this act. Money appropriated under this section from the general fund and from available federal funds shall be expended to fund the purposes of this act before the expenditure of money appropriated under this section from the state school aid fund. If the maximum amount appropriated under this section from the state school aid fund for a fiscal year exceeds the amount necessary to fully fund allocations under this act from the state school aid fund, that excess amount shall not be expended in that state fiscal year and shall not lapse to the general fund, but instead shall remain in the state school aid fund be deposited into the school aid stabilization fund created in section 11a.
(3) If the maximum amount appropriated under this section and section 11f from the state school aid fund and the school aid stabilization fund for a fiscal year exceeds the amount available for expenditure from the state school aid fund for that fiscal year, payments under sections 11f, 11g, 22a, 31d, 51a(2), and 51c shall be made in full. In addition, for districts beginning operations after 1994-95 that qualify for payments under section 22b, payments under section 22b shall be made so that the qualifying districts receive the lesser of an amount equal to the 1994-95 foundation allowance of the district in which the district beginning operations after 1994-95 is located or $5,500.00. The amount of the payment to be made under section 22b for these qualifying districts shall be as calculated under section 22a, with the balance of the payment under section 22b being subject to the proration otherwise provided under this subsection and subsection (4). State For proration before May 1, 2003, state payments under each of the other sections of this act from all state funding sources shall be prorated on an equal percentage basis as necessary to reflect the amount available for expenditure from the state school aid fund for that the affected fiscal year. If additional proration is necessary in 2002-2003 after May 1, 2003, and for any proration necessary after 2002-2003, state payments under each of the other sections of this act from all state funding sources shall be prorated in the manner prescribed in subsection (4) as necessary to reflect the amount available for expenditure from the state school aid fund for the affected fiscal year. However, if the department of treasury determines that proration will be required under this subsection, the department of treasury shall notify the state budget director, and the state budget director shall not notify the legislature at least 30 calendar days or 6 legislative session days, whichever is more, before the department reduces any payments under this act because of the proration. During the 30 calendar day or 6 legislative session day period after that notification by the state budget director, the department shall not reduce any payments under this act because of proration under this subsection. The legislature may prevent proration from occurring by, within the 30 calendar day or 6 legislative session day period after that notification by the state budget director, enacting legislation appropriating additional funds from the general fund, countercyclical budget and economic stabilization fund, state school aid fund balance, or another source to fund the amount of the projected shortfall.
(4) If additional proration is necessary in 2002-2003 because of the outcome of any revenue estimating conference occurring after May 1, 2003 and for any proration necessary after 2002-2003, the department shall calculate the proration in district and intermediate district payments that is required under subsection (3) as follows:
(a) The department shall calculate the percentage of total state school aid allocated under this act for the affected fiscal year for each of the following:
(i) Districts.
(ii) Intermediate districts.
(iii) Entities other than districts or intermediate districts.
(b) The department shall recover a percentage of the proration amount required under subsection (3) that is equal to the percentage calculated under subdivision (a)(i) for districts by reducing payments to districts. This reduction shall be made by calculating an equal dollar amount per pupil as necessary to recover this percentage of the proration amount and reducing each district's total state school aid from state sources, other than payments under sections 11f, 11g, 22a, 31d, 51a(2), 51a(12), 51c, 53a, and 56, by that amount.
(c) The department shall recover a percentage of the proration amount required under subsection (3) that is equal to the percentage calculated under subdivision (a)(ii) for intermediate districts by reducing payments to intermediate districts. This reduction shall be made by reducing the payments to each intermediate district, other than payments under sections 11f, 11g, 22a, 31d, 51a(2), 51a(12), 51c, 53a, and 56, on an equal percentage basis.
(d) The department shall recover a percentage of the proration amount required under subsection (3) that is equal to the percentage calculated under subdivision (a)(iii) for entities other than districts and intermediate districts by reducing payments to these entities. This reduction shall be made by reducing the payments to each of these entities on an equal percentage basis.
(5) For the fiscal year ending September 30, 2003 only, in addition to the appropriations under subsection (1), the amount of $51,000,000.00 is transferred and appropriated from the general fund to the state school aid fund. This transfer reflects the estimated net shortfall in state school aid fund revenue as determined at the May 2003 consensus revenue estimating conference and is appropriated to avoid any further proration under subsection (3) due to that estimated shortfall.
(6) (4) Except for the allocation under section 26a, any general fund allocations under this act that are not expended by the end of the state fiscal year are transferred to the state school aid fund.
Sec. 11a. (1) The school aid stabilization fund is created as a separate account within the state school aid fund established by section 11 of article IX of the state constitution of 1963.
(2) The state treasurer may receive money or other assets from any source for deposit into the school aid stabilization fund. The state treasurer shall deposit into the school aid stabilization fund all of the following:
(a) Unexpended and unencumbered state school aid fund revenue for a fiscal year that remains in the state school aid fund as of the bookclosing for that fiscal year.
(b) Money statutorily dedicated to the school aid stabilization fund.
(c) Money appropriated to the school aid stabilization fund.
(3) Money available in the school aid stabilization fund may not be expended without a specific appropriation from the school aid stabilization fund. Money in the school aid stabilization fund shall be expended only for purposes for which state school aid fund money may be expended.
(4) The state treasurer shall direct the investment of the school aid stabilization fund. The state treasurer shall credit to the school aid stabilization fund interest and earnings from fund investments.
(5) Money in the school aid stabilization fund at the close of a fiscal year shall remain in the school aid stabilization fund and shall not lapse to the unreserved school aid fund balance or the general fund.
(6) If the maximum amount appropriated under section 11 from the state school aid fund for a fiscal year exceeds the amount available for expenditure from the state school aid fund for that fiscal year, there is appropriated from the school aid stabilization fund to the state school aid fund an amount equal to the projected shortfall as determined by the department of treasury, but not to exceed available money in the school aid stabilization fund. If the money in the school aid stabilization fund is insufficient to fully fund an amount equal to the projected shortfall, the state budget director shall notify the legislature as required under section 11(3) and state payments in an amount equal to the remainder of the projected shortfall shall be prorated in the manner provided under section 11(4).
Sec. 11b. From the general fund money appropriated in section 11, there is allocated for 2003-2004 the sum of $22,000,000.00 for deposit into the school aid stabilization fund created in section 11a.
Sec. 11c. If the unreserved general fund balance after final bookclosing for the fiscal year ending September 30, 2003 is at least $350,000,000.00, then an amount equal to $73,100,000.00 is appropriated from the general fund and deposited to the school aid stabilization fund not later than December 31, 2003 for the fiscal year ending September 30, 2004.
Sec. 11f. (1) In addition to any other money appropriated under this act, there is appropriated from the state school aid fund From the appropriations under section 11, there is allocated for the purposes of this section an amount not to exceed $32,000,000.00 each fiscal year for the fiscal year ending September 30, 2002, for the fiscal year ending September 30, 2003, for the fiscal year ending September 30, 2004 , and for each succeeding fiscal year through the fiscal year ending September 30, 2008. Payments under this section will cease after September 30, 2008. These appropriations allocations are for paying the amounts described in subsection (4) to districts and intermediate districts, other than those receiving a lump sum payment under subsection (2), that were not plaintiffs in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492 and that, on or before March 2, 1998, submitted to the state treasurer a board resolution waiving any right or interest the district or intermediate district has or may have in any claim or litigation based on or arising out of any claim or potential claim through September 30, 1997 that is or was similar to the claims asserted by the plaintiffs in the consolidated cases known as Durant v State of Michigan. The waiver resolution shall be in form and substance as required under subsection (8) (7). The state treasurer is authorized to accept such a waiver resolution on behalf of this state. The amounts described in this subsection represent offers of settlement and compromise of any claim or claims that were or could have been asserted by these districts and intermediate districts, as described in this subsection.
(2) In addition to any other money appropriated under this act, there was appropriated from the state school aid fund an amount not to exceed $1,700,000.00 for the fiscal year ending September 30, 1999. This appropriation was for paying the amounts described in this subsection to districts and intermediate districts that were not plaintiffs in the consolidated cases known as Durant v State of Michigan; that, on or before March 2, 1998, submitted to the state treasurer a board resolution waiving any right or interest the district or intermediate district had or may have had in any claim or litigation based on or arising out of any claim or potential claim through September 30, 1997 that is or was similar to the claims asserted by the plaintiffs in the consolidated cases known as Durant v State of Michigan; and for which the total amount listed in section 11h and paid under this section was less than $75,000.00. For a district or intermediate district qualifying for a payment under this subsection, the entire amount listed for the district or intermediate district in section 11h was paid in a lump sum on November 15, 1998 or on the next business day following that date. The amounts paid under this subsection represent offers of settlement and compromise of any claim or claims that were or could have been asserted by these districts and intermediate districts, as described in this subsection.
(3) This section does not create any obligation or liability of this state to any district or intermediate district that does not submit a waiver resolution described in this section. This section, any other provision of this act, and section 353e of the management and budget act, 1984 PA 431, MCL 18.1353e, are not intended to admit liability or waive any defense that is or would be available to this state or its agencies, employees, or agents in any litigation or future litigation with a district or intermediate district.
(4) The amount paid each fiscal year to each district or intermediate district under subsection (1) shall be 1/20 of the total amount listed in section 11h for each listed district or intermediate district that qualifies for a payment under subsection (1). The amounts listed in section 11h and paid in part under this subsection and in a lump sum under subsection (2) are offers of settlement and compromise to each of these districts or intermediate districts to resolve, in their entirety, any claim or claims that these districts or intermediate districts may have asserted for violations of section 29 of article IX of the state constitution of 1963 through September 30, 1997, which claims are or were similar to the claims asserted by the plaintiffs in the consolidated cases known as Durant v State of Michigan. This section, any other provision of this act, and section 353e of the management and budget act, 1984 PA 431, MCL 18.1353e, shall not be construed to constitute an admission of liability to the districts or intermediate districts listed in section 11h or a waiver of any defense that is or would have been available to the state or its agencies, employees, or agents in any litigation or future litigation with a district or intermediate district.
(5) The entire amount of each payment under subsection (1) each fiscal year shall be paid on November 15 of the applicable fiscal year or on the next business day following that date.
(6) Funds paid to a district or intermediate district under this section shall be used only for textbooks, electronic instructional material, software, technology, infrastructure or infrastructure improvements, school buses, school security, training for technology, or to pay debt service on voter-approved bonds issued by the district or intermediate district before the effective date of this section. For intermediate districts only, funds paid under this section may also be used for other nonrecurring instructional expenditures including, but not limited to, nonrecurring instructional expenditures for vocational education, or for debt service for acquisition of technology for academic support services. Funds received by an intermediate district under this section may be used for projects conducted for the benefit of its constituent districts at the discretion of the intermediate board. To the extent payments under this section are used by a district or intermediate district to pay debt service on debt payable from millage revenues, and to the extent permitted by law, the district or intermediate district may make a corresponding reduction in the number of mills levied for that debt service.
(7) The appropriations under this section are from the money appropriated and transferred to the state school aid fund from the countercyclical budget and economic stabilization fund under section 353e(2) and (3) of the management and budget act, 1984 PA 431, MCL 18.1353e.
(7) (8) The resolution to be adopted and submitted by a district or intermediate district under this section and section 11g shall read as follows:
"Whereas, the board of ____________________ (name of district or intermediate district) desires to settle and compromise, in their entirety, any claim or claims that the district (or intermediate district) has or had for violations of section 29 of article IX of the state constitution of 1963, which claim or claims are or were similar to the claims asserted by the plaintiffs in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492.
Whereas, the district (or intermediate district) agrees to settle and compromise these claims for the consideration described in sections 11f and 11g of the state school aid act of 1979, 1979 PA 94, MCL 388.1611f and 388.1611g, and in the amount specified for the district (or intermediate district) in section 11h of the state school aid act of 1979, 1979 PA 94, MCL 388.1611h.
Whereas, the board of _______________ (name of district or intermediate district) is authorized to adopt this resolution.
Now, therefore, be it resolved as follows:
1. The board of ____________________ (name of district or intermediate district) waives any right or interest it may have in any claim or potential claim through September 30, 1997 relating to the amount of funding the district or intermediate district is, or may have been, entitled to receive under the state school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, or any other source of state funding, by reason of the application of section 29 of article IX of the state constitution of 1963, which claims or potential claims are or were similar to the claims asserted by the plaintiffs in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492.
2. The board of ____________________ (name of district or intermediate district) directs its secretary to submit a certified copy of this resolution to the state treasurer no later than 5 p.m. eastern standard time on March 2, 1998, and agrees that it will not take any action to amend or rescind this resolution.
3. The board of ____________________ (name of district or intermediate district) expressly agrees and understands that, if it takes any action to amend or rescind this resolution, the state, its agencies, employees, and agents shall have available to them any privilege, immunity, and/or defense that would otherwise have been available had the claims or potential claims been actually litigated in any forum.
4. This resolution is contingent on continued payments by the state each fiscal year as determined under sections 11f and 11g of the state school aid act of 1979, 1979 PA 94, MCL 388.1611f and 388.1611g. However, this resolution shall be an irrevocable waiver of any claim to amounts actually received by the school district or intermediate school district under sections 11f and 11g of the state school aid act of 1979.".
Sec. 11g. (1) From the general fund money appropriated appropriation in section 11, there is allocated an amount not to exceed $40,000,000.00 $141,000.00 each fiscal year for the fiscal year ending September 30, 2002, for the fiscal year ending September 30, 2003, for the fiscal year ending September 30, 2004, and for the fiscal year ending September 30, 2005. There is allocated an amount not to exceed $34,200,000.00 for each succeeding fiscal year through the fiscal year ending September 30, 2013. Payments under this section will cease after September 30, 2013. These appropriations allocations are for paying the amounts described in subsection (3) to districts and intermediate districts, other than those receiving a lump sum payment under section 11f(2), that were not plaintiffs in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492 and that, on or before March 2, 1998, submitted to the state treasurer a waiver resolution described in section 11f. The amounts paid under this section represent offers of settlement and compromise of any claim or claims that were or could have been asserted by these districts and intermediate districts, as described in this section.
(2) This section does not create any obligation or liability of this state to any district or intermediate district that does not submit a waiver resolution described in section 11f. This section, any other provision of this act, and section 353e of the management and budget act, 1984 PA 431, MCL 18.1353e, are not intended to admit liability or waive any defense that is or would be available to this state or its agencies, employees, or agents in any litigation or future litigation with a district or intermediate district regarding these claims or potential claims.
(3) The amount paid each fiscal year to each district or intermediate district under this section shall be the sum of the following:
(a) 1/30 of the total amount listed in section 11h for the district or intermediate district.
(b) If the district or intermediate district borrows money and issues bonds under section 11i, an additional amount in each fiscal year calculated by the department of treasury that, when added to the amount described in subdivision (a), will cause the net present value as of November 15, 1998 of the total of the 15 annual payments made to the district or intermediate district under this section, discounted at a rate as determined by the state treasurer, to equal the amount of the bonds issued by that district or intermediate district under section 11i and that will result in the total payments made to all districts and intermediate districts in each fiscal year under this section being no more than the amount appropriated under this section in each fiscal year.
(4) The entire amount of each payment under this section each fiscal year shall be paid on May 15 of the applicable fiscal year or on the next business day following that date. If a district or intermediate district borrows money and issues bonds under section 11i, the district or intermediate district shall use funds received under this section to pay debt service on bonds issued under section 11i. If a district or intermediate district does not borrow money and issue bonds under section 11i, the district or intermediate district shall use funds received under this section only for the following purposes, in the following order of priority:
(a) First, to pay debt service on voter-approved bonds issued by the district or intermediate district before the effective date of this section.
(b) Second, to pay debt service on other limited tax obligations.
(c) Third, for deposit into a sinking fund established by the district or intermediate district under the revised school code.
(5) To the extent payments under this section are used by a district or intermediate district to pay debt service on debt payable from millage revenues, and to the extent permitted by law, the district or intermediate district may make a corresponding reduction in the number of mills levied for debt service.
(6) A district or intermediate district may pledge or assign payments under this section as security for bonds issued under section 11i, but shall not otherwise pledge or assign payments under this section.
Sec. 11j. From the general fund money appropriated appropriation in section 11, there is allocated an amount not to exceed $4,674,000.00 for 2002-2003 only, and from district and intermediate district payments to the school loan bond redemption fund appropriated in section 11, there is allocated an amount not to exceed $700,000.00 for 2002-2003 only, $28,300,000.00 for 2003-2004 for payments to the school loan bond redemption fund in the department of treasury.
Sec. 18. (1) Except as provided in another section of this act, each district or other entity shall apply the money received by the district or entity under this act to salaries and other compensation of teachers and other employees, tuition, transportation, lighting, heating, ventilation, water service, the purchase of textbooks which are designated by the board to be used in the schools under the board's charge, other supplies, and any other school operating expenditures defined in section 7. However, not more than 20% of the total amount received by a district under article 2 or intermediate district under article 8 may be transferred by the board to either the capital projects fund or to the debt retirement fund for debt service. The money shall not be applied or taken for a purpose other than as provided in this section. The department shall determine the reasonableness of expenditures and may withhold from a recipient of funds under this act the apportionment otherwise due for the fiscal year following the discovery by the department of a violation by the recipient.
(2) For the purpose of determining the reasonableness of expenditures and whether a violation of this act has occurred, the department shall require that each district and intermediate district have an audit of the district's or intermediate district's financial and pupil accounting records conducted at least annually at the expense of the district or intermediate district, as applicable, by a certified public accountant or by the intermediate district superintendent, as may be required by the department, or in the case of a district of the first class by a certified public accountant, the intermediate superintendent, or the auditor general of the city. An intermediate district's annual financial audit shall be accompanied by the intermediate district's pupil accounting procedures report. A district's or intermediate district's annual financial audit shall include an analysis of the financial and pupil accounting data used as the basis for distribution of state school aid. The pupil accounting records and reports, audits, and management letters are subject to requirements established in the auditing and accounting manuals approved and published by the department. Except as otherwise provided in this subsection, a district shall file the annual financial audit reports with the intermediate district not later than 120 days after the end of each school fiscal year and the intermediate district shall forward the annual financial audit reports for its constituent districts and for the intermediate district, and the pupil accounting procedures report for the pupil membership count day and supplemental count day, to the department not later than November 15 of each year. The annual financial audit reports and pupil accounting procedures reports shall be available to the public in compliance with the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246. Not later than December 1 of each year, the department shall notify the state budget director and the legislative appropriations subcommittees responsible for review of the school aid budget of districts and intermediate districts that have not filed an annual financial audit and pupil accounting procedures report required under this section for the school year ending in the immediately preceding fiscal year.
(3) Each By November 15 of each year, each district and intermediate district shall file with the department by November 15 of each year an annual comprehensive financial report, known as "Form B", on a form and in the manner prescribed by the department submit to the center, in a manner prescribed by the center, annual comprehensive financial data consistent with accounting manuals and charts of accounts approved and published by the department.
(4) By September 30 of each year, each district and intermediate district shall file with the department the special education actual cost report, known as "SE-4096", on a form and in the manner prescribed by the department.
(5) By October 7 of each year, each district and intermediate district shall file with the department the transportation expenditure report, known as "SE-4094", on a form and in the manner prescribed by the department.
(6) (4) Not later than July 1, 1999, the department shall approve and publish pupil accounting and pupil auditing manuals. The department shall review those manuals at least annually and shall periodically update those manuals to reflect changes in this act. The pupil accounting manuals in effect for the 1996-97 school year, including subsequent revisions issued by the superintendent, shall be the interim manuals in effect until new manuals are approved and published. However, the clarification of class-by-class accounting provided in the department's April 15, 1998 memorandum on pupil accounting procedures shall be excluded from the interim manuals.
(7) (5) If a district that is a public school academy purchases property using money received under this act, the public school academy shall retain ownership of the property unless the public school academy sells the property at fair market value.
(8) (6) If a district or intermediate district does not comply with subsection (2), or (3), (4), or (5), the department shall withhold all state school aid due to the district or intermediate district under this act, beginning with the next payment due to the district or intermediate district, until the district or intermediate district complies with subsections (2), and (3), (4), and (5). If the district or intermediate district does not comply with subsections (2), and (3), (4), and (5) by the end of the fiscal year, the district or intermediate district forfeits the amount withheld.
Sec. 19. (1) A district shall comply with the any requirements of sections 1204a, 1277, 1278, and 1280 of the revised school code, MCL 380.1204a, 380.1277, 380.1278, and 380.1280, commonly referred to as "public act 25 of 1990" that are not also required by the no child left behind act of 2001, Public Law 107-110, 115 Stat. 1425, as determined by the department.
(2) Each district and intermediate district shall provide to the department, in a form and manner prescribed by the department, information necessary for the development of an annual progress report on the required implementation of sections 1204a, 1277, 1278, and 1280 of the revised school code, MCL 380.1204a, 380.1277, 380.1278, and 380.1280, commonly referred to as "public act 25 of 1990". Additionally, each district and intermediate district shall provide to the department of information technology, in a form and manner prescribed by the department of information technology, on the achievement of national education goals, and information necessary for the development of other performance reports.
(3) A district or intermediate district shall comply with all applicable reporting requirements specified in state and federal law. Data provided to the center, in a form and manner prescribed by the center, shall be aggregated and disaggregated as required by state and federal law.
(4) Each district shall furnish to the center not later than 7 weeks after the pupil membership count day, in a manner prescribed by the center, the information necessary for the preparation of the district and high school graduation report. The center shall calculate an annual graduation and pupil dropout rate for each high school, each district, and this state, in compliance with nationally recognized standards for these calculations. The center shall report all graduation and dropout rates to the senate and house education committees and appropriations committees, the state budget director, and the department not later than June 1 of each year.
(5) A district shall furnish to the center, in a manner prescribed by the center, information related to educational personnel as necessary for reporting required by state and federal law.
(6) (3) If a district or intermediate district fails to meet the requirements of subsection (2), and sections 1204a, 1277, and 1278 of the revised school code, MCL 380.1204a, 380.1277, and 380.1278, (3), (4), or (5), the department shall withhold 5% of the total funds for which the district or intermediate district qualifies under this act until the district or intermediate district complies with all of those sections subsections. If the district or intermediate district does not comply with all of those sections subsections by the end of the fiscal year, the department shall place the amount withheld in an escrow account until the district or intermediate district complies with all of those sections subsections.
(7) (4) If a school in a district is not accredited under section 1280 of the revised school code, MCL 380.1280, or is not making satisfactory progress toward meeting the standards for that accreditation, the department shall withhold 5% of the total funds for which the district qualifies under this act that are attributable to pupils attending that school. The department shall place the amount withheld from a district under this subsection in an escrow account and shall not release the funds to the district until the district submits to the department a plan for achieving accreditation for each of the district's schools that are not accredited under section 1280 of the revised school code, MCL 380.1280, or are not making satisfactory progress toward meeting the standards for that accreditation.
(8) Before publishing a list of schools or districts determined to have failed to make adequate yearly progress as required by the federal no child left behind act of 2001, Public Law 107-110, 115 Stat. 1425, the department shall allow a school or district to appeal that determination. The department shall consider and act upon the appeal within 30 days after it is submitted and shall not publish the list until after all appeals have been considered and decided.
Sec. 20. (1) For 2001-2002, the basic foundation allowance is $6,300.00 per membership pupil. For 2002-2003 and for 2003-2004, the basic foundation allowance is $6,700.00 per membership pupil.
(2) The amount of each district's foundation allowance shall be calculated as provided in this section, using a basic foundation allowance in the amount specified in subsection (1).
(3) Except as otherwise provided in this section, the amount of a district's foundation allowance shall be calculated as follows, using in all calculations the total amount of the district's foundation allowance as calculated before any proration:
(a) Except as otherwise provided in this subsection, for a district that in the immediately preceding state fiscal year had a foundation allowance in an amount at least equal to the amount of the basic foundation allowance for the immediately preceding state fiscal year, the district shall receive a foundation allowance in an amount equal to the sum of the district's foundation allowance for the immediately preceding state fiscal year plus the dollar amount of the adjustment from the immediately preceding state fiscal year to the current state fiscal year in the basic foundation allowance. However, for 2002-2003, the foundation allowance for a district under this subdivision is an amount equal to the sum of the district's foundation allowance for the immediately preceding state fiscal year plus $200.00.
(b) For a district that in the 1994-95 state fiscal year had a foundation allowance greater than $6,500.00, the district's foundation allowance is an amount equal to the sum of the district's foundation allowance for the immediately preceding state fiscal year plus the lesser of the increase in the basic foundation allowance for the current state fiscal year, as compared to the immediately preceding state fiscal year, or the product of the district's foundation allowance for the immediately preceding state fiscal year times the percentage increase in the United States consumer price index in the calendar year ending in the immediately preceding fiscal year as reported by the May revenue estimating conference conducted under section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b. For 2002-2003, for a district that in the 1994-95 state fiscal year had a foundation allowance greater than $6,500.00, the district's foundation allowance is an amount equal to the sum of the district's foundation allowance for the immediately preceding state fiscal year plus the lesser of $200.00 or the product of the district's foundation allowance for the immediately preceding state fiscal year times the percentage increase in the United States consumer price index in the calendar year ending in the immediately preceding fiscal year as reported by the May revenue estimating conference conducted under section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b.
(c) For a district that has a foundation allowance that is not a whole dollar amount, the district's foundation allowance shall be rounded up to the nearest whole dollar.
(d) Beginning in 2002-2003, for For a district that receives received a payment under former section 22c for 2001-2002, the district's 2001-2002 foundation allowance shall be considered to have been an amount equal to the sum of the district's actual 2001-2002 foundation allowance as otherwise calculated under this section plus the per pupil amount of the district's equity payment for 2001-2002 under former section 22c.
(4) Except as otherwise provided in this subsection, the state portion of a district's foundation allowance is an amount equal to the district's foundation allowance or $6,500.00, whichever is less, minus the difference between the product of the taxable value per membership pupil of all property in the district that is not a homestead principal residence or qualified agricultural property times the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94 and the quotient of the ad valorem property tax revenue of the district captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership excluding special education pupils. For a district described in subsection (3)(b), the state portion of the district's foundation allowance is an amount equal to $6,962.00 plus the difference between the district's foundation allowance for the current state fiscal year and the district's foundation allowance for 1998-99, minus the difference between the product of the taxable value per membership pupil of all property in the district that is not a homestead principal residence or qualified agricultural property times the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94 and the quotient of the ad valorem property tax revenue of the district captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership excluding special education pupils. For a district that has a millage reduction required under section 31 of article IX of the state constitution of 1963, the state portion of the district's foundation allowance shall be calculated as if that reduction did not occur. The $6,500.00 amount prescribed in this subsection shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, . However, beginning in 2002-2003, the $6,500.00 amount prescribed in this subsection shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, minus $200.00.
(5) The allocation calculated under this section for a pupil shall be based on the foundation allowance of the pupil's district of residence. However, for a pupil enrolled pursuant to section 105 or 105c in a district other than the pupil's district of residence, the allocation calculated under this section shall be based on the lesser of the foundation allowance of the pupil's district of residence or the foundation allowance of the educating district. For a pupil in membership in a K-5, K-6, or K-8 district who is enrolled in another district in a grade not offered by the pupil's district of residence, the allocation calculated under this section shall be based on the foundation allowance of the educating district if the educating district's foundation allowance is greater than the foundation allowance of the pupil's district of residence. The calculation under this subsection shall take into account a district's per pupil allocation under section 20j(2).
(6) Subject to subsection (7) and section 22b(3) and except as otherwise provided in this subsection, for pupils in membership, other than special education pupils, in a public school academy or a university school, the allocation calculated under this section is an amount per membership pupil other than special education pupils in the public school academy or university school equal to the sum of the local school operating revenue per membership pupil other than special education pupils for the district in which the public school academy or university school is located and the state portion of that district's foundation allowance, or the sum of the basic foundation allowance under subsection (1) plus $500.00 $300.00, whichever is less. However, beginning in 2002-2003, this $500.00 amount shall instead be $300.00. Notwithstanding section 101(2), for a public school academy that begins operations in 2001-2002, 2002-2003 , or 2003-2004, as applicable, after the pupil membership count day, the amount per membership pupil calculated under this subsection shall be adjusted by multiplying that amount per membership pupil by the number of hours of pupil instruction provided by the public school academy after it begins operations, as determined by the department, divided by the minimum number of hours of pupil instruction required under section 101(3). The result of this calculation shall not exceed the amount per membership pupil otherwise calculated under this subsection.
(7) If more than 25% of the pupils residing within a district are in membership in 1 or more public school academies located in the district, then the amount per membership pupil calculated under this section for a public school academy located in the district shall be reduced by an amount equal to the difference between the product of the taxable value per membership pupil of all property in the district that is not a homestead principal residence or qualified agricultural property times the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94 and the quotient of the ad valorem property tax revenue of the district captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership excluding special education pupils, in the school fiscal year ending in the current state fiscal year, calculated as if the resident pupils in membership in 1 or more public school academies located in the district were in membership in the district. In order to receive state school aid under this act, a district described in this subsection shall pay to the authorizing body that is the fiscal agent for a public school academy located in the district for forwarding to the public school academy an amount equal to that local school operating revenue per membership pupil for each resident pupil in membership other than special education pupils in the public school academy, as determined by the department.
(8) If a district does not receive an amount calculated under subsection (9); if the number of mills the district may levy on a homestead principal residence and qualified agricultural property under section 1211(1) of the revised school code, MCL 380.1211, is 0.5 mills or less; and if the district elects not to levy those mills, the district instead shall receive a separate supplemental amount calculated under this subsection in an amount equal to the amount the district would have received had it levied those mills, as determined by the department of treasury. A district shall not receive a separate supplemental amount calculated under this subsection for a fiscal year unless in the calendar year ending in the fiscal year the district levies 18 mills or the number of mills of school operating taxes levied by the district in 1993, whichever is less, on property that is not a homestead principal residence or qualified agricultural property.
(9) For a district that had combined state and local revenue per membership pupil in the 1993-94 state fiscal year of more than $6,500.00 and that had fewer than 350 pupils in membership, if the district elects not to reduce the number of mills from which a homestead principal residence and qualified agricultural property are exempt and not to levy school operating taxes on a homestead principal residence and qualified agricultural property as provided in section 1211(1) of the revised school code, MCL 380.1211, and not to levy school operating taxes on all property as provided in section 1211(2) of the revised school code, MCL 380.1211, there is calculated under this subsection for 1994-95 and each succeeding fiscal year a separate supplemental amount in an amount equal to the amount the district would have received per membership pupil had it levied school operating taxes on a homestead principal residence and qualified agricultural property at the rate authorized for the district under section 1211(1) of the revised school code, MCL 380.1211, and levied school operating taxes on all property at the rate authorized for the district under section 1211(2) of the revised school code, MCL 380.1211, as determined by the department of treasury. If in the calendar year ending in the fiscal year a district does not levy 18 mills or the number of mills of school operating taxes levied by the district in 1993, whichever is less, on property that is not a homestead principal residence or qualified agricultural property, the amount calculated under this subsection will be reduced by the same percentage as the millage actually levied compares to the 18 mills or the number of mills levied in 1993, whichever is less.
(10) For Subject to subsection (4), for a district that is formed or reconfigured after June 1, 2002 by consolidation of 2 or more districts or by annexation, the resulting district's foundation allowance under this section beginning after the effective date of the consolidation or annexation shall be the lesser of an amount equal to the sum of the highest foundation allowance, as calculated under this section, among the original or affected districts plus $50.00 or an amount equal to $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under this section for the current state fiscal year and $5,000.00. However, beginning in 2002-2003, the $6,500.00 amount prescribed in this subsection shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, minus $200.00. average of the foundation allowances of each of the original or affected districts, calculated as provided in this section, weighted as to the percentage of pupils in total membership in the resulting district who reside in the geographic area of each of the original or affected districts.
(11) Each fraction used in making calculations under this section shall be rounded to the fourth decimal place and the dollar amount of an increase in the basic foundation allowance shall be rounded to the nearest whole dollar.
(12) State payments related to payment of the foundation allowance for a special education pupil are not calculated under this section but are instead calculated under section 51a.
(13) To assist the legislature in determining the basic foundation allowance for the subsequent state fiscal year, each revenue estimating conference conducted under section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b, shall calculate a pupil membership factor, a revenue adjustment factor, and an index as follows:
(a) The pupil membership factor shall be computed by dividing the estimated membership in the school year ending in the current state fiscal year, excluding intermediate district membership, by the estimated membership for the school year ending in the subsequent state fiscal year, excluding intermediate district membership. If a consensus membership factor is not determined at the revenue estimating conference, the principals of the revenue estimating conference shall report their estimates to the house and senate subcommittees responsible for school aid appropriations not later than 7 days after the conclusion of the revenue conference.
(b) The revenue adjustment factor shall be computed by dividing the sum of the estimated total state school aid fund revenue for the subsequent state fiscal year plus the estimated total state school aid fund revenue for the current state fiscal year, adjusted for any change in the rate or base of a tax the proceeds of which are deposited in that fund and excluding money transferred into that fund from the countercyclical budget and economic stabilization fund under section 353e of the management and budget act, 1984 PA 431, MCL 18.1353e, by the sum of the estimated total school aid fund revenue for the current state fiscal year plus the estimated total state school aid fund revenue for the immediately preceding state fiscal year, adjusted for any change in the rate or base of a tax the proceeds of which are deposited in that fund. If a consensus revenue factor is not determined at the revenue estimating conference, the principals of the revenue estimating conference shall report their estimates to the house and senate subcommittees responsible for school aid appropriations not later than 7 days after the conclusion of the revenue conference.
(c) The index shall be calculated by multiplying the pupil membership factor by the revenue adjustment factor. However, for 2003-2004 only, the index shall be 1.00. If a consensus index is not determined at the revenue estimating conference, the principals of the revenue estimating conference shall report their estimates to the house and senate subcommittees responsible for school aid appropriations not later than 7 days after the conclusion of the revenue conference.
(14) If the principals at the revenue estimating conference reach a consensus on the index described in subsection (13)(c), the basic foundation allowance for the subsequent state fiscal year shall be at least the amount of that consensus index multiplied by the basic foundation allowance specified in subsection (1).
(15) If at the January revenue estimating conference it is estimated that pupil membership, excluding intermediate district membership, for the subsequent state fiscal year will be greater than 101% of the pupil membership, excluding intermediate district membership, for the current state fiscal year, then it is the intent of the legislature that the executive budget proposal for the school aid budget for the subsequent state fiscal year include a general fund/general purpose allocation sufficient to support the membership in excess of 101% of the current year pupil membership.
(16) For a district that had combined state and local revenue per membership pupil in the 1993-94 state fiscal year of more than $6,500.00, that had fewer than 7 pupils in membership in the 1993-94 state fiscal year, that has at least 1 child educated in the district in the current state fiscal year, and that levies the number of mills of school operating taxes authorized for the district under section 1211 of the revised school code, MCL 380.1211, a minimum amount of combined state and local revenue shall be calculated for the district as provided under this subsection. The minimum amount of combined state and local revenue for 1999-2000 shall be $67,000.00 plus the district's additional expenses to educate pupils in grades 9 to 12 educated in other districts as determined and allowed by the department. The minimum amount of combined state and local revenue under this subsection, before adding the additional expenses, shall increase each fiscal year by the same percentage increase as the percentage increase in the basic foundation allowance from the immediately preceding fiscal year to the current fiscal year. The state portion of the minimum amount of combined state and local revenue under this subsection shall be calculated by subtracting from the minimum amount of combined state and local revenue under this subsection the sum of the district's local school operating revenue and an amount equal to the product of the sum of the state portion of the district's foundation allowance plus the amount calculated under section 20j times the district's membership. As used in this subsection, "additional expenses" means the district's expenses for tuition or fees, not to exceed $6,500.00 as adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, minus $200.00, plus a room and board stipend not to exceed $10.00 per school day for each pupil in grades 9 to 12 educated in another district, as approved by the department. However, beginning in 2002-2003, the $6,500.00 amount prescribed in this subsection shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, minus $200.00.
(17) For a district in which 7.75 mills levied in 1992 for school operating purposes in the 1992-93 school year were not renewed in 1993 for school operating purposes in the 1993-94 school year, the district's combined state and local revenue per membership pupil shall be recalculated as if that millage reduction did not occur and the district's foundation allowance shall be calculated as if its 1994-95 foundation allowance had been calculated using that recalculated 1993-94 combined state and local revenue per membership pupil as a base. A district is not entitled to any retroactive payments for fiscal years before 2000-2001 due to this subsection.
(18) For a district in which an industrial facilities exemption certificate that abated taxes on property with a state equalized valuation greater than the total state equalized valuation of the district at the time the certificate was issued or $700,000,000.00, whichever is greater, was issued under 1974 PA 198, MCL 207.551 to 207.572, before the calculation of the district's 1994-95 foundation allowance, the district's foundation allowance for 2002-2003 is an amount equal to the sum of the district's foundation allowance for 2002-2003, as otherwise calculated under this section, plus $250.00.
(19) For a district that received a grant under former section 32e for 2001-2002, the district's foundation allowance for 2002-2003 shall be adjusted to be an amount equal to the sum of the district's foundation allowance, as otherwise calculated under this section, plus the quotient of the amount of the grant award to the district for 2001-2002 under former section 32e divided by the district's membership for 2001-2002, and the district's foundation allowance for 2003-2004 shall be adjusted to be an amount equal to the sum of the district's foundation allowance, as otherwise calculated under this section, plus the quotient of 100% of the amount of the grant award to the district for 2001-2002 under former section 32e divided by the district's membership for 2001-2002. A Except as otherwise provided in this subsection, a district qualifying for a foundation allowance adjustment under this section subsection shall use the funds resulting from this adjustment for at least 1 of grades K to 3 for purposes allowable under former section 32e as in effect for 2001-2002. For an individual school or schools operated by a district qualifying for a foundation allowance under this subsection that have been determined by the department to meet the adequate yearly progress standards of the federal no child left behind act of 2001, Public Law 107-110, 115 Stat. 1425, in both mathematics and English language arts at all applicable grade levels for all applicable subgroups, the district may submit to the department an application for flexibility in using the funds resulting from this adjustment that are attributable to the pupils in the school or schools. The application shall identify the affected school or schools and the affected funds and shall contain a plan for using the funds for specific purposes identified by the district that are designed to reduce class size, but that may be different from the purposes otherwise allowable under this subsection. The department shall approve the application if the department determines that the purposes identified in the plan are reasonably designed to reduce class size. If the department does not act to approve or disapprove an application within 30 days after it is submitted to the department, the application is considered to be approved. If an application for flexibility in using the funds is approved, the district may use the funds identified in the application for any purpose identified in the plan.
(20) For a district that is a qualifying school district with a school reform board in place under part 5a of the revised school code, MCL 380.371 to 380.376, the district's foundation allowance for 2002-2003 shall be adjusted to be an amount equal to the sum of the district's foundation allowance, as otherwise calculated under this section, plus the quotient of $15,000,000.00 divided by the district's membership for 2002-2003. If a district ceases to meet the requirements of this subsection, the department shall adjust the district's foundation allowance in effect at that time based on a 2002-2003 foundation allowance for the district that does not include the 2002-2003 adjustment under this subsection. This subsection only applies for 2002-2003. Beginning in 2003-2004, the foundation allowance of a district that received an adjustment under this subsection for 2002-2003 shall be calculated as if that 2002-2003 adjustment did not occur.
(21) Payments to districts, university schools, or public school academies shall not be made under this section. Rather, the calculations under this section shall be used to determine the amount of state payments under section 22b.
(22) If an amendment to section 2 of article VIII of the state constitution of 1963 allowing state aid to some or all nonpublic schools is approved by the voters of this state, each foundation allowance or per pupil payment calculation under this section may be reduced.
(23) As used in this section:
(a) "Combined state and local revenue" means the aggregate of the district's state school aid received by or paid on behalf of the district under this section and the district's local school operating revenue.
(b) "Combined state and local revenue per membership pupil" means the district's combined state and local revenue divided by the district's membership excluding special education pupils.
(c) "Current state fiscal year" means the state fiscal year for which a particular calculation is made.
(d) "Homestead" means that term as defined in section 1211 of the revised school code, MCL 380.1211.
(d) (e) "Immediately preceding state fiscal year" means the state fiscal year immediately preceding the current state fiscal year.
(e) (f) "Local school operating revenue" means school operating taxes levied under section 1211 of the revised school code, MCL 380.1211.
(f) (g) "Local school operating revenue per membership pupil" means a district's local school operating revenue divided by the district's membership excluding special education pupils.
(g) (h) "Membership" means the definition of that term under section 6 as in effect for the particular fiscal year for which a particular calculation is made.
(i) "Qualified agricultural property" means that term as defined in section 1211 of the revised school code, MCL 380.1211.
(h) "Principal residence" and "qualified agricultural property" mean those terms as defined in section 7dd of the general property tax act, 1893 PA 206, MCL 211.7dd.
(i) (j) "School operating purposes" means the purposes included in the operation costs of the district as prescribed in sections 7 and 18.
(j) (k) "School operating taxes" means local ad valorem property taxes levied under section 1211 of the revised school code, MCL 380.1211, and retained for school operating purposes.
(k) (l) "Taxable value per membership pupil" means taxable value, as certified by the department of treasury, for the calendar year ending in the current state fiscal year divided by the district's membership excluding special education pupils for the school year ending in the current state fiscal year.
Sec. 20k. If the maximum amount appropriated under section 11 from the state school aid fund for a fiscal year exceeds the amount available for expenditure from the state school aid fund for that fiscal year so that a district's state school aid is reduced pursuant to section 11(3), the payments calculated under section 20j and made under section 22b shall be considered to be foundation allowance payments for the purpose of determining the maximum number of mills a district may levy under section 1211(3) of the revised school code, MCL 380.1211. However, the amount to be considered a foundation allowance payment for this purpose shall not exceed the amount reduced from the district's state aid payment as a result of the implementation of section 11(3).
Sec. 22a. (1) From the appropriation in section 11, there is allocated an amount not to exceed $7,022,000,000.00 for 2001-2002 and an amount not to exceed $6,953,000,000.00 each fiscal year for 2002-2003 and $6,816,000,000.00 for 2003-2004 for payments to districts, qualifying university schools, and qualifying public school academies to guarantee each district, qualifying university school, and qualifying public school academy an amount equal to its 1994-95 total state and local per pupil revenue for school operating purposes under section 11 of article IX of the state constitution of 1963. Pursuant to section 11 of article IX of the state constitution of 1963, this guarantee does not apply to a district in a year in which the district levies a millage rate for school district operating purposes less than it levied in 1994. However, subsection (2) applies to calculating the payments under this section. Funds allocated under this section that are not expended in the state fiscal year for which they were allocated, as determined by the department, may be used to supplement the allocations under sections 22b and 51c in order to fully fund those calculated allocations for the same fiscal year.
(2) To ensure that a district receives an amount equal to the district's 1994-95 total state and local per pupil revenue for school operating purposes, there is allocated to each district a state portion of the district's 1994-95 foundation allowance in an amount calculated as follows:
(a) Except as otherwise provided in this subsection, the state portion of a district's 1994-95 foundation allowance is an amount equal to the district's 1994-95 foundation allowance or $6,500.00, whichever is less, minus the difference between the product of the taxable value per membership pupil of all property in the district that is not a homestead or qualified agricultural property times the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94 and the quotient of the ad valorem property tax revenue of the district captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership. For a district that has a millage reduction required under section 31 of article IX of the state constitution of 1963, the state portion of the district's foundation allowance shall be calculated as if that reduction did not occur.
(b) For a district that had a 1994-95 foundation allowance greater than $6,500.00, the state payment under this subsection shall be the sum of the amount calculated under subdivision (a) plus the amount calculated under this subdivision. The amount calculated under this subdivision shall be equal to the difference between the district's 1994-95 foundation allowance minus $6,500.00 and the current year hold harmless school operating taxes per pupil. If the result of the calculation under subdivision (a) is negative, the negative amount shall be an offset against any state payment calculated under this subdivision. If the result of a calculation under this subdivision is negative, there shall not be a state payment or a deduction under this subdivision. The taxable values per membership pupil used in the calculations under this subdivision are as adjusted by ad valorem property tax revenue captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership.
(3) For pupils in membership in a qualifying public school academy or qualifying university school, there is allocated under this section each fiscal year for 2001-2002, for 2002-2003, and for 2003-2004 to the authorizing body that is the fiscal agent for the qualifying public school academy for forwarding to the qualifying public school academy, or to the board of the public university operating the qualifying university school, an amount equal to the 1994-95 per pupil payment to the qualifying public school academy or qualifying university school under section 20.
(4) A district, qualifying university school, or qualifying public school academy may use funds allocated under this section in conjunction with any federal funds for which the district, qualifying university school, or qualifying public school academy otherwise would be eligible.
(5) For a district that is formed or reconfigured after June 1, 2000 by consolidation of 2 or more districts or by annexation, the resulting district's 1994-95 foundation allowance under this section beginning after the effective date of the consolidation or annexation shall be the average of the 1994-95 foundation allowances of each of the original or affected districts, calculated as provided in this section, weighted as to the percentage of pupils in total membership in the resulting district in the state fiscal year in which the consolidation takes place who reside in the geographic area of each of the original districts. If an affected district's 1994-95 foundation allowance is less than the 1994-95 basic foundation allowance, the amount of that district's 1994-95 foundation allowance shall be considered for the purpose of calculations under this subsection to be equal to the amount of the 1994-95 basic foundation allowance.
(6) As used in this section:
(a) "1994-95 foundation allowance" means a district's 1994-95 foundation allowance calculated and certified by the department of treasury or the superintendent under former section 20a as enacted in 1993 PA 336 and as amended by 1994 PA 283.
(b) "Current state fiscal year" means the state fiscal year for which a particular calculation is made.
(c) "Current year hold harmless school operating taxes per pupil" means the per pupil revenue generated by multiplying a district's 1994-95 hold harmless millage by the district's current year taxable value per membership pupil.
(d) "Hold harmless millage" means, for a district with a 1994-95 foundation allowance greater than $6,500.00, the number of mills by which the exemption from the levy of school operating taxes on a homestead and qualified agricultural property could be reduced as provided in section 1211(1) of the revised school code, MCL 380.1211, and the number of mills of school operating taxes that could be levied on all property as provided in section 1211(2) of the revised school code, MCL 380.1211, as certified by the department of treasury for the 1994 tax year.
(e) "Homestead" means that term as defined in section 1211 of the revised school code, MCL 380.1211.
(f) "Membership" means the definition of that term under section 6 as in effect for the particular fiscal year for which a particular calculation is made.
(g) "Qualified agricultural property" means that term as defined in section 1211 of the revised school code, MCL 380.1211.
(h) "Qualifying public school academy" means a public school academy that was in operation in the 1994-95 school year and is in operation in the current state fiscal year.
(i) "Qualifying university school" means a university school that was in operation in the 1994-95 school year and is in operation in the current fiscal year.
(j) "School operating taxes" means local ad valorem property taxes levied under section 1211 of the revised school code, MCL 380.1211, and retained for school operating purposes.
(k) "Taxable value per membership pupil" means each of the following divided by the district's membership:
(i) For the number of mills by which the exemption from the levy of school operating taxes on a homestead and qualified agricultural property may be reduced as provided in section 1211(1) of the revised school code, MCL 380.1211, the taxable value of homestead and qualified agricultural property for the calendar year ending in the current state fiscal year.
(ii) For the number of mills of school operating taxes that may be levied on all property as provided in section 1211(2) of the revised school code, MCL 380.1211, the taxable value of all property for the calendar year ending in the current state fiscal year.
Sec. 22b. (1) From the appropriation in section 11, there is allocated an amount not to exceed $2,368,000,000.00 for 2001-2002, an amount not to exceed $2,883,500,000.00 for 2002-2003, and an amount not to exceed $2,880,000,000.00 $2,881,000,000.00 for 2003-2004 for discretionary nonmandated payments to districts under this section. Funds allocated under this section that are not expended in the state fiscal year for which they were allocated, as determined by the department, may be used to supplement the allocations under sections 22a and 51c in order to fully fund those calculated allocations for the same fiscal year.
(2) Subject to subsection (3) , subsections (5) to (9), and section 11, the allocation to a district under this section shall be an amount equal to the sum of the amounts calculated under sections 20, 20j, 51a(2), 51a(3), and 51a(12), minus the sum of the allocations to the district under sections 22a and 51c.
(3) In order to receive an allocation under this section, each district shall administer in each grade level that it operates in grades 1 to 5 a standardized assessment approved by the department of grade-appropriate basic educational skills. A district may use the Michigan literacy progress profile to satisfy this requirement for grades 1 to 3. Also, if the revised school code is amended to require annual assessments at additional grade levels, in order to receive an allocation under this section each district shall comply with that requirement.
(4) From the allocation in subsection (1), the department shall expend funds to pay for necessary costs associated with resolving matters pending in federal court impacting payments to districts, including, but not limited to, expert witness fees. Beginning in 2001-2002, from the allocation in subsection (1), the department shall also pay up to $1,000,000.00 in litigation costs incurred by this state associated with lawsuits filed by 1 or more districts or intermediate districts against this state. If the allocation under this section is insufficient to fully fund all payments required under this section, the payments under this subsection shall be made in full before any proration of remaining payments under this section.
(5) It is the intent of the legislature that all constitutional obligations of this state have been fully funded under sections 22a, 31d, 51a, and 51c. If a claim is made by an entity receiving funds under this act that challenges the legislative determination of the adequacy of this funding or alleges that there exists an unfunded constitutional requirement, the state budget director may escrow or allocate from the discretionary funds for nonmandated payments under this section the amount as may be necessary to satisfy the claim before making any payments to districts under subsection (2). If funds are escrowed, the escrowed funds are a work project appropriation and the funds are carried forward into the following fiscal year. The purpose of the work project is to provide for any payments that may be awarded to districts as a result of litigation. The work project shall be completed upon resolution of the litigation.
(6) If the local claims review board or a court of competent jurisdiction makes a final determination that this state is in violation of section 29 of article IX of the state constitution of 1963 regarding state payments to districts, the state budget director shall use work project funds under subsection (5) or allocate from the discretionary funds for nonmandated payments under this section the amount as may be necessary to satisfy the amount owed to districts before making any payments to districts under subsection (2).
(7) If a claim is made in court that challenges the legislative determination of the adequacy of funding for this state's constitutional obligations or alleges that there exists an unfunded constitutional requirement, any interested party may seek an expedited review of the claim by the local claims review board. If the claim exceeds $10,000,000.00, this state may remove the action to the court of appeals, and the court of appeals shall have and shall exercise jurisdiction over the claim.
(8) If payments resulting from a final determination by the local claims review board or a court of competent jurisdiction that there has been a violation of section 29 of article IX of the state constitution of 1963 exceed the amount allocated for discretionary nonmandated payments under this section, the legislature shall provide for adequate funding for this state's constitutional obligations at its next legislative session.
(9) If a lawsuit challenging payments made to districts related to costs reimbursed by federal title XIX medicaid funds is filed against this state during 2001-2002, 2002-2003, or 2003-2004, 50% of the amount allocated in subsection (1) not previously paid out for 2002-2003, 2003-2004, and each succeeding fiscal year is a work project appropriation and the funds are carried forward into the following fiscal year. The purpose of the work project is to provide for any payments that may be awarded to districts as a result of the litigation. The work project shall be completed upon resolution of the litigation. In addition, this state reserves the right to terminate future federal title XIX medicaid reimbursement payments to districts if the amount or allocation of reimbursed funds is challenged in the lawsuit. As used in this subsection, "title XIX" means title XIX of the social security act, chapter 531, 49 Stat. 620, 42 U.S.C. 1396 to 1396r-6 and 1396r-8 to 1396v.
Sec. 22d. If the department determines that a district has been required to pay interest and penalties due to a decision of the state tax tribunal involving a loss in taxable value related to property classified as industrial, the district shall receive a payment under this section to reimburse the district for the amount of interest and penalties the district is required to pay in excess of $8,000,000.00, as determined by the department of treasury.
Sec. 22e. (1) From the appropriations in section 11, there is allocated an amount not to exceed $120,000.00 for 2003-2004 for interest payments to districts under this section.
(2) If the department determines that a district is required to pay interest on any property tax refund ordered in the partial consent judgment entered on November 6, 2001 in Hitachi Magnetics Corporation v Home Township, Michigan tax tribunal, docket nos. 190507 and 247733 (consolidated), the district shall receive a payment under this section to reimburse the district for interest paid, in an amount determined by the department of treasury.
Sec. 24. (1) Subject to subsection (2), from the appropriation in section 11, there is allocated each fiscal year for 2001-2002, for 2002-2003, and for 2003-2004 to the educating district or intermediate district an amount equal to 100% of the added cost each fiscal year for educating all pupils assigned by a court or the family independence agency to reside in or to attend a juvenile detention facility or child caring institution licensed by the family independence agency or the department of consumer and industry services and approved by the department to provide an on-grounds education program. The total amount to be paid under this section for added cost shall not exceed $8,400,000.00 for 2001-2002 and $8,900,000.00 each fiscal year for 2002-2003 and $8,000,000.00 for 2003-2004. For the purposes of this section, "added cost" shall be computed by deducting all other revenue received under this act for pupils described in this section from total costs, as approved by the department, in whole or in part, for educating those pupils in the on-grounds education program or in a program approved by the department that is located on property adjacent to a juvenile detention facility or child caring institution. Costs reimbursed by federal funds are not included. For 2003-2004 only, for an on-grounds education program or a program located on property adjacent to a juvenile detention facility or child caring institution that was not in existence at the time the allocations under this section were approved, the department shall give approval for only that portion of the educating district's or intermediate district's total costs that will not prevent the allocated amounts under this section from first being applied to 100% of the added cost of the programs that were in existence at the time the preliminary allocations under this section were approved.
(2) A district or intermediate district educating pupils described in this section at a residential child caring institution may operate, and receive funding under this section for, a department-approved on-grounds educational program for those pupils that is longer than 181 days, but not longer than 233 days, if the child caring institution was licensed as a child caring institution and offered in 1991-92 an on-grounds educational program that was longer than 181 days but not longer than 233 days and that was operated by a district or intermediate district.
(3) Special education pupils funded under section 53a shall not be funded under this section.
(4) The department shall appoint a committee to study and make recommendations concerning issues related to the education of pupils under this section, including, but not limited to, pupil counts, cost controls, and the number and type of eligible programs under this section. The committee may include, but is not limited to, appointees from 1 or more adjudicated youth educators associations, the house fiscal agency, the senate fiscal agency, the department of management and budget, the family independence agency, the department of corrections, the court system, and the department. Not later than May 15, 2004, the committee shall submit its recommendations to the house and senate appropriations subcommittees responsible for this act and to the department of management and budget.
Sec. 26a. From the general fund appropriation in section 11, there is allocated an amount not to exceed $8,800,000.00 for 2001-2002 and an amount not to exceed $10,174,000.00 each fiscal year for 2002-2003 and $18,700,000.00 for 2002-2003 and an amount not to exceed $25,260,000.00 for 2003-2004 to reimburse districts, intermediate districts, and the state school aid fund pursuant to section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied in 2001, 2002 , and 2003, respectively. This reimbursement shall be made by adjusting payments under section 22a to eligible districts, adjusting payments under section 56, 62, or 81 to eligible intermediate districts, and adjusting the state school aid fund. The adjustments shall be made not later than 60 days after the department of treasury certifies to the department and to the state budget director that the department of treasury has received all necessary information to properly determine the amounts due to each eligible recipient.
Sec. 31a. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2001-2002 an amount not to exceed $314,200,000.00 and there is allocated each fiscal year for 2002-2003 and for 2003-2004 an amount not to exceed $314,200,000.00 for payments to eligible districts and eligible public school academies under this section. Subject to subsection (11) (12), the amount of the additional allowance under this section shall be based on the number of actual pupils in membership in the district or public school academy who met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding state fiscal year, as determined under the Richard B. Russell national school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to 1753, 1755 to 1761, 1762a, 1765 to 1766a, 1769, 1769b to 1769c, and 1769f to 1769h, and reported to the department by October 31 of the immediately preceding fiscal year and adjusted not later than December 31 of the immediately preceding fiscal year. However, for a public school academy that began operations as a public school academy after the pupil membership count day of the immediately preceding school year, the basis for the additional allowance under this section shall be the number of actual pupils in membership in the public school academy who met the income eligibility criteria for free breakfast, lunch, or milk in the current state fiscal year, as determined under the Richard B. Russell national school lunch act.
(2) To be eligible to receive funding under this section, other than funding under subsection (6), a district or public school academy that has not been previously determined to be eligible shall apply to the department, in a form and manner prescribed by the department, and a district or public school academy must meet all of the following:
(a) The sum of the district's or public school academy's combined state and local revenue per membership pupil in the current state fiscal year, as calculated under section 20, plus the amount of the district's per pupil allocation under section 20j(2), is less than or equal to $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current state fiscal year and $5,000.00, . However, beginning in 2002-2003, the $6,500.00 amount prescribed in this subdivision shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, minus $200.00.
(b) The district or public school academy agrees to use the funding only for purposes allowed under this section and to comply with the program and accountability requirements under this section.
(3) Except as otherwise provided in this subsection, an eligible district or eligible public school academy shall receive under this section for each membership pupil in the district or public school academy who met the income eligibility criteria for free breakfast, lunch, or milk, as determined under the Richard B. Russell national school lunch act and as reported to the department by October 31 of the immediately preceding fiscal year and adjusted not later than December 31 of the immediately preceding fiscal year, an amount per pupil equal to 11.5% of the sum of the district's foundation allowance or public school academy's per pupil amount calculated under section 20, plus the amount of the district's per pupil allocation under section 20j(2), not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current state fiscal year and $5,000.00, minus $200.00, or of the public school academy's per membership pupil amount calculated under section 20 for the current state fiscal year. However, beginning in 2002-2003, the $6,500.00 amount prescribed in this subsection shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00, minus $200.00. A public school academy that began operations as a public school academy after the pupil membership count day of the immediately preceding school year shall receive under this section for each membership pupil in the public school academy who met the income eligibility criteria for free breakfast, lunch, or milk, as determined under the Richard B. Russell national school lunch act and as reported to the department by October 31 of the current fiscal year and adjusted not later than December 31 of the current fiscal year, an amount per pupil equal to 11.5% of the public school academy's per membership pupil amount calculated under section 20 for the current state fiscal year.
(4) Except as otherwise provided in this section, a district or public school academy receiving funding under this section shall use that money only to provide instructional programs and direct noninstructional services, including, but not limited to, medical or counseling services, for at-risk pupils; for school health clinics; and for the purposes of subsection (5) or (6). , and A district or public school academy shall not use any of that money for administrative costs or to supplant another program or other funds, except for funds allocated to the district or public school academy under this section in the immediately preceding year and already being used by the district or public school academy for at-risk pupils. The instruction or direct noninstructional services provided under this section may be conducted before or after regular school hours or by adding extra school days to the school year and may be conducted using a include, but are not limited to, tutorial services, early childhood programs to serve children age 0 to 5, and reading programs as described in former section 32f as in effect for 2001-2002. A tutorial method , may be conducted with paraprofessionals working under the supervision of a certificated teacher. The ratio of pupils to paraprofessionals shall be between 10:1 and 15:1. Only 1 certificated teacher is required to supervise instruction using a tutorial method. As used in this subsection, "to supplant another program" means to take the place of a previously existing instructional program or direct noninstructional services funded from a funding source other than funding under this section.
(5) A Except as otherwise provided in subsection (11), a district or public school academy that receives funds under this section and that operates a school breakfast program under section 1272a of the revised school code, MCL 380.1272a, shall use from the funds received under this section an amount, not to exceed $10.00 per pupil for whom the district or public school academy receives funds under this section, necessary to operate the school breakfast program.
(6) From the funds allocated under subsection (1), there is allocated for 2001-2002 an amount not to exceed $2,400,000.00 to support teen health centers. These 2001-2002 funds shall be distributed to existing teen health centers in a manner determined by the department in collaboration with the department of community health. From the funds allocated under subsection (1), there is allocated each fiscal year for 2002-2003 and for beginning with 2003-2004 an amount not to exceed $3,743,000.00 for competitive grants to support teen health centers. These grants for 2002-2003 and 2003-2004 shall be awarded for 3 consecutive years beginning with 2003-2004 in a form and manner approved jointly by the department and the department of community health. Each grant recipient shall remain in compliance with the terms of the grant award or shall forfeit the grant award for the duration of the 3-year period after the noncompliance. If any funds allocated under this subsection are not used for the purposes of this subsection for the fiscal year in which they are allocated, those unused funds shall be used that fiscal year to avoid or minimize any proration that would otherwise be required under subsection (11) (12) for that fiscal year.
(7) Each district or public school academy receiving funds under this section shall submit to the department by July 15 of each fiscal year a report, not to exceed 10 pages, on the usage by the district or public school academy of funds under this section, which report shall include at least a brief description of each program conducted by the district or public school academy using funds under this section, the amount of funds under this section allocated to each of those programs, the number of at-risk pupils eligible for free or reduced price school lunch who were served by each of those programs, and the total number of at-risk pupils served by each of those programs. If a district or public school academy does not comply with this subsection, the department shall withhold an amount equal to the August payment due under this section until the district or public school academy complies with this subsection. If the district or public school academy does not comply with this subsection by the end of the state fiscal year, the withheld funds shall be forfeited to the school aid fund.
(8) In order to receive funds under this section, a district or public school academy shall allow access for the department or the department's designee to audit all records related to the program for which it receives those funds. The district or public school academy shall reimburse the state for all disallowances found in the audit.
(9) Subject to subsections (5), and (6), and (11), any district may use up to 100% of the funds it receives under this section to reduce the ratio of pupils to teachers in grades K-6, or any combination of those grades, in school buildings in which the percentage of pupils described in subsection (1) exceeds the district's aggregate percentage of those pupils. Subject to subsections (5), and (6), and (11), if a district obtains a wai